For personal use only - ASX · 2011-09-27 · Paul Miller (Chairman and Compliance Officer) Rex Watson (Group Managing Director) Andrew Parkinson (Chief Executive Officer & Company

Coonawarra Australia Property TrustFinancial Statements

For the Year Ended 30 June 2011

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Coonawarra Australia Property TrustABN 37 529 164 940

Financial Statements For the Year Ended 30 June 2011

Contents Page Number

Corporate Information

Corporate Governance Statement 1

Directors' Report 5

Auditors Independence Declaration under Section 307C of the Corporations Act 2001 12

Statement of Comprehensive Income 13

Statement of Financial Position 14

Statement of Changes in Equity 15

Statement of Cash Flows 16

Notes to the Financial Statements 17

Directors' Declaration 59

Independent Audit Report 60

Additional Information for Listed Public Companies 63

Notice of Annual General Meeting 65

Proxy Form 66

Corporate Information

Responsible Entity (RE)Coonawarra Premium Vineyards Limited ABN 58 086 944 265AFS Licence No. 226243

Directors of the ResposibleEntity

Paul Miller (Chairman and Compliance Officer)Rex Watson (Group Managing Director) Andrew Parkinson (Chief Executive Officer & Company Secretary)

Company Secretaries of the REAndrew Parkinson (Chief Executive Officer)Conrad Guerra (Chief Financial Officer)

Registered office and principal place ofbusiness

235 Glen Osmond Road, Frewville, South Australia 5063

Postal address PO Box 167, Fullarton South Australia 5063

Phone +61 8 8338 3400

Fax +61 8 8338 3244

Email [email protected]

Trust ASX Code CNR

Trust Registry

Computershare Investor Services Pty LtdLevel 5, 115 Grenfell St, Adelaide SA 5000Phone: 1300 556 161 or (if outside Australia)+61 3 9415 4000Email: [email protected]: www.computershare.com

Custodian Australian Executor Trustees (SA) Limited, Adleaide

AuditorGrant Thornton South Australian Partnership Chartered AccountantsLevel 1, 16 Greenhill Road Wayville SA 5034

Banker Commonwealth Bank of Australia, Adelaide

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Corporate Governance Statement

The Board of Directors of Coonawarra Premium Vineyards Limited (CPVL), as responsible entity for theCoonawarra Australia Property Trust (Trust), is responsible for the corporate governance of the Trust. TheBoard monitors the business affairs of the Trust on behalf of the unit-holders to whom they are accountable. TheGroup comprises the Trust and any entities that the Trust controls from time to time.

The directors acknowledge the Principles of Good Corporate Governance and Best Practice Recommendationsset by the Australian Securities Exchange (ASX) Corporate Governance Council. In view of the Group�s currentsize and the extent and nature of its operations, however, full adoption of the recommendations is currently notpractical. The Board will continue to work towards full adoption of the recommendations in line with growth anddevelopment of the Trust in the years ahead. Where the Trust�s framework has been different to the Principlesof Good Corporate Governance and Best Practice Recommendations set by the ASX Corporate GovernanceCouncil, the differences have been noted.

The ASX Corporate Governance Council has released amendments dated 30 June 2010 to the second editionCorporate Governance Principles and Recommendations (Principles and Recommendations) in relation todiversity, remuneration, trading policies and briefings. The Group has addressed the amended principles withinthis statement.

A summary of the current corporate governance practices as adopted by the board follows.

The Board of Directors of the Responsible Entity (RE)

As at the date of this report the Board of the RE comprised three directors: two executive directors (the GroupManaging Director (GMD) and the Chief Executive Officer (CEO)) and one non-executive director. The Boardcarries out its responsibilities according to the following mandate:

· The Board should comprise at least three directors, with at least two-thirds being non-executive

directors;

· The chairman of the Board should be a non-executive director;

· The directors should possess a broad range of skills, qualifications and experience;

· The Board should meet at least on a quarterly basis; and

· All available information in connection with items to be discussed at a meeting of the Board shall be

provided to each director prior to that meeting.

The Board meets on a monthly basis and its primary functions include:

· The approval of the annual and half-yearly financial reports;

· The establishment of the long term goals of the Group and strategic plans to achieve those goals;

· The review and adoption of annual budgets for the financial performance of the Group and

monitoring the results on a quarterly basis;

· Ensuring that the Group has implemented adequate internal controls together with appropriate

monitoring of compliance activities; and

· Ensuring that the Group is able to pay its debts as and when they fall due.

The skills, experience and expertise relevant to the position of each director who is in office at the date of theannual report and their term of office are detailed in the director's report.

The name of the independent director of the company is Paul Miller.

When determining whether a non-executive is independent the director must not fail any of the followingmateriality thresholds:

- less than 10% of company shares are held by the director and any entity or individual directly or indirectlyassociated with the director;

- no sales are made to or purchase made from any entity or individual directly or indirectly associated withthe director; and

- none of the director's income or the income of an individual or entity directly or indirectly associated withthe director is derived from a contract with any member of the Group other than income derived as adirector of the entity.

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All directors have the right to seek independent professional advice in the furtherance of their duties as directorsat the Trust's expense (providing a copy of such advice is provided to the Trust). Written approval must beobtained from the company secretary prior to incurring any expense on behalf of theTrust.

There are no set terms for directors to hold office. The RE�s executive management comprises the GroupManaging Director, the Chief Executive Officer and the Chief Financial Officer, to whom the Board delegatesresponsibilities as expected for these executive positions.

Due to the Trust�s current size and extent and nature of operations, the following departures from the Principlesof Good Corporate Governance and Best Practice Recommendations have occurred:

· The majority of the Board should be independent. The Board consists of two executive directors (Rex

Watson and Andrew Parkinson) and one non-executive director (Paul Miller). As Rex Watson and

Andrew Parkinson are executive directors and Rex Watson is an associate of a substantial unit-

holder, Rex Watson and Andrew Parkinson are not considered independent.

Ethical Standards

The Board acknowledges and emphasises the importance of all directors and employees to:

· act honestly and in good faith;

· exercise due care and diligence in fulfilling the functions of office;

· avoid conflicts and make full disclosure of any possible conflict of interest;

· comply with the law;

· encourage the reporting and investigating of unlawful and unethical behaviour; and

· comply with the share trading policy outlined in the Code of Conduct.

However, the Company has not publicly disclosed the Code of Conduct and therefore the Company has notcomplied with recommendation 3.1 and 3.3 of the Corporate Governance Council. Given the size of theCompany, the Board does not consider disclosure of the Code of Conduct to be necessary. The Board takesultimate responsibility for these matters.

Directors are obliged to be independent in judgement and ensure all reasonable steps are taken to ensure duecare is taken by the Board in making sound decisions.

Trading Policy

The Trust's policy regarding directors and employees trading in its securities, is set by the Board. The policyrestricts directors and employees from acting on material information until it has been released to the marketand adequate time has been given for this reflected in the security's prices.

The RE has set the following windows for trading in the Trust�s securities by the directors and employees, beingthirty days following:

· The release to the Australian Securities Exchange of the Trust�s preliminary full year financial

statements

· The release to the Australian Securities Exchange of the Trust�s half year financial statements

· The date on which the Trust holds its annual general meeting.

Audit Committee

The Board has established an Audit Committee consisting of the following members:

· Professor Michael Burgess (Independent Chairperson of Committee)

· Mr Paul Miller (Independent Chairman of RE)

· Mr Andrew Parkinson (CEO).

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The names and qualifications of the members of the Audit Committee and the number of meetings held aredisclosed in the director's report.

The Audit Committee has a formal Charter and provides a forum for the effective communication between theBoard and external auditors. The primary function of the Audit Committee is to review:

(a) the annual and half-year financial statements before they are approved by the Board;(b) the effectiveness of management information systems and systems of internal control; and(c) the efficiency and effectiveness of the external audit function.

The external auditors and company secretary of the RE is, where appropriate, invited to attend meetings. Themembers of the Audit Committee are at liberty to meet with the external auditors and discuss matters ofrelevance to their respective roles independent of management.

The Audit Committee complies with the Principles of Good Corporate Governance and Best PracticeRecommendations which state that the Audit Committee should consist of three members, the majority beingindependent and the chairman being independent and not the chairman of the Board.

Unit Holder Rights

Unit holders are entitled to vote on significant matters impacting on the business, which include the election andremuneration of directors, changes to the constitution and receipt of annual and interim financial statements.Unit holders are strongly encouraged to attend and participate in the Annual General Meetings of CoonawarraAustralia Property Trust, to lodge questions to be responded by the Board and/or the CEO, and are able toappoint proxies.

Risk Management

The Board considers identification and management of key risks associated with the business as vital tomaximise shareholder wealth. A yearly assessment of the business's risk profile is undertaken and reviewed bythe Board, covering all aspects of the business from the operational level through to strategic level risks. TheCEO has been delegated the task of implementing internal controls to identify and mange risks for which theBoard provides oversight. The effectiveness of these controls is monitored and reviewed regularly. Theworsening economic environment has emphasised the importance of managing and reassessing its keybusiness risks.

Continuous Disclosure

The company secretary of the RE has been appointed as the person responsible for communications with theASX. Together with the board this person is also responsible for ensuring the compliance with the continuousdisclosure requirements in the ASX listing rules and overseeing and co-ordinating information disclosure to theASX.

The board and the company secretary of the RE are responsible for the communications strategy to promoteeffective communications with unit-holders and encourage effective participation at general meetings. The REadheres to best practice in its preparation of Notices of Meetings to ensure all unit-holders are fully informed.Due to the size of the Trust and the RE, all communications are prepared and administered in-house.

Environmental Review

The board of the RE has a strong commitment to playing its part in reducing the damaging impact of humanactivity on the environment.

Occupational Health and Safety

The board of the RE recognises its duty to ensure the occupational health, safety and welfare (OHS&W) at workof its contractors and visitors when on the Trust�s property. The Group�s management plans involve several keyelements:

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· A preventative approach is adopted through adequate hazard management and regular review of

action plans.

· Appropriate standards of work methods are maintained by consultation between contractors and

managers.

· Contractors are provided with information necessary to understand the risks associated with their

work and their responsibility to safe work practices.

· All legislative requirements are met and incorporate continuous improvement via action plans.

Related Party Transactions

The non-executive directors review all related party transactions, which are approved in the absence of anyrepresentatives of the respective related party.

Diversity

The ASX Corporate Governance Council has released amendments dated 30 June 2010 to the second editionCorporate Governance Principles and Recommendations (Principles and Recommendations) in relation todiversity. The Group is committed to supporting diversity, including consideration of gender, age, ethnicity andcultural background.

The Board is ultimately responsible for reviewing the achievement of this policy. The Group recognises thatthrough consideration of diversity and the best available talent, it will assist in promoting a working environmentto maximise achievement of the corporate goals of the organisation.

The Group continues to strive towards achieving objectives established towards increasing gender diversity.

The Group is highly aware of the positive impacts that diversity may bring to an organization. The Groupcontinues to assess all staff and Board appointments on their merits with consideration to diversity a driver indecision making. The Group has not yet developed or disclosed a formal diversity policy and therefore has notcomplied with the recommendations 3.2 and 3.3 of the Corporate Governance Council effective from 1 January2011.

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Directors' Report

30 June 2011

The directors of Coonawarra Premium Vineyards Limited ABN 58 086 944 265, as Responsible Entity (RE) andTrustee for the Coonawarra Australia Property Trust ABN 37 529 164 940 (Trust), present their report on thecompany and its controlled entities for the financial year ended 30 June 2011.

Director Information

Information on Directors

Mr Paul H. Miller Chairman (Non Executive)

Qualifications B Ag Sci.

Experience Over 20 years experience as a research scientist, a consultinghorticulturalist and since 1997 in commercial viticulture. Adirector since 2001. He was appointed as non-executivechairman on 7 February 2006

Interest in Units Nil

Directorships held in otherlisted entities

Redisland Australia Ltd (formerly Piquant Blue Ltd) (ASX: RLA)Prince Hill Wines Limited (ASX: PHW)

Mr Rex L. Watson Managing Director (Executive)

Experience Rex is the founding group managing director of CoonawarraPremium Vineyards Limited (CPVL) and the driving forcebehind the Coonawarra Australia Property Trust (ASX: CNR),which between them own, manage or control almost 1,000acres of vineyards located in the Coonawarra region of SouthAustralia. His understanding of the wine industry and itsnetworks is extensive. Rex has built a number of businessesincluding an industrial service company specifically operating inthe wine industry and a vineyard management servicescompany. In addition he has developed the Watson WineGroup, his family owned company, from a grape producer to asignificant wine enterprise that now sells wines to more thanseven international markets.

Interest in Units 2,287,285 (units held by related party Coonawarra VineyardManagement Services Pty Ltd)


Prince Hill Wines Limited (ASX: PHW)

Mr Andrew G. Parkinson Chief Executive Officer

Qualifications B Comm. LLB

Experience Over 25 years senior management experience with abackground in stock broking, banking and charteredaccountancy. Inaugural Chairman of the RE and activelyinvolved in viticulture and the wine industry since 1999. Hecommenced the full time role of Chief Executive Officer withthe RE in January 2003 and over saw the listing of the Trust in2003. Appointed a director on 7 February 2006.

Interest in Units Nil


Prince Hill Wines Limited (ASX: PHW)

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Directors' Report

30 June 2011

Director Information continued

Meetings of Directors

During the financial year, 12 meetings of directors (including committees of directors) were held.Attendances by each director during the year were as follows:

Directors' MeetingsAudit Committee

Meetings

Compliance Committee

Meetings

Eligible to

attend

Number

attended

Eligible to

attend

Number

attended

Eligible to

attend

Number

attended

Paul Miller 12 12 4 4 12 12

Rex Watson 12 11 4 4 - -

Andrew Parkinson 12 12 4 4 12 12

Prof. Michael Burgess - - 4 3 12 12

Company Secretary

The following persons held the position of company secretary of the RE at the end of the financial year:

Mr Andrew Parkinson, whose particulars are shown above, and Mr Conrad Guerra, Bachelor of Economics,Chartered Accountant. Mr Guerra has over 30 years of professional accounting experience and is the ChiefFinancial Officer of the RE.

Principal Activities and Significant Changes in Nature of Activities

The principal activities of the Group during the financial year were:

· The Trust is a registered managed investment scheme domiciled in Australia and listed on the

Australian Securities Exchange (ASX).

· The Trust�s principal activity in the course of the year was to make land available to licensees under

a 13 year licence agreement to grow wine grapes. The Trust�s vineyards are licensed to growers

who are members of the Coonawarra Premium Vineyards Project. Upon the expiry of the licences in

2012, ownership of improvements to the land vests in the Trust.

· The Trust has no direct employees.

· Investment of 77.37% in CPV Wines Limited

· Investment of 24.48% in Prince Hill Wines Limited

The following significant changes in the nature of the principal activities occurred during the financial year:

· The Trust lost control of Prince Hill Wines Limited during the year when Prince Hill Wines aquired

various assets and liabilities from Watson Wine Group in exchange for the issue of 142,514,029

ordinary shares. As a consequence the Trusts percentage ownership was reduced from 42.24% to

24.48% and the Prince Hill Wines group was deconsolidated.

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Directors' Report

30 June 2011

Principal Activities and Significant Changes in Nature of Activities continued

There were no other significant changes in the nature of the Group's principal activities during the financialyear.

1. Business review

Operating Results

The consolidated loss of the Group for the financial year after providing for income tax and eliminatingminority equity interests amounted to $(1,482,786). This represented a 57% decrease on the lossreported for the year ended 30 June 2010. This years result was largely due to the reduction in value of theTrust's vineyard from $11,500,000 to $9,000,000. In previous years the valuation of of the vineyard includedthe value of the rental stream receivable from the growers. As this rental stream concludes in June 2012 itwas decided not to include it in the value of the Coonawarra vineyard.

Further discussion on the Group's operations now follows.

Review of operations

In order for the Trust to preserve capital no distributions have been made since February 2009.

The Trust�s vineyards are licensed at a commercial rate to growers who are members of the CoonawarraPremium Vineyards Project until June 2012.

An independent valuation of the Trust�s vineyard as at 30 June 2011, dated 28 July 2011, placed a totalvalue on the land, improvements and grapevines at $9.0 million (2010: $9.0m) on an unencumbered basis.The Trust has considered this latest valuation to determine the fair value at 30 June 2011 at $9.0 million(2010: $11.5m included the value of the grower rental stream).

In prior years the valuation was prepared based on the value of the rental stream receivable from thegrowers, whose obligations to pay the rent do not expire until the end of 2012, plus a terminal value for thevineyard. This year's approach to use the unencumbered land value is not consistent with the methodologyused in the prior year.

The net market value of grapevines decreased during the financial year by $2,450,815 (2010:$1,933,358)reflecting the difficult conditions in the Australian wine industry.

There were no distributions made during the year. The Trust's present distribution policy is to preservecapital and it is not making distributions.

The consolidated earnings / (loss) per unit was (8.47) cents for the year ended 30 June 2011 (2010: (19.64)cents), with the net tangible assets per unit attributable to members of the Trust being 20.6 cents at that date(2010: 34.6 cents).

There were 6 grower units terminated during the year ended 30 June 2011due to the bankruptcy of thegrower. In 2010 there were none. Such terminations do not relieve the growers from liability for any breachand the licencees remain responsible for any arrears. Action will continue to recover these amounts. Arrearshave been provided against as an allowance for doubtful debts as at 30 June 2011 to varying extentsdepending upon the financial standing of the terminated licensees and as the timing of recovery of thearrears is uncertain.

The Trust owns 24.48% (2010 42.24%) of Prince Hill Wines Limited (PHW) and no longer has effectivecontrol of the financial and operational policies of PHW. Accordingly the Trust�s investment in PHW is nowaccounted for using the equity method and not consolidated. PHW contributed a loss of $3,594,574 to the

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Directors' Report

30 June 2011

1. Business review continued

Review of operations continuedconsolidated result for the year ended 30 June 2010.

As advised last year a consequence of the adverse conditions in the wine industry has been the decline invaluation of the group's Coonawarra properties which resulted in the Trust and its subsidiary CPV WinesLimited being in breach of their Interest Coverage Ratio and Loan Value Ratio bank covenants. As a resultthe group's long term loans were reclassified to current liabilites. Our bank remained supportive during thisdifficult period and various new financing options are being considered. The difficult industry conditions are likely to continue for the next couple of years as the industry yet againfaces large vintages, sales of surplus assets from the major players and significant discounting by the majorplayers as they struggle to recover lost market share for some of their recognised brands.

Financial position

The net assets of the Group have decreased by $1,677,097 from 30 June 2010 to $1,968,074 in 2011. Thedecrease has largely resulted from the following factor:

· Devaluation of the group's vineyard properties and biological assets by $2,459,815.

Significant Changes in State of Affairs

No significant changes in the Group's state of affairs occurred during the financial year.

Distributions Paid or Recommended

There were no distributions paid or declared for payment since the beginning of the financial period.

After balance date events

Since the end of the finanial year the Commonwealth Government announced the �Securing a Clean EnergyFuture � the Australian Government�s Climate Change Plan�. Whilst the announcement provides furtherdetails of the framework for a carbon pricing mechanism, uncertainties continue to exist on the impact ofany carbon pricing mechanism on the Group as legislation must be voted on and passed by both houses ofParliament. In addition, as the Group will not fall within the �top 500 Australian Polluters�, the impact of theCarbon Scheme will be through indirect effects of increased prices on production inputs and generalbusiness expenses as suppliers subject to the carbon pricing mechanism are likely to pass on their carbonprice burden to their customers in the form of increased prices. Directors expect that this will not have asignificant impact upon the operation costs within the business, and therefore will not have an impact on thevaluation of assets and/or going concern of the business.

Except for the above, no other matters or circumstances have arisen since the end of the financial yearwhich significantly affected or my significantly affect the operations of the Group, the results of thoseoperations or the state of affairs of the Group in future financial years.

Future Developments, Prospects and Business Strategies

Disclosure of information regarding likely developments in the operations of the Trust in future financialyears and the expected results of those operations is likely to result in unreasonable prejudice to the Trust.Accordingly, this information has not been disclosed in this report.

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Directors' Report

30 June 2011

Environmental Issues

The Group complies with all aspects of its water licences and the RE ensures that the manager complieswith regulations for chemical use on its vineyards.

Registered Schemes Information

The Trust had 17,500,000 units on issue at the beginning and at the end of the financial year. No units in theTrust were issued during or since the end of the financial year. The number of units in the Trust held by theRE and its associates is 2,287,285, as set out below.

Unit Options

No options were granted over unissued units in the Trust during or since the financial year; or were grantedto the RE. No unissued units in the Trust were under option as at the date on which this report is made.No units were issued in the Trust during or since the end of the financial year as a result of the exercise ofan option over unissued units in the Trust.

Auditors Independence Declaration and Non-audit Services

Grant Thornton, in its capacity as auditors for Coonawarra Australia Property Trust, has not provided anynon-audit services throughout the reporting period. The auditors independence declaration for the yearended 30 June 2011 has been received and can be found on page 12 of the financial report.

2. Remuneration Report (Audited)

Remuneration Policy

The board of directors of the RE reviews the remuneration packages of all directors and senior executivesof the RE on an annual basis and makes recommendations to the board. Remuneration packages arereviewed and determined with due regard to current market, comparable industry salaries, performance ofthe Trust and the related Managed Investment Scheme Coonawarra Premium Vineyards Project and otherrelevant factors. All director and senior executive compensation is paid by Prince Hill Wine Services Pty Ltdand passed onto the Trust through a management fee.

None of the key management personnel of the RE is employed under a contract or entitled to anyperformance-related bonus or remuneration of any kind, except for Andrew Parkinson whose contract withPrince Hill Wines Ltd to act as managing director of that company includes the ability to earn a cash bonusof up to $20,000 per year provided certain targets agreed with the board of directors of that company aremet. The targets were not met for the year and no bonus was payable.

None of the key management personnel of the RE is entitled to be granted any options over shares in theRE or unissued units in the Trust.

Employment Details of Members of Key Management Personnel and Other Executives

The following table provides employment details of persons who were, during the financial year, members ofkey management personnel of the Group, and to the extent different, among the five Group executives orcompany executives receiving the highest remuneration. The table also illustrates the proportion ofremuneration that was performance and non-performance based and the proportion of remunerationreceived in the form of options.

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Directors' Report

30 June 2011

2. Remuneration Report continued

Employment Details of Members of Key Management Personnel and Other Executives continued

Position held as at30 June 2011 and

any change duringthe year

Contract details(duration &termination)

FixedSalary/Fees

%

Total

%

Key ManagementPersonnel

Rex Watson Director (Executive) No Fixed Term. 6months noticerequired toterminate.

100 100

Paul Miller Chairman (Non-executive)

No Fixed Term. 100 100

Andrew Parkinson Managing Director(Executive)

No Fixed Term. 3months noticerequired toterminate.

100 100

Conrad Guerra Chief FinancialOfficer

No Fixed Term. 4weeks noticerequired toterminate.

100 100

The employment terms and conditions of key management personnel and group executives are formalisedin contracts of employment.

Terms of employment require that the relevant group entity provide an executive contracted person with aminimum of 1 months notice prior to termination of contract. Termination payments of 100% are generallypayable. A contracted person deemed employed on a permanent basis may terminate their employment byproviding at least 1 months notice. Termination payments are not payable on resignation or under thecircumstances of unsatisfactory performance.

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Statement of Comprehensive Income


Note

2011

$

2010

$

Sales revenue 3 2,405,887 2,383,259

Other income 3 42,939 44,985

Occupancy costs (115,884) (129,289)

Corporate Expenses (173,381) (150,021)

Vineyard Management Expenses (612,695) (815,669)

Management Expenses (349,953) (419,977)

Fair value movement - biological assets (b) (2,459,815) (1,933,358)

Impairment of Financial Assets (b) - (241,221)

Gain on loss of control of subsidiary 26(a) 172,639 -

Other expenses (b) (182,997) (355,954)

Finance costs (b) (931,683) (804,755)

Share of net loss of associates (161,095) -

Loss before income tax (2,366,038) (2,422,000)

Income tax benefit 5 695,843 626,735

Loss from continuing operations (1,670,195) (1,795,265)

Profit/(loss) from discontinued operations - (3,743,152)

Loss for the period (1,670,195) (5,538,417)

Other comprehensive income:

Net loss on revaluation of land - (417,276)

Other comprehensive income for the period, net of tax - (417,276)

Total comprehensive income for the period (1,670,195) (5,955,693)

Loss attributable to:

Members of the parent entity (1,482,786) (3,437,367)

Non-controlling interest (187,409) (2,101,050)

(1,670,195) (5,538,417)

Total comprehensive income attributable to:

Members of the parent entity (1,482,786) (3,854,643)

Non-controlling interest (187,409) (2,101,050)

(1,670,195) (5,955,693)

Earnings per share

Basic earnings per share (cents) (8.47) (19.64)

From continuing operations:

Basic earnings per share (cents) (8.47) (10.03)

From discontinued operations:

Basic earnings/(loss) per share (cents) - (9.61)

The accompanying notes form part of these financial statements13

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Statement of Financial Position As At 30 June 2011

Note

2011

$

2010

$

ASSETS

Current assets

Cash and cash equivalents 6 10 23,051

Trade and other receivables 7 1,255,780 867,589

Inventories 8 - 440,637

Other assets 9 4,129 9,388

Winery sale receivable 10 - 2,211,421

Total current assets 1,259,919 3,552,086

Non-current assets

Investments accounted for usingthe equity method 11 271,408 -

Property, plant and equipment 12 3,601,984 3,754,736

Deferred tax assets 22 854,229 815,428

Biological assets 13 8,648,016 11,107,831

Total non-current assets 13,375,637 15,677,995

TOTAL ASSETS 14,635,556 19,230,081

LIABILITIES

Current liabilities

Trade and other payables 14 1,563,173 1,563,248

Borrowings 15 8,514,448 10,519,836

Current tax liabilities 22 106,138 211,288

Short-term provisions 16 - 16,866

Total current liabilities 10,183,759 12,311,238

Non-current liabilities

Borrowings 15 - 12,622

Deferred tax liabilities 22 2,483,723 3,223,971

Long-term provisions 16 - 37,079

Total non-current liabilities 2,483,723 3,273,672

TOTAL LIABILITIES 12,667,482 15,584,910

NET ASSETS 1,968,074 3,645,171

EQUITY

Issued capital 17 1,831,210 1,831,210

Reserves 18 1,500,109 1,500,109

Retained earnings/(losses) (1,319,974) 162,812

Parent interest 2,011,345 3,494,131

Non-controlling interest (43,271) 151,040

TOTAL EQUITY 1,968,074 3,645,171

The accompanying notes form part of these financial statements 14

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Statement of Changes in Equity


2011

Trust Units

$

RetainedEarnings

$

AssetRevaluation

Surplus

$

Non-controllingInterests

$

Total

$

Balance at 1 July 1,831,210 162,812 1,500,109 151,040 3,645,171

Loss attributable tomembers - (1,482,786) - - (1,482,786)

Profit attributable to non-controlling Interests - - - (187,409) (187,409)

De-recognition of non-controlling interest uponloss of control of PriinceHill Wines Ltd - - - (6,902) (6,902)

Sub-total - (1,482,786) - (194,311) (1,677,097)

Balance at 30 June 2011 1,831,210 (1,319,974) 1,500,109 (43,271) 1,968,074

2010

Trust Units

$

RetainedEarnings

$

AssetRevaluation

Surplus

$

Non-controllingInterests

$

Total

$

Balance at 1 July 1,831,210 3,600,179 1,917,385 2,019,266 9,368,040

Loss attributable tomembers - (3,437,367) - - (3,437,367)

Profit attributable to non-controlling Interests - - - (2,101,050) (2,101,050)

Total comprehensive incomefor the period - - (417,276) - (417,276)

Transaction costs - - - (17,937) (17,937)

Issue of shares - - - 250,761 250,761

Sub-total - (3,437,367) (417,276) (1,868,226) (5,722,869)

Balance at 30 June 2010 1,831,210 162,812 1,500,109 151,040 3,645,171


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Statement of Cash Flows


Note

2011

$

2010

$

Cash from operating activities:

Receipts from customers 1,844,890 4,560,391

Payments to suppliers and employees (1,107,818) (4,025,695)

Interest received 42,938 17,171

Interest paid (931,683) (996,543)

Income taxes paid (188,356) (5,000)

Net cash provided by (used in)operating activities (340,029) (449,676)

Cash flows from investing activities:

Proceeds from sale of winery - 110,000

Purchase of biological assets - (81,709)

Purchase of land for boundaryrealignment - (34,185)

Late stamp duty charges on purchaseof CPV Wines Ltd shares - (241,221)

Loans to related parties - proceeds fromrepayments 1,433,234 -

Net cash provided by (used in)investing activities 1,433,234 (247,115)

Cash flows from financing activities:

Proceeds from issue of shares - 232,866

Proceeds of loan from director relatedcompany 140,620 617,871

Repayment of borrowings (1,300,000) (275,000)

Payment of finance lease liabilities - (7,309)

Net cash provided by (used in)financing activities (1,159,380) 568,428

Deconsolidation of subsidiary (23,041) -

Net cash used by other activities (23,041) -

Net increase (decreases) in cash held (89,216) (128,363)

Cash at beginning of financial year (925,222) (796,859)

Cash at end of financial year 6 (1,014,438) (925,222)


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Notes to the Financial Statements


This financial report includes the consolidated financial statements and notes of Coonawarra Australia PropertyTrust and Controlled Entities and its interest in associates and jointly controlled entities (the 'group'). Thefinancial statements were authorised for issue by the Board of Directors on 31 August 2011.

Coonawarra Australia Property Trust is a public trading company domiciled in Australia.

The separate financial statements and notes of the parent entity, Coonawarra Australia Property Trust, have notbeen presented within this financial report as permitted by amendments made to the Corporations Act 2001.Parent entity summary is included in note 34.

1 Summary of Significant Accounting Policies

(a) General information

This financial report includes the consolidated financial statements and notes of CoonawarraAustralia Property Trust and Controlled Entities and its interest in associates and jointly controlledentities (the 'group').

(b) Basis of preparation

The financial statements are general purpose financial statements that have been prepared inaccordance with Australian Accounting Standards, Australian Accounting Interpretations, otherauthoritative pronouncements of the Australian Accounting Standards Board and the CorporationsAct 2001.

Compliance with Australian Accounting Standards ensures that the financial statements and notesalso comply with International Financial Reporting Standards.

Material accounting policies adopted in the preparation of these financial statements are presentedbelow and have been consistently applied unless otherwise stated.

The financial statements 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, financialassets and financial liabilities.

(c) Adoption of New and Revised Accounting Standards

During the current year, the Group adopted all of the new and revised Australian AccountingStandards and Interpretations applicable to its operations which became mandatory.

The adoption of these Standards has impacted the recognition, measurement and disclosure ofcertain transactions. The following is an explanation of the impact the adoption of these Standardsand Interpretations has had on the financial statements of Coonawarra Australia Property Trust.

Standard Name Impact

AASB 2010-3 / AASB 2009-5 Amendments andfurther Amendments to Australian AccountingStandards - Group Cash-settled Share-basedPayment Transactions

No significant changes on adoption of thesestandards.

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1 Summary of Significant Accounting Policies continued

(c) Adoption of New and Revised Accounting Standards continued

Standard Name Impact

AASB 2009-8 Amendments to AustralianAccounting Standards � Group Cash-settledShare-based Payment Transactions

No significant changes on adoption of thesestandards.

AASB 2009-9 Amendments to AustralianAccounting Standards � Additional Exemptionfor First-time Adopters / AASB 2010-1 Limitedexemption from comparative AASB 7disclosures for first-time adopters

No impact since the entity is not a first-timeadopter of IFRS.

AASB 2009-10 Amendments to AustralianAccounting Standards � Classification of RightsIssues

No significant changes on adoption of thisstandard.

Interpretation 19 Extinguishing liabilities withequity instruments

No significant changes on adoption of thisstandard.

(d) Comparatives

When required by Accounting Standards, comparative figures have been adjusted to conform tochanges in presentation for the current financial year.

(e) Inventories

Inventories are measured at the lower of cost and net realisable value. The cost of manufacturedproducts includes direct materials, direct labour and an appropriate portion of variable and fixedoverheads. Overheads are applied on the basis of normal operating capacity. Costs are assigned onthe basis of weighted average costs.

(f) Property, plant and equipment

Each class of property, plant and equipment is carried at cost or fair value as indicated less, whereapplicable, any accumulated depreciation and impairment losses.

Property

Freehold land and buildings are shown at their fair value (being the amount for which an asset couldbe exchanged between knowledgeable willing parties in an arm's length transaction), based onperiodic, but at least triennial, valuations by external independent valuers, less subsequentdepreciation for buildings.

Increases in the carrying amount arising on revaluation of land and buildings are credited to arevaluation reserve in equity. Decreases that offset previous increases of the same asset are chargedagainst fair value reserves directly in equity; all other decreases are charged to the incomestatement. Each year the difference between depreciation based on the revalued carrying amount ofthe asset charged to the income statement and depreciation based on the asset's original cost istransferred from the revaluation reserve to retained earnings.

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(f) Property, plant and equipment continued

Property continued

Any accumulated depreciation at the date of revaluation is eliminated against the gross carryingamount of the asset and the net amount is restated to the revalued amount of the asset.

Plant and equipment

Plant and equipment are measured on the cost basis less depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not inexcess of the recoverable amount from these assets. The recoverable amount is assessed on thebasis of the expected net cash flows that will be received from the assets employment andsubsequent disposal. The expected net cash flows have been discounted to their present values indetermining recoverable amounts.

Depreciation

The depreciable amount of all fixed assets including buildings and capitalised leased assets, butexcluding freehold land, is depreciated on a straight-line basis over the asset's useful life to the Groupcommencing from the time the asset is held ready for use. Leasehold improvements are depreciatedover the shorter of either the unexpired period of the lease or the estimated useful lives of theimprovements.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset

Improvements - unsealed roads 8.3%

Improvements - brick buildings 2%

Improvements - steel buildings 4%

Other Improvements 10%

Other Property, Plant and Equipment 10%

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at eachbalance sheet date.

(g) Financial Instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to thecontractual provisions of the instrument. For financial assets, this is the equivalent to the date that thecompany commits itself to either the purchase or sale of the asset (i.e. trade date accounting isadopted).

Financial instruments are initially measured at fair value plus transactions costs, except where theinstrument is classified 'at fair value through profit or loss' in which case transaction costs are

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(g) Financial Instruments continuedexpensed to profit or loss immediately.

Classification and subsequent measurement

Financial instruments are subsequently measured at either fair value, amortised cost using theeffective interest rate method, or cost. Fair value represents the amount for which an asset could beexchanged or a liability settled, between knowledgeable, willing parties in arm's length transaction.Where available, quoted prices in an active market are used to determine fair value. In othercircumstances, valuation techniques are adopted.

Amortised cost is calculated as:

(a) the amount at which the financial asset or financial liability is measured at initial recognition;

(b) less principal repayments;

(c) plus or minus the cumulative amortisation of the difference, if any, between the amountinitially recognised and the maturity amount calculated using the effective interest method;and

(d) less any reduction for impairment.

The effective interest method is used to allocate interest income or interest expense over the relevantperiod 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 (orwhen this cannot be reliably predicted, the contractual term) of the financial instrument to the netcarrying amount of the financial asset or financial liability. Revisions to expected future net cash flowswill necessitate an adjustment to the carrying value with a consequential recognition of an income orexpense in profit or loss.

The classification of financial instruments depends on the purpose for which the investments wereacquired. Management determines the classification of its investments at initial recognition and at theend of each reporting period for held-to-maturity assets.

(i) Financial assets at fair value through profit or loss

Financial assets are classified at �fair value through profit or loss� when they are held for trading forthe purpose of short-term profit taking, derivatives not held for hedging purposes, or when they aredesignated as such to avoid an accounting mismatch or to enable performance evaluation where agroup of financial assets is managed by key management personnel on a fair value basis inaccordance with a documented risk management or investment strategy. Such assets aresubsequently measured at fair value with changes in carrying value being included in profit or loss.

(ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments thatare not quoted in an active market and are subsequently measured at amortised cost .

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(g) Financial Instruments continued

Loans and receivables are included in current assets, except for those which are not expected tomature within 12 months after the end of the reporting period.

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixedor determinable payments, and it is the Group's intention to hold these investments to maturity. Theyare subsequently measured at amortised cost.

Held-to-maturity investments are included in non-current assets, except for those which are expectedto be realised within 12 months after the end of the reporting period, which will be classified as currentassets.

If during the period the Group sold or reclassified more than an insignificant amount of the held-to-maturity investments before maturity, the entire held-to-maturity investments category would betainted and reclassified as available-for-sale.

The Group did not hold any held-to-maturity investments in the current or comparative financial year.

(iv) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not suitable to beclassified into other categories of financial assets due to their nature, or they are designated as suchby management. They comprise investments in the equity of other entities where there is neither afixed maturity nor fixed or determinable payments.

Available-for-sale financial assets are included in non-current assets, except for those which areexpected to be realised within 12 months after the end of the reporting period.

(v) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured atamortised cost. Fees payable on the establishment of loan facilities are recognised as transactioncosts of the loan.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defersettlement of the liability for at least 12 months after the reporting date.

Impairment

Objective evidence that a financial asset is impaired includes default by a debtor, evidence that thedebtor is likely to enter bankruptcy or adverse economic conditions in the stock exchange. At the endof each reporting period, the Group assess whether there is objective evidence that a financial assethas been impaired through the occurrence of a loss event. In the case of available-for-sale financialinstruments, a significant or prolonged decline in the value of the instrument is considered to indicatethat an impairment has arisen.

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(g) Financial Instruments continued

Impairment continued

Where a subsequent event causes the amount of the impairment loss to decrease (e.g. paymentreceived), the reduction in the allowance account (provision for impairment of receivables) is takenthrough profit and loss.

However, any reversal in the value of an impaired available for sale asset is taken through othercomprehensive income rather than profit and loss.

Impairment losses are recognised through an allowance account for loans and receivables in thestatement of comprehensive income.

(h) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-termhighly liquid investments with original maturities of three months or less which are convertible to aknown amount of cash and subject to an insignificant risk of change in value, and bank overdrafts.Bank overdrafts are shown within short-term borrowings in current liabilities on the statement offinancial position.

(i) Employee benefits

Provision is made for the company's liability for employee benefits arising from services rendered byemployees to the end of the reporting period. Employee benefits that are expected to be settled withinone year have been measured at the amounts expected to be paid when the liability is settled.

Employee benefits payable later than one year have been measured at the present value of theestimated future cash outflows to be made for those benefits. In determining the liability,consideration is given to employee wage increases and the probability that the employee may satisfyvesting requirements. Those cashflows are discounted using market yields on national governmentbonds with terms to maturity that match the expected timing of cashflows.

(j) Provisions

Provisions are recognised when the Group has a legal or constructive obligation, as a result of pastevents, for which it is probable that an outflow of economic benefits will result and that outflow can bereliably measured.

(k) Income taxes

The income tax expense (revenue) for the year comprises current income tax expense (income) anddeferred tax expense (income).

Current income tax expense charged to the profit or loss is the tax payable on taxable incomecalculated using applicable income tax rates enacted, or substantially enacted, as at the end of thereporting period. Current tax liabilities (assets) are therefore measured at the amounts expected to be

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(k) Income taxes continuedpaid to (recovered from) the relevant taxation authority.

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liabilitybalances during the year as well as unused tax losses.

Current and deferred income tax expense (income) is charged or credited directly to equity instead ofthe profit or loss when the tax relates to items that are credited or charged directly to equity.

Deferred tax assets and liabilities are ascertained based on temporary differences arising betweenthe tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferredtax assets also result where amounts have been fully expensed but future tax deductions areavailable. No deferred income tax will be recognised from the initial recognition of an asset or liability,excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to theperiod when the asset is realised or the liability is settled, based on tax rates enacted or substantivelyenacted at the end of the reporting year. Their measurement also reflects the manner in whichmanagement expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only tothe extent that it is probable that future taxable profit will be available against which the benefits of thedeferred tax asset can be utilised.

Where temporary differences exist in relation to investments in subsidiaries, branches, associates,and joint ventures, deferred tax assets and liabilities are not recognised where the timing of thereversal of the temporary difference can be controlled and it is not probable that the reversal willoccur in the foreseeable future.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits willbe available against which deductible temporary differences can be utilised.

Current assets and liabilities are offset where a legally enforceable right of set-off exists and it isintended that net settlement or simultaneous realisation and settlement of the respective asset andliability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxationauthority on either the same taxable entity or different taxable entities where it is intended that netsettlement or simultaneous realisation and settlement of the respective asset and liability will occur infuture periods in which significant amounts of deferred tax assets or liabilities are expected to berecovered or settled.

(l) Revenue

The Group recognises revenue when the amount of revenue can be reliably measured, it is probablethat future economic benefits will flow to the entity and specific criteria have been met for each of theGroup's activities as discussed below.

Revenue is measured at the fair value of the consideration received or receivable after taking intoaccount any trade discounts and volume rebates allowed. Any consideration deferred is treated as

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(l) Revenue continuedthe provision of finance and is discounted at a rate of interest that is generally accepted in the marketfor similar arrangements. The difference between the amount initially recognised and the amountultimately received is interest revenue.

Sale of goods

Revenue from the sale of goods is recognised at the point of delivery as this corresponds to thetransfer of significant risks and rewards of ownership of the goods and the cessation of allinvolvement in those goods.

Grant revenue

Government grants are recognised at fair value where there is reasonable assurance that the grantwill be received and all grant conditions will be met. Grants relating to expense items are recognisedas income over the periods necessary to match the grant to the costs they are compensating. Grantsrelating to assets are credited to deferred income at fair value and are credited to income over theexpected useful life of the asset on a straight-line basis.

Interest revenue

Interest revenue is recognised using the effective interest rate method, which for floating rate financialassets is the rate inherent in the instrument.

Dividend revenue

Dividends are recognised as revenue when the right to receive the dividend has been established.Where the dividend is paid out of pre-acquisition profits, it is taken to revenue; however this may beconsidered an impairment indicator causing an impairment review of the value of the investment.

Provision of services

Revenue recognition relating to the provision of services is determined with reference to the stage ofcompletion of the transaction at the end of the reporting period and where the outcome of the contractcan be estimated reliably. Stage of completion is determined with reference to the services performedto date as a percentage of total anticipated services to be performed. Where the outcome cannot beestimated reliably, revenue is recognised only to the extent that related expenditure is recoverable.

Rental income

Investment property revenue is recognised on a straight-line basis over a period of the lease term soas to reflect a constant periodic rate of return on the net investment.

All revenue is stated net of the amount of goods and services tax (GST).

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(m) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of assets thatnecessarily take a substantial period of time to prepare for their intended use or sale, are added tothe cost of those assets, until such time as the assets are substantially ready for their intended use orsale.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

(n) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amountof GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST isrecognised as part of the cost of acquisition of the asset or as part of an item of the expense.Receivables and payables in the statement of financial position are shown inclusive of GST.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GSTcomponent of investing and financing activities, which are disclosed as operating cash flows.

(o) Basis of consolidation

A controlled entity is an entity over which Coonawarra Australia Property Trust has the power togovern the financial and operating policies so as to obtain benefits from its activities. In assessing thepower to govern, the existence and effect of holdings of actual and potential voting rights areconsidered.

A list of controlled entities is contained in Note 26 to the financial statements.

As at reporting date, the assets and liabilities of all controlled entities have been incorporated into theconsolidated financial statements as well as their results for the year then ended. Where controlledentities have entered (left) the consolidated group during the year, their operating results have beenincluded (excluded) from the date control was obtained (ceased).

All inter-group balances and transactions between entities in the Group, including any unrealisedprofits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries havebeen changed where necessary to ensure consistency with those adopted by the parent entity.

Minority interests, being that portion of the profit or loss and net assets of subsidiaries attributable toequity interests held by persons outside the Group, are shown separately within the Equity section ofthe consolidated Statement of Financial Position and the consolidated Statement of ComprehensiveIncome.

(p) New Accounting Standards for Application in Future Periods

The AASB has issued new and amended Accounting Standards and Interpretations that havemandatory application dates for future reporting periods. The Group has decided against earlyadoption of these standards. The following table summarises those future requirements, and theirimpact on the Group:

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(p) New Accounting Standards for Application in Future Periods continued

Standard name Effective datefor entity

Requirements Impact

AASB 124 Related PartyDisclosures and amendingstandard AASB 2009-12

30 June 2012 - Clarification of the definition of arelated party

- Requirement to disclosecommitments to related parties

- Disclosure exemptions forgovernment-related entities

Minimal impactexpected

AASB 9 Financial Instrumentsand amending standardsAASB 2009-11 / AASB2010-7

30 June 2014 - Changes to the classification andmeasurement requirements forfinancial assets and financialliabilities.

- New rules relating toderecognition of financialinstruments.

The impact of AASB9 has not yet beendetermined.

AASB 2009-14 Amendmentsto Australian Interpretation �Prepayments of a MinimumFunding Requirement

30 June 2012 Changes where the entity issubject to minimum fundingrequirements and makes anearly payment to cover theserequirements in relation todefined benefit plans.

No significantimpact expected.

AASB 2010-4 / 2010-5Amendments and furtheramendments to AustralianAccounting Standardsarising from the AnnualImprovements Project

30 June 2012 Makes changes to a number ofstandards / interpretationsincluding:

- Clarification of the content of thestatement of changes in equity

- Financial instrument disclosures - Fair value of award credits

No impact expected.

AASB 2010-6 Amendment toAustralian AccountingStandards � Disclosures ontransfers of financial assets

30 June 2012 Requires additional disclosuresregarding for example,remaining risks where anentity has transferred afinancial asset

No impact expected.

AASB 2010-8 Amendment toAustralian AccountingStandards � Deferred tax:Recovery of underlyingassets

30 June 2013 Adds a presumption to AASB112 that the recovery of thecarrying amount of aninvestment property at fairvalue will be through sale.

No impact expected.

AASB 2010-9 / 2010-10Amendment to AustralianAccounting Standards �Severe hyperinflation andremoval of fixed dates forfirst-time adopters

30 June 2012 Makes amendments to AASB 1 No impact since theentity is not a first-time adopter ofIFRS.

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Requirements Impact

AASB 1054 AdditionalAustralian disclosures /AASB 2011-1 Amendmentsto Australian AccountingStandards arising fromTrans-Tasman convergence

30 June 2012 Collates the Australian specificdisclosures into oneAccounting Standard ratherthan including them within anumber of different standards.

Little impact sincemost of thedisclosuresrequired by AASB1054 are alreadyincluded within thefinancialstatements.

AASB 2011-2 Amendments toAustralian AccountingStandards arising fromTrans-Tasman convergence� Reduced DisclosureRequirements

30 June 2014 Highlights the disclosures notrequired in AASB 1054 forentities applying the RDR.

The group is notadopting the RDRand therefore thisstandard is notrelevant.

AASB 2011-3 Amendments toAustralian AccountingStandards � OrderlyAdoption of Changes toABS GFS Manual andRelated Amendments

30 June 2013 Standard is applicable for wholeof government and generalgovernment financialstatements only. AASB 2011provides details of changes inaccounting treatment due tothe Government FinanceStatistics manual.

Standard is notapplicable andtherefore there willbe no impact onadoption.

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Requirements Impact

AASB 10 ConsolidatedFinancial Statements /AASB 11 JointArrangements / AASB 12Disclosures of Interests inOther Entities, AASB 127Separate FinancialStatements and AASB 128Investments in Associates.[These are expected to bereleased by the AASB inJune / July].

30 June 2014 AASB 10 includes a newdefinition of control, which isused to determine whichentities are consolidated, anddescribes consolidationprocedures.The Standard providesadditional guidance to assistin the determination of controlwhere this is difficult toassess.

AASB 11 focuses on therights and obligations of a jointventure arrangement, ratherthan its legal form (as iscurrently the case). IFRS 11requires equity accounting forjoint ventures, eliminatingproportionate consolidation asan accounting choice.

AASB 12 includes disclosurerequirements for all forms ofinterests in other entities,including joint arrangements,associates, special purposevehicles and other off balancesheet vehicles.

The Group willreview itscontrolled entitiesto determinewhether theyshould beconsolidatedunder AASB 10,no changes areanticipated.

All joint venturesof the group areequity accountedand thereforeminimal impact isexpected due tothe adoption ofAASB 11.

Additional disclosures will be requiredunder AASB 12but there will be nochanges toreported positionand performance.

AASB 13 Fair ValueMeasurement

30 June 2014 AASB 13 provides a precisedefinition of fair value and asingle source of fair valuemeasurement and disclosurerequirements for use acrossAccounting Standards butdoes not change when fairvalue is required or permitted.

There are a number ofadditional disclosurerequirements.

Fair value estimatescurrently made bythe entity will berevised andpotential changesto reported valuesmay be required.

The entity has notyet determined themagnitude of anychanges whichmay be needed.

Some additionaldisclosures will beneeded.

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(q) Critical accounting estimates and judgments

The directors evaluate estimates and judgments incorporated into the financial statements based onhistorical knowledge and best available current information. Estimates assume a reasonableexpectation of future events and are based on current trends and economic data, obtained bothexternally and within the Group. Accounting estimates have been used in determining the impairmentof receivables in note 7(a).

2 Earnings per Share

(a) Reconciliation of earnings to loss from continuing operations

2011

$

2010

$

Loss from continuing operations (1,670,195) (1,795,265)

Loss attributable to non-controlling equity interest in respect of continuingoperations 187,409 39,299

Earnings used to calculate basic EPS from continuing operations (1,482,786) (1,755,966)

Earnings used in the calculation of dilutive EPS from continuingoperations (1,482,786) (1,755,966)

(b) Reconciliation of earnings to profit or loss from discontinuing operations

2011

$

2010

$

Loss from discontinuing operations - (3,743,152)

Profit attributable to non-controlling equity interest - 2,061,751

Earnings used to calculated basic EPS from discontinuingoperations - (1,681,401)

(c) Earnings used to calculate overall earnings per share

2011

$

2010

$

Earnings used to calculate overall earnings per share (1,482,786) (3,437,367)

(d) Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS

2011

No.

2010

No.

Weighted average number of ordinary shares outstanding during the yearused in calculating basic EPS 17,500,000 17,500,000

Weighted average number of ordinary shares outstanding duringthe year used in calculating dilutive EPS 17,500,000 17,500,000

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2 Earnings per Share continued

(e) Diluted earnings per share is not reflected for discontinuing operations as the result is anti-dilutive innature

3 Revenue

(a) Sales revenue

2011

$

2010

$

Sales revenue

- Sale of goods 357,724 555,052

- Services revenue 2,048,163 1,828,207

Total Revenue 2,405,887 2,383,259

(b) Other Income

2011

$

2010

$

Other Income

- Interest income 42,939 44,985

Other Income 42,939 44,985

4 Loss for the Year

(a) Significant Revenue and Expenses

2011

$

2010

$

The following significant revenue and expense items arerelevant in explaining the financial performance:

Grant of use (licence) fees 2,047,733 1,828,207

Grape sale proceeds 357,724 552,052

(b) Expenses

2011

$

2010

$

Interest expense on financial liabilities not at fair valuethrough profit or loss:

external 854,459 760,360

other related parties 77,224 44,395

Total interest expense 931,683 804,755

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4 Loss for the Year continued

(b) Expenses continued

Devaluation of biological assests 2,459,815 1,933,358

Bad and doubtful debts

Trade receivables 182,997 355,954

Total bad and doubtful debts 182,997 355,954

Impairment of Financial Assets - 241,221

Depreciation 40,185 48,542

5 Income tax (benefit)

(a) The components of tax (benefit) comprise:

2011

$

2010

$

Current tax 83,206 249,034

Arising from previously unrecognised tax loss/taxcredit/temporary difference (4,485) -

Recoupment of prior year tax losses - (225,680)

Deferred tax (774,564) (654,755)

(Under)/over provision in respect of prior years - 4,666

(695,843) (626,735)

(b) The prima facie tax on loss from ordinary activities before income tax is reconciled to theincome tax as follows:

2011

$

2010

$

Prima facie tax payable on loss from ordinary activities beforeincome tax at 30% (2010: 30%)

- economic entity (709,811) (1,849,546)

Add:

Tax effect of:

- under provision for income tax in prior year - 4,666

- deferred tax assets not brought to account 13,968 1,443,825

Income tax (benefit) attributable to entity (695,843) (401,055)

The applicable weighted average effective tax rates are as follows: %29 %7

The increase in the weighted average effective consolidated tax rate for 2011 is a result of thereduction in income tax losses not brought to account.

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6 Cash and cash equivalents

2011

$

2010

$

Cash on hand 10 1,761

Cash at bank - 21,290

10 23,051

The effective interest rate on short-term bank deposits was nil, (2010: 0.3%); these deposits have anaverage maturity of 20 days.

Reconciliation of Cash

Note

2011

$

2010

$

Cash at the end of the financial year as shown in the statementof cash flow is reconciled to items in the statement of financialposition as follows:

Cash and cash equivalents 10 23,051

Bank overdraft 15 (1,014,448) (948,273)

(1,014,438) (925,222)

7 Trade and other receivables

Note

2011

$

2010

$

CURRENT

Trade receivables 1,292,309 968,647

Provision for impairment of receivables 7(a) (384,150) (151,089)

908,159 817,558

Other receivables 7(c) 14,231 339,064

Impairment of other receivables - (298,872)

Amounts receivable from:

- associates 556 -

- other related parties 332,834 9,839

1,255,780 867,589

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7 Trade and other receivables continued

(a) Provision for impairment of receivables

Movement in provision for impairment of receivables is as follows:

2011

$

2010

$

Balance at beginning of the year 449,962 107,000

Additional impairment loss recognised 233,060 354,962

Provision used (298,872) (12,000)

Balance at end of the year 384,150 449,962

(b) Credit risk - Trade and Other Receivables

Grossamount

$

Past dueand

impaired

$

< 30

$

31-60

$

61-90

$

> 90

$

Withininitialtradeterms

$

2011

Trade and term receivables 1,292,309 - - - - 838,622 453,687

Other receivables 14,231 - - - - - 14,231

Total 1,306,540 - - - - 838,622 467,918

2010

Trade and term receivables 968,648 962 259 102 8,330 314,179 644,816

Other receivables 339,064 289,872 - - - - 49,192

Total 1,307,712 290,834 259 102 8,330 314,179 694,008

(c) Collateral held as security

Included in other receivables at 30 June 2010 was an amount owing to the Trust of $298,872 whichhas been written off due to the borrower's default. Collateral had been received from the borrower inthe form of unregistered mortgages and personal guarantees and recovery action is in progress.

8 Current Inventories

2011

$

2010

$

At Cost

Raw materials and stores - 9,934

Finished goods - 430,703

- 440,637

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9 Other Current Assets

2011

$

2010

$

Prepayments 4,129 9,388

4,129 9,388

10 Winery sale receivable

2011

$

2010

$

Winery sale receivable - 2,211,421

The contract for the sale of the Mudgee winery owned by Prince Hill Wine Services Pty Ltd settled on 12August 2010.

11 Investments Accounted for Using the Equity Method

Note

2011

$

2010

$

Associated companies 27(a) 271,408 -

271,408 -

12 Property, plant and equipment

2011

$

2010

$

LAND

Freehold land

At fair value 3,150,000 3,150,000

Total land 3,150,000 3,150,000

PLANT AND EQUIPMENT

Plant and equipment

At cost - 290,755

Accumulated depreciation - (198,475)

Total plant and equipment - 92,280

Leased plant and equipment

Capitalised leased assets - 41,864

Accumulated depreciation - (21,577)

Total leased plant andequipment - 20,287

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12 Property, plant and equipment continued

2011

$

2010

$

Improvements

At fair value 635,638 635,638

Accumulated depreciation (183,654) (143,469)

Total improvements 451,984 492,169

Total plant and equipment 451,984 604,736

Total property, plant andequipment 3,601,984 3,754,736

(a) Movements in Carrying Amounts

Movement in the carrying amount for each class of property, plant and equipment between thebeginning and the end of the current financial year

Land

$

Plant andEquipment

$

Improvements

$

Total

$

Current Year

Balance at the beginning ofyear 3,150,000 112,567 492,169 3,754,736

Disposals through loss ofcontrol of subsidiary - (112,567) - (112,567)

Depreciation expense - - (40,185) (40,185)

Carrying amount at the end ofyear 3,150,000 - 451,984 3,601,984

Prior Year

Balance at the beginning ofyear 3,650,000 148,678 532,350 4,331,028

Depreciation expense - (36,111) (40,181) (76,292)

Revaluation decrement (500,000) - - (500,000)

Carrying amount at the end ofyear 3,150,000 112,567 492,169 3,754,736

Notes regarding the property assets

(i) Coonawarra Vineyard Property, South Australia

Coonawarra Australia Property Trust has 227 hectares of grapevines planted in the premium grape growingarea of the Coonawarra, South Australia. Under the terms of a 13-year license agreement, the members ofthe Coonawarra Premium Vineyards Project (Growers) are entitled to a grant of use to establish and growwine grapes on the land held by the Trust, which for this purpose is divided into 2,800 vineyard lots. Uponexpiry of the licence, ownership of improvements to the land vests in the Trust.

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12 Property, plant and equipment continued

The overall property is a vineyard comprised of land, water licences, vines, trellising, irrigation equipmentand other buildings & improvements. The development of the property was carried out in 1999 as part of aManaged Investment Scheme (the Scheme) under the then Corporations Law. The structure of the Schemeresulted in the Trust being the legal and beneficial owner of the land. The development of the land into avineyard was funded by the grower participants in the Scheme (the Growers) as part of a prospectus issuedin June 1999. The Growers beneficially own the grapevines but they are legally part of the land andtherefore owned by the Trust. A lease agreement between the Growers and the Trust provides income tothe Trust for a Grant of Use rental for the property.

Where any Grower has had their grant of use of their vineyard lot terminated due to failure to adhere to themanagement conditions (generally non-payment of fees due), the vineyard lot reverts to the Trust as theowner of the land. The Trust has entered into a management agreement with the vineyard manager for thatvineyard lot to be managed on behalf of the Trust so that the vineyard asset is maintained. The Trustreceives the grapes, which are sold where possible.

The constitution provides for the following:

Land - the land is held for the benefit of the Unit-holders. The value of the land includes the value of thewater licences.

Irrigation Equipment - the irrigation equipment and other improvements are owned by the Growers untilexpiry or termination of the Grant to Use between the Growers and the Trust. On termination or expiry theGrower is not entitled to remove from the Land or claim any compensation or reimbursement for such items.The Lease and Underlease also contemplates that irrigation equipment will revert to the landowner at theend of the lease.

Trellising - the trellising is presently owned by the Growers and on termination or expiry of the Grant of Usebetween the Growers and the Trust the Growers may remove the trellising provided no damage is caused inthe removal. Given that the trellising is effectively integral with the vines and irrigation system it isconsidered that it is highly unlikely that the trellising can be removed without damage being caused to theirrigation system or the vines and in any event the costs of removal would far outweigh any benefits.

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13 Biological Assets - Grapevines

(a) Net market value of grapevines

2011

$

2010

$

Balance at beginning of year 11,107,831 12,959,480

Improvements - 81,709

Revaluations to market value (2,459,815) (1,933,358)

Total 8,648,016 11,107,831

Fair Value

Coonawarra Vineyard Property, South Australia

The directors of the RE have determined that the valuation of the Trust�s Coonawarra vineyard property(land, improvements and vines) for the purpose of this financial report is $9,000,000 on an unencumberedfreehold basis compared to $11,500,000 in 2010. This year's basis of valuation is not consistent with prioryears where the value of the rental income stream plus a residual sale value at the end of the Projectformed the basis of valuation.

Land and grapevines are recorded at net market value. The carrying amount of valuation improvements tonon-current assets is initially recorded at the previous year�s fair value less depreciation and anyimpairment. This is compared to market value at the end of the financial year and a revaluation to marketvalue is made. The grapevines are biological assets, measured on a net market value basis.The RE�s valuation separated the assets between biological assets and non-biological assets for thepurposes of Accounting Standard AASB 141 - Agriculture.

To assist the directors of the RE in making their determination a formal valuation of the Trust propertyconducted in June 2011 has been provided by an independent valuer Colin Pickett, Certified PractisingValuer, Associate Australian Property Institute, Gaetjens Pickett Valuers, that states the current marketvalue of the property to the Trust, on an unencumbered freehold basis to be $9,000,000 (2010: $9,000,000),ignoring the benefits and obligations of the leases with the Growers. The directors of the RE haveconsidered this latest valuation in conjunction with other pertinent facts in the present wine industryenvironment to determine the fair value.

This unencumbered valuation is regarded by the directors of the RE as a current valuation that is reflectiveof the long term holding value of the vineyard. The vineyard is tied to the Project, which winds up in June2012, and cannot be independently sold while the Project lease is in place.

The vineyard assets are carried at fair value and no impairment charges have been incurred. Costs torealise the assets at the end of the Project in 2012 are immaterial after discounting.

The water licences have been included in the valuation of the biological assets. These water licences arenot valued separately given there is no active market in the Coonawarra.

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(b) Fair Value

Description of assets

Coonawarra Australia Property Trust owns a vineyard in the Coonawarra district of South Australia.

CPV Wines Limited owns a vineyard adjoining the Trust vineyard. A formal valuation of the propertyconducted in June 2011 has been provided by an independent valuer Colin Pickett, Certified PractisingValuer, Associate Australian Property Institute, Gaetjens Pickett Valuers, that states the current marketvalue of the property is $3,250,000 (2010: $3,250,000). The directors of the RE have considered this latestvaluation in conjunction with other pertinent facts in the present wine industry environment to determine thefair value.

2011 2010

Physical quantity of vines owned 484,322 484,332

Hectares of vineyard owned 332 332

14 Trade and other payables

2011

$

2010

$

CURRENT

Unsecured liabilities

Trade payables 235,482 432,449

Other payables 153,777 196,439

Amount payable to:

- key management personnel related entities - 617,871

- other related parties 415,423 316,489

804,682 1,563,248

Secured Liabilities

- key management personnel related entities 758,491 -

758,491 -

Total Current 1,563,173 1,563,248

(a) Financial liabilities at amortised cost classified as trade and other payables

Note

2011

$

2010

$

Trade and other payables

Total Current 1,563,173 1,563,248

1,563,173 1,563,248

Financial liabilities as trade and other payables 20 1,563,173 1,563,248

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15 Borrowings

2011

$

2010

$

CURRENT

Secured liabilities

Bank overdraft 1,014,448 948,273

Finance lease obligation 19 - 3,563

Bank Borrowings 7,500,000 9,568,000

8,514,448 10,519,836

NON-CURRENT

Secured liabilities

Finance lease obligation 19 - 12,622

- 12,622

(a) Total current and non-current secured liabilities

2011

$

2010

$


Finance lease obligations - 16,185


8,514,448 10,532,458

Bank Borrowings

The bank loans and overdrafts of the entity are secured by first mortgages over the Group�s freehold land,including vineyard property.

Covenants within the bank borrowings require Interest Coverage Ratio to be no less than 1.75 times andthat the Loan Value Ratio (LVR) at all times will be no more than 60% of unencumbered land value of$12,250,000. At the end of the financial the year Coonawarra Australia Property Trust and CPV WinesLimited breached their Interest Coverage Covenant and Loan Value Covenant.

The Trust reduced its bank borrowings by $1,300,000 following the repayment of loans made by the Trust toPrince Hill Wines Ltd. The Trust and the bank are involved in continuing discussions and are currentlyreviewing aternative breach rectification strategies. The repayment of $400,000 proposed for 30 April 2011has been deferred.

Under the long term finance arrangement in place the bank holds the right to reduce the facility amount byan amount sufficient to ensure that the Loan Value Ratio ratio is equal to or less than 60% unless additionalsecurity property is provided, to the bank�s satisfaction, of sufficient value to ensure the aforesaid ratio isequal to or less than 60%. As a result the Group has classified its liability within those long term financearrangements as current.

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16 Provisions

Analysis of Total Provisions

2011

$

2010

$

Current - 16,866

Non-current - 37,079

- 53,945

Employeeentitlements

$

Total

$

Opening balance at 1 July 2010 53,945 53,945

Disposals through loss of control of subsidiary (53,945) (53,945)

Balance at 30 June 2011 - -

Provision for Employee Entitlements

Provisions have been recognised for employee entitlements relating to long service leave and annual leave.The measurement and recognition criteria relating to employee benefits has been included in note 1 to thisreport.

17 Issued Capital

2011

$

2010

$

17,500,000 (2010: 17,500,000)Trust units fully paid 1,831,200 1,831,200

Settled Sum 10 10

Total 1,831,210 1,831,210

There were no units issued or redeemed during the current or previous financial year.

All issued units are fully paid, carry one vote per unit and carry the right to receive distributions.

(a) Capital Management

Management controls the capital of the Group in order to maintain a good debt to equity ratio, providethe shareholders with adequate returns and ensure that the group can fund its operations andcontinue as a going concern.

The Group's debt and capital includes ordinary trust units and financial liabilities supported byfinancial assets.

Externally imposed capital requirements were breached at balance date and have been disclosed atnote 15.

Management effectively manages the Group's capital by assessing the group�s financial risks and

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17 Issued Capital continued

(a) Capital Management continuedadjusting structure in response to changes in these risks and in the market. These responses includethe management of debt levels, distributions to unit-holders and unit issues. The gearing ratio isadversely affected by the decrease in valuation of the Coonawarra vineyards.

There have been no changes in the strategy adopted by management to control the capital of thegroup since the prior year.

The gearing ratio for the year ended 30 June 2011 and 30 June 2010 are as follows:

Note

2011

$

2010

$

Total borrowings 8,514,448 10,532,458

Less Cash and cash equivalents 6 (10) (23,051)

Net debt 8,514,438 10,509,407

Total Equity 1,968,074 3,645,171

Total capital 10,482,512 14,154,578

Gearing ratio %81.23 %74.25

18 Reserves

(a) Asset Revaluation Reserve

The asset revaluation reserve records revaluations of non current assets. Under certaincircumstances dividends can be declared from this reserve.

19 Finance Lease Commitments

Note

2011

$

2010

$

Payable - minimum lease payments

- not later than 12 months - 5,038

- between 12 months and 5 years - 14,263

Minimum lease payments - 19,301

Less future finance changes - (3,116)

Present value of minimum leasepayments 15 - 16,185

Finance leases related to motor vehicles used by a former subsidiary in cellar door operations.

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20 Financial instruments

The Group's financial instruments consist mainly of deposits with banks, local money market instruments,short-term investments, accounts receivable and payable, loans to and from subsidiaries, bills and leases.

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

2011

$

2010

$

Financial Assets

Cash and cash equivalents 10 23,051

Loans and receivables 1,255,780 3,079,010

1,255,790 3,102,061

Financial Liabilities

Financial liabilities at amortised cost

- Trade and other payables 1,563,173 1,563,248

- Borrowings 8,514,448 10,532,458

10,077,621 12,095,706

Financial Risk Management Policies

The Trust�s RE provides treasury services to the business, co-ordinates access to domestic andinternational financial markets, and manages the financial risks relating to the operations of the consolidatedgroup. The Trust does not enter into or trade financial instruments, including derivative financial instruments,for speculative purposes. The use of financial derivatives is governed by the Trust�s policies approved bythe Board of Directors of the RE, which provide written principles on the use of financial derivatives.Compliance with policies and exposure limits is reviewed by the Compliance Committee on a continuousbasis. The Trust�s activities expose it primarily to the financial risks of changes in interest rates. The Trustdoes not enter into derivative financial instruments to manage its exposure to interest rate risk.

Specific Financial Risk Exposures and Management

The main risks the Group is exposed to through its financial instruments are interest rate risk, liquidity riskand credit risk.

(a) Interest rate risk

Exposure to interest rate risk arises on financial assets and financial liabilities recognised at reportingdate whereby a future change in interest rates will affect future cash flows or the fair value of fixedrate financial instruments.

Interest rate risk is managed by maintaining an appropriate mix between fixed and floating rateborrowings

The net effective variable interest rate borrowings (ie unhedged debt) exposes the Group to interestrate risk which will impact future cash flows and interest charges and is indicated by the followingfloating interest rate financial liabilities:

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20 Financial instruments continued

2011

$

2010

$

Floating rate instruments



8,514,448 10,516,273

(b) Liquidity risk

Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts orotherwise meeting its obligations related to financial liabilities.

The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserveborrowing facilities by continuously monitoring forecast and actual cash flows and matching thematurity profiles of financial assets and liabilities. Refer to note 15 for further discussion of liquidityrisk in relation to borrowings.

(c) Foreign exchange risk

The Group is not exposed to fluctuations in foreign currencies.

(d) Credit risk

Exposure to credit risk relating to financial assets arises from the potential non-performance bycounter parties of contract obligations that could lead to a financial loss to the Group.

The Group does not have any significant credit risk exposure to any single counter party or any groupof counter parties having similar characteristics, other than the growers in the Coonawarra PremiumVineyards Project. Growers who default on payment of their Grant of Use fees are liable to have thatGrant of Use terminated. In the event of termination, the relevant vineyard lots revert to the Trust. Anyarrears of Grant of Use fees are collected from Growers by withholding grape proceeds in the firstinstance, then by recovery action against the Grower or terminated Grower.

The carrying amount of financial assets recorded in the financial statements, net of any allowancesfor losses, represents the entity�s maximum exposure to credit risk.

Sensitivity Analysis

The following table illustrates sensitivities to the Group's exposures to changes in interest rates.The tableindicates the impact on how profit and equity values reported at balance date would have been affected bychanges in the relevant risk variable that management considers to be reasonably possible. Thesesensitivities assume that the movement in a particular variable is independent of other variables.

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20 Financial instruments continued

Profit

$

Equity

$

Year Ended 30 June 2011

Increase Interest rate by 2% (170,289) (170,289)

Decrease interest rate by 2% 170,289 170,289

Profit

$

Equity

$

Year Ended 30 June 2010

Increase Interest rate by 2% (210,325) (210,325)

Decrease interest rate by 2% 210,325 210,325

21 Segment information

Identification of reportable segments

The Group has identified its operating segments based on the internal reports that are reviewed and usedby the Board of Directors (chief operating decision makers) in assessing performance and determining theallocation of resources.

The Group is managed primarily on the basis of product category and service offerings as the diversificationof the Group's operations inherently have notably different risk profiles and performance assessmentcriteria. Operating segments are therefore determined on the same basis.

(a) Segment assets

Where an asset is used across multiple segments, the asset is allocated to the segment that receivesthe majority of economic value from the asset. In the majority of instances, segment assets areclearly identifiable on the basis of their nature and physical location.

(b) Segment liabilities

Liabilities are allocated to segments where there is direct nexus between the incurrence of the liabilityand the operations of the segment. Borrowings and tax liabilities are generally considered to relate tothe Group as a whole and are not allocated. Segment liabilities include trade and other payables andcertain direct borrowings.

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21 Segment information continued

(f) Business and Geographic Segments

Business segments

The Group has the following 3 business segments:

· A Managed Investment Scheme providing land to licenced growers who are members of the

Coonawarra Premium Vineyards Project.

· A vineyard in the Coonawarra.

· Wine sales and wine services, which was discontinued with the deconsolidation of Prince Hill

Wines Ltd on 1 July 2010.

Geographic segments

The Group's business segments are located in Australia.

(g) Accounting Policies

Segment revenues and expenses are those directly attributable to the segments and include any jointrevenue and expenses where a reasonable basis of allocation exists. Segment assets include allassets used by a segment and consist principally of cash, receivables, inventories, intangibles, andproperty, plant and equipment, net of allowances and accumulated depreciation and amortisation.While most such assets can be directly attributed to individual segments, the carrying amount ofcertain assets used jointly by two or more segments is allocated to the segments on a reasonablebasis. Segment liabilities consist principally of payables, employee benefits, accrued expenses,provisions and borrowings. Segment assets and liabilities do not include deferred income taxes.

(h) Intersegment Transfers

Segment revenues, expenses and results include transfers between segments. The prices chargedon intersegment transactions are the same as those charged for similar goods to parties outside ofthe Group at an arm's length. These transfers are eliminated on consolidation.

(i) Impairment Losses

Impairment losses amounting to $ 2,459,815 relating to biological assets within the managedinvestment scheme segment were recognised as an expense for the year ended 30 June 2011.

22 Tax

(a) Liabilities

2011

$

2010

$

CURRENT

Income tax 106,138 211,288

106,138 211,288

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22 Tax continued

(b) Deferred Tax Liability - ConsolidatedOpeningBalance

$

Charged toIncome

$

Chargeddirectly to

Equity

$

Changes inTax Rate

$

ClosingBalance

$

Deferred Tax Liability

Property, Plant and Equipment

revaluation 12,281 9,378 - - 21,659

Revaluation of biological assets 3,576,047 (512,946) - - 3,063,101

Revaluation of land 293,621 (37,500) (116,910) - 139,211

Accrued grape income 3,640 (3,640) - - -

Balance at 30 June 2010 3,885,589 (544,708) (116,910) - 3,223,971

Property, Plant and Equipment

revaluation 21,659 (2,303) - - 19,356

Revaluation of biological assets 3,063,101 (737,945) - - 2,325,156

Revaluation of land 139,211 - - - 139,211

Balance at 30 June 2011 3,223,971 (740,248) - - 2,483,723

(c) Deferred Tax Assets - Consolidated

OpeningBalance

$

Charged toIncome

$

Chargeddirectly to

Equity

$

Changes inTax Rate

$

ClosingBalance

$

Consolidated Group

Deferred Tax Assets

Provisions

Doubtful debts 28,500 106,200 - - 134,700

Fair value gain adjustments - 72,366 - - 72,366

Deferred tax assets attributable totax losses 667,181 (61,254) - - 605,927

Borrowing costs 14,367 (11,932) - - 2,435

Balance at 30 June 2010 710,048 105,380 - - 815,428

Provisions

Doubtful debts 134,700 (19,455) - - 115,245

Fair value gain adjustments 72,366 48,329 - - 120,695

Deferred tax assets attributable totax losses 605,927 (29,443) - - 576,484

Borrowing costs 2,435 39,370 - - 41,805

Balance at 30 June 2011 815,428 38,801 - - 854,229

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22 Tax continued

(d) Deferred tax assets not brought to account

Deferred tax assets not brought to account, the benefits of which will only be realised if the conditionsfor deductibility set out in Note 1(k) occur:

2011

$

2010

$

- temporary differences - 67,060

- tax losses:

- operating losses 623,203 8,246,390

- capital losses - 863,044

623,203 9,176,494

23 Distributions

No distributions has been proposed or paid.

Balance of franking accountat period end adjusted forfranking credits arisingfrom:

payment of provision forincome tax 323,077 299,723

323,077 299,723

24 Auditors' Remuneration

2011

$

2010

$

Remuneration of the auditor of theparent entity for:

- auditing or reviewing the financialreport 42,000 61,000

- auditing the compliance plan 2,500 2,500

25 Loss of control of entities

Name of group of entity Prince Hill Wines Ltd

Date control lost 1 July 2010

Contribution of the or group of entities to loss from ordinaryactivities during the period to the date of losing control -

Contribution of the group of entities to loss from ordinary activitiesfor the whole of the previous corresponding period 3,743,152

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26 Controlled Entities

(a) Acquisitions - Disposals of Controlled Entities

There have been no acquisitions of controlled entities during the year. The Trust lost control overPrince Hill Wines Ltd (ASX:PHW) when PHW shareholders approved the acquisition of certain assetsand liabilities from Watson Wine Group Pty Ltd (ACN 093 886 509) and its subsidiary companies inexchange for the issue of 148,514,029 shares .

An operating profit of $ 120,847 after income tax was attributable to members of the Trust from theloss of control.

The carrying amount of the net assets at the date of disposal were:

$

Cash and cash equivalents 23,041

Receivables 96,457

Inventory 440,637

Prepayments 4,079

Winery Sale Receivable 2,211,421

Total current assets 2,775,635

Property, plant and equipment 112,567

Total non-current assets 112,567

Trade payables 350,072

Provisions 16,866

Borrowings 2,204,797

Total current liabilities 2,571,735

Borrowings 12,622

Provisions 37,079

Total Non Current Liabilities 49,701

Net assets 266,766

Market Value

Quoted share value at time of deconsolidation 432,503

Non controlling interest disposed of on loss of control of subsidiary 6,902

Net market value 439,405

Net profit / (loss) on disposal before tax 172,639

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26 Controlled Entities continued

NameCountry ofincorporation

PercentageOwned (%)*

2011

PercentageOwned (%)*

2010

Parent Entity:

Coonawarra Australia Property Trust Australia

Subsidiaries of parent entity:

Prince Hill Wines Limited Australia - 42.2

CPV Wines Limited Australia 77.3 77.3

Subsidiaries of Prince Hill Wines Limited

Prince Hill Wine Services Pty Ltd Australia - 42.2

Prince Hill Cellars Pty Ltd Australia - 42.2

* Percentage of voting power is in proportion to ownership

27 Associated companies

NamePrincipalActivities

Country ofIncorp-oration Shares Ownership Interest

Carrying Amount ofInvestment

2011

%

2010

%

2011

$

2010

$

Listed:Prince Hill Wines

LtdWineProduction Australia Ord 24.48 42.24 271,408 -

271,408 -

(a) Movements during the Year in Investments in Controlled Entities

2011

$

2010

$

Balance at beginning of the financial year - -

Add:

Value at deconsolidation 432,503 -

Share of associated company's profit/(loss) after income tax (161,095) -

Less:

Balance at end of the the financial year 271,408 -

2011

$

2010

$

Share of associate's profit/(loss) before income tax expense (161,095) -

Share of associate's income tax expense - -

Share of associate's profit after income tax (161,095) -

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27 Associated companies continued

(b) Summarised presentation of aggregate assets, liabilities and performance of associates

2011

$

2010

$

Current assets 5,766,155 -

Non-current assets 2,137,828 -

Total assets 7,903,983 -

Current liabilities 7,081,964 -

Non-current liabilities 477,306 -

Total Liabilities 7,559,270 -

Net assets 344,713 -

Revenues 8,910,514 -

Profit/(Loss) after income tax of associates (657,978) -

(c) Fair value of associates

2011

$

2010

$

Market value of listed investment in associate 346,003 432,503

346,003 432,503

28 Contingent Liabilities and Contingent Assets

Recovery action is in process against Great Southern Beverage Pty Ltd (ACN 132 761 392) and its directorWarren Harvey due to failure to repay its loan of $247,500 which was repayable on 7 October 2009. It is notpracticable to estimate the value of any recovery.

The consolidated group has no other contingent assets or liabilities.

29 Interests of Key Management Personnel

The totals of remuneration paid to key management personnel of the company and the Group during theyear are as follows:

2011

$

2010

$

Short-term employee benefits 139,478 327,266

Long-term benefits 16,094 45,045

155,572 372,311

The Remuneration Report contained in the Directors' Report contains details of the remuneration paid orpayable to each member of the Group's key management personnel for the year ended 30 June 2011.

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30 Key Management Personnel Shareholdings

The number of units in Coonawarra Australia Property Trust held by each key management personnel of theGroup during the financial year is as follows:

Balance atbeginning

of year

2011

Bought /(Sold)

during theyear

2011

Balance atend ofyear

2011

Balance atbeginning

of year

2010

Bought /(Sold)

during theyear

2010

Balance atend ofyear

2010

Units held

Rex Watson # 2,287,285 - 2,287,285 2,287,285 - 2,287,285

Paul Miller - - - - - -

Andrew Parkinson - - - - - -

Conrad Guerra - - - - - -

2,287,285 - 2,287,285 2,287,285 - 2,287,285

# Units all held by related party Coonawarra Vineyard Management Services Pty Ltd.

Other Key Management Personnel Transactions

There have been no other transactions involving equity instruments other than those described in the tablesabove. For details of other transactions with key management personnel, refer to Note 31: Related PartyTransactions.

There are no loans to key management personnel.

31 Related party transactions

Transactions between related parties are on normal commercial terms and conditions no more favourablethan those available to other parties unless otherwise stated.

(a) Directors

The following persons were directors of the RE, Coonawarra Premium Vineyards Limited, during thefinancial year:

Paul Miller (Compliance Officer, non-executive) (Chairman)Rex Watson (Group Managing Director, executive)Andrew Parkinson (Company Secretary, Chief Executive Officer)

(b) Other key management personnel

The following persons also had authority and responsibility for planning, directing and controlling theactivities of the RE and the Trust, directly or indirectly, during the financial year:

Conrad Guerra (Company Secretary & Chief Financial Officer) (employed by related party PrinceHill Wine Services Pty Ltd), appointed 1 December 2008.

All the above persons were also key management personnel during the year ended 30 June 2010.

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31 Related party transactions continued(c) Key management personnel compensation policy

The board of directors of the RE reviews the remuneration packages of all directors and senior executivesof the RE on an annual basis and makes recommendations to the board. Remuneration packages arereviewed and determined with due regard to current market, comparable industry salaries, performance ofthe Trust and the related Managed Investment Scheme Coonawarra Premium Vineyards Project and otherrelevant factors. All director and senior executive compensation is paid by the RE, and passed onto theTrust through a management fee.

None of the key management personnel of the RE is employed under a contract or entitled to anyperformance-related bonus or remuneration of any kind, except for Andrew Parkinson whose contract withPrince Hill Wines Ltd to act as managing director of that company includes the ability to earn a cash bonusof up to $20,000 per year provided certain targets agreed with the board of directors of that company aremet. The targets were not met for the year and no bonus was payable.

None of the key management personnel of the RE is entitled to be granted any options over shares in theRE or unissued units in the Trust.

(d) Key management personnel compensation

The aggregate compensation of the key management personnel attributable to the Trust is set out in thedirectors report.

(e) Other transactions with key management personnel

Aggregate amounts receivable from other related parties are disclosed in note 7 to the financial statements.

During the financial year :-

· The Trust paid fees to the RE for management, administration and property management totalling

$205,953 (2010: $237,977) pursuant to the arms length terms and conditions of a contract that was

approved by the unitholders in December 2002 as part of the restructuring of the Project in 2003.

The Trust paid fees of $149,492 (2010: $332,401) to the Project Manager in respect of management

of the terminated vineyard lots for the 2010/11 financial year.

· The Trust paid interest of $77,224 (2009: $30,854) on loans from Watson Wine Group Pty Ltd, a

related entity of director, Rex Watson. These charges were on third party commercial terms and

conditions.

· CPV Wines Limited paid management, administration, property management and operating costs of

$647,993 to associated company, Prince Hill Wine Services Pty Ltd, pursuant to a contract approved

by the shareholders of CPV Wines Limited in January 2006. (In 2010 management, administration,

property management and operating costs of $663,268 were paid to Coonawarra Vineyard

Management Services Pty Ltd a related entity of director, Rex Watson, persuant to a contract

approved by the shareholders of CPV Wines Limited in January 2006. This contract was assigned to

Prince Hill Wine Services Pty Ltd from 1 July 2010).

· During the year Prince Hill Wine Services paid interest of $31,116 (2010: $133,183) to the trust and

repaid its borrowings of $1,433,234.

· During the year the RE paid interst of $11,785 (2010: $14,617) to the Trust.

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31 Related party transactions continued

· Associated company Prince Hill Wine Services Pty Ltd purchased all the grapes harvested by CPV

Wines Limited, $290,357, pursuant to a contract to purchase the grapes at district weighted average

prices. (In 2010 Watson Wine Group Pty Ltd, a related party of director, Rex Watson, purchased all

the grapes harvested by CPV Wines Limited, $381,890, pursuant to a contract to purchase the

grapes at district weighted average prices.This contract was assigned to Prince Hill Wine Services

Pty Ltd from 1 July 2010).

· The Group reimbursed the RE for insurance premiums of $32,805 (2009: $80,821). These charges

were calculated on the basis of cost recovery and do not include any profit element.

32 Cash Flow Information

(a) Reconciliation of Cash Flow from Operations with Loss after Income Tax

2011

$

2010

$

Net loss for the period (1,670,195) (5,538,417)

Cash flows excluded from profit attributable to operatingactivities

Non-cash flows in profit

Depreciation 40,185 76,292

Impairment of receivables 182,997 351,468

Impairment of winery sale receivable - 2,388,643

Impairment of inventory - 260,373

Net gain on disposal of property, plant and equipment - (129,947)

Net gain on deconsolidation of controlled entity (172,639) -

Impairment of Financial Assets - 241,221

Fair value movement - biological assets 2,459,815 1,933,358

Share of associated companies net profit after income taxand dividends 161,095 -

Changes in assets and liabilities, net of the effects ofpurchase and disposal of subsidiaries

(Increase)/decrease in trade and term receivables (560,997) 291,119

(Increase)/decrease in prepayments 1,181 334,926

(Increase)/decrease in inventories - 133,879

Increase/(decrease) in trade payables and accruals 102,728 (53,840)

Increase/(decrease) in income taxes payable (105,150) 244,034

(Increase)/decrease in deferred taxes payable (779,049) (766,948)

Increase/(decrease) in provisions - 9,843

(340,029) (223,996)

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32 Cash Flow Information continued

(b) Loan Facilities

2011

$

2010

$

Loan facilities 8,400,000 10,268,000

Amount utilised (8,383,469) (10,185,404)

16,531 82,596

The major facilities are summarised as follows:

At 30 June 2011 the Trust had a multi-option facility from Commonwealth Bank of Australia of$5,700,000, including an overdraft sub-limit of $700,000 for working capital, secured by a fixed andfloating charge over the Trust�s property assets.

CPV Wines had bank loan of $2,500,000 and an overdraft limit of $200,000. The bank loan issecured by a mortgage over the company�s two freehold land titles.

33 Events after the end of the reporting period

On 10 July 2011, the Commonwealth Government announced the �Securing a Clean Energy Future � theAustralian Government�s Climate Change Plan�. Whilst the announcement provides further details of theframework for a carbon pricing mechanism, uncertainties continue to exist on the impact of any carbonpricing mechanism on the Group as legislation must be voted on and passed by both houses of Parliament.In addition, as the Group will not fall within the �top 500 Australian Polluters�, the impact of the CarbonScheme will be through indirect effects of increased prices on production inputs and general businessexpenses as suppliers subject to the carbon pricing mechanism are likely to pass on their carbon priceburden to their customers in the form of increased prices. Directors expect that this will not have asignificant impact upon the operation costs within the business, and therefore will not have an impact on thevaluation of assets and/or going concern of the business.

Except for the above, no other matters or circumstances have arisen since the end of the financial yearwhich significantly affected or could significantly affect the operations of the Group, the results of thoseoperations, or the state of affairs of the Group in future financial years.

34 Parent entity

The following information has been extracted from the books and records of the parent, CoonawarraAustralia Property Trust and has been prepared in accordance with Accounting Standards.

The financial information for the parent entity, Coonawarra Australia Property Trust has been prepared onthe same basis as the consolidated financial statements except as disclosed below.

Investments in subsidiaries, associates and joint ventures

Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the financialstatements of the parent entity. Dividends received from associates are recognised in the parent entity profitor loss, rather than being deducted from the carrying amount of these investments.

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34 Parent entity continued

2011

$

2010

$

Statement of Financial Position

Assets

Current assets 1,149,458 2,486,854

Non-current assets 11,444,197 13,538,112

Total Assets 12,593,655 16,024,966

Liabilities

Current liabilities 7,057,111 8,242,869

Non-current liabilities 1,868,409 2,613,560

Total Liabilities 8,925,520 10,856,429

Equity

Issued capital 1,831,210 1,831,210

Retained earnings 1,061,610 2,562,012

Asset realisation reserve 775,315 775,315

Total Equity 3,668,135 5,168,537

Statement of Comprehensive Income

Total profit or loss for the year (1,500,403) (2,431,253)

Other comprehensive income - (469,204)

Total comprehensive income (1,500,403) (2,900,457)

Contingent liabilities

The parent entity did not have any contingent liabilities as at 30 June 2011 or 30 June 2010.

Contractual commitments

The parent entity did not have any commitments as at 30 June 2011 or 30 June 2010.

35 Going concern basis of accounting

The Directors of the responsible entity have prepared the financial statements on the basis of goingconcern. At the year end the Trust had net current liabilities of $8,923,840 and had incurred a loss for theyear of $1,670,195. The Trust continues to be economically dependent on generating profits from thebusiness and the continued support from the bank while in breach of its banking covenants.

The Trust�s ability to continue as a going concern is contingent upon generation of profit from its business,the continued support of the bank and/or successful raising of capital. If profits are not generated, bankingsupport is not maintained and/or capital is not raised, the going concern basis may not be appropriate, withthe result that the Trust may have to realise its assets and extinguish its liabilities, other than in the ordinarycourse of business and in amounts different from that stated in the financial report. No allowance for suchcircumstances has been made in the financial report.

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36 Company Details

Registered office and Principal Place of Business

The registered office and principal place of business of thecompany is:

Coonawarra Australia Property Trust

235 Glen Osmond Road

Frewville SA 5063

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Additional Information for Listed Public Companies

30 June 2011

ASX Additional Information

Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is setout below. This information is effective as at 26 September 2011.

Substantial unit-holders

The details of substantial unit-holders and their associates are set out below:

Holders Number of units

Elmach Pty Ltd <Commerical Property No 1 A/C> 3,399,218

Coonawarra Vineyard Management Services Pty Ltd 2,243,535

Dr Stephanie Phillips 600,000

Voting rights of ordinary units

On a show of hands, every member present at a meeting in person or by proxy shall have one vote and upon apoll each share shall have one vote.

Distribution of equity security holders

Holding Holder Units

1 - 1,000 13 7,305

1,001 - 5,000 28 84,746

5,001 - 10,000 144 956,800

10,001 - 100,000 338 8,581,669

100,000 and over 10 7,969,480

Total 535 17,500,000

There were 178 holders of less than a marketable parcel of ordinary shares.

Twenty largest unit-holders

Ordinary fully paid units

Number held% of issued

units

Elmach Pty Ltd <Commerical Property No 1 A/C> 3,399,218 19.42

Coonawarra Vineyard Management Services Pty Ltd 2,243,535 12.82

Dr Stephanie Phillips 600,000 3.43

G T Universal Pty Ltd <The Takla Family A/C> 393,750 2.25

Mr Geoffrey John Paul 388,627 2.22

Mr Milton Yannis 300,000 1.71

Ms Fiona Elizabeth Blane 175,000 1.00

HSBC Custody Nominees (Australia) Limited - A/C 3 151,094 0.86

Mr Hansjoerg Zinsli + Mrs Alison Norah Zinsli <Hansjoerg Zinsli S/F A/C> 110,000 0.63

Golden Venture Pty Ltd <Tirman Super Fund A/C> 108,256 0.62

Mr Hansjoerg Zinsli 100,000 0.57

Villaford Pty Ltd <B & D Super Fund A/C> 80,000 0.46

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Additional Information for Listed Public Companies

30 June 2011

Ordinary fully paid units

Number held% of issued

units

Mr Stuart Boland 75,000 0.43

Bond Street Custodians Limited <Pema - V09118 A/C> 75,000 0.43



Mr Ian Carney 75,000 0.43

Mr Perry Childs 75,000 0.43

Mr John Ford 75,000 0.43

Dr Damian Hope <Btml A/C> 75,000 0.43

8,649,480 49.43

Securities exchange

The Company is listed on the Australian Securities Exchange.

Trading and Pricing Information

Units in the trust trade in the same manner as shares in a listed public company. Trading takes place between10:00am and 4:00pm each business day. All major newspapers publish trading prices for securities listed on theAustralian Securities exchange on the day following each trading day.

Annual Taxation Statement

An annual taxation statement for the year ending 30 June 2011 has not been issued to members. There were noassessable distributions paid during the financial year ended 30 June 2011.

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Notice of Annual General Meeting

Notice is hereby given by Coonawarra Premium Vineyards Limited ABN 58 086 944 265 (CPVL), responsibleentity of the Coonawarra Australia Property Trust ARSN 104 335 159 (Trust), that the annual general meeting ofthe Trust will be held at 235 Glen Osmond Road, Frewville, South Australia 5063, on Friday 25 November 2011commencing at 11:00am.

BUSINESS

1. To consider reports.The annual financial report, directors’ report and independent auditor’s report for the year ended 30 June2011 will be presented for consideration.

Andrew ParkinsonCompany SecretaryCoonawarra Premium Vineyards Limited

Adelaide

EXPLANATORY NOTES1. To consider reports

Unless the Trust unit registry has been notified otherwise, each unit-holder will have received an annual report,which contains the reports to be considered

Following consideration of the reports, the chairman will give unit-holders a reasonable opportunity to askquestions about the reports. The chairman will also give unit-holders a reasonable opportunity to ask the auditorquestions relevant to the conduct of the audit; the preparation and content of the independent audit report; theaccounting policies adopted by the Trust in relation to the preparation of the financial statements; and theindependence of the auditor in relation to the conduct of the audit.

A form of proxy accompanies this notice of meeting. Detailed notes regarding proxies are included onthe reverse of that proxy form. Forms of proxy must be lodged at the registered office at least 48 hoursbefore the meeting.

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Proxy Form

I/We

(Name in Block Letters)

Postcode

(Address in Block Letters)

Being a Unit-holder of Coonawarra Australia Property Trust (Trust) hereby appoint(s)

(Name in Block Letters)

Postcode

(Address in Block Letters)

or failing him/her, the Chair of the Meeting, as my/our proxy to attend, vote and otherwise act on my/our behalf atthe annual general meeting of the Trust to be held at 235 Glen Osmond Road, Frewville, South Australia 5063,on Friday 25 November 2011 commencing at 11:00 am and at any adjournment of that meeting.

As there are no resolutions to be put to the meeting, no direction is required concerning how your votesare to be cast.

Signature(s) of member(s) _________________________ ____________________________(Refer to note 7 overleaf)

Dated …………/……………/………

PRIVACYThe Trust advises that Chapter 2C of the Corporations Act 2001 requires information about security holders(including name, address and details of the securities held) to be included in the public register of the entity inwhich the securities are held. This information must continue to be included in the public register if the securityholder ceases to be a security holder. These statutory obligations are not altered by the Privacy Amendment(Private Sector) Act 2000. Information is collected to administer the security holdings and if some of theinformation is not collected it might not be possible to administer the security holding. The Trust’s privacy policyis available on its website (www.coonawarravineyard.com.au)

SEE OVERLEAF FOR NOTES ON PROXIES

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NOTES ON PROXIES

1. A member who is entitled to attend and cast a vote at a meeting of members of the Trust may appoint aperson as the member’s proxy to attend and vote for the member at the meeting.

2. The appointment may specify the proportion or number of votes that the proxy may exercise.3. If the member is entitled to cast 2 or more votes at the meeting, the member may appoint 2 proxies. If

the member appoints 2 proxies and the appointment does not specify the proportion or number of themember’s votes each proxy may exercise, each proxy may exercise half of the votes.

4. Any fractions of votes resulting from the application of notes 2 or 3 above will be disregarded.5. A proxy need not be a member of the Trust.6. A proxy appointed to attend and vote for a member has the same rights as the member to speak at the

meeting, to vote (but only to the extent allowed by the appointment) and to join in a demand for a poll.7. The appointment of a proxy must be signed by the member or his attorney duly authorized in writing. If

the appointer is a corporation, the appointment must be signed by its duly authorized attorney, or inaccordance with the corporation’s constitution and the Corporations Act 2001.

8. A corporate shareholder wishing to appoint a natural person to act as its representative at the meetingcan do so in accordance with the Corporations Act 2001. The representative must bring evidence of hisor her appointment as a representative to the meeting.

9. To be valid, the instrument appointing a proxy, and the power of attorney or other authority (if any) underwhich it is signed or executed (or a copy certified by a notary), must be lodged at the registered office ofthe Trust, (being 235 Glen Osmond Road, Frewville, South Australia 5063), not less than 48 hoursbefore the time appointed for the meeting or any adjournment thereof. The lodgement referred to in thisparagraph can also be achieved by faxing the document(s) to the attention of the “Secretary” on (+61) 88338 3244 or mailing to PO Box167, Fullarton, South Australia 5064.

10. If this proxy form is signed by the member(s) but otherwise left blank, it shall be deemed to be a validappointment of the Chair of the meeting as the member's proxy.

11. A proxy other than the Chair need not vote on a poll or a show of hands, but if the proxy does votehe/she must vote the way the appointment specifies. A proxy who is the Chair must vote on a poll.

12. If a member desires to direct the proxy how to vote on a particular resolution, the member should placean "X" in the appropriate box, otherwise the proxy may vote or abstain as he or she deems fit.

13. The Trust will make further copies of this form available to members on request.

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Documents

For personal use only - ASX · 2011-09-27 · Paul Miller (Chairman and Compliance Officer) Rex Watson (Group Managing Director) Andrew Parkinson (Chief Executive Officer & Company