NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

1:STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Preparation
   The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 Accounting Standards and Interpretations and complies with other requirements of the law. The financial report has also been prepared on a historical cost basis, except for availablefor- sale investments, which have been measured at fair value. The carrying values of recognised assets and liabilities that are hedged items in fair value hedges, and are otherwise carried at cost, are adjusted to record changes in the fair values attributable to the risks that are being hedged.

   The company is a listed public company, incorporated in Australia and operating in Australia, Indonesia and Singapore.

2. Adoption of new and revised standards
   In the year ended 30 June 2007, the Group has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2006. It has been determined by the Group that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change in necessary to Group accounting policies.
3. Statement of Compliance
   The financial report was authorised for issue by the directors on 30 September 2007.
   The financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the financial statements and notes thereto, complies with International Financial Reporting Standards (IFRS).
4. Basis of Consolidation
   The consolidated financial statements comprise the financial statements of Olympia Resources Limited and its subsidiaries as at 30 June each year (the Group).

   The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

   In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-group transactions have been eliminated in full. Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group. Control exists where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

   Minority interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group and are presented separately in the income statement and within equity in the consolidated balance sheet.

5. Significant accounting judgments, estimates and assumptions

   The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are:
   Share-based payment transactions:
   The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by an external valuer using a Binomial tree model.
   The Group measures the cost of cash-settled share-based payments at fair value at the grant date using the Binomial tree model taking into account the terms and conditions upon which the instruments were granted.

6. Revenue Recognition
   Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

6. Revenue Recognition (continued)
   1. Sale of goods
      Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Risks and rewards of ownership are considered passed to the buyer at the time of delivery of the goods to the customer.
   2. Interest income
      Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.
7. Borrowing Costs
   Borrowing costs are recognised as an expense when incurred except those that relate to the acquisition, construction or production of qualifying assets where the borrowing cost is added to the cost of those assets until such time as the assets are substantially ready for their intended use or sale.
8. Leases
   Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Assets held under finance leases are initially recognised at their fair value or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
   Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the general policy on borrowing costs - refer Note 1(g).
   Finance leased assets are depreciated on a straight line basis over the estimated useful life of the asset.

   Operating lease payments are recognised as an expense on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

9. Cash and cash equivalents
   Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.
   For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
10. Trade and other receivables
    Trade receivables, which generally have 30-90 day terms, are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. An allowance for doubtful debts is made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off when identified.
11. Inventories
    Inventories are valued at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.
12. Derecognition of financial assets and financial liabilities
    1. Financial assets
       A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:
       • the rights to receive cash flows from the asset have expired;
       • the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass-through’ arrangement; or
       • the Group has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

12. Derecognition of financial assets and financial liabilities (continued)
    When the Group has transferred its rights to receive cash flows from an asset and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the Group’s continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration received that the Group could be required to repay.
    When continuing involvement takes the form of a written and/or purchased option (including a cash-settled option or similar provision) on the transferred asset, the extent of the Group’s continuing involvement is the amount of the transferred asset that the Group may repurchase, except that in the case of a written put option (including a cashsettled option or similar provision) on an asset measured at fair value, the extent of the Group’s continuing involvement is limited to the lower of the fair value of the transferred asset and the option exercise price.
    2. Financial liabilities
       A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.
13. Impairment of financial assets
    The Group assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.
    1. Financial assets carried at amortised cost
       If there is objective evidence that an impairment loss on loans and receivables carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced either directly or through use of an allowance account.
       The amount of the loss is recognised in profit or loss.
       The Group first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant. If it is determined that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, the asset is included in a group of financial assets with similar credit risk characteristics and that group of financial assets is collectively assessed for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment.
       If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed. Any subsequent reversal of an impairment loss is recognised in profit or loss, to the extent that the carrying value of the asset does not exceed its amortised cost at the reversal date.
    2. Financial assets carried at cost
       If there is objective evidence that an impairment loss has been incurred on an unquoted equity instrument that is not carried at fair value (because its fair value cannot be reliably measured), or on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the current market rate of return for a similar financial asset.
    3. Available-for-sale investments
       If there is objective evidence that an available-for-sale investment is impaired, an amount comprising the difference between its cost (net of any principal repayment and amortisation) and its current fair value, less any impairment loss previously recognised in profit or loss, is transferred from equity to the income statement. Reversals of impairment losses for equity instruments classified as available-for-sale are not recognised in profit. Reversals of impairment losses for debt instruments are reversed through profit or loss if the increase in an instrument's fair value can be objectively related to an event occurring after the impairment loss was recognised in profit or loss.

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

14. Foreign currency translation
    Both the functional and presentation currency of Olympia Resources Limited and its Australian subsidiaries is Australian dollars. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.
    Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date.
    All exchange differences in the consolidated financial report are taken to profit or loss with the exception of differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity. These are taken directly to equity until the disposal of the net investment, at which time they are recognised in profit or loss.
    Tax charges and credits attributable to exchange differences on those borrowings are also recognised in equity. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction.
    Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.
    The functional currency of the foreign operations, Sinol Trading Pte Limited is Singapore dollars ($SGD), and PT Olympia Resources Indonesia is Australian dollars.
    As at the reporting date the assets and liabilities of these subsidiaries are translated into the presentation currency of Olympia Resources Limited at the rate of exchange ruling at the balance sheet date and their income statements are translated at the weighted average exchange rate for the year.
    The exchange differences arising on the translation are taken directly to a separate component of equity. On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular foreign operation is recognised in profit or loss.
15. Income tax
    Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date.
    Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
    Deferred income tax liabilities are recognised for all taxable temporary differences except:
    • when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
    • when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
    Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:
    • when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
    • when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilised.
    The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

15. Income Tax (continued)
    Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.
    Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.
16. Other taxes
    Revenues, expenses and assets are recognised net of the amount of GST except:
    • when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
    • receivables and payables, which are stated with the amount of GST included.
    The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.
    Cash flows are included in the Cash Flow Statement on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows.
    Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
17. Property, plant and equipment
    Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the parts is incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement only if it is eligible for capitalisation.
    Land and buildings are measured at fair value less accumulated depreciation on buildings and less any impairment losses recognised after the date of the revaluation.
    Depreciation is calculated on a diminishing value basis, excluding computer software which is calculated on a straight-line basis over the estimated useful life of the assets as follows:
    Plant and equipment – 7.5 – 50.0%
    The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end.
    1. Impairment
       The carrying values of plant and equipment are reviewed for impairment at each reporting date, with recoverable amount being estimated when events or changes in circumstances indicate that the carrying value may be impaired. The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, recoverable amount is determined for the cash-generating unit to which the asset belongs, unless the asset's value in use can be estimated to be close to its fair value.
       An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount. For plant and equipment, impairment losses are recognised in the income statement in the cost of sales line item.
    2. Derecognition and disposal
       An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

17. Property, plant and equipment (continued)
    Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
18. Financial assets
    Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classified as either financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, or available-for-sale investments, as appropriate. When financial assets are recognised initially, they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable transactions costs. The Group determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this designation at each financial year-end.
    All regular way purchases and sales of financial assets are recognised on the trade date i.e. the date that the Group commits to purchase the asset. Regular way purchases or sales are purchases or sales of financial assets under contracts that require delivery of the assets within the period established generally by regulation or convention in the marketplace.
    1. Financial assets at fair value through profit or loss
       Financial assets classified as held for trading are included in the category ‘financial assets at fair value through profit or loss’. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term. Derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on investments held for trading are recognised in profit or loss.
    2. Held-to-maturity investments
       Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-tomaturity when the Group has the positive intention and ability to hold to maturity. Investments intended to be held for an undefined period are not included in this classification. Investments that are intended to be held-to-maturity, such as bonds, are subsequently measured at amortised cost. This cost is computed as the amount initially recognised minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between the initially recognised amount and the maturity amount. This calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums and discounts. For investments carried at amortised cost, gains and losses are recognised in profit or loss when the investments are derecognised or impaired, as well as through the amortisation process.
    3. Loans and receivables
       Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired, as well as through the amortisation process.
    4. Available-for-sale investments
       Available-for-sale investments are those non-derivative financial assets that are designated as available-for-sale or are not classified as any of the three preceding categories. After initial recognition available-for sale investments are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in profit or loss.
       The fair value of investments that are actively traded in organised financial markets is determined by reference to quoted market bid prices at the close of business on the balance sheet date. For investments with no active market, fair value is determined using valuation techniques. Such techniques include using recent arm’s length market transactions; reference to the current market value of another instrument that is substantially the same; discounted cash flow analysis and option pricing models.
       Impairment is determined by assessing the recoverable amount of the cash-generating unit (group of cashgenerating units), to which the goodwill relates. When the recoverable amount of the cash-generating unit (group of cash-generating units) is less than the carrying amount, an impairment loss is recognised. When goodwill forms part of a cash-generating unit (group of cash-generating units) and an operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this manner is measured based on the relative values of the operation disposed of and the portion of the cash-generating unit retained. Impairment losses recognised for goodwill are not subsequently reversed.

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

19. Impairment of assets
    The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset's value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.
    In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease).
    An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.
20. Trade and other payables
    Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services.
21. Interest-bearing loans and borrowings
    All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs.
    After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.
    Gains and losses are recognised in profit or loss when the liabilities are derecognised.
22. Provisions
    Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate assets but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability.
    When discounting is used, the increase in the provision due to the passage of time is recognised as a borrowing cost.

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

23. Employee leave benefits
    1. Wages, salaries, annual leave and sick leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees’ services up to the reporting date, They are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable.
    2. Long service leave The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and period of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.
24. Share-based payment transactions
    1. Equity settled transactions:
       The Group provides benefits to employees (including senior executives) of the Group in the form of share-based payments, whereby employees render services in exchange for shares or rights over shares (equity-settled transactions).
       There are currently one plan in place to provide these benefits:
       • the Employee Share Option Plan (ESOP), which provides benefits to directors and senior executives.
       The cost of these equity-settled transactions with employees is measured by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by an external valuer using a binomial tree model.
       In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of Olympia Resources Limited (market conditions) if applicable. The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (the vesting period).
       The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the Group’s best estimate of the number of equity instruments that will ultimately vest. No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. The income statement charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.
       No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional upon a market condition.
       If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any modification that increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at the date of modification.
       If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as described in the previous paragraph.
       The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of earnings per share (see Note 29).
25. Issued capital
    Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

26. Earnings per share
    Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element.
    Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for:
    • costs of servicing equity (other than dividends) and preference share dividends;
    • the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and
    • other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.

1. Exploration and evaluation
   Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied:
   1. the rights to tenure of the area of interest are current; and
   2. at least one of the following conditions is also met:
      1. the exploration and evaluation expenditures are expected to be recouped through successful development and exploration of the area of interest, or alternatively, by its sale; or
      2. exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.
   Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortised of assets used in exploration and evaluation activities. General and administrative costs are only included in the measurement of exploration and evaluation costs where they are related directly to operational activities in a particular area of interest.
   Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years.
   Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to development.
2. Development expenditure
   Development expenditure is recognised at cost less accumulated amortisation and any impairment losses. Where commercial production in an area of interest has commenced, the associated costs together with any forecast future capital expenditure necessary to develop proved and probable reserves are amortised over the estimated economic life of the mine on a units-of-production basis.
   Changes in factors such as estimates of proved and probable reserves that affect unit-of-production calculations are dealt with on a prospective basis.

2. REVENUE AND EXPENSES

1. Consolidated	Parent
   2007 $	2007 $	2006 $
   1,011,014	90,190	82,694

   Operating revenue
   Sales of heavy mineral concentrate

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

2. REVENUE AND EXPENSES (continued)

	Consolidated	Parent
	2007 $	2007 $	2006 $
(b) Other revenue
Interest received from other parties	82,412	81,861	42,816
Interest received from partly owned subsidiary	-	55,915	-
Write back of creditors	110,204	110,204	-
Net gains on disposal of plant and equipment	-	-	7
Profit on disposal of investments	6,621	6,621
Increase in listed investments	-	-	1,500
	199,237	254,601	44,323
Total revenue	1,210,251	344,791	127,017
(c)Expenses
Cost of sales of heavy mineral concentrate	932,280	86,546	76,888
Borrowing costs - interest on finance leases and market rate facility	4,408	4,408	20,147
Depreciation and amortisation expenses - depreciation of plant and equipment	43,837	43,837	36,816
Employee expenses	862,187	827,382<	723,394
Impairment of loans to subsidiaries	-	1,324,695	-
Other expenses Accounting and audit fees
- accounting fees	28,854	22,821	18,856
- audit fees	30,000	30,000	17,500
Advertising and public relations
- advertising	21,045	21,045	4,742
- public relations	3,641	3,641	27,318
Corporate administration expenses	107,516	106,999	97,640
Consulting and legal fees
- consulting fees	405,653	260,464	336,520
- legal fees	63,236	61,021	28,372
- advisory services	-	-	138,750
Directors’ fees	161,205	161,205	180,694
Occupancy costs
- lease commitments	43,206	29,401	25,772
- other costs	10,876	10,876	11,422
Travelling expenses	132,366	63,268	55,747
Administration expenses	189,719	170,594	148,386
Salaries and expenses transferred to deferred exploration	(450,593)	(450,593)	(331,945)
Recovery of overhead from partly owned subsidiary	-	(533,269)	-
Deferred Exploration written off	816,951	175,156	42,262
Net foreign exchange losses	2,804	-	-
Total other expenses from ordinary activities	1,566,479	132,628	802,036

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

3. TAXATION		Consolidated	Parent
		2007 $	2007 $	2006 $
(a) Income Tax Benefit Attributable to Loss from Ordinary Activities
Income tax benefit recognised in profit or loss		222,475	222,475	166,780
The major component of this tax benefit is: Adjustment recognised in the current year in relation to the current tax of prior years – R&D tax offset
The aggregate amount of income tax attributable to the financial year differs from the amount prima facie payable on the loss from ordinary activities. The difference in reconciled as follows:
Loss from ordinary activities		2,198,940	2,074,705	1,532,266
Prima facie income tax benefit on operating loss at 30% (30% for 2006)		(659,682)	(622,411)	(459,680)
Less / (Add): tax effect of non-allowable items		66,225	428,906	(8,400)
Less: tax effect of capitalised exploration expenditure		(396,649)	(366,649)	(937,657)
Add: R&D tax offset refunded in current year		222,475	222,475	166,780
Income tax losses and net temporary differences carried forward not taken up as a benefit		990,106	560,154	1,405,737
Income tax benefit		222,475	222,475	166,780
(b) Deferred Tax Asset not Brought to Account
The Directors estimate that the potential future income tax benefit at 30% in respect of tax losses and net temporary differences not brought to account is:
Tax losses carried forward		4,157,020	3,727,068	3,166,914

 

Consolidated tax losses include $429,891 foreign sourced tax losses.

The benefit for tax losses will only be obtained if:

(i) the Company derives future assessable income of a nature and an amount sufficient to enable the benefit from the deductions for the losses to be realised;

(ii) the Company continues to comply with the conditions for deductibility imposed by the law; and

(iii) no changes in tax legislation adversely affect the Company in realising the benefit from the deductions for the losses.

 

4. CASH ASSETS		Consolidated	Parent
		2007 $	2007 $	2006 $
Cash at bank and on hand		2,465,754	2,440,847	2,338,102

 

5. RECEIVABLES		Consolidated
		2007 $	2007 $	2006 $
Current
Trade debtors		395,002	248,368	65,806
ATO Receivable		52,224	52,224	40,346
		447,226	300,592	106,152

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

6. INVENTORIES		Consolidated	Parent
		2007 $	2007 $	2006 $
Zircon concentrate		70,385	-	-

 

7. LOAN RECEIVABLES		Consolidated	Parent
		2007 $	2007 $	2006 $
Loans to PT Olympia Resources Indonesia		-	2,508,439	-
Allowance for impairment		-	(1,172,583)	-
Loans to Sinol Trading Pte Ltd		-	300,000	-
Allowance for impairment		-	(152,112)	-
Other		59,400	-	-
		59,400	1,483,744	-

 

8. OTHER		Consolidated	Parent
		2007 $	2007 $	2006 $
Current
Prepayments		56,220	52,134	25,662
Other		15,000	15,000	-
		71,220	67,134	25,662
Non-Current
Other		30,814	-	-

 

9. AVAILABLE FOR SALE INVESTMENTS		Consolidated	Parent
		2007 $	2007 $	2006 $
Non Current
Shares in listed corporations – market value		-	-	5,500

 

10. PROPERTY, PLANT AND EQUIPMENT		Consolidated	Parent
		2007 $	2007 $	2006 $
Plant and equipment
At cost		278,938	236,419	212,767
Accumulated depreciation		(99,122)	(94,622)	(50,785)
		179,816	141,797	161,982
Mine Properties – at cost		8,969,731	7,844,272	3,677,259
		9,149,547	7,986,069	3,839,241
Reconciliations Reconciliations of the carrying amounts for each class of property, plant and equipment are set out below:
Plant and equipment
Carrying amount at beginning of year		161,982	161,982	35,88435,884
Additions		66,171	23,652	163,600
Disposals		-	-	(686)
Depreciation		(48,337)	(43,837)	(36,816)
Carrying amount at end of year		179,816	141,797	161,982

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

10. PROPERTY, PLANT AND EQUIPMENT (continued)		Consolidated	Parent	Consolidated
		2007 $	2007 $	2007 $
Mine properties
Carrying amount at beginning of year		3,677,259	3,677,259	-
Additions		3,092,662	1,967,203	484,252
Transferred from deferred expenditure		2,199,810	2,199,810	3,193,007
Amortisation		-	-	-
Carrying amount at end of year		8,969,731	7,844,272	3,677,259

 

11. DEFERRED EXPLORATION		Consolidated	Parent	Consolidated
		2007 $	2007 $	2007 $
Non-Current
Deferred tenement acquisition and evaluation expenditure (at cost) – exploration phase		2,022,316	1,922,316	3,412,724
Reconciliations
Opening balance		3,412,724	3,412,724	3,457,273
Additions		1,626,353	1,257,287	3,190,720
Transfer to mine properties		(2,199,810)	(2,199,810)	(3,193,007)
Transfer to subsidiary		-	(372,729)	-
Amounts written off		(816,951)	(175,156)	(42,262)
		2,022,316	1,922,316	3,412,724

The ultimate recoupment of the Company's deferred tenement acquisition and evaluation expenditure carried forward in respect
of areas of interest still in the exploration and/or evaluation phases is dependent on successful development and commercial exploitation
or, alternatively, sale of the respective areas.

12. FINANCIAL ASSETS		Consolidated	Parent
		2007 $	2007 $	2006 $
Investment in subsidiaries		-	126,005	-

 

13. PAYABLES		Consolidated	Parent
		2007 $	2007 $	2006 $
Current
Other creditors		332,235	332,235	283,279
Accruals		379,935	263,976	137,943
		712,170	596,211	421,222

 

14. PROVISIONS		Consolidated	Parent
Current		2007 $	2007 $	2006 $
Employee entitlements		27,710	27,710	23,396
Aggregate liability for employee benefits		27,710	27,710	23,396
		No.	No.	No.
Number of employees at balance date		11	6	6

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

15. FINANCIAL LIABILITIES		Consolidated	Parent
Current		2007 $	2007 $	2006 $
Obligations under finance leases (refer note 26)		11,450	11,450	12,525
Non current
Obligations under finance leases (refer note 26)		34,885	34,885	46,352
Financing facilities available At reporting date, the following financing facilities had been negotiated and were available:
Total facilities:
• bank loans • equity standby facility (i)		450,000 7,500,000	450,000 7,500,000	450,000 -
Facilities unused at reporting date
• bank loans • equity standby facility (i)		450,000 7,500,000	450,000 7,500,000	450,000 -
(i) The equity standby facility may be drawndown at Olympia Resources discretion by the issue of shares and options, subject to pricing and volume conditions.
Assets pledged as security The carrying amounts of assets pledged as security for the bank loan facility are:
Non-Current
First mortgage
Mine properties		450,000	450,000	450,000

 

16. CONTRIBUTED EQUITY			Parent
			2007 No.	2006 No.
Share capital
Ordinary shares, fully paid			145,302,470	91,130,883
Ordinary shares
Movements:			No.	$
Balance as at 30 June 2005			58,767,594	7,763,031
Issued in lieu of payment of consulting fees			1,055,905	189,750
Issued for working capital, development and exploration			31,121,884	6,184,600
Issued for the conversion of options			185,500	46,375
Share Issue Costs			-	(375,601)
Balance as at 30 June 2006			91,130,883	13,808,155
Issued in lieu of payment of consulting fees			1,333,067	203,982
Issued for working capital, development and exploration			52,832,270	6,515,796
Issued for the conversion of options			6,250	2,188
Share Issue Costs			-	(485,709)
Balance as at 30 June 2007			145,302,470	20,044,412

 

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

16. CONTRIBUTED EQUITY (continued)

Terms and conditions Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at shareholders’ meetings. In the event of winding up of the Company, ordinary shareholders rank after all creditors and are fully entitled to any proceeds of liquidation.

 

17. SHARE OPTIONS

At the date of this report, there were 39,917,850 unissued shares under option as follows:

			No. of Options
Exercisable at 25c, on or before 31 December 2007			10,257,908
Exercisable at 25c, on or before 31 December 2007 (1)			2,950,000
Exercisable at 25c, on or before 31 December 2009 (1)			300,000
Exercisable at 35c, on or before 31 December 2009			10,265,182
Exercisable at 20c, on or before 30 June 2010			16,144,760
			39,917,850

These options do not entitle the holders to participate in any share issue of the company or any other body corporate. (1) Options were issued to Directors, Employees and Consultants under the Employee Share Option Plan.

During or since the end of the financial year 6,250 options were exercised raising $2,188. The options issued during or since the end of the financial year were as follows: ? 10,271,432 options issued under the Prospectus at an exercise price of $0.35 cents and expiring on 31 December 2009 ? 1,106,970 options issued under for consulting services at an exercise price of $0.25 cents and expiring on 31 December 2007 ? 16,144,760 options issued under the Prospectus at an exercise price of $0.20 cents and expiring on 30 June 2009 ? 300,000 options issued under the Employee Share Option Plan at an exercise price of $0.25 cents and expiring on 31 December 2009

 

18. RESERVES		Consolidated	Parent
		2007 $	2007 $	2006 $
Share options reserve		785,038	785,038	736,500
Foreign currency translation reserve		(15,772)	-	-
		769,266	785,038	736,500

Nature and purpose of reserves

Share options reserve

The share options reserve records items recognised as expenses on valuation of share options provided to employees and consultants.

 

Foreign currency translation reserve

The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries. It is also used to record the effect of hedging net investments in foreign operations.

 

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

19. CASH FLOW INFORMATION		Consolidated	Parent
		2007 $	2007 $	2006 $
(a) Reconciliation of loss from ordinary activities after income tax to cash flow from operations
Loss from ordinary activities after income tax		(1,976,465)	(1,852,230)	(1,365,486)
Add non-cash items in loss from ordinary activities:
Depreciation		43,837	43,837	38,816
Profit on disposal of investments		(6,621)	(6,621)	-
Mining expenditure written off		816,951	175,156	-
Net (profit)/loss on disposal of property, plant and equipment		-	-	(7)
Impairment of Investments		-	1,324,695	-
Unrealised gains on available for sale investments		-	-	(1,500)
Share based payments		48,538	48,538	348,922
Write off of loan amount		-	-	(1,000)
Interest income received and receivable		(55,914)	(55,914)	-
Prior year finance lease adjustment		-	-	(3,275)
Net cash provided by operating activities before change in assets and liabilities		(1,129,674)	(322,539)	(985,530)
(Increase) decrease in receivables		(341,074)	(194,440)	(105,131)
(Increase) decrease in inventories		(70,385)	-	-
(Increase) decrease in prepayments		(49,617)	(41,472)	23,863
(Decrease) increase in trade creditors and accruals		215,362	99,403	48,171
(Decrease) increase in provisions		4,314	4,314	13,358
Other		(15,199)	-	-
Cash flows from operations		(1,386,273)	(454,734)	(1,005,269)

 

(b) Non-cash financing and investing arrangements

 

The expense recognised in the income statement for share based payments, during the financial year, amounted to $233,974. In 2006 the expense recognised for share based payments was $421,782.

 

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

20. DIRECTORS’ AND EXECUTIVES’ REMUNERATION

The names and positions of directors and specified executives in office at any time during the year are:

Directors

Mr M Randall Non-Executive Chairman

Mr P Gazzard Managing Director

Mr A Lockett Non-Executive Director

Mr J Baxter Non-Executive Director

Mr C Davies (resigned 31 July 2007) Non-Executive Director

Mr M Walters (appointed 21 June 2007) Non-Executive Director

Executives

Mr A Beigel Finance Manager

(a) Remuneration of directors The Company has applied the exemption under Corporations Amendments Regulation 2005 which exempts listed companies from providing remuneration disclosures in relation to Directors and executives in the Financial Report by Accounting Standard AASB 1046 Director and Executive Disclosures by Disclosing Entities. These remuneration disclosures are provided in the Remuneration Report section of the Directors’ Report under Details of Remuneration and are designated as audited.

 

(b) Options movements by Directors and related entities
		Balance 1 July 2006	Exercised	Issued as part of remunera-tion	Net Change Other	Expired Balance 30 June 2007	Total Not Exercis-able	Total Exercis-able
Directors
Mr M Randall		1,500,000	-	-	20,000	1,520,000	-	1,520,000
Mr P Gazzard		750,000	-	-	121,429	871,429	-	871,429
Mr A Lockett		-	-	-	1,656	1,656	-	1,656
Mr J Baxter		-	-	-	268,280	268,280	-	268,280
Mr C Davies		-	-	-	28,571	28,571	-	28,571
Mr M Walters		-	-	-	-	-	-	-

 

(c) Shareholdings of Directors
	Balance 1 July 2006	Received as remuneration	Options exercised	Net change Other	Balance 30 June 2007
Directors
Mr M Randall	50,000	-	-	40,000	90,000
Mr P Gazzard	400,000	-	-	242,858	642,858
Mr A Lockett	5,910,178	-	-	(290,000)	5,620,178
Mr J Baxter	1,261,695	-	-	606,559	1,868,254
Mr C Davies	100,000	-	-	157,143	257,143
Mr M Walters	-	-	-	-	-

(d) Remuneration policies The Company’s policy for determining the nature and amount of emoluments of Board members and senior executives of the Company is as follows: The remuneration structure for executive officers, including Executive Directors, is based on a number of factors, including length of service, qualifications, particular experience of the individual concerned, and overall performance of the Company. The contracts for service between the Company and specified Directors and executives are on a continuing basis, the terms of which are not expected to change in the immediate future.

 

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

21. RELATED PARTIES

Transactions of related parties The terms and conditions of transactions with related parties were no more favourable than those available, or which might reasonably be expected to be available, on similar transactions to non-related parties on an arms length basis.

The aggregate amount recognised during the year to Directors and their Director-related entities were as follows: Mr Alan Lockett Consulting fees of $97,350 ($215,897 in 2006) were paid to Mr Lockett’s related company, Lockett Consulting Services Pty Ltd for services relating to capital raising, debt funding and contract negotiations. Mr John Baxter Consulting fees of $118,322 ($87,186 in 2006) were paid to Mr Baxter’s related company, Hermitage Holdings Pty Ltd during the year for geological services provided to the Company. Mr Chris Davies

 

The consolidated financial statements include the financial statements of Olympia Resources Limited and the subsidiaries listed in the following table.

	Country of	% Equity Interest		Investment ($)
Name	Incorporation	2007	2006	2007	2006
PT Olympia Resources Indonesia	Indonesia	90%	-	126,000	-
Sinol Trading Pte Ltd	Singapore	60%	-	5	-

Olympia Resources Limited is the ultimate Australian parent entity and ultimate parent of the Group.

The following table provides the total amount of transactions that were entered into with related parties for the relevant financial year:

 

Related party Consolidated				Amounts Owed by related parties
				$
Associate:
PT Olympia Resources Indonesia	2007			2,508,439
	2006			-
Sinol Trading Pte Ltd	2007			300,000
	2006			-

 

Terms and conditions of transactions with related parties

Outstanding balances at year-end are unsecured and settlement occurs in cash. Interest is payable on outstanding balances with PT Olympia Resources Indonesia (RBA Cash rate plus 2%) and no interest is payable on outstanding balances with Sinol Trading. Transactions with related parties are at arms length unless otherwise stated.

 

22. REMUNERATION OF AUDITORS		Consolidated	Parent
		2007 $	2007 $	2006 $
Remuneration of the auditors of the Company for:
Audit and review of the financial report		30,000	30,000	16,800
Other services		-	-	700
		30,000	30,000	17,500

 

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

23. CONTINGENT LIABILITIES

The Directors were not aware of any contingent liabilities at the date of this report.

 

24. EVENTS SUBSEQUENT TO BALANCE DATE

On 26 July 2007, Olympia Resources Limited and Mineral Sands Limited signed a joint venture farm-in agreement for the exploration licenses EL 69.2090, 69/2091 and 69/2092 in the Eucla Basin. Under the agreement, Mineral Sands Limited can earn an 80% interest in the tenements by carrying out exploration on the tenements, sufficient to meet the minimun expenditure commitments for a period of two years, by spending approximately $360,000 on exploration of the tenements. On 4 September 2007, the Company purchased land and equipment for a 15,000 tonnes per year zircon concentrate processing plant in Sampit, Central Kalimantan. The purchase agreement requires the vendor to complete construction and commissioning of the plant in November 2007. The financial effects of these transactions have not been included in the financial statements for the year ended 30 June 2007.

 

25. EXPENDITURE COMMITMENTS

In order to maintain current rights of tenure to exploration tenements, the Company is required to perform minimum exploration work to meet the minimum expenditure requirements specified by various State Governments. In addition the Company has planned exploration work on other tenements.

 

	Consolidated	Parent
Payable:	2007 $	2007 $	2006 $
Within one year	899,500	899,500	984,100
One year or later and no later than five years	3,898,000	3,898,000	3,580,400
	4,797,500	4,797,500	4,564,500

26. LEASE COMMITMENTS

Operating leases (non cancellable)

	Consolidated	Parent
Payable:	2007 $	2007 $	2006 $
Within one year	17,198	17,198	15,432
One year or later and no later than five years	-	-	-
	17,198	17,198	15,432

Finance lease commitments
	Consolidated	Parent
	2007 $	2007 $	2006 $
Payable:
Within one year	14,154	14,154	17,086
One year or later and no later than five years	37,756	37,756	52,219
Total minimum lease payments	51,910	51,910	69,305
Less amounts representing finance charge	(5,575)	(5,575)	(10,428)
Present value of minimum lease payments	46,335	46,335	58,877

 

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

27. FINANCIAL INSTRUMENTS

Interest Rate Risk The Company’s exposure to interest rate risk and the effective weighted average interest rate for classes of financial assets and financial liabilities is set out below:

Consolidated	Note	Weighted average interest rate	Floating interest rate	$Fixed interest maturing in 1-5 years	$Non-interest bearing	$Total $
2007
Financial assets
Cash	4	2.48	2,465,754	-	-	2,465,754
Receivables	5		-	-	447,226	447,226
			2,465,754	-	447,226	2,912,980
Financial Liabilities
Payables	13		-	-	(712,170)	(712,170)
Provisions	14		-	-	(27,710)	(27,710)
Other financial liabilities	15	8.04	-	(46,335)	-	(46,335)
			-	(46,335)	(739,880)	(786,215)
Net financial assets/(liabilities)
			2,465,754	(46,335)	(292,654)	2,126,765

 

Company	Note	Weighted average interest rate	Floating interest rate	$Fixed interest maturing in 1-5 years	$Non-interest bearing	$Total $
2007
Financial assets
Cash	4	2.48	2,465,754	-	-	2,440,847
Receivables	5		-	-	300,592	300,592
			2,465,754	-	300,592	2,741,439
Financial Liabilities
Payables	13		-	-	(596,210)	(596,210)
Provisions	14		-	-	(27,710)	(27,710)
Other financial liabilities	15	8.04	-	(46,335)	-	(46,335)
			-	(46,335)	(623,920)	(670,255)
Net financial assets/(liabilities)			2,465,754	(46,335)	(323,328)	2,071,184

 

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2007

27. FINANCIAL INSTRUMENTS (continued)
2007
Financial assets
Cash	4	2.48	2,338,102	-	-	2,338,102
Receivables	5		-	-	106,152	106,152
Available-for-sale assets	9		-	-	5,500	5,500
			2,338,102	-	111,652	2,449,754
Financial Liabilities
Payables	13		-	-	(421,222)	(421,222)
Provisions	14		-	-	(23,396)	(23,396)
Other financial liabilities	15	8.02		(58,877)	-	(58,877)
			-	(58,877)	(444,618)	(503,495)
Net financial assets/(liabilities)			2,338,102	(58,877)	(332,966)	1,946,259

Credit Risk The maximum exposure to credit risk, excluding the value of any collateral or other security at balance date, to recognised financial assets is the carrying amount, net of any allowance for doubtful debts of those assets, as disclosed in the balance sheet and notes to the financial statements. Net Fair Values The net fair value of assets and liabilities approximates their carrying values.

 

28. SEGMENT REPORTING Segment Information

The Group’s primary segment reporting format is geographical as the Group’s risks and rates of return are affected predominantly by differences in the regions where products and services are produced. The Group operates in one business segment.

Geographical segments

The Group’s geographical segments are determined based on the location of the Group’s assets. The following table presents revenue, expenditure and certain asset information regarding geographical segments for the year ended 30 June 2007.

 

	Australia	Asia	Eliminations	Total
	$	$	$	$
30 June 2007
Segment revenue	344,791	921,375	(55,915)	1,210,251
Segment results	1,852,230	1,448,930	(1,510,492)	1,790,668
Segment assets	14,326,707	1,599,704	(1,609,749)	14,316,662
Segment liabilities	670,256	2,924,400	(2,808,441)	786,215
Other Segment Information