TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY · PDF fileTASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD (ABN 89 743 048 843) DIRECTORS REPORT Directors The names of

ABN: 89 743 048 843

SPECIAL PURPOSE FINANCIAL REPORTS

FOR THE YEAR ENDED 30 JUNE 2016

TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD

TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD (ABN 89 743 048 843)

DIRECTORS REPORT

DirectorsThe names of the directors in office at any time during or since the end of the year are:

Brett Mackay Grant Hinchcliffe (Retired 25th November 2015)Michael Baxter Peter Aulich Greg RaspinChris Hill Amy Reiner (Appointed 25th November 2015)Mark Colson (Appointed 25th November 2015)

Principal Activities

Changes in State of Affairs

Review of Operations

Subsequent Events

The principal activities of the cooperative during the financial year were that of Investor,Fruit and Vegetable Wholesaler and Retail Marketer.

Your directors present their report of Tasmanian Independent Retailers Co-OperativeSociety Ltd (the cooperative) for the financial year ended 30 June 2016.

Directors have been in office since the start of the financial year to the date of this reportunless otherwise stated.

The consolidated profit of the cooperative for the financial year after providing for incometax amounted to $1,748,290.

No significant changes in the cooperative’s state of affairs occurred during the financial

No matters or circumstances have arisen since the end of the financial year whichsignificantly affected or may significantly affect the operations of the cooperative, theresults of those operations, or the state of affairs of the cooperative in future financial

i.

ii.

______________________

Dated: 08 November 2016

ASIC Registration #: 337294

AUDITOR’S INDEPENDENCE DECLARATION

TO THE DIRECTORS OF

any applicable code of professional conduct in relation to the audit.

We declare that, to the best of our knowledge and belief, during the year ended 30 June 2016 there have been nocontraventions of:

the auditor’s independence requirements as set out in the Corporations Act 2001 and adopted in relationto this audit; and

GREGORY HARPERRegistered Company Auditor


46 Cameron StreetLaunceston Tas 7250


STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED

30 JUNE 2016

Note 2016 2015 $ $

Continuing operations

Revenue 128,353,401 120,937,567 Cost of sales (116,358,169) (108,669,963)

Gross profit 11,995,232 12,267,604

Financial income 299,857 590,628 Other income 883,844 863,359

Total income 13,178,933 13,721,591

Depreciation and amortisation expenses (808,803) (771,618) Employee benefits expense (6,015,234) (5,894,080) Financial costs (146,446) (185,064) Motor vehicle expenses (501,749) (565,749) Rental and occupancy expenses (350,805) (414,404) Other expenses (5,234,877) (4,961,004)

Profit/(Loss) before tax 121,019 929,672

Income tax (expense)/benefit 3 (9,558) (188,535)

Profit/(Loss) for the year 111,461 741,137

Other comprehensive income

Share of net profit from associates after tax 1,636,829 1,584,422

Total comprehensive income for the year 2 1,748,290 2,325,559

TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD(ABN 89 743 048 843)

STATEMENT OF FINANCIAL POSITIONAS AT

30 JUNE 2016

Note 2016 2015 $ $

Current assets

Cash assets 4 7,972,269 6,812,523 Receivables 5 6,399,733 5,481,180 Inventories 6 855,008 844,938 Current tax assets 7 105,528 88,212 Other assets 8 60,565 64,058 Financial assets 9 88,495 3,741,936

Total current assets 15,481,598 17,032,847

Non-current assets

Financial assets 9 3,408,529 3,339,251 Investment accounted for using the equity method 10 15,595,112 13,958,283 Property, plant & equipment 11 13,809,311 14,036,181 Deferred tax asset 12 681,350 664,239 Intangible assets 13 234,275 245,314 Other assets 8 - 463,000

Total non-current assets 33,728,577 32,706,268

Total assets 49,210,175 49,739,115

Current liabilities

Payables 14 9,199,209 8,009,821 Interest bearing liabilities 15 86,503 1,085,263 Provisions 16 975,544 882,223

Total current liabilities 10,261,256 9,977,307

Non-current liabilities

Interest bearing liabilities 15 22,005 2,578,424

Total non-current liabilities 22,005 2,578,424

Total liabilities 10,283,261 12,555,731

Net assets 38,926,914 37,183,384

Equity

Contributed equity 17 7,490 12,250 Reserves 18 24,801 24,801 Retained profits 19 38,894,623 37,146,333

Total equity 38,926,914 37,183,384


NoteContributed

equityRetained earnings

Capital reserve

Asset revaluation

reserve Total$ $ $ $ $

Balance at 1 July 2014 12,250 34,678,224 24,801 142,550 34,857,825

Profit attributable to equity shareholders - 2,325,559 - - 2,325,559

Transfers to/(from) reserve - 142,550 - (142,550) -

Balance at 30 June 2015 12,250 37,146,333 24,801 - 37,183,384

Profit attributable to equity shareholders - 1,748,290 - - 1,748,290

Share issued during the year (4,760) - - - (4,760)

Balance at 30 June 2016 7,490 38,894,623 24,801 - 38,926,914

30 JUNE 2016FOR THE YEAR ENDED

STATEMENT OF CHANGES IN EQUITY


STATEMENT OF CASH FLOWSFOR THE YEAR ENDED

30 JUNE 2016

Note 2016 2015 $ $

CASH FLOW FROM OPERATING ACTIVITIES

127,567,682 121,702,707 (127,776,938) (121,902,415)

349,788 446,707 1,224,125 1,209,240

(43,986) 78,624

Net cash provided by/(used in) operating activities 21(b) 1,320,671 1,534,863

CASH FLOW FROM INVESTING ACTIVITIES

94,354 73,000 (689,794) (1,643,244)

3,997,330 1,234,594

Net cash provided by/(used in) investing activities 3,401,890 (335,650)

CASH FLOW FROM FINANCING ACTIVITIES

74,789 2,840,964 (3,632,844) (1,672,806)

(4,760) -

Net cash provided by/(used in) financing activities (3,562,815) 1,168,158

Net increase (decrease) in cash held 1,159,746 2,367,371

Cash at beginning of year 6,812,523 4,445,152

Cash at end of year 21(a) 7,972,269 6,812,523

Proceeds from borrowingsRepayment of borrowingsShares issued/(repurchased)

Proceeds from sale of property, plant and equipmentPayment for property, plant and equipmentProceeds from the disposal of/(payments for) investments

Receipts from customersPayments to suppliers and employeesFinancial income received

Income tax received/(paid)Other receipts


NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED

30 JUNE 2016

Note 1: Statement of significant accounting policies

Reporting entity concept

Australian Accounting Standards applied and significant policies adopted

AASB 101: Presentation of Financial StatementsAASB 102: InventoriesAASB 107: Cash Flow StatementsAASB 108: Accounting Policies, Changes in Accounting Estimates and ErrorsAASB 110: Events after the Balance Sheet DateAASB 112: Income Taxes AASB 116: Property, plant and equipmentAASB 118: RevenueAASB 119: Employee BenefitsAASB 128: Investment in AssociatesAASB 138: Intangible assetsAASB 1031: MaterialityAASB 1048: Interpretation and Application of StandardsAASB 1054: Australian Additional Disclosures

(a) Income tax

The following is a summary of the significant accounting policies adopted by the cooperative in the preparation of thefinancial report. These accounting policies have been consistently applied unless otherwise stated:

The financial report has been prepared on an accruals basis and is based on historic costs and does not take intoaccount changing money values or, except where specifically stated, current valuations of non-current assets.

No other applicable Accounting Standards, Accounting Interpretations or other authoritative pronouncements of theAustralian Accounting Standards Board have been intentionally applied.

The following accounting standards have been applied in the preparation of this financial report:

The directors have determined that Tasmanian Independent Retailers Co-operative Society Ltd (the cooperative) is nota reporting entity as there are no users who depend on general purpose financial statements. The financial report is aspecial purpose financial report prepared in order to satisfy the financial reporting requirements of the members of thecooperative and the Cooperatives Act 1999. The cooperative is a for-profit entity.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when theasset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Theirmeasurement also reflects the manner in which management expects to recover or settle the carrying amount of therelated asset or liability.

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

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during theyear as well as unused tax losses.

Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated usingapplicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities (assets) aretherefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred taxexpense (income).

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



30 JUNE 2016

Note 1: Statement of significant accounting policies (cont.)

(a) Income tax (cont.)

(b) Property, plant and equipment

Property

Plant and equipment

Depreciation

Class of fixed asset Depreciation rateBuildings 2.50%Plant & Equipment 5.00% - 40.00%

(c) Leases

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 the reversal of the temporary difference canbe controlled and it is not probable that the reversal will occur in the foreseeable future.

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

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

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are chargedas expenses in the periods in which they are incurred.

The depreciable amount of all fixed assets, excluding freehold land, are depreciated on a straight line basis over theiruseful lives to the cooperative commencing from the time the asset is held ready for use.

Plant and equipment are initially measured on the cost basis.

Property is carried at cost less, where applicable, any accumulated depreciation.

Each class of property, plant and equipment are carried at cost less, where applicable, any accumulated depreciation.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains orlosses are included in the income statement. When revalued assets are sold, amount included in the revaluationreserve relating to that asset are transferred to retained earnings.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount isgreater than its estimated recoverable amount.

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

Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset, but notthe legal ownership, are transferred to the cooperative, are classified as finance leases. Finance leases arecapitalised, recording an asset and a liability at the lower of the amounts equal to the fair value of the leased propertyor the present value of the minimum lease payments, including any guaranteed residual values. Lease payments areallocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight line basis over the shorter of their estimated useful lives or over the termof the lease.



30 JUNE 2016


(d) Inventories

(e) Investments

(f) Investments in associates

(g) Intangibles

(h) Employee benefits

Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a first-in first-out basisand include direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenses.Overheads are applied on the basis of normal operating capacity.

Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Gains and losseson the disposal of an entity include the carrying amount of goodwill related to the entity sold.

Provision is made for the cooperative’s liability for employee benefits arising from services rendered by employees tobalance date. Employee benefits that are expected to be settled within one year have been measured at the amountsexpected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one yearhave been measured at the present value of the estimated future cash outflows to be made for those benefits.

In determining the net identifiable assets acquired, contingent liabilities of the acquiree are included to the extent towhich they represent a present obligation and can be measured reliably.

Goodwill is calculated as the excess of the sum of: (i) the consideration transferred; (ii) any non-controlling interest; and (iii) the acquisition date fair value of any previously held equity interest, over the acquisition date fair value of net identifiable assets acquired.

Details of the cooperative’s investments in associates are shown at Note 10.

When the cooperative’s share of losses in an associate equals or exceeds its interest in the associate, the cooperativediscontinues recognising its share of further losses unless it has incurred legal or constructive obligations or madepayments on behalf of the associate. Upon the associate subsequently making profits, the cooperative will resumerecognising its share of those profits once its share of the profits equals the share of the losses not recognised.

When the reporting dates of the cooperative and the associate are different, the associate prepares, for use by thecooperative, financial statements as of the same date as the financial statements of the cooperative with adjustmentsbeing made for the effects of significant transactions or events that occur between that date and the date of theinvestor’s financial statements.

Profits and losses resulting from transactions between the cooperative and the associate are eliminated to the extentthey relate to the cooperative’s investment in the associate.

The carrying amount of the investment includes goodwill relating to the associate. Any excess of the cooperative’sshare of the net fair value of the associate’s identifiable assets, liabilities and contingent liabilities over the cost of theinvestment is excluded from the carrying amount of the investment and is instead included as income in thedetermination of the investor’s share of the associate’s profit or loss in the period in which the investment is acquired.

Associate companies are companies in which the cooperative has significant influence through holding, directly orindirectly, 20% or more of the voting power of the company. Investments in associates are accounted for in thefinancial statements by applying the equity method of accounting, whereby the investment is initially recognised at costand adjusted thereafter for the post-acquisition change in the company’s share of net assets of the associatecompany. In addition, the company’s share of the profit or loss of the associate company is included in the company’sprofit or loss.

Non-current investments are measured at market value. The carrying amount of investments is reviewed annually bydirectors to ensure it is not in excess of the recoverable amount of these investments. The recoverable amount for allinvestments is based on the quoted market value at the reporting date.



30 JUNE 2016


(i) Cash and cash equivalents

(j) Trade and other payables

(k) Revenue

(l) Goods and Services Tax

(m) Comparative figures

Where the cooperative has retrospectively applied an accounting policy, made a retrospective restatement orreclassified items in its financial statements, an additional statement of financial position as at the beginning of theearliest comparative period will be disclosed.

When required by Accounting Standards, comparative figures have been adjusted to conform to changes inpresentation for the current financial year.

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST is notrecoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost ofacquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet areshown inclusive of GST.

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and servicesreceived by the cooperative during the reporting period, which remain unpaid. The balance is recognised as a currentliability with the amounts normally paid within 30 days of recognition of the liability.

Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquidinvestments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown withinshort-term borrowings in current liabilities on the balance sheet.

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

Interest and dividend revenue is recognised when amounts have been received.

Revenue from the sale of goods is recognised at the point of the delivery as this corresponds to the transfer ofsignificant risks and rewards of ownership of the goods and cessation of all responsibilities.



30 JUNE 2016

2016 2015 $ $

Note 2: Operating Profit

Profit from ordinary activities before income tax expense has been determined after:

(a) Revenue and Net Gains

Case allowance 18,742,572 16,333,002 Interest and dividends received 349,690 445,997 Profit on sale of property plant and equipment 3,962 1,150 Rental income 440,303 472,592 Rebates 7,848,554 7,730,286

(b) Expenses

Advertising 2,253,107 2,248,608 Bad & doubtful debts 12,946 16,729 Depreciation of property, plant & equipment 807,088 771,618 Directors emoluments 96,447 67,049 Equipment development fund 1,001,005 832,815 Loss on sale of non current assets 17,471 8,952 Other provisions 93,321 61,707 Purchase incentive payment 4,084,825 3,917,691 Remuneration of the auditor: - audit or review 15,700 14,500 - other services 4,500 840 Subsidies 17,949,358 15,235,138

Note 3: Income Tax Expense

Tax expense comprises:Current income tax expense/(benefit) 27,032 162,022

(17,111) 26,509

Prior years under/(over) provision of income tax (362) 4

Total income tax expense 9,559 188,535

Current income tax reconciliation:

Profit from ordinary activities before income tax 121,019 929,672

Prima facie tax payable at 30% 36,306 278,902

Less tax effect of: - Non-assessable income/non-deductible expenses (11,858) (74,777) - Rebatable tax credits (14,527) (15,594)

Add tax effect of: - Prior years under provision of income tax (362) 4

9,558 188,535 Income tax expense attributable to profit from ordinary activities

The prima facie tax payable on profit from ordinary activities before income tax is reconciled to the income tax expense as follows:

Deferred tax (income)/expense relating to the origination and reversal of temporary differences



30 JUNE 2016

2016 2015 $ $

Note 4: Cash Assets

Cash on hand 1,305 1,305 Cash at bank 7,970,964 6,811,218

7,972,269 6,812,523

Note 5: Receivables

Trade debtors 6,428,983 5,510,430 Provision for impairment of receivables (29,250) (29,250)

6,399,733 5,481,180

Note 6: Inventories

Stock on hand (at cost) 855,008 844,938

Note 7: Current tax assets

Income tax receivable 105,528 88,212

Note 8: Other Assets

Current Prepayments 60,565 64,058

60,565 64,058

Non-currentLoans - secured - 463,000

60,565 527,058

Note 9: Financial Assets

Listed equities 16,834 9,835 Listed unit trusts 141,822 124,742 Unlisted trusts 3,249,871 3,204,673 Other financial instruments 88,496 3,741,937

3,497,023 7,081,187

Due within 12 months 88,495 3,741,936 Due in more than 12 months 3,408,529 3,339,251

3,497,024 7,081,187



30 JUNE 2016

2016 2015 $ $

Note 10: Investment in associated entities

Interest are held in the following associated companies:

Statewide Independent Wholesalers Ltd- Principal activity Food wholesaling- Ownership interest 40% 40%

a) Movements during the year in equity accounted investments in associated companies

13,958,283 12,373,861 1,636,829 1,584,422

- -

- - - -

15,595,112 13,958,283

b) Equity accounted associate profits are broken down as follows

2,341,912 2,268,746 (705,083) (684,324)

1,636,829 1,584,422

c) Summarised presentation of aggregate assets, liabilities and performance of associates

114,956,940 102,923,531 16,127,647 17,466,235

131,084,587 120,389,766

78,599,189 73,940,347 10,691,289 8,747,383

89,290,478 82,687,730

41,794,109 37,702,036

906,375,095 871,412,002 4,092,073 3,961,056

Share of associated company's reserve increments arising during the year

Balance at beginning of the financial yearShare of associated company's net profit/(loss) after income tax

Dividend revenue from associated company

Revenue

Share of associates net profit before income tax expenseShare of associates income tax (expense)/benefit

Share of associates net profit after income tax expense

Repayment of loans during the year

Current assets

Balance at end of the financial year

Non-current assets

Total assets

Current liabilitiesNon-current liabilities

Total liabilities

Net assets

Profit/(Loss) after income tax expense



30 JUNE 2016

2016 2015 $ $

Note 11: Property, Plant & Equipment

Land and buildings at cost 12,731,407 12,658,325 Less accumulated depreciation (1,330,456) (1,083,869)

11,400,951 11,574,456

Plant and equipment at cost 3,637,710 3,274,306 Less accumulated depreciation (1,882,060) (1,581,376)

1,755,650 1,692,930

Motor vehicles at cost 2,543,379 2,522,358 Less accumulated depreciation (1,890,669) (1,753,563)

652,710 768,795

Total Property, Plant and Equipment 13,809,311 14,036,181

Note 12: Deferred Tax Assets

Future income tax benefit 681,350 664,239

Note 13: Intangible Assets

Preliminary expenses 55 55 Trademarks 1,715 1,715 Goodwill at cost 232,505 232,505 Borrowing costs - 11,039

234,275 245,314

Note 14: Payables

Current Trade creditors 7,932,835 6,707,165 Accrued expenses 1,266,374 1,302,656

9,199,209 8,009,821

Note 15: Interest Bearing Liabilities

Current Asset purchase liability 24,135 39,703 Bank loan secured 62,368 1,045,560

86,503 1,085,263

Non-currentAsset purchase liability 22,005 - Bank loan secured - 2,578,424

22,005 2,578,424

46,140 2,618,127



30 JUNE 2016

2016 2015 $ $

Note 16: Provisions

Current

Employee entitlements 975,544 882,223

Number of employees at year end: 95 95

Note 17: Contributed Equity

3,745 (2015: 6,125) fully paid ordinary shares 7,490 12,250

Note 18: Reserves

Capital reserve 24,801 24,801

24,801 24,801

Note 19: Retained Profits

37,146,333 34,678,224 1,748,290 2,325,559

Transfer from reserves - 142,550

38,894,623 37,146,333

Note 20: Dividends paid and franking credits

- -

11,160,909 11,099,323 Franking account balance (tax paid basis)

(a) Ordinary shares participate in dividends and proceeds on winding up of the co-operative in proportion to the number of shares held.

At shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.

Retained profit at the beginning of the financial year

Retained profit at the end of the financial year

Profit from ordinary activities after income tax expense

Dividends per share paid or declared



30 JUNE 2016

2016 2015 $ $

Note 21: Cash Flow Information

a) Reconciliation of cash

Cash on hand and cash at bank 7,972,269 6,812,523

Profit from ordinary activities after income tax 1,748,290 2,325,559

Non cash flows in profit from ordinary activities:807,088 769,817

13,509 7,802 49,833 (144,631)

(1,636,829) (1,584,422) 93,321 61,707 13,915 5,824

Changes in assets and liabilities:(903,588) (445,745)

(10,070) (38,905) (17,112) 26,509

1,174,423 271,255 5,207 39,443

(17,316) 240,650

Net cash provided by operating activities 1,320,671 1,534,863

Note 22: Company Details

The registered office and principal place of business is :Tasmanian Independent Retailers Co-Operative Society Ltd8 Translink AvenueWestern Junction TAS 7212

Depreciation/amortisation

b) Reconciliation of cash flow from operations with profit from ordinary activities after income tax.

Cash at the end of the financial year as shown in the statements of cash flows is reconciled to the related items in the statement of financial position as follows:

Increase/(decrease) in income tax payable

(Increase)/decrease in receivables (Increase)/decrease in inventories (Increase)/decrease in deferred income tax asset Increase/(decrease) in payables Increase/(decrease) in prepayments

Market value adjustments on investments Share of net profit of associates Movement in employee leave provisions Hire purchase interest

Net gains on disposal of plant & equipment

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion.

The financial report has been prepared for distribution to members for the purpose of fulfilling the directors’ financialreporting under the Co-operatives National Law (Tasmania) Act 2015. We disclaim any assumption of responsibilityfor any reliance on this report or on the financial report to which it relates to any person other than the members, orfor any purpose other than that for which it was prepared.

The Responsibility of the Directors for the Financial Report

The Co-operative's directors are responsible for the financial report and have determined that the accounting policiesused and described in Note 1 to the financial statements which form part of the financial report are appropriate tomeet the requirements of the Co-operatives National Law (Tasmania) Act 2015 and are appropriate to meet the needsof the members. The directors’ responsibility also includes designing, implementing and maintaining internal controlsrelevant to the preparation and fair presentation of the financial report that is free from material misstatement,whether due to fraud or error; selecting and applying appropriate accounting policies; and making accountingestimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as towhether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. Weconducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that wecomply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtainreasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financialreport. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of materialmisstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity’s preparation and fair presentation of the financial report in order todesign audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion onthe effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overallpresentation of the financial report.

We have audited the attached financial report, being a special purpose financial report of Tasmanian IndependentRetailers Co-Operative Society Ltd ("the Cooperative") for the year ended 30 June 2016, which comprises the statementof financial position as at 30 June 2016, and the statement of comprehensive income, statement of changes in equityand statement of cash flows for the year then ended, a summary of significant accounting policies, other explanatorynotes and the directors’ declaration.

INDEPENDENT AUDIT REPORT


Scope

TO THE DIRECTORS OF

Dated: 08 November 2016

In our opinion, the financial report of Tasmanian Independent Retailers Co-Operative Society Ltd is in accordancewith:

GREGORY HARPERRegistered Company AuditorASIC Registration #: 337294

46 Cameron StreetLaunceston Tas 7250

ii. complying with Accounting Standards in Australia to the extent described in Note 1; and

b) other mandatory professional reporting requirements to the extent described in Note 1.

______________________________

a) the Co-operatives National Law (Tasmania) Act 2015 , including:

i. giving a true and fair view of the Co-operative’s financial position as at 30 June 2016 and of itsperformance for the year ended on that date in accordance with the accounting policies described in Note

Independence

In conducting our audit, we have complied with the independence requirements of Australian professional ethicalpronouncements.

Auditor’s Opinion

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TASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY · PDF fileTASMANIAN INDEPENDENT RETAILERS CO-OPERATIVE SOCIETY LTD (ABN 89 743 048 843) DIRECTORS REPORT Directors The names of