Source: finance

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2000

<table>
  <tr>
    <th>Note</th>
    <th colspan="2">Consolidated</th>
    <th colspan="2">Company</th>
  </tr>
  <tr>
    <th></th>
    <th>2000</th>
    <th>1999</th>
    <th>2000</th>
    <th>1999</th>
  </tr>
  <tr>
    <td>$</td>
    <td>$</td>
    <td>$</td>
    <td>$</td>
    <td>$</td>
  </tr>
  <tr>
    <td><b>4. SALES OF ASSETS</b></td>
    <td colspan="5"></td>
  </tr>
  <tr>
    <td>Sales of assets in the ordinary course of business have given rise to the following profits and losses</td>
    <td colspan="5"></td>
  </tr>
  <tr>
    <td><b>Net Profits</b></td>
    <td colspan="5"></td>
  </tr>
  <tr>
    <td>Property, plant and equipment</td>
    <td>20,280</td>
    <td>-</td>
    <td>-</td>
    <td>-</td>
    <td>-</td>
  </tr>
  <tr>
    <td><b>Net Losses</b></td>
    <td colspan="5"></td>
  </tr>
  <tr>
    <td>Property, plant and equipment</td>
    <td>-</td>
    <td>17,405</td>
    <td>-</td>
    <td>-</td>
    <td>-</td>
  </tr>
  <tr>
    <td><b>5. INCOME TAX</b></td>
    <td colspan="5"></td>
  </tr>
  <tr>
    <td>The prima facie income tax on pre-tax accounting (loss) profit reconciles to the income tax expense (benefit) in the financial statements as follows:</td>
    <td colspan="5"></td>
  </tr>
  <tr>
    <td><b>Operating (loss) profit</b></td>
    <td>(283,491)</td>
    <td>4,081,912</td>
    <td>190,559</td>
    <td>1,110,792</td>
    <td></td>
  </tr>
  <tr>
    <td>Income tax calculated at 36% of operating (loss) profit</td>
    <td>(102,057)</td>
    <td>1,469,488</td>
    <td>68,601</td>
    <td>399,885</td>
    <td></td>
  </tr>
  <tr>
    <td><b>Permanent differences:</b></td>
    <td colspan="5"></td>
  </tr>
  <tr>
    <td>Dividend received from controlled entity</td>
    <td>-</td>
    <td>-</td>
    <td>-</td>
    <td>(396,000)</td>
    <td></td>
  </tr>
  <tr>
    <td>Write off of goodwill</td>
    <td>-</td>
    <td>33,106</td>
    <td>-</td>
    <td>-</td>
    <td>-</td>
  </tr>
  <tr>
    <td>Revaluation depreciation</td>
    <td>85,538</td>
    <td>64,823</td>
    <td>-</td>
    <td>-</td>
    <td>-</td>
  </tr>
  <tr>
    <td>Entertainment</td>
    <td>5,404</td>
    <td>7,758</td>
    <td>-</td>
    <td>-</td>
    <td>-</td>
  </tr>
  <tr>
    <td>Legal</td>
    <td>4,707</td>
    <td>21,630</td>
    <td>-</td>
    <td>-</td>
    <td>-</td>
  </tr>
  <tr>
    <td>Other items</td>
    <td>6,745</td>
    <td>30,188</td>
    <td>-</td>
    <td>-</td>
    <td>-</td>
  </tr>
  <tr>
    <td>Tax losses transferred from a controlled entity for no consideration</td>
    <td>-</td>
    <td>-</td>
    <td>(68,601)</td>
    <td>-</td>
    <td>-</td>
  </tr>
  <tr>
    <td><b>Abnormal Items:</b></td>
    <td colspan="5"></td>
  </tr>
  <tr>
    <td>Effect on future income tax benefit and provision for deferred income tax due to the change in income tax rate from 36% to 34% (effective 1 July 2000) and 30% (effective 1 July 2001)</td>
    <td>(104,812)</td>
    <td>-</td>
    <td>-</td>
    <td>-</td>
    <td>-</td>
  </tr>
  <tr>
    <td>(Over)/under provision of income tax in previous year</td>
    <td>(104,475)</td>
    <td>1,626,993</td>
    <td>-</td>
    <td>3,885</td>
    <td></td>
  </tr>
  <tr>
    <td></td>
    <td>28,941</td>
    <td>-</td>
    <td>-</td>
    <td>-</td>
    <td>-</td>
  </tr>
  <tr>
    <td>Income tax attributable to operating profit</td>
    <td>(75,534)</td>
    <td>1,626,993</td>
    <td>-</td>
    <td>3,885</td>
    <td></td>
  </tr>
</table>