institute of brewing & distilling - ibd asia...

INSTITUTE OF BREWING & DISTILLING - ASIA PACIFIC COMPANY LIMITEDA.B.N. 46 095 858 272

FINANCIAL REPORTFOR THE YEAR ENDED

30 JUNE 2018

INSTITUTE OF BREWING & DISTILLING - ASIA PACIFIC COMPANY LIMITED

A.B.N. 46 095 858 272

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30 JUNE 2018

CONTENTS

Directors' Report 1

Auditors' Independence Declaration 7

Statement of Profit or Loss And Other Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Funds 10

Statement of Cash Flows 11

Notes to the Financial Statements 12

Directors' Declaration 20

Auditors' Report 21

INSTITUTE OF BREWING & DISTILLING - ASIA PACIFIC COMPANY LIMITED A.B.N. 46 095 858 272

DIRECTORS' REPORT

Your director’s present their report on the company for the financial year ended 30 June 2018. Directors The names of the directors in office at any time during, or since the end of the year are: Mr Peter James David – retired 11/10/2017 Mr Jaideep Chandrasekharan Mr Ian Geoffrey Roberts Mrs Megan Frances Sheehy Mr Douglas Frazer Donelan Mr Alexander Charles Greville Mrs Carla Marie Dagger Mr Tully Hadley – appointed 11/10/2017 Mrs Anne Gigney – appointed 11/10/2017 Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Review of Operations The profit of the company for the financial year amounted to $242,400. A review of the operations of the company during the financial year and the results of those operations are as follows: The Institute of Brewing & Distilling – Asia Pacific Company Limited (IBD) has continued to progress against its strategic goals in the last year. Most notably:

• 23 successful regional meetings with an overall increase in Section membership. • A very successful bi-annual convention held in Wellington New Zealand, where over 400

delegates and exhibitors attended plus the announcement of our future convention in Perth. • The establishment of our first region in Asia – the SE Asian Region. • A range of training events including the continuation of our step-out in distilling in conjunction

with the Tasmanian Whisky Academy. • Supplementary support to the IBD United Kingdom in the generation and launch of IBD’s on-

line platform. • The continued workplace reorganisation with modernisation of internal systems for

sustainability. • An increase in membership [17%]. • An increased engagement with brewing and distilling audiences. • Continued section financial viability.

Recognition and Awards IBD Fellowship The following IBD AP members were awarded Fellowship membership for services rendered over many years in the Industry. Congratulations and well deserved. Stephen Exinger Peter David Jeff Potter John Ross Greg Croke Glen Fox

IBD AP Education Award – Best Local Achievement Garry Menz – best Master Brewer completion. Mina Zhu – best Diploma completion [joint]. David Withers – best Diploma completion [joint]. Thomas Parker – best General Certificate. IBD Award – Best International Achievement Cory Stevens – Brewery Engineers Award, Diploma in Brewing Module 3. Clinton Andrews – Brewery Engineers Award, Diploma in Packaging Module 3. Garry Menz – James S Hough Award, Master Brewer – best overall candidate. Vaughn King – Micro Matic Award, Diploma in Packaging Module 2. David Withers – Worshipful Company of Distillers Scholarship, Diploma in Distilling, best overall. Thomas Fullelove – Encirc Award, Diploma in Packaging Module 1. Congratulations to all Award winners. It is very pleasing to see the IBD AP section stand out in the Best International achievements. Well done. Significant Changes in the State of Affairs No significant changes in the company's state of affairs occurred during the financial year. Principal Activities The principal activities of Institute of Brewing & Distilling - Asia Pacific Company Limited during the financial year were providing educational services to members in accordance with the objective of the company through various symposia, Diploma and General Certificate workshops and other technical meetings held throughout the Asia Pacific region. Primary Objectives In pursuit of this primary objective the Company will (but is not limited to):

(a) provide opportunities for the exchange of and dissemination of technical, scientific and other information, including the holding of conventions, exhibitions, meetings, seminars and symposia and publishing literature relevant thereto;

(b) promote the qualifications offered by the Institute and support Members when they apply and study for the various examinations of the Institute;

(c) promote the training of personnel, including the offering of scholarships and grants;

(d) encourage research and development and other activities associated with the relevant sciences; and

(e) promote the interests of all those engaged in the relevant sciences and doing all such things as are conducive to the educational interests of its Members.

Short-term and Long-term Objectives The company’s short-term objectives are to:

- strengthen the relationships and capabilities of our region to create quality beers and spirits. The company’s long-term objectives are to:

- passionately grow opportunities to learn and share brewing and distilling knowledge. Strategies To achieve its stated objectives, the company has adopted the following strategies:

Key Performance Measures The company measures its own performance through the use of both quantitative and qualitative benchmarks. The benchmarks are used by the directors to assess the financial sustainability of the company and whether the company’s short-term and long-term objectives are being achieved.

Key Performance Indicator Target ’18 Result

Track

Grow Membership to 1,060

10% 1078 Membership identifying themselves as “craft” and “distilling” 20%/5%

N/A

Average attendance across all regional meetings >25 30

Financial reserves in excess of annual operating cost 2 yrs 4yrs

Examination Pass Rate of AP Candidates >80% TBA

Run bi-annual conventions above operating costs >25% Yes

Member L&D

• Flexible Models to enable L&D for all our members

• Develop local capability to deliver education

• Maintain our training footprint in Asia

• Establish a L&D mechanic in distilling locally

• Build strong alliances with craft in Australia and NZ

• Nurture 2 additional funding sources

• Increase our organisational capacity and capability to deliver

• Successful 2018 Convention

Section Member Services

• Reinvigorate Regional Meetings

• Build a highly connected membership community

• Promote events for qualifications, professional development, and industry experiences

Events Subsequent to the End of the Reporting Period No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in future financial years. Likely Developments and Expected Results of Operations The board continues to drive its strategy with continued expectations of seeking alliances and new approaches to delivering in education platforms. Environmental Regulation The company's operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a state or territory. Information on Directors Peter James David Resigned 11/10/2017. Qualifications Bachelor of Applied Science (Chemistry), Masters of Business Administration,

Grad. Aust. Inst. Of Co. Directors, Masters of Brewing. Experience Peter began his career with West End Brewery (Adelaide) in 1984. Since commencing in the Laboratory he has had a wide range of roles in Australia within Lion Pty Ltd including Shift Brewer, Technical Standards Manager, Head Brewer at both West End & Tooheys, Operations Director at West End. He is currently Group QA Director, leading a team responsible for Lion’s Quality Management Systems, Supplier Quality Assurance and Integrated Quality Management Software. In 2010 Peter joined the newly established AP section Board of Management – serving on the board for 7 years with a focus upon section finance and refreshing Governance systems. Jaideep Chandrasekharan Qualifications Bachelor of Science (Hons) Brewing & Biochemistry – Heriot Watt University,

Edinburgh, Master of Brewing. Experience 29 years’ experience across India, Jordan & Australia in operational and

quality management roles in Brewing, Spirits, Cider and Non – alcoholic beverages. Zone Manager – Raw Material Development & Process Technology – APAC South Zone, ABInBev.

Director – Australian Beverage Council (2006-2010) Director - IBD Asia Pacific Section (2013 – current) Ian Geoffrey Roberts Qualifications B AppSc Chemistry – Queensland University of Technology, B Business –

Queensland University of Technology, Masters in Business Technology – University of NSW, Diploma in Brewing – IBD & Member of the Australian Institute of Company Directors.

Experience 18 years FMCG (brewing) experience across Australia, New Zealand, Japan & Europe. Supply Chain and Technical Director, Beer Spirits and Wine - Lion Non-Executive Director of Lifestyle Solutions (2014- 2016). Chairperson of IBD Asia Pacific (2016-2018). Director of IBD Asia Pacific (2014 – current).

Megan Frances Sheehy Qualifications PhD Food Microbiology, Bachelor of Applied Science (Honours) Chemical Technology. Experience Megan has had over 18 years’ experience in the Barley, Malting and Brewing industries with Joe White Maltings and Lion, and most recently as Executive Chairperson for Barley Australia. Megan is Vice Chair and a director on the Board of Management for the Institute of Brewing and Distilling (AP section) and is a Fellow of the AIFST. Douglas Frazer Donelan Qualifications Associate Diploma, Applied Science (Food Technology) Sydney Technical College. Experience Prior to his appointment as Chief Executive Officer of New Zealand Hops, Doug Donelan was Head Brewer of Australia’s Malt Shovel Brewery and James Squire Brewhouses. Doug has over 30 years experience in the brewing, beverage and hospitality industries and is an internationally recognised beer judge having served as Chief Judge at the New Zealand International Beer Awards and on the international judging panels for the Brewers Associations (BA) Great American Beer Festival and World Beer Cup, Japan Beer Cup (JBC) and the Australian International Beer Awards (AIBA). Doug’s affiliations and memberships include the Institute of Brewing and Distilling (IBD) where he is a Director of the Asia Pacific Section. The Master Brewers Association of the Americas (MBAA) the Brewers Association (BA) and New Zealand Institute of Directors (IOD). He has written numerous papers and articles for brewing journals, technical papers and presentations on the beer industry, brewing and hops. He has also written and presented on Innovation, Marketing, Research and New Product Development. Alexander Charles Greville Qualifications Bachelor of Commerce, CA, University of Canterbury, ICANZ. Experience Commercial Director – Continuous Improvement. Over 18 years commercial, financial, strategy, M&A and IBP experience with Lion across Australia and NZ.

Carla Marie Dagger Qualifications Bachelor of Business - Auckland University Technology. Experience 3 years Zymus International Operations and supply Chain NZ.

4 years Zymus Australia Director and Marketing Manager. 2 years Advertising Exec - Kathmandu and Vodafone. Strength is in communication / social media to young members. Tully Hadley Appointed 11/10/2017. Qualifications BSc [Applied Chem], Dip Brew. Master Brewer. Experience 15 years within CUB / SAB Miller / InBev in areas of Quality and Brewing. Current title – Senior Brewing and Quality Manager. Anne Gigney Appointed 11/10/2017. Qualifications Associate Diploma in Business (UTAS); Batchelor Fine Arts/Arts (UTAS); Diploma Marketing (TasTafe – 1st year). Experience Anne has a background in marketing, communications and business

development. She is the Director of Tasmanian Whisky Academy and a lead in distilling training in Australia; Additional notes: Author, Tasmanian Whisky Workforce Report (2016); Principle: Marketing Communications and Business Development Consultancy (atPR).

Meetings of Directors During the financial year, meetings of directors (including committees of directors) were held. Attendances by each director during the year were: Number Eligible to Attend Number Attended Peter James David 4 2 Jaideep Chandrasekharan 8 5 Ian Geoffrey Roberts 8 7 Megan Frances Sheehy 8 8 Douglas Frazer Donelan 8 8 Alexander Charles Greville 8 8 Carla Marie Dagger 8 6 Tully Hadley 4 2 Anne Gigney 4 3 The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a maximum of $10 towards outstanding obligations of the entity. At 30 June 2018 the number of financial members was 1078 (2017: 921). Auditors' Independence Declaration A copy of the auditors' independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 7. Signed in accordance with a resolution of the Board of Directors: Director: ______________________________________ Mr Ian Geoffrey Roberts Dated this day of

AUDITORS' INDEPENDENCE DECLARATION

UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

TO THE DIRECTORS OF


We declare that, to the best of our knowledge and belief, during the year ended 30 June 2018 there havebeen:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act2001 in relation to the audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

Name of Firm: ACCRU MELBOURNE (AUDIT) PTY LTDChartered Accountants

Name of Director: _________________________________________________________C J FLYNN

Address: 50 Camberwell Road, HAWTHORN EAST VIC 3123

Dated this day of

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A.B.N. 46 095 858 272

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2018

2018 2017Note $ $

IncomeRevenue 2 587,463 318,400ExpenditureAccountancy expenses (13,110) (4,000)Auditors' remuneration (6,045) (5,850)

Consultants Fees (68,339) (96,284)

Secretary/Editor Fees (75,351) (77,740)

Travelling Expenses (82,643) (42,836) Other expenses (99,575) (50,865)

242,400 40,825

Surplus/(Deficit) for the year 3 242,400 40,825

Total comprehensive income/(loss) for the year 242,400 40,825

The accompanying notes form part of these financial statements.

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A.B.N. 46 095 858 272

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2018

2018 2017Note $ $

ASSETSCURRENT ASSETSCash and cash equivalents 4 1,097,175 551,355Trade and other receivables 5 14,080 162,990Other current assets 6 2,187 107,268TOTAL CURRENT ASSETS 1,113,442 821,613TOTAL ASSETS 1,113,442 821,613

LIABILITIESCURRENT LIABILITIESTrade and Other Payables 7 71,234 21,805TOTAL CURRENT LIABILITIES 71,234 21,805TOTAL LIABILITIES 71,234 21,805NET ASSETS 1,042,208 799,808

FUNDSGeneral Funds 8 1,042,208 799,808TOTAL FUNDS 1,042,208 799,808


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A.B.N. 46 095 858 272

STATEMENT OF CHANGES IN FUNDS


GeneralFunds Total

$ $

Balance at 1 July 2016 758,983 758,983Net Surplus 40,825 40,825Balance at 30 June 2017 799,808 799,808Net Surplus 242,400 242,400Balance at 30 June 2018 1,042,208 1,042,208


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A.B.N. 46 095 858 272

STATEMENT OF CASH FLOWS


2018 2017$ $

CASH FLOWS FROM OPERATING ACTIVITIESReceipts from members, sponsors and others 343,542 186,250Payments to suppliers (190,552) (428,885)Convention Income 383,252 -Interest received 9,579 10,479Net cash provided by (used in) operating activities 10 545,821 (232,156)

Net increase (decrease) in cash held 545,821 (232,156)Cash at beginning of financial year 551,354 783,511Cash at end of financial year 4 1,097,175 551,355


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A.B.N. 46 095 858 272

NOTES TO THE FINANCIAL STATEMENTS


1 Statement of Significant Accounting Policies

The financial statements cover Institute of Brewing & Distilling - Asia Pacific Company Limited as anindividual entity. Institute of Brewing & Distilling - Asia Pacific Company Limited is a not-for-profitcompany limited by guarantee, incorporated and domiciled in Australia.

Basis of Preparation

The Directors' have prepared the financial statements on the basis that the Company is anon-reporting entity because there are no users dependent on a general purpose financial report.The financial report is therefore a special purpose financial report that has been prepared in order tomeet the requirements of the Corporations Act 2001.

These financial statements have been prepared in accordance with the recognition andmeasurement requirements specified by the Australian Accounting Standards and Interpretationsand the disclosure requirements of AASB 101 Presentation of Financial Statements, AASB 107Statement of Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates andErrors and AASB 1054 Australian Additonal Disclosures.

The financial statements, except for the cash flow information, have been prepared on an accrualsbasis and are based on historical costs, modified, where applicable, by the measurement at fairvalue of selected non-current assets, financial assets and financial liabilities. The amountspresented in the financial statements have been rounded to the nearest dollar.

The financial statements were authorised for issue on 25 September 2018 by the directors of thecompany.

Accounting Policies

Income Tax

No provision for income tax has been raised as the entity is exempt from income tax under Div 50 ofthe Income Tax Assessment Act 1997.

Financial Instruments

Financial instruments are recognised initially using trade date accounting, i.e. on the date thatcompany becomes party to the contractual provisions of the instrument.

On initial recognition, all financial instruments are measured at fair value plus transaction costs(except for instruments measured at fair value through profit or loss where transaction costs areexpensed as incurred).

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A.B.N. 46 095 858 272



Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments thatare not quoted in an active market. They arise principally through the provision of goods andservices to customers but also incorporate other types of contractual monetary assets.

After initial recognition these are measured at amortised cost using the effective interest method,less provision for impairment. Any change in their value is recognised in profit or loss.

The company's trade and most other receivables fall into this category of financial instruments.

Significant receivables are considered for impairment on an individual asset basis when they arepast due at the reporting date or when objective evidence is received that a specific counterpartywill default.

The amount of the impairment is the difference between the net carrying amount and the presentvalue of the future expected cash flows associated with the impaired receivable.

In some circumstances, the company renegotiates repayment terms with customers which may leadto changes in the timing of the payments, the company does not necessarily consider the balance tobe impaired, however assessment is made on a case-by-case basis.Subsequent recoveries of amounts previously written off are credited against other expenses inprofit or loss.

Impairment of Non-Financial Assets

At the end of each reporting period the company determines whether there is an evidence of animpairment indicator for non-financial assets.

Where this indicator exists the recoverable amount of the asset is estimated.

Where assets do not operate independently of other assets, the recoverable amount of the relevantcash-generating unit (CGU) is estimated.

The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal andthe value in use. Value in use is the present value of the future cash flows expected to be derivedfrom an asset or cash-generating unit.

Where the recoverable amount is less than the carrying amount, an impairment loss is recognisedin profit or loss.

Reversal indicators are considered in subsequent periods for all assets which have suffered animpairment loss , except for goodwill.

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A.B.N. 46 095 858 272



Accounts Receivable and Other Receivables

Accounts receivable and other debtors include amounts due from members as well as amountsreceivable from customers for goods sold in the ordinary course of business. Receivables expectedto be collected within 12 months of the end of the reporting period are classified as current assets.All other receivables are classified as non-current assets.

At the end of each reporting period, the carrying amount of trade and other receivables arereviewed to determine whether there is any objective evidence that the amounts are notrecoverable. If so, an impairment loss is recognised immediately in statement of comprehensiveincome.

Cash and Cash Equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investmentswhich are readily convertible to known amounts of cash and which are subject to an insignificantrisk of change in value.

Revenue and Other Income

Subscription revenue is recognised as revenue when received.

Interest revenue is recognised on a proportional basis taking into account the interest ratesapplicable to financial assets.

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

Accounts and Other Payables

Account payable represent the liabilities at the end of the reporting period for goods and servicesreceived by the company that remain unpaid.

Account payables are recognised at their transaction price. Account payables are obligations on thebasis of normal credit terms.

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A.B.N. 46 095 858 272



Goods and Services Tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST),except where the amount of GST incurred is not recoverable from the Australian Taxation Office(ATO).

Receivables and payables are stated inclusive of GST.

Cash flows in the statement of cash flows are included on a gross basis and the GST component ofcash flows arising from investing or financing activities which is recoverable from, or payable to, thetaxation authority is classified as operating cash flows.

Comparative Amounts

Comparatives are consistent with prior years, unless otherwise stated.

Where a change in comparatives has also affected the opening retained earnings previouslypresented in a comparative period, an opening statement of financial position at the earliest date ofthe comparative period has been presented.

Adoption of New and Revised Accounting Standards

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

The adoption of these Standards has not had a significant impact on the recognition, measurementand disclosure of transactions.

New Accounting Standards for Application in Future Periods

The AASB has issued new and amended Accounting Standards and Interpretations that havemandatory application dates for future reporting periods. The company has decided against earlyadoption of these Standards and does not expect the adoption of these Standards to have anysignficant impact on the reported position or perfomance of the company.

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A.B.N. 46 095 858 272



2018 2017

$ $

Page 16

2 Revenue and Other Income Revenue Interest received 9,579 11,446

Other revenue 577,884 306,954

Total revenue 587,463 318,400

Interest revenue from: Interest Received 9,579 11,446

Total interest revenue 9,579 11,446

Other revenue from: Training Revenue - Australia 183,789 161,113

Training Revenue - Other 10,842 51,857 Convention Income 984,351 90,909 RC Meetings and Sales - 3,075 Convention Expenses (601,098) -

Total other revenue 577,884 306,954

3 Surplus/(Deficit) for the year

Significant Revenue and Other Income and Expenses

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

RC Meetings & Functions 30,387 13,359

Travel & Accommodation 82,643 77,893

Secretary/Editor Fees 75,351 77,741

Training - Consultants 68,339 53,342

256,720 222,335


A.B.N. 46 095 858 272



2018 2017

$ $

Page 17

4 Cash and Cash Equivalents ANZ Bank Cheque Account 77,064 91,098 ANZ Bank V2 Plus Account - 2,372 ASB Bank NZ Society Cheque 2,092 2,063 NZ Revaluation Account (231) (97) Term Deposits 1,018,250 455,919 1,097,175 551,355

Reconciliation of cash

Cash and Cash equivalents reported in the statement of cash flows are reconciled to the equivalent items in the statement of financial position as follows:

Cash and cash equivalents 1,097,175 551,355

1,097,175 551,355

5 Trade and Other Receivables Current Other Debtors 14,080 113,351

Trade Debtors - 49,639

14,080 162,990

6 Other Assets Current Prepayments 2,187 107,268

7 Accounts and Other Payables Current ANZ Business One Credit Card 2,688 110

Trade Creditors 1,188 6,703 Other Creditors 15,256 8,500 Accrued Expenses 6,076 - GST on supplies 46,026 6,492

71,234 21,805


A.B.N. 46 095 858 272



2018 2017

$ $

Page 18

8 Total Funds (a) General Funds at the beginning of the financial year 799,808 758,983 Surplus attributable to members of the company 242,400 40,825 General Funds at the end of the financial year 1,042,208 799,808

9 Related Party Transactions

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

Transactions with related parties:

The totals of remuneration paid to directors of the company during the year are as follows:

Short-term benefits - 64,896

10 Cash Flow Information Reconciliation of Cash Flow from Operations Surplus 242,400 40,825

Changes in assets and liabilities, net of the effects of purchase and disposals of subsidiaries

- (Increase)/decrease in receivables 148,911 (118,366)

- (Increase)/decrease in prepayments 105,081 (107,268)

- Increase/(decrease) in GST payables 39,534 (27,810)

- Increase/(decrease) in trade payables and accruals 9,895 (19,537)

Cashflow from Operations 545,821 (232,156)

11 Financial Risk Management The company is exposed to a variety of financial risks through its use of financial instruments.

The company's overall risk management plan seeks to minimise potential adverse effects due to the unpredictability of financial markets.

The company does not have any derivative instruments at 30 June 2018.


A.B.N. 46 095 858 272



2018 2017

$ $

Page 19

12 Statutory Information

The registered office of the company is:

Institute of Brewing & Distilling - Asia Pacific Company Limited

255 Port Road

Hindmarsh SA 5007

The principal place of business is:

19 Tadema Crescent

Eltham VIC 3095


A.B.N. 46 095 858 272

DIRECTORS' DECLARATION

As detailed in Note 1 to the financial statements, the Company is not a reporting entity because in theopinion of the directors there are unlikely to exist users of the financial report who are unable to commandthe preparation of reports tailored so as to satisfy specifically all of their information needs. Accordingly, this'special purpose financial report' has been prepared to satisfy the directors' reporting requirements.

The directors of the company declare that:

1. The financial statements and notes of the company:

(a) presents fairly, in all material respects, the financial position of the company as at 30 June2018 and its financial performance for the year then ended; and

(b) comply with Australian Accounting Standards, to the extent described in Note 1 to thefinancial statements.

2. In the directors' opinion, there are reasonable grounds to believe that the company will be ableto pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Director: _________________________________________________________Mr Ian Geoffrey Roberts

Dated this day of

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INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF INSTITUTE OF BREWING & DISTILLING - ASIA PACIFIC COMPANY LIMITED

A.B.N. 46 095 858 272

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Institute of Brewing & Distilling - Asia Pacific Company Limited, (thecompany) which comprises the statement of financial position as at 30 June 2018 and the statement ofprofit or loss and other comprehensive income, statement of changes in equity and statement of cash flowsand cash flow statement for the year then ended, and notes to the financial statements, including a summaryof significant accounting policies and the directors' declaration.

In our opinion, the accompanying financial report of the company is in accordance with the Corporations Act2001, including:

(i) giving a true and fair view of the company's financial position as at 30 June 2018 and of its financialperformance for the year ended; and

(ii) complying with Australian Accounting Standards to the extent described in Note 1 and the CorporationsRegulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under thosestandards are further described in the Auditors' Responsibilities for the Audit of the Financial Report sectionof our report. We are independent of the company in accordance with the auditor independencerequirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional andEthical Standards Board's APES 110 Code of Ethics for Professional Accountants (the code) that arerelevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilitiesin accordance with the code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been givento the directors of the company, would be in the same terms if given to the directors as at the time of thisauditors' report.

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

Responsibilities of Directors' for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true andfair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for suchinternal control as the directors determine is necessary to enable the preparation of the financial report thatgives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the company's ability to continueas a going concern, disclosing, as applicable, matters related to going concern and using the going concernbasis of accounting unless the directors either intend to liquidate the company or to cease operations, orhave no realistic alternative but to do so.

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A.B.N. 46 095 858 272

Auditors' Responsibility for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free frommaterial misstatement, whether due to fraud or error, and to issue an auditors' report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conductedin accordance with the Australian Auditing Standards will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professionaljudgement and maintain professional scepticism throughout the audit. We also:

- identify and assess the risks of material misstatement of the financial report, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the company's ability to continue as agoing concern. If we conclude that a material uncertainty exists, we are required to drawattention in our auditors' report to the related disclosures in the financial report or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditors' report. However, future events or conditionsmay cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial report, including thedisclosures, and whether the financial report represents the underlying transactions and eventsin a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identifyduring our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirementsregarding independence, and to communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and where applicable, related safeguards.

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A.B.N. 46 095 858 272

From the matters communicated with the directors, we determine those matters that were of mostsignificance in the audit of the financial report of the current period and are therefore the key audit matters.We describe these matters in our auditors' report unless law or regulation preclude public disclosure aboutthe matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonably be expectedto outweigh the public interest benefits of such communication.

Name of Firm: ACCRU MELBOURNE (AUDIT) PTY LTDChartered Accountants

Name of Director: _________________________________________________________C J FLYNN

Address: 50 Camberwell Road, HAWTHORN EAST VIC 3123

Dated this day of

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