DLL is a bulk cargo and logistics conglomerate, founded in 2010 through the merger of two companies, primarily involved with the transport of iron ore, mineral sands and forestry products. Grain (agricultural products), oil and gas, coal, manganese, and lithium are examples of other products they transport. DLL also provide warehousing services and are currently building a large hub complex in Sydney. On completion, this facility will be leased to various exporters and importers.
DLL has over 20 subsidiary companies and significant investment in five other companies (associates). The largest associate is Pilkington Ports Limited which gives DLL access to 4 ports across Australia. They have access arrangements with a further 15 ports across Australia (including Darwin), New Zealand, and a port presence in Malaysia and Singapore. There are a further 15 logistic centres in metropolitan and regional areas in NSW, Victoria, South Australia, Western Australia and Queensland.
DLL's operations are divided into three divisions: Ports, Logistics, and Infrastructure & Property.
The CFO, Wayne Green, advised that they have had a successful year with a remarkable increase in profit, despite lower grain volumes and two large mine contracts ceasing due to the mines reaching their end of life. All states, except NSW, experienced an increase in revenue. The group also acquired another subsidiary, for $46.15 million, which added $16.05 million to assets and $5.8 million to liabilities. Goodwill was $35 million. Wayne Green also provided details about the following related party transactions:
- paid to Associates: $6.85 million for stevedore services
- received from associates: $1.05 million rental income and $4.55 million in dividends.
- loans to key personnel: Received $2.35 million from key management personnel to finalise all outstanding monies owing as at 30/6/2017.
- loan to Pilkington $164.4 million. The original loan was issued in 2016 for a fixed 10-year term and is subordinated to all creditors. The effective interest rate is 7.3% p.a.
- Key background information, including industry details.
- An assessment of the going concern assumption, based on the background and financial analysis.
- Three (3) account or account areas you consider most at risk of material misstatement, and whether those accounts are likely to be over or understated, with suitable justifications based on the financial analysis and the background information.
- Two assertions for each of those accounts or account area identified in requirement 3, with suitable justifications based on the financial analysis and the background information.
Consolidated statement of comprehensive income 2018 2017 2016 2015 Revenue from continuing operations Revenue from sales and services Other income 696.7 32.95 729.65 788.95 709.05 632.4 96.1 885.05 47.35 756.4 33.85 666.25 Direct transport and logistics costs Repairs and maintenance costs Employee benefits expense Fuel, oil and electricity costs Occupancy and property costs Depreciation and amortisation expense Professional fees Loss on disposal of available-for-sale financial assets Impairment of non-current assets Reversal of impairment of non-current assets Other expenses Total expenses Finance income Finance costs Net finance costs Share of net profit(loss) of associates accounted for using the equity method Profit before income tax Income tax expense Profit for the year 212.2 185.05 166.45 -188.25 -40.55 435 42.7 -308.75 -278.5 249.65 -253.45 -49.25 5 37.85-53.05 -46.45 -40.7 58.0 -3.85 -41.5 -31.4 50.75 -51.75 5.55 -33.1 -56.7 -5.15 -13.05 -13.2 -4.65 10.65 8.8 6.25 -22.45 9.55 0.9 12.75 736.45 686.45 -592.45 658.5 13.1 20.6 8.0 0.75 11.95 -18.25 16.8 63 13.5 16.05 6.3 64.05 17.8 46.25 12.6 63.75 47.95 11.3 52.35 13.7 38.65 2.3 143.4 43.9 99.5 5.2 Other comprehensive income net of tax: Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations Change in value of available-for-sale financial assets Total comprehensive income for the year -2 -3.5 35.15 98.8 51.75 45.95 Profit for the year is attributable to Owners of DLL Holdings Limited Non-controlling interests 99.65 0.15 99.5 38.65 38.65 35.15 35.15 42.95 5.0 47.95 41 5.25 46.25 Total comprehensive income for the year is attributable to Owners of DLL Holdings Limited Non-controlling interests 40.95 98.95 0.15 98.8 46.55 5.25 51.8 45.95 Dalby Logistics Limited Consolidated balance sheet 2018 2017 2016 2015 ASSETS Current assets Cash and cash equivalents Trade and other receivable Inventories Current tax receivable Derivative financial instruments Total current assets Non-current assets Financial assets at fair value through profit or loss Loans and receivables nvestment in equity accounted investments Property, plant and equipment Investment properties Intangible assets Derivative financial instruments Other assets Total non-current assets Total assets LIABILITIES 51.95 160.35 148.15 101.85110.55 44.1 95.4 38.3 2.2 1.25 271.85 0.2 213.7 246.75 414.45 155.75 0.5 0.5 164.4 358.4 503.35 453.3 350.8 416.8 0.75 172.2 378.85 112.9 108.45 414.15394.6:5 315.35317.6:5 4.6 197.25183.85 171 391.1 0.4 1,803.81,594.31,031.35 995.45 2,017.51,841.05 1,445.8 1,151.2 Current liabilities Trade and other payables Borrowings Current tax payable Derivative financial instruments Provisions Total current liabilities Non-current liabilities Trade and other payables Borrowings Deferred tax liabilities Derivative financial instruments Proviions Total non-current liabilities Total labilities Net assets EQUITY Contributed equity Reserves Retained earnings Capital and reserves attributable to owners of DalbyLogistics Limited Non-controlling interests Total equity 72.4 0.85 8.95 0.1 40.1 122.4 57.65 50.05 79.7 0.35 32.5 162.6 3.15 0.4 33.55 100.9 0.1 36 114.5 2.75 294.85 0.2 482.15400.55 256.8 32.4 0.45 4.85 520.05 420.25 264.55 306.15 642.45 534.75 427.15 407.05 1,375.051,306.31,018.65744.15 12.7 0.25 4.35 1.25 4.65 1.15 7.4 642.35 -14.35 70.75 1227.45 225.25 891.1 9.35 138.4 1375.21306.3 969.55 698.75 0.15 1,375.051,306.31,018.65744.15 1.5 82.55 83.25 49.1 45.4 Further limited details of amounts in the financial statements were provided as follows Other Income Rental Gain on revaluation of assets Dividend Gain on disposal of property Development management fees Lease surrender payment 2018 7.05 81.6 2017 2016 10.8 2015 17.1 13.5 11.2 26.65 0.65 2.15 1.55 11.6 Other Total other income 1.05 33.85 2016 -4.85 96.1 47.35 32.6 Trade and other receivables Trade receivables Provision for impairment 2018 127.75 110 -4.25 123.5 12.4 18.15 2017 2015 94.35 -4.65 89.7 105.9 8.55 16.15 79.15 Pre-payments Accrued revenue Interest receivable Return of capital TQ Holdings Other Total trade and other receivables 10.4 10.1 4.35 4.05 9.3 2015 108.45 160.35 30.65 148.15 19.95 101.85110.55 ceivables over 90 days and not impair 2017 333.75 45.1 378.85112.9 Investment in equity accounted investments 2018 320.8 37.6 358.4 2016 Pilkington 50% share Other 112.9 108.45 Total investment in equity accounted instruments Under a joint consortium. DLL obtained a 50% share of the Pilkington Port business and the remaining 50% was acquired by several other investment funds from overseas Intangible assets Goodwill Operating rights Port Concessions Customer contracts Total intangible assets 2018 354.75 323.2 2017 2016 296.4 2.35 2015 5 294.5 2.55 53.8 8.25 416.8 55.65 12.25 391.1 16.55 315.35317.65 20.6 2017 80.75 -14.75 Property Plant & Equipment Land and buildings Accumulated depreciation 2018 95.5 2016 80.3 8.35 2015 70.3 7.15 12.15 66.0 83.35 562.3 238.25 200.4156.15 -124.4 324.05 124.8 -28.85 30.65 -25.1 95.95 503.35 448.3 1.95 420.7 63.15 390.55 Property and equipment Accumulated depreciation 484.6 284.2 128.75102.7585.3 264.55 266.15 Leasehold Improvements Accumulated depreciation -19.95 65.35 394.65 77.65 414.15 98.1 Total property, plant and equipment Port concessions were acquired as part of the 2016 investment in Pilkington. Investment properties 2018 197.25183.85 171 69.35 81.6 2017 2016 2015 154.25 3.05 13.5 7.35 6.4 Capitalisation of construction costs Revaluation Gain Transter from Intangible assets Finance lease asset Capitalised interest Straightining of operating Lease rental Transfer to PP&E Total investment properties 13.85 11.2 2.25 1.65 0.5 1.05 2.45 0.15 1.05 350.8 0.2 16.05 197.25 183.85 171 Trade payables and acc Trade payables GST payable Total trade payables and accruals 2018 68.85 3.55 72.4 2017 74.75 3.25 78.0 2016 47.3 2.75 50.05 2015 ruals 55.85 57.65 2015 30.75 Provisions 2018 2017 2016 Employee Benefits Current 35.0 4.35 30.25 4.05 39.9 4.85 Non-current 40.95 Total provisions 40.35 37.15 44.95 Borrowings Current Unsecured bank loans Secured Finance leases Total current borrowings Non-current Unsecured Bank Loans Other financiers Medium term notes Subordinated notes less capitalised establishment costs Total unsecured non-current borrowings Secured Finance lease liabilities Total non-current borrowings Total borrowings 2018 2017 2016 2015 75 4.7 79.7 0.85 0.85 0.04 0.04 6.15 6.15 160.3 75 95.75 152.5 -5.45 478.1 4.05 482.15 400.55 256.8 483.0 176 75 290.55 258.5 152.5 4.75 398.75256.2 1.8 -2.5 288.05 6.8 294.85 301.0 2.3 0.6 336.5 400.59 Consolidated statement of comprehensive income 2018 2017 2016 2015 Revenue from continuing operations Revenue from sales and services Other income 696.7 32.95 729.65 788.95 709.05 632.4 96.1 885.05 47.35 756.4 33.85 666.25 Direct transport and logistics costs Repairs and maintenance costs Employee benefits expense Fuel, oil and electricity costs Occupancy and property costs Depreciation and amortisation expense Professional fees Loss on disposal of available-for-sale financial assets Impairment of non-current assets Reversal of impairment of non-current assets Other expenses Total expenses Finance income Finance costs Net finance costs Share of net profit(loss) of associates accounted for using the equity method Profit before income tax Income tax expense Profit for the year 212.2 185.05 166.45 -188.25 -40.55 435 42.7 -308.75 -278.5 249.65 -253.45 -49.25 5 37.85-53.05 -46.45 -40.7 58.0 -3.85 -41.5 -31.4 50.75 -51.75 5.55 -33.1 -56.7 -5.15 -13.05 -13.2 -4.65 10.65 8.8 6.25 -22.45 9.55 0.9 12.75 736.45 686.45 -592.45 658.5 13.1 20.6 8.0 0.75 11.95 -18.25 16.8 63 13.5 16.05 6.3 64.05 17.8 46.25 12.6 63.75 47.95 11.3 52.35 13.7 38.65 2.3 143.4 43.9 99.5 5.2 Other comprehensive income net of tax: Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations Change in value of available-for-sale financial assets Total comprehensive income for the year -2 -3.5 35.15 98.8 51.75 45.95 Profit for the year is attributable to Owners of DLL Holdings Limited Non-controlling interests 99.65 0.15 99.5 38.65 38.65 35.15 35.15 42.95 5.0 47.95 41 5.25 46.25 Total comprehensive income for the year is attributable to Owners of DLL Holdings Limited Non-controlling interests 40.95 98.95 0.15 98.8 46.55 5.25 51.8 45.95 Dalby Logistics Limited Consolidated balance sheet 2018 2017 2016 2015 ASSETS Current assets Cash and cash equivalents Trade and other receivable Inventories Current tax receivable Derivative financial instruments Total current assets Non-current assets Financial assets at fair value through profit or loss Loans and receivables nvestment in equity accounted investments Property, plant and equipment Investment properties Intangible assets Derivative financial instruments Other assets Total non-current assets Total assets LIABILITIES 51.95 160.35 148.15 101.85110.55 44.1 95.4 38.3 2.2 1.25 271.85 0.2 213.7 246.75 414.45 155.75 0.5 0.5 164.4 358.4 503.35 453.3 350.8 416.8 0.75 172.2 378.85 112.9 108.45 414.15394.6:5 315.35317.6:5 4.6 197.25183.85 171 391.1 0.4 1,803.81,594.31,031.35 995.45 2,017.51,841.05 1,445.8 1,151.2 Current liabilities Trade and other payables Borrowings Current tax payable Derivative financial instruments Provisions Total current liabilities Non-current liabilities Trade and other payables Borrowings Deferred tax liabilities Derivative financial instruments Proviions Total non-current liabilities Total labilities Net assets EQUITY Contributed equity Reserves Retained earnings Capital and reserves attributable to owners of DalbyLogistics Limited Non-controlling interests Total equity 72.4 0.85 8.95 0.1 40.1 122.4 57.65 50.05 79.7 0.35 32.5 162.6 3.15 0.4 33.55 100.9 0.1 36 114.5 2.75 294.85 0.2 482.15400.55 256.8 32.4 0.45 4.85 520.05 420.25 264.55 306.15 642.45 534.75 427.15 407.05 1,375.051,306.31,018.65744.15 12.7 0.25 4.35 1.25 4.65 1.15 7.4 642.35 -14.35 70.75 1227.45 225.25 891.1 9.35 138.4 1375.21306.3 969.55 698.75 0.15 1,375.051,306.31,018.65744.15 1.5 82.55 83.25 49.1 45.4 Further limited details of amounts in the financial statements were provided as follows Other Income Rental Gain on revaluation of assets Dividend Gain on disposal of property Development management fees Lease surrender payment 2018 7.05 81.6 2017 2016 10.8 2015 17.1 13.5 11.2 26.65 0.65 2.15 1.55 11.6 Other Total other income 1.05 33.85 2016 -4.85 96.1 47.35 32.6 Trade and other receivables Trade receivables Provision for impairment 2018 127.75 110 -4.25 123.5 12.4 18.15 2017 2015 94.35 -4.65 89.7 105.9 8.55 16.15 79.15 Pre-payments Accrued revenue Interest receivable Return of capital TQ Holdings Other Total trade and other receivables 10.4 10.1 4.35 4.05 9.3 2015 108.45 160.35 30.65 148.15 19.95 101.85110.55 ceivables over 90 days and not impair 2017 333.75 45.1 378.85112.9 Investment in equity accounted investments 2018 320.8 37.6 358.4 2016 Pilkington 50% share Other 112.9 108.45 Total investment in equity accounted instruments Under a joint consortium. DLL obtained a 50% share of the Pilkington Port business and the remaining 50% was acquired by several other investment funds from overseas Intangible assets Goodwill Operating rights Port Concessions Customer contracts Total intangible assets 2018 354.75 323.2 2017 2016 296.4 2.35 2015 5 294.5 2.55 53.8 8.25 416.8 55.65 12.25 391.1 16.55 315.35317.65 20.6 2017 80.75 -14.75 Property Plant & Equipment Land and buildings Accumulated depreciation 2018 95.5 2016 80.3 8.35 2015 70.3 7.15 12.15 66.0 83.35 562.3 238.25 200.4156.15 -124.4 324.05 124.8 -28.85 30.65 -25.1 95.95 503.35 448.3 1.95 420.7 63.15 390.55 Property and equipment Accumulated depreciation 484.6 284.2 128.75102.7585.3 264.55 266.15 Leasehold Improvements Accumulated depreciation -19.95 65.35 394.65 77.65 414.15 98.1 Total property, plant and equipment Port concessions were acquired as part of the 2016 investment in Pilkington. Investment properties 2018 197.25183.85 171 69.35 81.6 2017 2016 2015 154.25 3.05 13.5 7.35 6.4 Capitalisation of construction costs Revaluation Gain Transter from Intangible assets Finance lease asset Capitalised interest Straightining of operating Lease rental Transfer to PP&E Total investment properties 13.85 11.2 2.25 1.65 0.5 1.05 2.45 0.15 1.05 350.8 0.2 16.05 197.25 183.85 171 Trade payables and acc Trade payables GST payable Total trade payables and accruals 2018 68.85 3.55 72.4 2017 74.75 3.25 78.0 2016 47.3 2.75 50.05 2015 ruals 55.85 57.65 2015 30.75 Provisions 2018 2017 2016 Employee Benefits Current 35.0 4.35 30.25 4.05 39.9 4.85 Non-current 40.95 Total provisions 40.35 37.15 44.95 Borrowings Current Unsecured bank loans Secured Finance leases Total current borrowings Non-current Unsecured Bank Loans Other financiers Medium term notes Subordinated notes less capitalised establishment costs Total unsecured non-current borrowings Secured Finance lease liabilities Total non-current borrowings Total borrowings 2018 2017 2016 2015 75 4.7 79.7 0.85 0.85 0.04 0.04 6.15 6.15 160.3 75 95.75 152.5 -5.45 478.1 4.05 482.15 400.55 256.8 483.0 176 75 290.55 258.5 152.5 4.75 398.75256.2 1.8 -2.5 288.05 6.8 294.85 301.0 2.3 0.6 336.5 400.59
