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AXIOM MINING LIMITED
ANNUAL REPORT 2015
Notes to the
financial statements
for the year ended 30 September 2015
COMPANY FINANCIAL REPORT
22. Related parties
In addition to the transactions disclosed elsewhere in
these financial statements, the Company had the following
material transactions with related parties during the year:
a. Balances with related parties
For the year ended 30 September 2014, an advance
of AU$28,000 to a director, Ryan Richard Mount was
interest-bearing at market rate. This advance was
fully paid as at 30 September 2015 including interest
at market rates.
b. Transactions with related parties
Stephen Ray Williams, a director of the Company is a
consultant of Kemp Strang Lawyers. For the year ended
30 September 2015, AU$133,000 (2014 AU$98,000) was
paid to Kemp Strang Lawyers for legal services to the
Company on normal commercial terms.
During the year, fund raising and advisory services
were provided by JRG Consulting Pty Limited (‘JRG’).
Mr Jeremy Gray, a director of the Company, is a non-
executive director and controlling shareholder of JRG. The
Board considers that the JRG agreement is a commercial
arrangement entered into on reasonable arm’s length
terms. There is no obligation for the Company to acquire
services exclusively from JRG or for JRG to exclusively
provide services to the Company. Total amount paid to
JRG during the year including the provision of services
provided by Mr Jeremy Gray was AU$29,000 (2014: Nil).
For the year ended 30 September 2015 (exclusive of
GST), consultancy fees of AU$8,000 were charged by
Burrawong Holdings Pty Limited to the Company on
behalf of Stephen Ray Williams.
c. Key management personnel of the Company
In the opinion of the directors, the directors of the
Company represented the key management personnel of
the Company. Further details of directors’ emoluments are
included In Note 26 to the financial statements.
23. Financial risk management
andÞfairÞvalues
Exposure to credit, liquidity, interest rates and currency
risks arises in the normal course of the Company’s
business.
The Company’s exposure to these risks and the financial
risk management policies and practices used by the
Company are described below and are limited by the
Company’s financial management policies and practices
described below.
a. Credit risk
Exposure to credit risk relating to financial assets arises
from the potential non-performance by counterparties of
contract obligations that could lead to a financial loss to
the Company.
Credit risk is managed through the maintenance of
procedures (such procedures include the utilisation
of systems for the approval, granting and renewal of
credit limits, regular monitoring of exposures against
such limits and monitoring of the financial stability of
significant customers and counterparties), ensuring to
the extent possible, that customers and counterparties
to transactions are of sound credit worthiness. Such
monitoring is used in assessing receivables for
impairment. Credit terms are generally 14 to 30 days from
the invoice date.
Risk is also minimised through investing surplus funds
in financial institutions that maintain a high credit rating,
or in entities that the Board has otherwise cleared as
being financially sound. Where the Company is unable
to ascertain a satisfactory credit risk profile in relation
to a customer or counterparty, the risk may be further
managed through title retention clauses over goods or
obtaining security by way of personal or commercial
guarantees over assets of sufficient value which can be
claimed against in the event of any default.
Credit risk exposures
The maximum exposure to credit risk by class of
recognised financial assets at the end of the reporting
period, excluding the value of any collateral or other
security held, is equivalent to the carrying value and
classification of those financial assets (net of any
provisions) as presented in the statement of financial
position. Credit risk also arises through the provision of
financial guarantees, as approved at board level.
Trade and other receivables that are neither past due nor
impaired are considered to be of high credit quality.
The Company manages its credit risk associated with
funds on deposit and cash at bank by only dealing
with reputable financial institutions. At year end the
Company has one material exposure of AU$1,094,000
(2014: AU$2,084,000) to the Australia and New Zealand
Banking Group Limited relating to funds on deposit and
cash at bank.