2011 Annual Report GrainCorp Limited GrainCorp Limited (ABN 60 057 186 035) and Controlled Entities Annual Report 30 September 2011 GrainCorp Limited Contents 2011 Annual Report Contents About GrainCorp .......................................................................................................................................................................... 1 Financial Summary ...................................................................................................................................................................... 3 Board of Directors and Executives ............................................................................................................................................ 4 Corporate Governance Statement .............................................................................................................................................. 6 Directors’ Report ........................................................................................................................................................................ 19 Directors’ Report – Remuneration Report ............................................................................................................................... 24 Auditor’s Independence Declaration ........................................................................................................................................ 43 1. Summary of significant accounting policies ....................................................................................................................... 49 2. Critical accounting estimates and judgements................................................................................................................... 62 3. Financial risk management ................................................................................................................................................... 63 4. Segment information ............................................................................................................................................................. 74 5. Revenue .................................................................................................................................................................................. 78 6. Other income .......................................................................................................................................................................... 78 7. Expenses ................................................................................................................................................................................ 79 8. Income tax expense ............................................................................................................................................................... 80 9. Cash and cash equivalents ................................................................................................................................................... 81 10. Trade and other receivables ............................................................................................................................................... 81 11. Inventories ............................................................................................................................................................................ 82 12. Derivative financial instruments ......................................................................................................................................... 82 13. Assets classified as held for sale and discontinued operations ..................................................................................... 84 14. Investments accounted for using the equity method ....................................................................................................... 86 15. Other financial assets .......................................................................................................................................................... 86 16. Deferred tax assets and liabilities ...................................................................................................................................... 86 17. Property, plant and equipment ........................................................................................................................................... 88 18. Intangible assets .................................................................................................................................................................. 90 19. Trade and other payables ................................................................................................................................................... 91 20. Borrowings ........................................................................................................................................................................... 92 21. Other financial liabilities ..................................................................................................................................................... 94 22. Provisions ............................................................................................................................................................................. 94 23. Retirement benefit obligations ........................................................................................................................................... 95 24. Contributed equity ............................................................................................................................................................... 98 25. Retained earnings and reserves ....................................................................................................................................... 100 26. Dividends ............................................................................................................................................................................ 101 27. Remuneration of auditor ................................................................................................................................................... 102 28. Contingencies .................................................................................................................................................................... 102 29. Commitments ..................................................................................................................................................................... 103 30. Key management personnel disclosures and related party transactions .................................................................... 104 31. Parent entity financial information ................................................................................................................................... 108 32. Business combinations ..................................................................................................................................................... 109 33. Subsidiaries ........................................................................................................................................................................ 112 34. Deed of cross guarantee ................................................................................................................................................... 113 35. Investments in associates ................................................................................................................................................ 115 36. Reconciliation of profit after income tax to net cash flow from operating activities .................................................. 116 37. Earnings per share ............................................................................................................................................................ 117 38. Share based payments ...................................................................................................................................................... 118 39. Events occurring after the reporting period .................................................................................................................... 121 Directors Declaration ............................................................................................................................................................... 122 Independent auditor’s report to the members of GrainCorp Limited ................................................................................. 123 Shareholder Information ......................................................................................................................................................... 125 Corporate Directory ................................................................................................................................................................. 126 These financial statements are for the consolidated entity consisting of GrainCorp Limited and its controlled entities. The financial statements are presented in Australian dollars. GrainCorp Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Level 26 175 Liverpool Street SYDNEY NSW 2000 A description of the nature of the consolidated entity’s principal activities