032.ASX IAW Sept 25 2008 Full Year Statuary Accounts

For personal use only
INTEGRATEDLEGALHOLDINGSLIMITED
ACN120394194
(ASX:IAW)
AnnualReport
Fortheyearended30June2008
ACN120394194
CorporateInformation
ABN20120394194
Directors
TheHonJohnDawkins,Chairman
AnneTregonning,NonexecutiveDirector
GraemeFowler,ManagingDirector/CEO
CompanySecretary
JeanMarieRudd
Registeredoffice
GroundFloor
201AdelaideTerrace
PerthWA6000
Principalplaceofbusiness
HeadOffice
Level5,EdgecliffCentre
233NewSouthHeadRoad
EdgecliffNSW2027
Tel:(02)93623734
ShareRegister
ComputershareInvestorServicesPtyLimited
Level2
45StGeorgesTerrace
PerthWA6000
Tel:(08)93232000
IntegratedLegalHoldingsLimitedsharesarelistedontheAustralianStockExchange.
Solicitors
TalbotOlivier
Level8,WesfarmersHouse
40TheEsplanade
PerthWA6000
Bankers
NationalAustraliaBankLimited
50StGeorgesTerrace
PerthWA6000
Auditors
Ernst&Young
11MountsBayRoad
PerthWA6000
ACN120394194
Contents
ChairmanandManagingDirectorsReport.............................................................................1
DirectorsReport......................................................................................................................8
AuditorsIndependenceDeclaration.....................................................................................26
CorporateGovernanceStatement.........................................................................................27
FinancialReport.....................................................................................................................34
ASXAdditionalInformation...................................................................................................90
ACN120394194
ChairmanandManagingDirectorsReport
DearShareholder
On behalf of the Board of Integrated Legal Holdings Limited, we are delighted to present the first
AnnualReportofourcompanyasapubliclylistedentity.
This is the first yearend financial result of the company since an initial public offering and
subsequent public listing on 17 August 2007. The financial result therefore represents an
approximate10.5monthtradingperiod.
1. 2007/08Highlights
The Directors report that the company has made excellent progress in the period since listing,
achieving strong profitability in line with expectation and with improved business performance by
memberfirms.
Thekeyfinancialhighlightsforthefinancialyearended30June2008aresummarisedbelow.
Operatingrevenueforthe10.5monthperiodwas$10.69m.
Net profit after tax for the 10.5 month period was $1.54m, representing 14.4% of operating
revenue.
Bothdivisionsofthecompanyperformedwellduringtheperiod,thefirstundertheownership
ofIntegratedLegalHoldingsLtd.
o The legal services division achieved fee income of $9.38m for the period to 30 June
2008;
o Theinformationtechnologydivisionachievedfeeincomeof$0.79mfortheperiodto30
June2008.
Thecompanyachievedstrongearningspershare(weightedaverage)fortheperiodto30June
2008of2.66centspershare.
In accordance with the companys announcement in October 2007, and as a result of the
companys strong earnings result and cash position, the Directors have declared a dividend of
2.2centspersharefullyfranked.Thisrepresentsaprorataoftheannounced2.5centdividend
policy,onthebasisoftheshortenedinitialtradingperiod.
TheDirectorshaverevisedthedividendpolicyofthecompanyandinfutureperiodsdividends
willbedeclaredafterconsiderationoftheperformanceofthecompanyandfutureinvestment
opportunities.Additionally,theDirectorsadvisetheirintentiontodeclareaninterimdividend
followingreleaseofthecompanyshalfyearfinancialresults.
ACN120394194
ChairmanandManagingDirectorsReport(continued)
ThecompanyhasachievedastrongBalanceSheetposition,withcashholdingsat30June2008
of $5.63m ($5.04m 31 December 2007), and a net tangible asset backing of 11.71 cents per
share,(comparedwith10.02centspershareat31December2007).
Operatingcashflowsstrengthenedduringthe2ndhalf,with$1.12mreceivedfortheperiodsince
inception.
The company has grown strongly and selectively expanded during the period, with the
announcement of 2 tuck in acquisitions. Annualised revenue of these acquisitions was
approximately$1.05m.
TheDirectorsareoftheviewthatthecompanyiswellplacedtocontinuegrowthbothorganically
and by acquisition by capitalising on the significant opportunity afforded by prevailing industry
issues, including succession planning and availability of capital to fund growth. Longterm
competitiveadvantagecanbeachievedbythecompanyinsupportingmemberfirmsindeveloping
scaletounderpinfuturegrowthandprofitability.
The Directors note that they have appointed a new Managing Director for the company effective
May 2008. Mr. Graeme Fowler is based in Sydney and was previously Chief Executive Officer of
listedaccountingandfinancialservicesconsolidatorWHKGroupLimited.
Since commencing with the company, Mr Fowler has in conjunction with the Board undertaken a
review of the operations of the company with a view to refining the companys strategy and
businessmodelinordertoappropriatelypositionthecompanyforachievingstrongandconsistent
futuregrowthinearningsanddividends.
TheDirectorsarepleasedwiththeGroupsperformanceandthesignificantprogressthathasbeen
madeduringitsinitialyearasapubliclylistedcompany.
Consistentwiththisposition,theDirectorsbelievetheoutlookfortheGroupfor2008/09isstrong
andexpectgrowthinoperatingrevenue,netprofitaftertaxandearningspershare.
2. FullYearProfitSummary
Netprofitaftertaxfortheperiodended30June2008was$1.54m.Theresultwasachievedontotal
operatingrevenueof$10.69m.
Earningspersharewere2.66centsfortheperiod.
ACN120394194
2007/08
(10.5months)
$m
10.17
0.51
10.69
Revenue
FeeIncome
OtherIncome
OperatingRevenue
EBITDAI*
2.84
26.6%
Asa%ofoperatingrevenue
0.21
ImpairmentLosses
AmortisationExpenses
0.03
Depreciation
0.09
Lease,HPandInterest
0.03
Tax
0.94
NetProfitAfterTax
1.54
14.4%
Earnings per Share (weighted 2.66

average)
*EBITDAI=EarningsbeforeInterest,Tax,Depreciation,AmortisationandImpairment.
3. FinalandFullYearDividend
TheDirectorsarepleasedtoannounceadividendof2.2centspersharefullyfranked(ata30%tax
rate)fortheperiodto30June2008.
ThedividendisinaccordancewiththecompanysannouncementinOctober2007,andisasaresult
of the companys strongearnings result and cash position. The 2.2 cent dividend represents a pro
rataoftheannounced2.5centdividendpolicy,onthebasisoftheshortenedinitialtradingperiod
(10.5months).
The dividend of 2.2 cents is payable on 7th November 2008, with the record date for determining
entitlementstothedividendbeing17thOctober2008.
TheDirectorshaverevisedthedividendpolicyofthecompanyandinfutureperiodsdividendswill
be declared after consideration of the performance of the company and future investment
opportunities. Additionally, the Directors advise their intention to declare an interim dividend
followingreleaseofthecompanyshalfyearfinancialresults.
ACN120394194
4. FullYearProfitAnalysisandPerformanceReview
Thecompanystwodivisionsperformedwellduringtheperiod.
2007/08
(10.5months)
$m
FeeIncome
9.38
- LegalServices
92.2%
0.79
- ITServices
7.8%
TotalFeeIncome
10.17
TotalNetContributionfromfirms*
3.61
35.5%
*Net Contribution = Net profit from member firms before tax, interest, depreciation,
amortisationandimpairment
Thetotalnetcontributionfrommemberfirmswas$3.61mfortheperiod,withamarginof35.5%of
feeincome.
TheDirectorsareparticularlypleasedwiththeperformanceofmemberfirmsgiventhatthiswasthe
initialperiodofthememberfirmsaspartofthecompany.
LegalServicesDivision
TheLegalServicesDivisionincorporatesthebusinessesofTalbotOlivierandBrettDaviesLawyers.
TalbotOlivieroperatesincommerciallaw,litigation,andinsurance,predominantlyinthePertharea,
andtargetscommercialclientsinthemidmarketsegment.
Brett Davies Lawyers is a specialist superannuation, taxation and estate planning firm, with
predominantlyaccountantandfinancialplanningclientsacrossAustralia.
Thecompanysstrategyistodevelopanationalnetworkofleadinglawfirmsinthecapitalcitiesand
otherkeycentresacrossAustralia,withaviewtothegrowthandimprovementofthesebusinesses,
aswellasthedevelopmentofcrossreferralprocessesandscaleadvantageopportunities.
Thecompanywilllooktotheacquisitionofaseriesofmediumsizedcommerciallawfirms,aswellas
a number of specialist law firms in areas such as superannuation, tax and estate planning, and
employmentlaw,whichwilllooktoleveragememberfirmrelationshipsinthesegrowthsegments.
TheDirectorsareoftheviewthatthelegalservicesindustryiscurrentlyinfluencedbyanumberof
issueswhichprovideanopportunitytodevelopandgrowanetworkofleadingmediumsizedfirms
inthemidmarket,SMEandhighnetworthclientsegments,andthatthecompanysbusinessmodel
andstrategyprovidesthebasisforassistingmemberfirmsinaddressingtheseindustryissues.
ACN120394194
Issuesaffectingthelegalindustryincludethefollowing:
- Itisdifficultformediumsizedfirmstoattractandretaingoodseniorlawyers
- Itishardformediumsizedfirmstoprovidebroadservicestoclients
- It is problematic for medium sized firms to achieve growth, due to limitations on available
capitalforworkingcapitalandgeneralbusinessinvestment
- Someownersareseekingavaluefortheirbusiness
InformationTechnologyServicesDivision
The IT Services Division incorporates the Law Central business, which is an internet based
customised legal document publishing and information service. The service is targeted towards
accountants and financial planners and earns revenue based on the selling of documents and
subscriptionstotheservice.
ThecompanystrategyforITServicesistogrowanddevelopthebusinessthroughtheexpansionof
onlineservices,andthebuildingofdeeperrelationshipswiththeexistingLawCentralclientbase.
The IT services business provides an element (15%) of recurring revenue through subscriptions to
theservice.
5. NewBusinessAcquisitions
Thecompanyhasgrownstronglyandselectivelyexpandedbyacquisitionduringtheperiod,withthe
announcement of 2 tuck in acquisitions. Annualised revenue of these acquisitions was
approximately$1.05m.
TheDirectorsareoftheviewthatthecompanyiswellplacedtocontinuegrowthbothorganically
and by acquisition by capitalising on the significant opportunity afforded by prevailing industry
issues, including succession planning and availability of capital to fund growth. Longterm
competitiveadvantagecanbeachievedbythecompanyinsupportingmemberfirmsindeveloping
scaletounderpinfuturegrowthandprofitability.
Broadly,thecompanysacquisitionstrategyisbasedonthefollowingprinciples:
Owning a limited number of member firms in capital cities and key regional areas across
Australia.
Targetfirmsarebothmediumsizedcommerciallawfirmsandspecialistlawfirmsinkeygrowth
segments.
Acquiring selectively and incrementally only quality firms compatible with existing firms and
companyaspirationsandvalues.
Supporting the strong growth and development of member firms both organically and by
acquisition,toachievescalebusinesseswithcompetitiveadvantageintheirmarkets.
Developing internal cross referral processes and external strategic relationships to leverage
clientopportunitiesaspartofanetworkofmemberfirms.
Developingcostadvantagesformemberfirmsthroughnationalprocurementarrangements.
ACN120394194
During the period, two new tuckin acquisitions have been added to the company and have been
mergedintoTalbotOlivierasfollows:
The law firm of Shayne Leslie, a commercial litigation firm based in Perth. The firm had
annualisedrevenueof$750katthetimeofacquisition(28/09/2007).
ThelawfirmofPeterMarks,anestateplanninglawfirmbasedinthegreaterPertharea.The
firmhadannualisedrevenueof$300katthetimeofacquisition(19/09/2007).
Moregenerally,theopportunityforcontinuedgrowthbyacquisitionisconsideredtobesignificant
havingregardtotheprevailingindustryissues,andtheappropriatenessofthecompanysstrategy
andbusinessmodelinsupportinggrowthanddevelopmentofmemberfirms.
6. BalanceSheetandOperatingCashFlow
ThecompanyhasmaintainedastrongBalanceSheetpositionwithcashholdingsat30June2008of
$5.63m($5.04m31December2007),nodebt,andanettangibleassetbackingof11.71centsper
share,comparedwith10.02centspershareat31December2007.
AssuchtheDirectorsbelievethecompanyiswellplacedforfuturegrowth.
Operatingcashflowsstrengthenedduringthe2ndhalf,with$1.21mreceivedfortheyear.
7. ManagementStructureandOperatingPriorities
AnewManagingDirectorwasappointedforthecompanyeffectiveMay2008.
Mr. Graeme Fowler is based in Sydney and was previously Chief Executive Officer of listed
accountingandfinancialservicesconsolidatorWHKGroupLimited.
Since commencing with the company, Mr Fowler has in conjunction with the Board undertaken a
review of the operations of the company with a view to refining the companys strategy and
businessmodelinordertoappropriatelypositionthecompanyforachievingstrongandconsistent
futuregrowthinearningsanddividends.
Inrespectofallthreefoundationbusinesses,TalbotOlivier,BrettDaviesLawyersandLawCentral,
the2008/2009financialyearwillrequireanelementofbusinessinvestmenttoensurethefirmsare
bestplacedtotakeadvantageofgrowthopportunitiesavailabletothem.
Further,thecompanyscorporateexpenseswillnecessarilygrowinto2008/2009.Thecompanyhas
madeimportantinvestmentinseniormanagementofthecompany,whomtheDirectorsbelievewill
beabletomanagethecompanytoachievestronggrowthintothefuture.
ThecompanynowhasafulltimeManagingDirectorbasedinSydney(effectiveMay2008)aswellas
aChiefFinancialOfficer/CompanySecretarybasedinPerth(effectiveSeptember2007).Whilstwe
anticipateaverysmallcorporateofficeforthecompanygoingforward,thefullyeareffectofthese
appointmentswillincreaseyearonyearcosts.
ACN120394194
Further,thecompanyislookingtocontinuetodevelopprocessesandprocedurestoensurevalueis
extractedfromthebusinessesforshareholders.
8. Outlook
Overall,theDirectorsarepleasedwiththeprogressandperformanceofthecompanysincepublic
listinginAugust2007,andconsiderthecompanytohaveverystrongfutureprospects.
The company has achieved an important base, but requires some refinement in the strategy and
business model and some investment in people and processes in 2008/2009 in order to underpin
appropriategrowthandsustainabilityofearningsintothefutureforshareholders.
TheDirectorsbelievethecompanywillperformstronglyin2008/09andexpectgrowthinoperating
revenue,netprofitaftertaxandearningspershare.
The Directors are confident in the longer term outlook of the company given the strength and
underlyingqualityoftheexistingmemberfirms,thesignificantpotentialtogroworganically,andby
the opportunities for selective acquisition growth as part of the strategy of developing a national
networkoflegalservicesbusinesses.
TheHonJohnDawkinsAO
Chairman
GraemeFowler
ManagingDirector
ACN120394194
DirectorsReport
Yourdirectorssubmittheirreportfortheyearended30June2008.
DIRECTORS
The names and details of the Companys directors in office during the financial year and until the
date of this report are as follows. Directors were in office for this entire period unless otherwise
stated.
Names,qualifications,experienceandspecialresponsibilities
TheHonJohnDawkins,AO,B.Ec(NonexecutiveChairman)
Appointed:6October2006
MrDawkinswasChairmanofLawCentralfromitsearlybeginningsinMarch2000untilMarch2006.
His other board appointments include Chair of the Retail Energy Market Company Ltd, Chair of
FortunaFundsManagementLtd,andDirectorofGeneticTechnologiesLtd.Forover10years,until
2005,heservedontheboardofSealcorpHoldings,nowAsgardWealthSolutions,andheisaformer
chairmanofEldersRuralBank.
MrDawkinshasconsultedtoseverallargeAustralianandoverseascompanies,theWorldBankand
the OECD. Until his retirement from politics in 1994 he served as a Minister in the Federal
Governmentfor10yearsandintheHouseofRepresentativesfor18years.
HeisagraduateinEconomicsfromtheUniversityofWesternAustralia,andhehasbeenawarded
honorary doctorates from The University of South Australia and the Queensland University of
Technology.
Duringthepastthreeyears,MrDawkinsservedasadirectorofthefollowinglistedcompanies:
MGMWirelessLtdappointed17August2007*
GeneticTechnologiesLtdappointed24November2004*
*denotescurrentdirectorship
AnneTregonning,B.Com,FCA,GAICD(NonexecutiveDirector)
Appointed:6October2006
MsTregonninghasextensiveexperienceinfinanceandriskmanagementinbothpublicpracticeand
commerce. Senior positions previously held include General Manager Finance and Risk, Wealth
ManagementDivision,StGeorgeBank,DirectorGroupFinance,SealcorpHoldings(now ASGARD
WealthSolutions),andSeniorManagerCorporateBanking,BankWest.
Ms Tregonning is a nonexecutive director of Retail Energy Market Company Ltd and Musica Viva
Australia. She is a past executive director of ASGARD Capital Management Limited, a past State
ChairmanoftheInstituteofCharteredAccountantsandmemberofitsNationalCouncil,andapast
directorofotherpubliccompanyandnotforprofit/professionalorganisations.
Ms Tregonning is a graduate of The University of Western Australia, a Fellow of The Institute of

Chartered Accountants and Graduate of the Australian Institute of Company Directors.
ACN120394194
DirectorsReport(continued)
GraemeFowler,B.Bus,CPA,GAICD(ManagingDirector/CEO)
Appointed:28April2008
Mr Fowler was previously Chief Executive Officer of listed accounting and financial services
consolidator WHK Group Limited. He brings specific experience in the successful consolidation of
professionalservicesfirms.Hespentover15yearsinseniormanagementroleswiththeBTFinancial
GroupincludingGroupChiefFinancialOfficer,ChiefExecutiveOfficerofBTFundsManagementNZ,
andChiefExecutiveOfficerofBTPortfolioServices(includingBTWrap).
Mr Fowler is a business studies graduate of The University of Technology, Sydney, a Certified

PracticingAccountantandagraduateoftheAustralianInstituteofCompanyDirectors.
ThomasHenn,FTIA,GAICD,MTax,MESC,LLB(Munich),LLB(UWA)(formerManagingDirector)
Appointed:27June2006
Resigned:28April2008
Mr Henn practiced as a lawyer in Munich, before emigrating from Germany to Australia in 1993.
AfterfinishingalawdegreeinAustralia,MrHennpracticedinaBigFouraccountingfirmandalso
variouslawfirms.HeisapracticinglawyerandcurrentlyworksforBrettDaviesLawyers.MrHenn
hasalsoservedasaboardmemberofapublicunlistedcompany.
MrHennisagraduateofTheUniversityofMunichandholdsaMasterofTaxationandaBachelorof
LawsdegreefromTheUniversityofWesternAustralia.
He is a Graduate Member of the Australian Institute of Company Directors and a Fellow of the
TaxationInstituteofAustralia.
Beneficialinterestsinthesharesofthecompanyandrelatedbodiescorporate
Asatthedateofthisreport,thebeneficialinterestsofthedirectorsinthesharesofIntegratedLegal
HoldingsLimitedwere:
Numberof
Ordinary
Shares
JDawkins
1,626,398
ATregonning
300,000
GFowler
2,710,200
ACN120394194
COMPANYSECRETARY
ThomasHenn,FTIA,GAICD,MTax,MESC,LLB(Munich),LLB(UWA)
Appointed:27June2006
Resigned:29August2007
BrettDavies,FTIA,BJuris,LLB,LLM,BA(Hons),DipEd,MBA
Appointed:29August2007
Resigned:28August2008
MrDaviesisaprincipalofBrettDaviesLawyers,ataxationandsuperannuationspecialistlawfirm
whichhasoperatedsince1994.
MrDavieswasNationalChairoftheLawCouncilofAustralia'sLegalPracticeManagementGroup.He
was elected by his peers to the Law Council's Legal Practice Section executive and he sits on the
Council's Taxation SubCommittee. He is the Deputy Convenor of the Law Society of WA Legal
Management and Development Committee and sits on the State's Taxation Committee. His
committee memberships also extend to nonlegal organisations including Chairman of the Art
GalleryofWesternAustraliaFoundation,pastpresidentofTheFriendsoftheArtGalleryofWestern
AustraliaandpastPresidentofhislocalRotaryClub.
JeanMarieRudd,B.Com,CA
Appointed:28August2008
MrsRuddisalsotheChiefFinancialOfficer(CFO)oftheIntegratedLegalHoldingsLimitedgroupof
companies.
MrsRuddwaspreviouslytheFinanceDirectorofnationallawfirm,MinterEllison,bringingindustry
specific experience to her roles with Integrated Legal Holdings Limited. This is supported by her
committee membership on the Law Office Managers Committee of the Law Society of Western
Australia (former Convenor), past committee member of the Law Council of Australia and past
lecturer for the Legal Assistance Training Course. Mrs Rudd has over 17 years experience in
CFO/Company Secretary roles including senior management roles with the Heytesbury Group and
ThinkSmartLimited.
MrsRuddisagraduateofCurtinUniversity,Perth,andaCharteredAccountant.
DIVIDENDS
On 28 August 2008, the directors declared a fully franked final dividend of 2.2 cents per ordinary
sharewitharecorddateof17October2008.
PRINCIPALACTIVITIES
TheprincipalactivityoftheentitiesoftheconsolidatedGroupwastheprovisionoflegalservicesand
onlinelegaldocumentservicesinAustralia.
10
ACN120394194
OPERATINGANDFINANCIALREVIEW
GroupOverview
AdetailedreviewoftheoperationsoftheGroupduringthefinancialyear,itsfinancialpositionand
businessstrategiesandprospectsforfuturefinancialyearsissetoutbelow.
PerformanceIndicators
Management and the Board monitor the Groups overall performance, from the execution of its
strategic plan through to the performance of the Group against operating plans and financial
budgets.
The Board, together with management have identified key performance indicators (KPIs) that are
used to monitor performance. Directors receive the KPIs for review prior to each monthly Board
meetingallowingalldirectorstoactivelymonitortheGroupsperformance.
OperatingResultsfortheYear
For the year ended 30 June 2008, the consolidated entity generated a net profit after tax of
$1,544,303(2007:$17,368,147loss).
Against the same period last year, earnings before interest, tax, impairment, depreciation and
amortisationincreasedfromalossof$5,164,255toaprofitof$2,421,039.
Consolidatedoperatingrevenuesof$10,688,441werehigherthanthepreviouscorrespondingyear
whichreported$205operatingrevenues.
The turnaround in profitability of the Group arises due to the listing of the Company on the
AustralianStockExchangeon17August2007,theacquisitionofsubsidiariesandcontinuedgrowth.
ShareholderReturns
TheCompanysreturntoshareholdersisasfollows:
2008
2007
Basicanddilutedprofit/(loss)pershare(cents)
2.66
(65.50)
ReviewofFinancialCondition
LiquidityandCapitalResources
The consolidated Cash Flow Statement illustrates that there was an increase in cash inflow from
operatingactivities.Operatingactivitiesgenerated$1,207,442(2007:$205)ofnetcashinflows.This
increaseincomparisonto2007islargelyduetotheacquisitionofbusinessesuponlistinginAugust
2007andtheirsuccessfultradingperformanceforthe10monthperiodto30June2008.Thisnet
increaseinthecashflowsfromoperatingactivitieshasbeenoffsetbytheamountofcashusedfor
investing activities of $6,866,530 (2007: nil), which was mainly attributable to the acquisition of
businesses during the year. There was also a $2,497,119 cash inflow (2007: $8,788,530) from
financingactivitieslargelyduetotheraisingoffundsfromtheinitialpublicofferingduringtheyear.
ThenettangibleassetbackingoftheGroupwas11.71centspershare(2007:0.00cents).
11
ACN120394194
OperatingandFinancialReview(continued)
Assetandcapitalstructure
Debts:
Tradeandotherpayables
Interestbearingloansandborrowings
Less:Cashandcashequivalents
Netdebt/(cash)
Totalequity
Totalcapitalemployed
CONSOLIDATED
2008
2007
$
$
1,081,009
9,295,402
188,472
(5,626,766)
(8,788,735)
(4,357,285)
506,667
13,904,646
205
9,547,361
506,872
The level of gearing in the Company is within acceptable limits set by the directors given the
implicationsoftheinitialpublicofferingandbusinessacquisitionsonlisting.
Shareissuesduringtheyear
TheCompanyhasissued28,801,616sharesduringtheyear:
1,258,096sharestoLawCentralCoPtyLtdshareholdersinpartpaymentforacquisitionof
theCompany,asofferedundertheProspectusdated16May2007;
24,833,320sharestosubscriberstotheProspectusdated16May2007;and
2,710,200sharestoGraemeFowler,ManagingDirector/CEO,onhisappointmenton28April
2008.
RiskManagement
TheGrouptakesaproactiveapproachtoriskmanagement.TheBoardisresponsibleforensuring
thatrisks,andalsoopportunities,areidentifiedonatimelybasisandthattheGroupsobjectivesand
activitiesarealignedwiththerisksandopportunitiesidentifiedbytheBoard.
TheGroupbelievesthatitiscrucialforallBoardmemberstobepartofthisprocess,andassuchthe
Board has not established a separate risk management committee. Instead subcommittees are
convenedasappropriateinresponsetoissuesandrisksidentifiedbytheBoardasawholeandthe
subcommitteefurtherexaminestheissueandreportsbacktotheBoard.
The Board has a number of mechanisms in place to ensure that managements objectives and
activitiesarealignedwiththerisksidentifiedbytheBoard.Theseincludethefollowing:
Implementation of Board approved budget and Board monitoring of progress against

budget,includingtheestablishmentandmonitoringoffinancialKPIs;and
Theestablishmentofcommitteestoreportonspecificbusinessrisks.
12
ACN120394194
SIGNIFICANTCHANGESINTHESTATEOFAFFAIRS
Significantchangesinthestateofaffairsduringtheyearended30June2008areasfollows:
On16May2007,theCompanyissuedaProspectusforthepurposesofraising$12minnew
equity. The Prospectus was oversubscribed and the Company successfully listed on the
AustralianStockExchangeon17August2007.
UnderthetermsoftheProspectus,theCompanyalsoacquiredLawCentralCoPtyLtd,an
internetportaldesignedtoprovideeasyaccessbythelegalprofessionandpublictoarange
oflegalandotherdocuments.Settlementtookplaceon10August2007refernote29.
On 10 August 2007, the Company acquired, through its wholly owned subsidiaries, Talbot
Olivier Pty Ltd and Tax Lawyers Australia Pty Ltd, the legal practices of Talbot Olivier and
BrettDaviesLawyers,respectivelyrefernote29.
On 19 September 2007, the Company, through its wholly owned subsidiary, Talbot Olivier
PtyLtd,acquiredthelegalpracticeofthelatePeterMarkstradingasPeterMarksSuccession
Lawyersrefernote29.
On 28 September 2007, the Company, through its wholly owned subsidiary, Talbot Olivier
PtyLtd,acquiredthelegalpracticeofShayneLeslierefernote29.
SIGNIFICANTEVENTSAFTERTHEBALANCEDATE
Afullyfrankedfinaldividendof2.2centspersharewasdeclaredon28August2008witharecord
dateof17October2008andapaymentdateof7November2008.
LIKELYDEVELOPMENTSANDEXPECTEDRESULTS
IntegratedLegalHoldingsLimitedwillcontinuetoseekgrowthinrevenueandearningsthroughthe
acquisition of additional law firms in New South Wales, Victoria, the Australian Capital Territory,
Queensland and Western Australia. If and when other States allow nonlawyers to own law firms
andshareintheprofitsoflawfirms,thentheCompanywillpursueacquisitionsinthosejurisdictions
asopportunitiesarise.
ENVIRONMENTALREGULATION
The Groups operationsarenotsubjecttoanysignificant environmental,CommonwealthorState,
regulationsorlaws.
SHAREOPTIONS
Unissuedshares
SincetheinceptionoftheCompany,theCompanyhasnotissuedanyoptions.
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ACN120394194
INDEMNIFICATIONANDINSURANCEOFDIRECTORSANDOFFICERS
Each of the directors and secretary of the Company has entered into a deed with the Company
wherebytheCompanyhasprovidedcertaincontractualrightsofaccesstobooksandrecordsofthe
Company to those directors and secretary and to effect and maintain insurance in respect of the
directorsandofficersliabilityandprovidecertainindemnitiestoeachofthedirectors,totheextent
permittedbysection199BoftheCorporationsAct2001.
The Company has put in place Prospectus Insurance and Directors and Officers Liability Insurance.
The contract prohibits the disclosure of the nature of the liability and/or the amount of the
premium.
14
ACN120394194
REMUNERATIONREPORT(audited)
This remuneration report outlines the director and executive remuneration arrangements of the
CompanyandtheGroupinaccordancewiththerequirementsoftheCorporationsAct2001andits
Regulations. For the purposes of this report Key Management Personnel (KMP) of the Group are
definedasthosepersonshavingauthorityandresponsibilityforplanning,directingandcontrolling
the major activities of the Company and the Group, directly or indirectly, including any director
(whether executive or otherwise) of the parent company, and includes three executives in the
ParentandtheGroupreceivingthehighestremuneration.
For the purposes of this report, the term executive encompasses the Chief Executive, senior
executivesandthesecretaryoftheParentandtheGroup.
Detailsofkeymanagementpersonnel(includingthethreehighestpaidexecutivesoftheCompany
andtheGroup):
i) Directors
JDawkins
ATregonning
THenn
GFowler
ii) Executives
BTaylor
BDavies
JMRudd
Chairman(nonexecutive)
Nonexecutivedirector
Managingdirector
Managingdirector/CEO
Chiefexecutive,TalbotOlivier
Companysecretary
Chiefexecutive,BrettDaviesLawyers
Financialcontroller
Companysecretary
appointed6October2006
appointed27June2006/resigned28April2008
appointed28April2008
appointed10August2007
appointed29August2007/resigned28August2008
appointed4September2007
Other than the appointment of Mrs Rudd as Company Secretary, there were no other changes to
KMPafterreportingdateandbeforethedatethefinancialreportwasauthorisedforissue.
TheBoardofDirectorsoftheCompanyisresponsiblefordeterminingandreviewingremuneration
arrangementsfortheBoardandexecutives.
TheBoardwillassesstheappropriatenessofthenatureandamountofremunerationofexecutives
on a periodic basis by reference to relevant employment market conditions with the overall
objective of ensuring maximum stakeholder benefit from the retention of a high quality, high
performingBoardandexecutiveteam.
Remunerationphilosophy
The performance of the Company depends upon the quality of its directors and executives. To
prosper,theCompanymustattract,motivateandretainhighlyskilleddirectorsandexecutives.
15
ACN120394194
REMUNERATIONREPORT(audited)(continued)
Remunerationphilosophy(continued)
Tothisend,theCompanyembodiesthefollowingprincipalsinitsremunerationframework:
Providecompetitiverewardstoattracthighcalibreexecutives;
Linkexecutiverewardtoshareholdervalue;
Haveaportionofexecutiveremunerationatrisk;and
Establishappropriate,demandingperformancehurdlesforvariableexecutiveremuneration.
Remunerationstructure
Inaccordancewithbestpracticecorporategovernance,thestructureofnonexecutivedirectorand
executiveremunerationisseparateanddistinct.
Nonexecutivedirectorremuneration
Objective
TheBoardseekstosetaggregateremunerationatalevelthatprovidestheCompanywiththeability
to attract and retain directors of the highest calibre, whilst incurring a cost that is acceptable to
shareholders.
Structure
TheConstitutionandtheASXListingRulesspecifythattheaggregateremunerationofnonexecutive
directors shall be determined from time to time by a general meeting. The current aggregate
remuneration level for nonexecutive directors, as approved by shareholders, is $250,000 per
annum. The next determination will be at the AGM to be held on 27 November 2008 when
shareholders will be asked to approve the aggregate remuneration for nonexecutive directors for
theyear.
The amount of aggregate remuneration sought to be approved by shareholders and the fee
structureisreviewedannually.TheBoardconsidersadvicefromexternalconsultantsaswellasthe
feespaidtononexecutivedirectorsofcomparablecompanieswhenundertakingtheannualreview
process.
Eachnonexecutivedirectorreceivesanagreed/contractedfeeforbeingadirector.
Nonexecutivedirectorsdonotreceiveretirementbenefits,nordotheyparticipateinanyincentive
programs.
The remuneration of nonexecutive directors for the financial year is detailed in Table 1 of this
report.
16
ACN120394194
Executiveremuneration
Objective
TheGroupaimstorewardexecutiveswithalevelandmixofremunerationcommensuratewiththeir
positionandresponsibilitieswithintheGroupsoasto:
RewardexecutivesforGroup,subsidiaryandindividualperformanceagainst targetssetby
referencetoappropriatebenchmarks;
Aligntheinterestsofexecutiveswiththoseofshareholders;and
Ensuretotalremunerationiscompetitivebymarketstandards.
Structure
In determining the level and makeup of executive remuneration, the Board engages external
consultantsasneededtoprovideindependentadvice.
TheBoardhasenteredintoadetailedcontractofemploymentwiththeManagingDirector/CEOand
otherexecutives.Detailsofthesecontractsareprovidedbelow.
Remunerationconsistsofthefollowingkeyelements:
Fixedremuneration(basesalaryandsuperannuation)
Variableremuneration:
o Shorttermincentives(STI)
o Longtermincentives(LTI)intheformofsharebasedpayments(equitysettled)
Fixedremuneration
Objective
FixedremunerationisreviewedannuallybytheBoard.TheprocessconsistsofareviewofCompany,
subsidiaryandindividualperformance,relevantcomparativeremunerationexternallyandinternally
and, where appropriate, external advice on policies and practices. As noted above, the Board has
accesstoexternaladviceindependentofmanagement.
Structure
Executives are given the opportunity to receive their fixed (primary) remuneration in a variety of
forms including cash and fringe benefits such as motor vehicles. It is intended that the manner of
paymentchosenwillbeoptimalfortherecipientwithoutcreatingunduecostfortheGroup.
Thefixedremunerationcomponentofexecutivesisdetailedintable1.
Variableremunerationshorttermincentives(STI)
Objective
TheobjectiveoftheSTIprogramistolinktheachievementoftheGroupsoperationaltargetswith
the remuneration received by the executives charged with meeting those targets. The total
potentialSTIavailableissetatalevelsoastoprovidesufficientincentivetotheexecutivetoachieve
theoperationaltargetsandsuchthatthecosttotheGroupisreasonableinthecircumstances.
17
ACN120394194
Structure
ManagingDirector/CEO
The Managing Director/CEO is entitled to a maximum performance bonus of $160,000, subject to
theachievementofspecificperformancetargetsfortheperiodfrom28April2008to30June2010
(26months).Ifachievementofperformancetargetsisnotsuccessfulbythatdate,alesseramount
may be payable at the discretion of the Board, taking into account the individual circumstances
contributingtononachievementofthosetargets.
Performancetargetsareachievedwhen:
AccumulatedrevenuefortheGroupis$40morgreater;and
Earningspershareis3.335centsormore(representinga15%orgreatergrowthabovethe
forecastearningspershareforthe2008financialyear).
Thetermsandconditionspertainingtothebonusareasfollows:
1. Bothperformancetargetsmustbeachievedatthesametimeforsatisfactionof
performancecriteria.
2. Thebonusispayableuponachievementoftargetsor30June2010(providingtargets
achieved),whicheveristheearlier.
3. Anewbonusstructure(betweentheCEOandBoard)willbenegotiatedfromtimeof
paymentofthisbonus.
4. Bonustobepaidincashand/orshares,atthediscretionoftheBoard.
5. Bonuspayablewithin30daysofsatisfactionofperformancecriteria,asconfirmedbythe
Board.
ChiefExecutives
Actual STI payments are granted to each of the subsidiary Chief Executives. The Group has
predetermined that the bonus pool will be calculated for each 12 month period from
commencement of employment at 20% of the amount by which net profit after tax of the
foundationpartnerslawfirmexceedstheunauditednetprofitaftertaxofthelawfirmforthe2006
financialyear.ThisstructureisreviewedandapprovedbytheBoard.Ontheannualanniversarydate
(10August),theGroupdeterminestheamount,ifany,ofthebonuspooltobepaidtotherespective
lawfirmsforsubsequentallocationtoindividualChiefExecutivesofeachlawfirm.Paymentsmade
aredeliveredasacashbonuswithintwomonthsaftertheanniversarydate.
STIbonusfor2008
TheBoardwillconsiderthequantumoftheperformancebonuspayableattheendofthe26month
performanceperiodorwhenmanagementaresatisfiedthatalltargetsaremet.
The maximum performance bonus achievable at the end of the 26 months is $160,000 and the
minimum is nil. At reporting date, no bonus is payable to the Managing Director/CEO under his
performancebonusplan.
18
ACN120394194
ChiefExecutives
The Managing Director will approve the STI bonus payments for the 12 month period ended 10
August2008,inSeptember2008.ThemaximumSTIcashbonusiscalculatedat20%oftheamount
bywhichnetprofitaftertaxoftheChiefExecutiveslawfirmexceedstheunauditednetprofitafter
tax of the law firm for the 2006 financial year. The minimum STI cash bonus payable is nil. The
amount of the bonus achieved for the 2008 financial year has been calculated at $176,255. At
reporting date, the allocation of the achieved bonus amount to each Chief Executive has not yet
beendetermined.
TherehavebeennoalterationstotheSTIbonusplansincetheinceptionofthebonusplan.
Variableremunerationlongtermincentives(LTI)
TheLTIbenefitsaredeliveredonadiscretionarybasisbytheBoardintheformofordinarysharesin
theCompany.
2,710,200shareswereissuedtotheManagingDirector/CEOinthecurrentfinancialyear.Thereare
noperformanceconditionsattached.
While the shares are not specifically linked to performance criteria, the shares are issued at the
marketpriceofanordinaryIntegratedLegal HoldingsLimitedshareat thetimeof grant, ensuring
thattheManagingDirector/CEOreceivesabenefitonlywhenshareholderwealthhasincreased.
Executivesharetradingpolicy
TheCompanyhasinplaceasharetradingpolicywhichimposestradingrestrictionsonofficersand
employeesoftheCompanyanditsrelatedentitiesthatareconsideredtobeinpossessionofinside
information.
The Company does not have a policy preventing executives and directors from hedging against
sharesissued.
Employmentcontracts
ThereisanemploymentcontractinplacebetweenMrFowlerandIntegratedLegalHoldingsLimited
forMrFowlersappointmentasManagingDirector/CEOoftheCompany.Thecontractcommenced
on 28 April 2008 and continues indefinitely unless terminated according to the provisions of the
contract. The appointment as Managing Director/CEO is subject to a probationary period of 180
days during which time either Integrated Legal Holdings Limited or Mr Fowler may terminate the
employmentwithoutreasonontwodaysnotice.
MrFowlerreceivesfixedremunerationof$272,500perannum(inclusiveofsuperannuation).
19
ACN120394194
Underthetermsofthecontract,MrFowlersdutiesinclude,butarenotlimitedto:
ImplementingthebusinessplanasdeterminedbytheCompany;
CarryingoutsuchlawfuldirectionsasgivenbytheCompany;and
Expandinganddevelopingthebusiness.
TheagreementmaybeterminatedwithoutnoticebyIntegratedLegalHoldingsLimitedif:
MrFowlercommitsaseriousbreachoftheagreement;
MrFowlercommitsanyactthatamountstoarepudiationoftheagreement;
MrFowlerengagesinseriousorwilfulmisconduct;or
Itispermittedforanyreasonunderrelevantlegislation.
MrTHennformerManagingDirector(resigned28/04/08)
ThereisanemploymentcontractinplacebetweenMrHennandIntegratedLegalHoldingsLimited
forMrHennsappointmentasManagingDirectoroftheCompany.Thecontractcommencedon1
July 2007 and continued for a period of 12 months. The appointment as Managing Director was
subjecttoaprobationaryperiodofthreemonthsduringwhichtimeeitherIntegratedLegalHoldings
LimitedorMrHenncouldterminatetheemploymentwithoutreasonontwodaysnotice.
Underthetermsofthecontract,MrHennsdutiesincluded,butwerenotlimitedto:
ImplementingthebusinessplanasdeterminedbytheCompany;
CarryingoutsuchlawfuldirectionsasgivenbytheCompany;and
Expandinganddevelopingthebusiness.
TheagreementwasterminatedupontheresignationofMrHennasManagingDirectoron28April
2008. Mr Henn continues to remain employed as a senior lawyer with subsidiary business, Brett
DaviesLawyers.
Chiefexecutivesmemberfirms
Memberfirmchiefexecutives,MrTaylorandMrDavies,areemployedundertwoyearfixedterm
contracts,expiringon12August2009.Eachchiefexecutiveispaidanannualsalaryof$100,000and
potentially a bonus paid as an additional salary (the bonus payment is calculated at 20% of the
amountbywhichthenetprofitaftertaxofthechiefexecutiveslawfirmexceedstheunauditednet
profitaftertaxofthelawfirmforthe2006financialyear).
Each employment contract can be terminated without notice if the employee commits a serious
breach of any provision of their contract, is unable to or is prohibited from holding a license to
practicelaw,commitsanyactthatamountstorepudiationofthecontractorengagesinseriousand
wilfulmisconduct.Aftertheconclusionofthetwoyearemploymentperiod,eitherpartymayalso
terminatetheemploymentcontractbygiving28daysnotice.
Eachchiefexecutiveisalsosubjecttostrictconfidentialityobligationsregardingclientsofthelegal
practice. They are also subject to solicitation restraints for a period of up to two years after
termination.
20
ACN120394194
ChiefFinancialOfficer/CompanySecretary
The Chief Financial Officer (CFO)/Company Secretary has a standard contract. The Company may
terminatetheemploymentagreementbyprovidingonemonthwrittennoticeorprovidingpayment
in lieu of the notice period (based on the fixed component of remuneration). The Company may
terminate the contract at any time without notice if serious misconduct has occurred. Where
terminationwithcauseoccurs,theexecutiveisonlyentitledtothatportionofremunerationthatis
fixed,andonlyuptothedateoftermination.
The CFO/Company Secretary contract contains standard obligations to perform the duties of an
employeewhichonewouldexpecttofindinastandardemploymentcontract.
GroupPerformance
IntegratedLegalHoldingsLimitedsremunerationpolicyaimstoconnecttheremunerationreceived
byexecutiveswithearningsandthecreationofshareholderwealth.
GroupperformanceisreflectedinthemovementoftheGroupsearningspershare(EPS)overtime.
ThegraphbelowshowsIntegratedLegalHoldingsLimitedsbasicEPShistorysinceincorporationin
June2006:
10.00
0.00
(10.00)
(20.00)
(30.00)
(40.00)
(50.00)
(60.00)
(70.00)
EPS(cents)
(1)
(2)
(3)
EPS(cents)
Jun2007(1)
Dec2007(2)
Jun2008(3)
(65.50)
1.57
2.66
Fortheperiodfromincorporationon26June2006to30June2007
Forthesixmonthsended31December2007
Fortheyearended30June2008
The2007EPSresultof(65.50)wasaffectedbythevaluationofsharesissuedtofoundationpartners
and supporters at a deemed value of 50 cents per share prior to listing of the Company and
acquisitionoflegalpractices.
Since listing in August 2007 and the subsequent acquisition of four legal practices and an
informationtechnologybusiness,theEPShassteadilyimproved.Theannouncementofadividendin
respectofthe2008financialyearfurtherhighlightsthesolidperformanceoftheGroup.
The directors believe that the business model remains strong and the company is on target to
achieveitsobjectives.
21
ACN120394194
Remunerationofkeymanagementpersonnel(KMP)andthethreehighestpaidexecutivesoftheCompanyandtheGroup(5)
Table1:Remunerationfortheyearended30June2008
Shortterm
Nonexecutivedirectors
JDawkinsChairman
ATregonning
Subtotalnonexecutivedirectors
Executivedirectors
THennManagingDirector(1)
GFowlerManagingDirector/CEO(2)
Subtotalexecutivedirectors
Otherkeymanagementpersonnel
BTaylorChiefExecutive,TalbotOlivier
PtyLtd(3)
BDaviesChiefExecutive,TaxLawyers
AustraliaPtyLtd(3)
JMRuddChiefFinancial
Officer/CompanySecretary(4)
SubtotalotherKMP
Total
Salary&Fees
CashBonus
Non
monetary
benefits
Post
Employment
Longterm
Sharebased
Payment
Other
Super
annuation
LongService
benefits
Shares
Total
Performance
related
43,333
43,333
30,000
45,833
75,833
73,333
45,833
119,166
2,293
22,917
25,210
22,540
2,062
24,602
65
65
406,530
406,530
24,833
431,574
456,407
81,157
7,304
87
88,548
0%
0%
0%
0%
0%
73,793
6,641
277
80,711
0%
81,138
23,862
158
105,158
0%
236,088
304,631
37,807
138,242
522
587
406,530
274,417
849,990
(1)MrHennresignedasManagingDirectoron28April2008
(2)MrFowlerwasappointedManagingDirector/CEO28April2008
(3)MrTaylorandMrDavieswereappointedasChiefExecutiveson10August2007
(4)MrsRuddwasappointedFinancialControlleron4September2007andCFOandCompanySecretaryon28August2008
(5)AllexecutivesoftheGroupandCompanyhavebeendisclosed
22
ACN120394194
Remunerationofkeymanagementpersonnel(KMP)andthethreehighestpaidexecutivesoftheCompanyandtheGroup(5)
Table2:Remunerationfortheperiodended30June2007
Shortterm
Nonexecutivedirectors
JDawkinsChairman(3)
ATregonning(3)
Subtotalnonexecutivedirectors
Executivedirectors
WBlack(1)
HModi(2)
THennManagingDirector(4)
Subtotalexecutivedirectors
Total
Salary&Fees
CashBonus
Non
monetary
benefits
Post
employment
Longterm
Sharebased
Payment
Other
Super
annuation
LongService
benefits
Shares
Total
Performance
related
813,199
150,000
963,199
813,199
150,000
963,199
5,000
20,000
70,000
95,000
1,058,199
5,000
20,000
70,000
95,000
1,058,199
0%
0%
0%
0%
0%
(1)MrBlackresignedasDirectoron6October2006
(2)MrModiresignedasDirectoron6October2006
(3)MrDawkinsandMsTregonningwereappointedDirectorson6October2006
(4)MrHennwasappointedManagingDirectoron26June2006
(5)AllexecutivesoftheGroupandCompanyhavebeendisclosed
23
ACN120394194
DIRECTORSMEETINGS
Thenumberofmeetingsofdirectors(includingmeetingsofcommitteesofdirectors)heldduringthe
yearandthenumberofmeetingsattendedbyeachdirectorwereasfollows:
DirectorsMeetings
Audit
Acquisition*
JDawkins
ATregonning
THenn
GFowler
Eligibleto
attend
Attended
Eligibleto
attend
Attended
Eligibleto
attend
Attended
11
11
8
3
11
11
8
3
4
4
3
1
2
4
3
1
11
11
8
3
11
11
8
3
*The members of the acquisition committee meet, as required, with formal matters being raised
duringBoardmeetings.
Committeemembership
Asatthedateofthisreport,theCompanyhadanAuditCommitteeandanAcquisitionCommitteeof
theBoardofDirectors.
MembersactingonthecommitteesoftheBoardduringtheyearwere:
AuditCommittee
AcquisitionCommittee
ATregonningChairman
BDaviesChairman
JDawkins
ATregonning
THenn(1)
JDawkins
GFowler(2)
THenn(1)
GFowler(2)
(1)
(2)
MrHennresignedasManagingDirectoron28April2008
MrFowlerwasappointedManagingDirector/CEOon28April2008
AUDITORINDEPENDENCEANDNONAUDITSERVICES
AcopyoftheauditorsindependencedeclarationreceivedbytheDirectorsinrelationtotheaudit
fortheyearisprovidedwiththisreportonpage26.
24
ACN120394194
NONAUDITSERVICES
Nonauditserviceswereprovidedbytheentitysauditor,Ernst&Young.Thedirectorsaresatisfied
thattheprovisionofnonauditservicesiscompatiblewiththegeneralstandardofindependencefor
auditors imposed by the Corporations Act 2001. The nature and scope of each type of nonaudit
serviceprovidedmeansthatauditorindependencewasnotcompromised.
Ernst&Youngreceivedorareduetoreceivethefollowingamountsfortheprovisionofnonaudit
services:
Taxcompliance
Taxationservices
Duediligenceservices
CONSOLIDATED
2008
2007
$
$
9,470
32,853
145,067
42,323
145,067
PARENT
2008
2007
$
$
9,470
32,853
145,067
42,323
145,067
Signedinaccordancewitharesolutionofthedirectors.
GFowler
ManagingDirector
Sydney,25September2008
25
Auditor's Independence Declaration to the Directors of Integrated Legal Holdings Limited

In relation to our audit of the financial report of Integrated Legal Holdings Limited for the year ended 30
June 2008, to the best of my knowledge and belief, there have been no contraventions of the auditor
independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.
Ernst & Young
G H Meyerowitz
Partner
Perth
25 September 2008
GHM:NR:ILH:023
Liability limited by a scheme approved

under Professional Standards Legislation
ACN120394194
CorporateGovernanceStatement
The Board of Directors of Integrated Legal Holdings Limited is responsible for the corporate
governance of the Group. The Board guides and monitors the business and affairs of Integrated
LegalHoldingsLimitedonbehalfoftheshareholdersbywhomtheyareelectedandtowhotheyare
accountable.
The table below summarises the Companys compliance with the Corporate Governance Councils
Recommendations:
1.1
2.1
2.2
2.3
2.4
3.1
3.2
4.1
4.2
4.3
4.4
5.1
6.1
6.2
7.1
7.2
Recommendation
FormaliseanddisclosethefunctionsreservedtotheBoardandthose
delegatedtomanagement.
AmajorityoftheBoardshouldbeindependentdirectors.
Thechairpersonshouldbeanindependentdirector.
Therolesofchairpersonandchiefexecutiveofficershouldnotbeexercisedby
thesameindividual.
TheBoardshouldestablishanominationcommittee.
Establishacodeofconducttoguidethedirectors,thechiefexecutiveofficer
(orequivalent),thechieffinancialofficer(orequivalent)andanyotherkey
executivesasto:
thepracticesnecessarytomaintainconfidenceintheCompanys
integrity;and
theresponsibilityandaccountabilityofindividualsforreportingand
investigatingreportsofunethicalpractices.
DisclosethepolicyconcerningtradinginCompanysecuritiesbydirectors,
officersandemployees.
Requirethechiefexecutiveofficer(orequivalent)andthechieffinancial
officer(orequivalent)tostateinwritingtotheBoardthattheCompanys
financialreportspresentatrueandfairview,inallmaterialrespects,ofthe
Companysfinancialconditionandoperationalresultsandareinaccordance
withrelevantaccountingstandards.
TheBoardshouldestablishanauditcommittee.
Structuretheauditcommitteesothatitconsistsof:
onlynonexecutivedirectors;
amajorityofindependentdirectors;
anindependentchairperson,whoisnotchairpersonoftheBoard;
atleastthreemembers.
Theauditcommitteeshouldhaveaformalcharter.
Establishwrittenpoliciesandproceduresdesignedtoensurecompliancewith
ASXListingRuledisclosurerequirementsandtoensureaccountabilityata
seniormanagementlevelforthatcompliance.
Designanddiscloseacommunicationsstrategytopromoteeffective
communicationwithshareholdersandencourageeffectiveparticipationat
generalmeetings.
Requesttheexternalauditortoattendtheannualgeneralmeetingandbe
availabletoanswershareholderquestionsabouttheconductoftheauditand
thepreparationandcontentoftheauditorsreport.
TheBoardorappropriateBoardcommitteeshouldestablishpoliciesonrisk
oversightwithmanagement.
Thechiefexecutiveofficer(orequivalent)andthechieffinancialofficer(or
equivalent)shouldstatetotheBoardinwritingthat:
thestatementgiveninaccordancewithbestpractice
recommendation4.1(theintegrityoffinancialstatements)is
foundedonasoundsystemofriskmanagementandinternal
complianceandcontrolwhichimplementsthepoliciesadoptedby
theBoard;and
TheCompanysriskmanagementandinternalcomplianceand
controlsystemisoperatingefficientlyandeffectivelyinallmaterial
respects.
Comply
Yes/No
Reference/
Explanation
Yes
Yes
Yes
Yes
No
(a)
Yes
Yes
Yes
Yes
No
Yes
(b)
Yes
Yes
Yes
Yes
Yes
27
ACN120394194
CorporateGovernanceStatement(continued)
8.1
9.1
9.2
9.3
9.4
10.1
Recommendation
DisclosetheprocessforperformanceevaluationoftheBoard,itscommittees
andindividualdirectors,andkeyexecutives
ProvidedisclosureinrelationtotheCompanysremunerationpoliciesto
enableinvestorstounderstand
(i) thecostsandbenefitsofthosepolicies;and
(ii) thelinkbetweenremunerationpaidtodirectorsandkeyexecutives
andcorporateperformance.
TheBoardshouldestablisharemunerationcommittee.
Clearlydistinguishthestructureofnonexecutivedirectorsremuneration
fromthatofexecutives.
Ensurethatpaymentofequitybasedexecutiveremunerationismadein
accordancewiththresholdssetinplansapprovedbyshareholders.
Establishanddiscloseacodeofconducttoguidecompliancewithlegaland
otherobligationstolegitimatestakeholders.
Comply
Yes/No
Reference/
Explanation
Yes
Yes
No
(c)
Yes
Yes
Yes
Integrated Legal Holdings Limiteds corporate governance practices were in place throughout the
yearended30June2008.ThefollowingarereferencenotestothePrincipalRecommendationtable:
a) No formal nomination committee or procedures have been adopted for the identification,
appointmentandreviewoftheBoardmembership,buttheBoardiscommittedtoaninformal
assessmentprocess,facilitatedbytheChairmaninconsultationwiththeCompanysprofessional
advisors.
b) The audit committee membership includes an executive director, being the Managing
Director/CEO. Inclusion of the Managing Director/CEO is required to satisfy the
recommendationthatthecommitteemustconsistofatleastthreemembers.
c) No formal remuneration committee has been appointed. The remuneration of an executive

director will be decided by the Board, without the affected executive director participating in
thatdecisionmakingprocess.Thedeterminationofanexecutivedirectorsremunerationwillbe
madebytheBoardhavingregardtotheinputsandvaluetotheGroupofthecontributionsby
theexecutivedirectorinconsultantwiththeCompanysprofessionaladvisors.
The total maximum remuneration of nonexecutive directors is the subject of a shareholder

resolution in accordance with the Companys constitution, the Corporations Act and the ASX
ListingRules,asapplicable.Thedeterminationofnonexecutivedirectorsremunerationwithin
thatmaximumwillbemadebytheBoardhavingregardtotheinputsandvaluetotheGroupof
therespectivecontributionsbyeachnonexecutivedirector.
Variouscorporategovernancepracticesarediscussedwithinthisstatement.Forfurtherinformation
on corporate governance policies adopted by Integrated Legal Holdings Limited, refer to our
website:
www.ilh.com.au
BoardFunction
The Board seeks to identify the expectations of the shareholders, as well as other regulatory and
ethical expectations and obligations. In addition, the Board is responsible for identifying areas of
significantbusinessriskandensuringarrangementsareinplacetoadequatelymanagethoserisks.
28
ACN120394194
To ensure that the Board is well equipped to discharge its responsibilities it has established
guidelinesforthenominationandselectionofdirectorsandfortheoperationoftheBoard.
TheresponsibilityfortheoperationandadministrationoftheCompanyisdelegatedbytheBoardto
the Managing Director/Chief Executive Officer (CEO) and the executive management team. The
Board ensures that this team is appropriately qualified and experience to discharge their
responsibilitiesandhasinplaceprocedurestoassesstheperformanceoftheCEOandtheexecutive
managementteam.
WhilstatalltimestheBoardretainsfullresponsibilityforguidingandmonitoringtheCompany,in
dischargingitsstewardshipitmakesuseofsubcommittees.Specialistcommitteesareabletofocus
onaparticularresponsibilityandprovideinformedfeedbacktotheBoard.
TothisendtheBoardhasestablishedthefollowingcommittees:
Audit;and
Acquisition.
The roles and responsibilities of these committees are discussed throughout this Corporate
GovernanceStatement.
TheBoardisresponsibleforensuringthatmanagementsobjectivesandactivitiesarealignedwith
theexpectationsandriskidentifiedbytheBoard.TheBoardhasanumberofmechanismsinplace
toensurethisisachievedincluding:
Boardapprovalofcorporateobjectives,strategyandoperationsplanstomeetstakeholders
needsandmanagebusinessrisk;
ongoingdevelopmentofbusinessplansandapprovinginitiativesandstrategiesdesignedto
ensurethecontinuedgrowthandsuccessoftheentity;and
implementation of budgets by management and monitoring progress against budget via
the establishment and reporting of both financial and nonfinancial key performance
indicators.
OtherfunctionsreservedtotheBoardinclude:
approvaloftheannualandhalfyearlyfinancialreports;
approving and monitoring the progress of major capital expenditure, capital management,
andacquisitionsanddivestitures;
ensuringthatanysignificantrisksthatariseareidentified,assessed,appropriatelymanaged
andmonitored;and
reportingtoshareholders.
StructureoftheBoard
Theskills,experienceandexpertiserelevanttothepositionofdirectorheldbyeachdirectorinoffice
at the date of the annual report is included in the Directors Report. Directors of Integrated Legal
HoldingsLimitedareconsideredtobeindependentwhentheyareindependentofmanagementand
free from any business or other relationship that could materially interfere with or could
reasonably be perceived to materially interfere with the exercise of their unfettered and
independentjudgement.
In the context of director independence, 'materiality' is considered from both the Group and
individual director perspective. The determination of materiality requires consideration of both
quantitative and qualitative elements. An item is presumed to be quantitatively immaterial if it is
29
ACN120394194
equaltoorlessthan5%oftheappropriatebaseamount.Itispresumedtobematerial(unlessthere
isqualitativeevidencetothecontrary)ifitisequaltoorgreaterthan10%oftheappropriatebase
amount.Qualitativefactorsconsideredincludewhetherarelationshipisstrategicallyimportant,the
competitive landscape, the nature of the relationship and the contractual or other arrangements
governingitandotherfactorsthatpointtotheactualabilityofthedirectorinquestiontoshapethe
directionoftheGroupsloyalty.
In accordance with the definition of independence above, and the materiality thresholds set, the
followingdirectorsofIntegratedLegalHoldingsLimitedareconsideredtobeindependent:
Name
Position
JDawkins
Chairman,NonexecutiveDirector
ATregonning
NonexecutiveDirector
Thereareproceduresinplace,agreedbytheBoard,toenabledirectorsinfurtheranceoftheirduties
toseekindependentprofessionaladviceattheCompanysexpense.
Theterminofficeheldbyeachdirectorinofficeatthedateofthisreportisasfollows:
Name
TerminOffice
JDawkins
1year,11months
ATregonning
1year,11months
GFowler
4months
ForadditionaldetailsregardingBoardappointments,pleaserefertoourwebsite:
www.ilh.com.au
TradingPolicy
Under the Companys Securities Trading Policy an executive or Director must not trade in any
securitiesoftheCompanyatanytimewhentheyareinpossessionofunpublished,pricesensitive
informationinrelationtothosesecurities.
Beforecommencingtotrade,anexecutivemustfirstobtaintheapprovaloftheCompanySecretary
todosoandaDirectormustfirstobtaintheapprovaloftheChairman.
AdditionalrestrictionsontradingintheCompanyssecuritiesapplytodirectorsoftheCompany,all
executives reporting directly to the Managing Director and any other employees of the Company
considered appropriate by the Managing Director and Company Secretary from time to time
(RestrictedPersons).
Restricted Persons are prohibited from trading in the Companys securities during the following
designatedclosedperiods:
inthetwomonthsimmediatelyprecedingthereleaseoftheCompanyshalfyearfinancial
results;or
in the two months immediately preceding the release of the Companys full year financial
results.
In exceptional circumstances clearance may be given for a Restricted Person to sell (but not to
purchase) securities when they would otherwise be prohibited from doing so but not while there
30
ACN120394194
exists any matter which constitutes unpublished pricesensitive information in relation to the
Companyssecurities.
AsrequiredbytheASXListingRules,theCompanynotifiestheASXofanytransactionconductedby
DirectorsinthesecuritiesoftheCompany.
CompositionoftheBoard
No formal nomination committee or procedures have been adopted for the identification,
appointment and review of the Board membership, but the Board is committed to an informal
assessment process, facilitated by the Chairman in consultation with the companys professional
advisors.
With respect to the appointment of Board members, the company is committed to the following
principals:
The Board is to comprise directors with a blend of skills, experience and attributes
appropriateforthecompanyanditsbusiness;and
Theprincipalcriterionfortheappointmentofnewdirectorsistheirabilitytoaddvalueto
thecompanyanditsbusiness.
AuditCommittee
The Board has established an Audit Committee, which operates under a charter approved by the
Board. It is the Boards responsibility to ensure that an effective internal control framework exists
withintheentity.Thisincludesinternalcontrolstodealwithboththeeffectivenessandefficiencyof
significant business processes, the safeguarding of assets, the maintenance of proper accounting
records,andthereliabilityoffinancialinformationaswellasnonfinancialconsiderationssuchasthe
benchmarkingofoperationalkeyperformanceindicators.TheBoardhasdelegatedresponsibilityfor
establishing and maintaining a framework of internal control and ethical standards to the Audit
Committee.
The Committee also provides the Board with additional assurance regarding the reliability of
financialinformationforinclusioninthefinancialreports.
ThemembersoftheAuditCommitteeduringtheyearwere:
ATregonningChairman
JDawkins
THenn(1)
GFowler(2)
(1)
(2)
MrHennresignedasManagingDirectoron28April2008
MrFowlerwasappointedManagingDirectoron28April2008
Qualificationsofauditcommitteemembers
MrDawkinsisagraduateinEconomicsfromtheUniversityofWesternAustraliaandhassignificant
experienceinthemanagementofcompanies,havingservedasdirectorofanumberoflargelisted
corporations.HehasconsultedtoseverallargeAustralianandoverseescompanies,theWorldBank
and the OECD. Until his retirement from politics in 1994 he served as a Minister in the Federal
Governmentfor10yearsandintheHouseofRepresentativesfor18years.
31
ACN120394194
MsTregonninghasextensiveexperienceinfinanceandriskmanagementinbothpublicpracticeand
commerce holding directorships and senior positions in several listed corporations. She was
chairman of the Institute of Chartered Accountants and member of its National Council. Ms
Tregonning is a graduate of The University of Western Australia, a Fellow of The Institute of
CharteredAccountantsandGraduateoftheAustralianInstituteofCompanyDirectors.
MrHennisapracticinglawyerandhaspracticedinaBigFouraccountingfirm.Hehasservedasa
boardmemberofapublicunlistedcompany.MrHennisagraduateofTheUniversityofMunich,
holdsaMasterofTaxationandaBachelorofLawsdegreefromTheUniversityofWesternAustralia,
aGraduateMemberoftheAustralianInstituteofCompanyDirectorsandaFellowoftheTaxation
InstituteofAustralia.
Mr Fowler was previously Chief Executive Officer of listed accounting and financial services
consolidatorWHKGroup Limited.Hespentover15yearsinseniormanagementroleswiththeBT
Financial Group including Group Chief Financial Officer, Chief Executive Officer of BT Funds
ManagementNZ,andChiefExecutiveOfficerofBTPortfolioServices(includingBTWrap).MrFowler
is a business studies graduate of The University of Technology, Sydney, a Certified Practicing
AccountantandagraduateoftheAustralianInstituteofCompanyDirectors.
Risk
The Board determines the Companys risk profile and is responsible for overseeing and approving
risk management strategy and policies, internal compliance and internal control. The Companys
processofriskmanagementandinternalcomplianceandcontrolincludes:
establishing the Companys goals and objectives, and implementing and monitoring
strategiesandpoliciestoachievethesegoalsandobjectives;
continuouslyidentifyingandmeasuringrisksthatmightimpactupontheachievementofthe
Companysgoalsandobjectives,andmonitoringtheenvironmentforemergingfactorsand
trendsthataffecttheserisks;
formulating risk management strategies to manage identified risks, and designing and
implementingappropriateriskmanagementpoliciesandinternalcontrols;and
monitoring the performance of, and continuously improving the effectiveness of, risk
managementsystemsandinternalcomplianceandcontrols,includinganannualassessment
oftheeffectivenessofriskmanagementandinternalcomplianceandcontrol.
Tothisend,comprehensivepracticesareinplacethataredirectedtowardsachievingthefollowing
objectives:
effectivenessandefficiencyintheuseoftheCompanysresources;
compliancewithapplicablelawsandregulations;and
preparationofreliablepublishedfinancialinformation.
CEOandCFOCertification
The Chief Executive Officer and Chief Financial Officer have provided a written statement to the
Boardthat:
in their view the Companys financial report is founded on a sound system of risk
management and internal compliance and control which implements the financial policies
adoptedbytheBoard;and
that the Companys risk management and internal compliance and control system is
operatingeffectivelyinallmaterialrespects.
32
ACN120394194
Performance
TheperformanceoftheBoardandkeyexecutivesisreviewedregularlyagainstbothmeasurableand
qualitativeindicators.Theperformancecriteriaagainstwhichdirectorsandexecutivesareassessed
arealignedwiththefinancialandnonfinancialobjectivesofIntegratedLegalHoldingsLimited.
Directorswhoseperformanceisconsistentlyunsatisfactorymaybeaskedtoretire.
Remuneration
ItistheCompanysobjectivetoprovidemaximumstakeholderbenefitfromtheretentionofahigh
quality Board and executive team by remunerating directors and key executives fairly and
appropriatelywithreferencetorelevantemploymentmarketconditions.Toassistinachievingthis
objective,theBoardlinksthenatureandamountofexecutivedirectorsandofficersremuneration
to the Companys financial and operational performance. The expected outcomes of the
remunerationstructureare:
retentionandmotivationofkeyexecutives;
attractionofhighqualitymanagementtotheCompany;and
performance incentives that allow executives to share in the success of Integrated Legal
HoldingsLimited.
For a full discussion of the Companys remuneration philosophy and framework and the
remuneration received by directors and executives in the current period please refer to the
RemunerationReport,whichiscontainedwithintheDirectorsReport.
Thereisnoschemetoprovideretirementbenefitstononexecutivedirectors.
The Board is responsible for determining and reviewing compensation arrangements for the
directorsthemselvesandtheexecutiveteam.
AcquisitionCommittee
The Board has established an Acquisition Committee to consider potential law firm targets for
acquisitionbythecompany.TheAcquisitionCommitteecomprisesalldirectorsandMrBrettDavies,
ChiefExecutiveofBrettDaviesLawyers.
33
ACN120394194
FinancialReport
BalanceSheet.........................................................................................................................35
IncomeStatement.................................................................................................................36
CashFlowStatement.............................................................................................................37
StatementofChangesinEquity.............................................................................................38
NotestotheFinancialStatements.........................................................................................40
DirectorsDeclaration............................................................................................................87
IndependentAuditReport.....................................................................................................88
34
ACN120394194
BalanceSheet
ASAT30JUNE2008
ASSETS
CurrentAssets
Cashandcashequivalents
Tradeandotherreceivables
Workinprogress
Capitalisedexpenditure
TotalCurrentAssets
NonCurrentAssets
Receivables
Plantandequipment
Goodwill
Intangibleassets
Investmentsinsubsidiaries
Deferredtaxassets
Otherassets
TotalNonCurrentAssets
TOTALASSETS
LIABILITIES
CurrentLiabilities
Incometaxpayable
Provisions
TotalCurrentLiabilities
NonCurrentLiabilities
Provisions
TotalNonCurrentLiabilities
TOTALLIABILITIES
NETASSETS
EQUITY
IssuedCapital
AccumulatedLosses
Reserves
TOTALEQUITY
Note
10
11
12
19
13
14
15
16
17
7
18
19
20
7
21
20
21
22
23
24
CONSOLIDATED
2008
2007
$
$
5,626,766
8,788,735
2,651,518
1,084,352
506,872
9,362,636
9,295,607
192,836
6,330,233
136,620
410,647
2,524
7,072,860
16,435,496
9,295,607
1,081,009
9,295,402
169,764
968,272
173,111
2,392,156
9,295,402
18,708
119,986
138,694
2,530,850
9,295,402
PARENT
3,544,723
22,847
3,567,570
5,572,639
3,184
2,520,000
712,886
357,817
2,524
9,169,050
12,736,620
146,611
968,272
10,501
1,125,384
223
223
1,125,607
8,788,735
506,872
9,295,607
9,295,607
9,295,402
9,295,402
9,295,402
13,904,646
205
11,611,013
205
29,729,975
(15,823,844)
(1,485)
17,368,352
(17,368,147)
29,729,975
(18,117,477)
(1,485)
17,368,352
(17,368,147)
13,904,646
205
11,611,013
205
2008
$
2007
$
TheaboveBalanceSheetshouldbereadinconjunctionwiththeaccompanyingnotes.
35
ACN120394194
IncomeStatement
FORTHEYEARENDED30JUNE2008
Professionalfees
Interestrevenue
Otherrevenue
TotalRevenue
Occupancyexpenses
Salariesandemployeebenefits
expenses
Depreciationandamortisationexpenses
Advertisingandmarketingexpenses
Officeexpenses
Otherexpenses
Financecosts
Sharebasedpaymentsexpense
Impairmentloss
Totalexpenses
Profit/(loss)beforeincometax
Incometax(expense)/benefit
Profit/(loss)afterincometax
Note
6(a)
6(b)
6(c)
6(d)
6(e)
15(c),25
CONSOLIDATED
2008
2007
$
$
10,175,930
429,609
205
82,902
10,688,441
205
(622,545)
PARENT
2008
2007
$
$
391,794
205
49
391,843
205
(26,258)
(5,438,041)
(122,799)
(122,592)
(1,495,523)
(125,059)
(59,062)
(215,826)
(8,201,447)
2,486,994
(942,691)
1,544,303
(5,164,255)
(12,204,097)
(17,368,352)
(17,368,147)
(17,368,147)
(739,158)
(314)
(4,164)
(379,498)
(189)
(494)
(96,164)
(1,246,239)
(854,396)
105,066
(749,330)
(5,164,255)
(12,204,097)
(17,368,352)
(17,368,147)
(17,368,147)
Netprofit/(loss)fortheyear
1,544,303
(17,368,147)
(749,330)
(17,368,147)
Basicprofit/(loss)pershare(cents)
Dilutedprofit/(loss)pershare(cents)
9
9
2.66
2.66
(65.50)
(65.50)
TheaboveIncomeStatementshouldbereadinconjunctionwiththeaccompanyingnotes.
36
ACN120394194
CashFlowStatement
Cashflowsfromoperatingactivities
Receiptsfromcustomers
Interestreceived
Sundryincome
Paymentstosuppliersandemployees
Interestandothercostsoffinance
Paid
Incometaxpaid
Netcashinflows/(outflows)from
operatingactivities
Cashflowsfrominvestingactivities
Purchaseofplantandequipment
Proceedsonthedisposalofplant
andequipment
Paymentforavailableforsale
investments
Paymentfortheacquisitionof
businessesnetofcashacquired
Netcashoutflowsfrominvestingactivities
Cashflowsfromfinancingactivities
Proceedsfromloansreceived
Repaymentofborrowings
Netloansadvancedtorelatedparties
Paymentforsettlementofliability
assumedonacquisitionofLawCentral
CoPtyLtd
Proceedsfromissueofshares
Paymentsforshareissueexpenses
Netcashinflows/(outflows)from
financingactivities
Netincrease/(decrease)incashheld
Cashatthebeginningofthefinancial
period
Cashandcashequivalentsattheendof
thefinancialperiod
Note
26(a)
CONSOLIDATED
2008
2007
$
$
8,002,981
428,661
205
82,902
(7,303,805)
(14,937)
(76,371)
1,119,431
(80,826)
205
1,000
(4,009)
(6,652,695)
(6,736,530)
232,057
(182,689)
PARENT
2008
$
2007
$
376,337
49
(593,222)
205
(66)
(216,902)
(3,498)
205
506,872
(4,009)
(2,700,000)
(2,707,507)
(4,940,030)
506,872
(214,665)
3,628,130
(1,007,703)
8,788,530
(506,872)
3,628,130
(1,007,703)
8,788,530
(506,872)
2,455,130
(3,161,969)
8,788,530
8,788,735
(2,319,603)
(5,244,012)
8,788,530
8,788,735
8,788,735
10
5,626,766
8,788,735
8,788,735
3,544,723
8,788,735
TheaboveCashFlowStatementshouldbereadinconjunctionwiththeaccompanyingnotes.
37
ACN120394194
StatementofChangesinEquity
CONSOLIDATED
Issued
Capital
Accumulated
Losses
Net
Unrealised
Gains
Reserve
Balanceasat26June2006
Lossfortheperiod(1)
(17,368,147)
(17,368,147)
Totalincomeandexpenserecognisedfortheperiod
(17,368,147)
(17,368,147)
17,368,352
17,368,352
(17,368,147)
205
17,368,352
(17,368,147)
205
(2)
Issueofshares
17,368,352
(1)&(2)
Balanceasat1July2007,restated
Total
Equity
Netfairvaluelossesonavailableforsaleinvestments
Totalincomeandexpenserecognisedinequityfor
theyear
(1,485)
(1,485)
(1,485)
(1,485)
Profitfortheyear
1,544,303
Totalincomeandexpenserecognisedfortheyear
1,544,303
Issueofshares
Sharebasedpayment
Transactioncostsonshareissues
Incometaxonitemstakendirectlytoortransferred
fromequity
1,544,303
(1,485)
1,542,818
13,045,708
13,045,708
406,530
406,530
(1,514,575)
(1,514,575)
423,960
423,960
(1,485)
13,904,646
(18,723,247)
1,355,100
(17,368,147)
(18,723,452)
1,355,100
(17,368,352)
29,729,975
(1) Effectsofcorrectionoferrorinpreviousyear
(Accumulatedlosses)asreportedinthe2007financialreport
Correctionoferror(refernote23)
Restated(accumulatedlosses)
Issuedcapitalasreportedinthe2007financialreport
Restatedissuedcapital
(15,823,844)
TheaboveStatementofChangesinEquityshouldbereadinconjunctionwiththeaccompanying
notes.
38
ACN120394194
StatementofChangesinEquity
PARENT
Issued
Capital
Accumulated
Losses
Net
Unrealised
Gains
Reserve
Lossfortheperiod(1)
(17,368,147)
(17,368,147)
Totalincomeandexpenserecognisedfortheperiod
(17,368,147)
(17,368,147)
17,368,352
17,368,352
(17,368,147)
205
17,368,352
(17,368,147)
205
(2)
Issueofshares
17,368,352
(1)&(2)
Balanceasat1July2007,restated
Total
Equity
Netfairvaluelossesonavailableforsaleinvestments
Totalincomeandexpenserecognisedinequityfor
theyear
(1,485)
(1,485)
(1,485)
(1,485)
Lossfortheyear
(749,330)
Totalincomeandexpenserecognisedfortheyear
(749,330)
Issueofshares
(749,330)
(1,485)
(750,815)
13,045,708
13,045,708
406,530
406,530
Transactioncostsonshareissues
Incometaxonitemstakendirectlytoortransferred
fromequity
(1,514,575)
(1,514,575)
423,960
423,960
29,729,975
(1,485)
11,611,013
(18,723,247)
1,355,100
(17,368,147)
(18,723,452)
1,355,100
(17,368,352)
Sharebasedpayment
(18,117,477)
(Accumulatedlosses)asreportedinthe2007financialreport
Restated(accumulatedlosses)
Issuedcapitalasreportedinthe2007financialreport
Restatedissuedcapital
TheaboveStatementofChangesinEquityshouldbereadinconjunctionwiththeaccompanying
notes.
39
ACN120394194
NotestotheFinancialStatements
1) CORPORATEINFORMATION
ThefinancialreportofIntegratedLegalHoldingsLimited(theCompany)fortheyearended30June
2008wasauthorisedforissueinaccordancewitharesolutionofdirectorson25September2008.
Comparativeinformationdisclosedisfortheperiodfromincorporationon26June2006to30June
2007.
Integrated Legal Holdings Limited (the parent) is a company limited by shares incorporated in
Australia whose shares are publicly traded on the Australian Stock Exchange. The company was
domiciledinAustralia.
The nature of the operations and principal activities of the Group are described in the Directors'
Report.
2) SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES
Basisofpreparation
The financial report is a general purpose financial report, which has been prepared in accordance
with the requirements of the Corporations Act 2001, Australian Accounting Standards and other
authoritative pronouncements of the Australian Accounting Standards Board. The financial report
has also been prepared on a historical cost basis, except for availableforsale investments, which
havebeenmeasuredatfairvalue.
ThefinancialreportispresentedinAustraliandollars.
a) StatementofCompliance
The financial report complies with Australian Accounting Standards as issued by the Australian
AccountingStandardsBoardandInternationalFinancialReportingStandards(IFRS)asissuedbythe
InternationalAccountingStandardsBoard.
b) Newaccountingstandardsandinterpretations
The Group has adopted all of the new and revised standards and interpretations issued by the
AustralianAccountingStandardsBoard(theAASB)thatarerelevanttotheoperationsoftheGroup
and effective for reporting periods beginning on or after 1 July 2007. The adoption of these
standardshadnoimpactonthefinancialperformanceorthefinancialpositionoftheGroup.
The following standards and interpretations may have a potential impact on the financial report.
However,theyhaveaneffectivedateafterthedateofthesefinancialstatements.
40
ACN120394194
NotestotheFinancialStatements(continued)
Reference
Title
Summary
Application
dateof
standard
1January2009
AASB8and
AASB20073
OperatingSegmentsand
consequential
amendmentstoother
AustralianAccounting
Standards
Newstandard
replacingAASB114
SegmentReporting,
whichadoptsa
management
reportingapproachto
segmentreporting.
AASB123
(Revised)
andAASB
20076
BorrowingCostsand
consequential
amendmentstoother
Standards
Theamendmentsto
AASB123requirethat
allborrowingcosts
associatedwitha
qualifyingassetbe
capitalised.
1January2009
AASB101
(Revised)
andAASB
20078
PresentationofFinancial
Statementsand
consequential
amendmentstoother
Standards
Introducesastatement
ofcomprehensive
income.Other
revisionsinclude
impactsonthe
presentationofitems
inthestatementof
changesinequity,new
presentation
requirementsfor
restatementsor
reclassificationsof
itemsinthefinancial
statements,changesin
thepresentation
requirementsfor
dividendsandchanges
tothetitlesofthe
financialstatements.
1January2009
ImpactonGroupfinancial
report
AASB8isadisclosure
standardsoitwillhave
nodirectimpactonthe
amountsincludedinthe
Groupsfinancial
statements.The
amendmentsmayhave
animpactonthe
Groupssegment
disclosures.
Theseamendmentsto
AASB123requirethatall
borrowingcosts
associatedwitha
qualifyingassetbe
capitalised.TheGroup
hasnoqualifyingassets
andassuchthe
amendmentsarenot
expectedtohaveany
impactontheGroup's
financialreport.
Theseamendmentsare
onlyexpectedtoaffect
thepresentationofthe
Groupsfinancialreport
andwillnothaveadirect
impactonthe
measurementand
recognitionofamounts
disclosedinthefinancial
report.TheGrouphasnot
determinedatthisstage
whethertopresenta
singlestatementof
comprehensiveincomeor
twoseparatestatements.
Application
datefor
Group
1July2009
1July2009
1July2009
41
ACN120394194
Reference
Title
AASB3
(Revised)
Business
Combinations
AASB127
(Revised)
Consolidatedand
SeparateFinancial
Statements
AASB
20083
Amendmentsto
Australian
Accounting
Standardsarising
fromAASB3and
AASB127
Summary
Therevisedstandard
introducesanumber
ofchangestothe
accountingfor
businesscombinations,
themostsignificantof
whichallowsentitiesa
choiceforeach
businesscombination
enteredintoto
measureanon
controllinginterest
(formerlyaminority
interest)inthe
acquireeeitheratits
fairvalueoratits
proportionateinterest
intheacquireesnet
assets.Thischoicewill
effectivelyresultin
recognisinggoodwill
relatingto100%ofthe
business(applyingthe
fairvalueoption)or
recognisinggoodwill
relatingtothe
percentageinterest
acquired.Thechanges
applyprospectively.
Undertherevised
standard,achangein
theownershipinterest
ofasubsidiary(that
doesnotresultinloss
ofcontrol)willbe
accountedforasan
equitytransaction.
Amendingstandard
issuedasa
consequenceof
revisionstoAASB3
andAASB127.
Application
dateof
standard
1July2009
1July2009
1July2009
report
TheGroupmayenterinto
somebusiness
combinationsduringthe
nextfinancialyearand
maythereforeconsider
earlyadoptingthe
revisedstandard.The
Grouphasnotyet
assessedtheimpactof
earlyadoption,including
whichaccountingpolicy
toadopt.
IftheGroupchangesits
ownershipinterestin
existingsubsidiariesin
thefuture,thechange
willbeaccountedforas
anequitytransaction.
Thiswillhavenoimpact
ongoodwill,norwillit
giverisetoagainora
lossintheGroups
incomestatement.
RefertoAASB3
(Revised)andAASB
127(Revised)above.
Application
datefor
Group
1July2009
1July2009
1July2009
42
ACN120394194
Reference
Title
AASB20087
CostofanInvestmentin
aSubsidiary,Jointly
ControlledEntityor
Associate
AASB20085
and
AASB20086
Improvementsto
IFRSs
Summary
Themainamendments
ofrelevanceto
Australianentitiesare
thosemadetoIAS27
deletingthecost
methodandrequiring
alldividendsfroma
subsidiary,jointly
controlledentityor
associatetobe
recognisedinprofitor
lossinanentity's
separatefinancial
statements(i.e.,
parentcompany
accounts).The
distinctionbetween
preandpost
acquisitionprofitsisno
longerrequired.
However,thepayment
ofsuchdividends
requirestheentityto
considerwhether
thereisanindicatorof
impairment.
AASB127hasalso
beenamendedto
effectivelyallowthe
costofaninvestment
inasubsidiary,in
limited
reorganisations,tobe
basedontheprevious
carryingamountofthe
subsidiary(thatis,
shareofequity)rather
thanitsfairvalue.
Theimprovements
projectisanannual
projectthatprovidesa
mechanismformaking
nonurgent,but
necessary,
amendmentstoIFRSs.
TheIASBhas
separatedthe
amendmentsintotwo
parts:Part1deals
withchangestheIASB
identifiedresultingin
accountingchanges;
PartIIdealswith
eitherterminologyor
editorialamendments
thattheIASBbelieves
willhaveminimal
impact.
Application
dateof
standard
1January2009
report
1January2009
exceptfor
amendmentsto
IFRS5,which
areeffective
from1July
2009.
TheGrouphasnotyet
determinedtheextentof
theimpactofthe
amendments,ifany.
Recognisingalldividends
receivedfrom
subsidiaries,jointly
controlledentitiesand
associatesasincomewill
likelygiverisetogreater
incomebeingrecognised
bytheparententityafter
adoptionofthese
amendments.
Inaddition,iftheGroup
entersintoanygroup
reorganisation
establishingnewparent
entities,anassessment
willneedtobemadeto
determineifthe
reorganisationmeetsthe
conditionsimposedtobe
effectivelyaccountedfor
onacarryoverbasis
ratherthanatfairvalue.
Application
datefor
Group
1July2009
1July2009
Adoptionofnewaccountingstandard
TheConsolidatedEntityhasadoptedAASB7FinancialInstruments;Disclosuresandallconsequential
amendmentswhichbecameapplicableon1January2007.Theadoptionofthisstandardhasonly
43
ACN120394194
affectedthedisclosuresinthesefinancialstatements.Therehasbeennoaffectonprofitandlossor
thefinancialpositionoftheGroup.
c) Basisofconsolidation
The consolidated financial statements comprise the financial statements of Integrated Legal
HoldingsLimitedanditssubsidiaries(asoutlinedinnote27)asat30Juneeachyear(theGroup).
SubsidiariesareallthoseentitiesoverwhichtheGrouphasthepowertogovernthefinancialand
operatingpoliciessoastoobtainbenefitsfromtheiractivities.Theexistenceandeffectofpotential
votingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhethera
groupcontrolsanotherentity.
The financial statements of the subsidiaries are prepared for the same reporting period as the
parentcompany,usingconsistentaccountingpolicies.
In preparing the consolidated financial statements, all intercompany balances and transactions,
income and expenses and profit and losses resulting from intragroup transactions have been
eliminatedinfull.
Subsidiaries are fully consolidated from the date on which control is obtained by the Group and
ceasetobeconsolidatedfromthedateonwhichcontrolistransferredoutoftheGroup.
The acquisition of subsidiaries is accounted for using the purchase method of accounting. The
purchasemethodofaccountinginvolvesallocatingthecostofthebusinesscombinationtothefair
value of the assets acquired and the liabilities and contingent liabilities assumed at the date of
acquisition.
d) Businesscombinations
Thepurchasemethodofaccountingisusedtoaccountforallbusinesscombinationsregardlessof
whetherequityinstrumentsorotherassetsareacquired.Costismeasuredasthefairvalueofthe
assets given, shares issued or liabilities incurred or assumed at the date of exchange plus costs
directly attributable to the combination. Where equity instruments are issued in a business
combination, the fair value of the instruments is their published market price as at the date of
exchangeunless,inrarecircumstances,itcanbedemonstratedthatthepublishedpriceatthedate
ofexchangeisanunreliableindicatoroffairvalueandthatotherevidenceandvaluationmethods
provide a more reliable measure of fair value. Transaction costs arising on the issue of equity
instrumentsarerecogniseddirectlyinequity.
Exceptfornoncurrentassetsordisposalgroupsclassifiedasheldforsale(whicharemeasuredat
fair value less costs to sell), all identifiable assets acquired and liabilities and contingent liabilities
assumedinabusinesscombinationaremeasuredinitiallyattheirfairvaluesattheacquisitiondate,
irrespective of the extent of any minority interest. The excess of the cost of the business
combination over the net fair value of the Groups share of the identifiable net assets acquired is
recognisedasgoodwill.IfthecostofacquisitionislessthantheGroupsshareofthenetfairvalueof
the identifiable net assets of the subsidiary, the difference is recognised as a gain in the income
statement, but only after a reassessment of the identification and measurement of the net assets
acquired.
44
ACN120394194
Where settlement of any part of the consideration is deferred, the amounts payable in the future
are discounted to their present value as at the date of exchange. The discount rate used is the
entitysincrementalborrowingrate,beingtherateatwhichasimilarborrowingcouldbeobtained
fromanindependentfinancierundercomparabletermsandconditions.
e) Segmentreporting
A business segment is a distinguishable component of the entity that is engaged in providing
productsorservicesthataresubjecttorisksandreturnsthataredifferenttothoseofotherbusiness
segments.Ageographicalsegmentisadistinguishablecomponentoftheentitythatisengagedin
providingproductsorserviceswithinaparticulareconomicenvironmentandissubjecttorisksand
returnsthataredifferentthanthoseofsegmentsoperatinginothereconomicenvironments.
f) Cashandcashequivalents
Cashandcashequivalentsinthebalancesheetcomprisecashatbankandinhandandshortterm
deposits with an original maturity of three months or less that are readily convertible to known
amountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.
For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash
equivalentsasdefinedabove.
g) Tradeandotherreceivables
Trade receivables are initially recognised at the original fee amount. An estimate is made for
doubtfuldebtswhencollectionofthefullamountisnolongerprobable.Baddebtsareincludedin
the income statement when identified. The Groups standard terms for settlement for trade
receivablesare30to60days.
Collectabilityoftradereceivablesisreviewedonanongoingbasis.Individualdebtsthatareknown
to be uncollectible are written off when identified. An impairment provision is recognised when
thereisobjectiveevidencethattheGroupwillnotbeabletocollectthedebt.
Financial difficulties of the debtor, default payments or debts more than 90 days overdue are
consideredobjectiveevidenceofimpairment.Theamountoftheimpairmentlossisthereceivable
carryingamountcomparedtothevalueofestimatedfuturecashflows.
Theabovepolicyappliestointercompanyreceivables.Intercompanyreceivablesarerepayableon
demand.
h) Workinprogress
Work in progress represents costs incurred and includes profit recognised to date on the value of
workcompletedonmattersthatareinprogressatbalancedate.Costsincludesbothvariableand
fixedcostsdirectlyrelatedtomatters.
Workinprogressisvaluedatnetrealisablevalueafterprovidingforanyforeseeablelosses.
45
ACN120394194
i) Investmentsandotherfinancialassets
Investments and financial assets in the scope of AASB 139 Financial Instruments: Recognition and
Measurementarecategorisedaseitherfinancialassetsatfairvaluethroughprofitorloss,loansand
receivables, heldtomaturity investments, or availableforsale financial assets. The Group
determines the classification of its financial assets upon initial recognition and, when allowed and
appropriate,reevaluatesthisdesignationateachfinancialyearend.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of
assetsnotatfairvaluethroughprofitorloss,directlyattributabletransactioncosts.
RecognitionandDerecognition
Allregularwaypurchasesandsalesoffinancialassetsarerecognisedonthetradedateiethedate
thattheGroupcommitstopurchasetheasset.Regularwaypurchasesorsalesarepurchasesorsales
offinancialassetsundercontractsthatrequiredeliveryoftheassetswithintheperiodestablished
generallybyregulationorconventioninthemarketplace.
Availableforsalesecurities
Availableforsaleinvestmentsarethosenonderivativefinancialassets,principallyequitysecurities
thataredesignatedasavailableforsaleorarenotclassifiedasfinancialassetsatfairvaluethrough
profit or loss, loans and receivables, or held to maturity investments. After initial recognition
availablefor sale securities are measured at fair value with gains or losses being recognised as a
separate component of equity until the investment is derecognised or until the investment is
determinedtobeimpaired,atwhichtimethecumulativegainorlosspreviouslyreportedinequityis
recognisedinprofitorloss.
Thefairvaluesofinvestmentsthatareactivelytradedinorganisedfinancialmarketsaredetermined
byreferencetoquotedmarketbidpricesatthecloseofbusinessonthebalancesheetdate.
LoansandReceivables
Loansandreceivablesarenonderivativefinancialassetswithfixedordeterminablepaymentsthat
are not quoted in an active market. Such assets are carried at amortised cost using the effective
interestmethod.Gainsandlossesarerecognisedinprofitandlosswhentheloansandreceivables
arederecognisedorimpaired,aswellasthroughtheamortisationprocess.
j) Plantandequipment
Plantandequipmentisstatedathistoricalcostlessaccumulateddepreciationandanyaccumulated
impairmentlosses.Suchcostincludestheacquisitioncostorcostofreplacingpartsthatareeligible
forcapitalisationwhenthecostofreplacingthepartisincurred.Allotherrepairsandmaintenance
arerecognisedinprofitorlossasincurred.
46
ACN120394194
Depreciationratesusedforeachclassofassetsareasfollows:
Classoffixedasset
Plantandequipment
Leasedequipment
Useful
life
310years
Depreciation
rates
10.0033.33%
Termoflease
Depreciation
method
Straightline
Straightline
The assets residual values, useful lives and amortisation methods are reviewed, and adjusted if
appropriate,ateachbalancedate.
Derecognition
Anitemofplantandequipmentisderecognisedupondisposalorwhennofurtherfutureeconomic
benefitsareexpectedfromitsuseordisposal.
Anygainorlossarisingonderecognitionoftheasset(calculatedasthedifferencebetweenthenet
disposalproceedsandthecarryingamountoftheasset)isincludedinprofitorlossintheyearthe
assetisderecognised.
k) Leases
The determination of whether an arrangement is or contains a lease is based on the substance of
the arrangement and requires an assessment of whether the fulfilment of the arrangement is
dependentontheuseofaspecificassetorassetsandthearrangementconveysarighttousethe
asset.
Groupasalessee
Finance leases, which transfer to the Group substantially all the risks and benefits incidental to
ownership of the leased item, are capitalised at the inception of the lease at the fair value of the
leasedassetor,iflower,atthepresentvalueoftheminimumleasepayments.Leasepaymentsare
apportioned between the finance charges and reduction of the lease liability so as to achieve a
constantrateofinterestontheremainingbalanceoftheliability.Financechargesarerecognisedas
anexpenseinprofitorloss.
Capitalisedleasedassetsaredepreciatedovertheshorteroftheestimatedusefullifeoftheasset
andtheleasetermifthereisnoreasonablecertaintythattheGroupwillobtainownershipbythe
endoftheleaseterm.
Operatingleasepaymentsarerecognisedasanexpenseintheincomestatementonastraightline
basisovertheleaseterm.Operatingleaseincentivesarerecognisedasaliabilitywhenreceivedand
subsequently reduced by allocating lease payments between rental expense and reduction of the
liability.
l) Impairmentofnonfinancialassetsotherthangoodwill
Otherassetsaretestedforimpairmentwhenevereventsorchangesincircumstancesindicatethat
thecarryingamountmaynotberecoverable.
47
ACN120394194
The Group conducts an annual internal review of asset values, which is used as a source of
information to assess for any indicators of impairment. External factors, such as changes in
expectedfutureprocessesandeconomicconditions,arealsomonitoredtoassessforindicatorsof
impairment.Ifanyindicationofimpairmentexists,anestimateoftheassetsrecoverableamountis
calculated.
Animpairmentlossisrecognisedfortheamountbywhichtheassetscarryingamountexceedsits
recoverableamount.Recoverableamountisthehigherofanassetsfairvaluelesscoststoselland
valueinuse.Forthepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsfor
whichthereareseparatelyidentifiablecashinflowsthatarelargelyindependentofthecashinflows
from the other assets or groups of assets (cashgenerating units). Nonfinancial assets other than
goodwill that suffered impairment are tested for possible reversal of the impairment whenever
eventsorchangesincircumstancesindicatethattheimpairmentmayhavereversed.
m) Goodwillandintangibles
Goodwill
Goodwillacquiredinabusinesscombinationisinitiallymeasuredatcostbeingtheexcessofthecost
of the business combination over the companys interest in the net fair value of the acquiree's
identifiableassets,liabilitiesandcontingentliabilities.
Followinginitialrecognition,goodwillismeasuredatcostlessanyaccumulatedimpairmentlosses.
For the purpose of impairment testing, goodwill acquired in a business combination is, from the
acquisition date, allocated to each of the companys cashgenerating units, or groups of cash
generatingunits,thatareexpectedtobenefitfromthesynergiesofthecombination,irrespectiveof
whetherotherassetsorliabilitiesoftheGroupareassignedtothoseunitsorgroupsofunits.Each
unitorgroupofunitstowhichthegoodwillissoallocated:
represents the lowest level within the company at which the goodwill is monitored for
internalmanagementpurposes;and
is not larger than a segment based on either the companys primary or the companys
secondaryreportingformatdeterminedinaccordancewithAASB114SegmentReporting.
Impairmentisdeterminedbyassessingtherecoverableamountofthecashgeneratingunit(group
ofcashgeneratingunits),towhichthegoodwillrelates.Whentherecoverableamountofthecash
generatingunit(groupofcashgeneratingunits)islessthanthecarryingamount,animpairmentloss
isrecognised.Whengoodwillformspartofacashgeneratingunit(groupofcashgeneratingunits)
andanoperationwithinthatunitisdisposedof,thegoodwillassociatedwiththeoperationdisposed
ofisincludedinthecarryingamountoftheoperationwhendeterminingthegainorlossondisposal
oftheoperation.Goodwilldisposedofinthismannerismeasuredbasedontherelativevaluesof
theoperationdisposedofandtheportionofthecashgeneratingunitretained.
Impairmentlossesrecognisedforgoodwillarenotsubsequentlyreversed.
Intangibles
Intangibleassetsacquiredseparatelyorinabusinesscombinationareinitiallymeasuredatcost.The
cost of an intangible asset acquired in a business combination is its fair value as at the date of
acquisition.Followinginitialrecognition,intangible assetsarecarriedat cost lessanyaccumulated
amortisationandanyaccumulatedimpairmentlosses.
48
ACN120394194
The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets
withfinitelivesareamortisedovertheusefullifeandtestedforimpairmentwheneverthereisan
indicationthattheintangibleassetmaybeimpaired.Theamortisationperiodandtheamortisation
methodforanintangibleassetwithafiniteusefullifearereviewedatleastateachfinancialyear
end.Changesintheexpectedusefullifeortheexpectedpatternofconsumptionoffutureeconomic
benefitsembodiedintheassetareaccountedforprospectivelybychangingtheamortisationperiod
ormethod,asappropriate,whichisachangeinaccountingestimate.Theamortisationexpenseon
intangible assets with finite lives is recognised in profit or loss in the expense category consistent
withthefunctionoftheintangibleasset.
Gains or losses arising from derecognition of an intangible asset are measured as the difference
betweenthenetdisposalproceedsandthecarryingamountoftheassetandarerecognisedinprofit
orlosswhentheassetisderecognised.
n) Tradeandotherpayables
Tradepayablesandotherpayablesarecarriedatamortisedcost.However,duetotheirshortterm
nature, they are not discounted. They represent liabilities for goods and services provided to the
Group prior to the end of the financial year that are unpaid and arise when the Group becomes
obliged to make future payments in respect of the purchase of these goods and services. The
amountsareunsecuredandareusuallypaidwithin30daysofrecognition.
o) Interestbearingloansandborrowings
Allloansandborrowingsareinitiallyrecognisedatthefairvalueoftheconsiderationreceivedless
directlyattributabletransactioncosts.
After initial recognition, interestbearing loans and borrowings are subsequently measured at
amortisedcostusingtheeffectiveinterestmethod.Feespaidontheestablishmentofloanfacilities
thatareyieldrelatedareincludedaspartofthecarryingamountoftheloansandborrowings.
BorrowingsareclassifiedascurrentliabilitiesunlesstheGrouphasanunconditionalrighttodefer
settlementoftheliabilityforatleast12monthsafterthebalancesheetdate.
Borrowingcosts
Borrowingcostsarerecognisedasanexpensewhenincurred.
p) Provisions
ProvisionsarerecognisedwhentheGrouphasapresentobligation(legalorconstructive)asaresult
of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the
obligation.
When the Group expects some or all of a provision to be reimbursed, for example under an
insurance contract, the reimbursement is recognised as a separate asset but only when the
reimbursementisvirtuallycertain.Theexpenserelatingtoanyprovisionispresentedintheincome
statementnetofanyreimbursement.
Provisions are measured at the present value of management's best estimate of the expenditure
requiredtosettlethepresentobligationatthebalancesheetdate.Iftheeffectofthetimevalueof
moneyismaterial,provisionsarediscountedusingacurrentpretaxratethatreflectsthetimevalue
49
ACN120394194
of money and the risks specific to the liability. The increase in the provision resulting from the
passageoftimeisrecognisedinfinancecosts.
q) Employeebenefits
i) Wages,salaries,annualleaveandsickleave
Liabilitiesforwagesandsalaries,includingnonmonetarybenefitsandannualleaveexpectedtobe
settledwithin12monthsofthereportingdatearerecognisedinrespectofemployees'servicesup
tothereportingdate.Theyaremeasuredattheamountsexpectedtobepaidwhentheliabilitiesare
settled. Expenses for nonaccumulating sick leave are recognised when the leave is taken and are
measuredattheratespaidorpayable.
ii) Longserviceleave
The liability for long service leave is recognised and measured as the present value of expected
futurepaymentstobemadeinrespectofservicesprovidedbyemployeesuptothereportingdate.
Consideration is given to expected future wage and salary levels, experience of employee
departures,andperiodsofservice.Expectedfuturepaymentsarediscountedusingmarketyieldsat
thereportingdateonnationalgovernmentbondswithtermstomaturityandcurrenciesthatmatch,
ascloselyaspossible,theestimatedfuturecashoutflows.
r) Sharebasedpaymenttransactions
Equitysettledtransactions
TheGroupprovidesbenefitstoitsemployees(includingkeymanagementpersonnel)intheformof
sharebased payments, whereby employees render services in exchange for shares or rights over
shares(equitysettledtransactions).
The cost of these equitysettled transactions is measured by reference to the market value of the
equityinstrumentsatthedateatwhichtheyaregrantedandarechargedtotheincomestatement
intheperiodinwhichtheyarevested.
ThecostofsharesissuedtodirectorsandsupporterspriortotheCompanyslistingontheASXhave
been measured by reference to the fair value of the equity instruments at the date at which they
were granted. The fair value was based on the listing price of 50 cents per share which was
determinedinconsultationwithexternaladvisors.
s) Contributedequity
Ordinarysharesareclassifiedasequity.Incrementalcostsdirectlyattributabletotheissueofnew
sharesoroptionsareshowninequityasadeduction,netoftax,fromtheproceeds.
t) Revenuerecognition
Revenueisrecognisedandmeasuredatthefairvalueoftheconsiderationreceivedorreceivableto
theextentitisprobablethattheeconomicbenefitswillflowtotheGroupandtherevenuecanbe
reliably measured. The following specific recognition criteria must also be met before revenue is
recognised:
i) Renderingofservices
Revenuefromtheprovisionoflegalservicesisrecognisedonanaccrualbasisintheperiodinwhich
thelegalserviceisprovidedandiscalculatedwithreferencetotheprofessionalstaffhoursincurred
oneachmatter.
50
ACN120394194
ii) Onlinelegalandnonlegaldocumentsandpublications
Revenuefromtheprovisionofonlinelegalandnonlegaldocumentsandpublicationsisrecognised
onanaccrualsbasisatthetimeofdeliveryofthedocumentstocustomers.
iii) Subscriptionincome
Revenue from memberships granting the subscriber access to the knowledge base of weekly legal
bulletins,onlinetools,calculatorsandservicesisrecognisedonastraightlinebasiswhichreflects
thetiming,natureandbenefitprovided.Allmembershipshaveasubscriptionperiodofeitherthree
ortwelvemonths.
iv) Interestrevenue
Revenueisrecognisedasinterestaccruesusingtheeffectiveinterestmethod.Thisisamethodof
calculating the amortised cost of a financial asset and allocating the interest revenue over the
relevantperiodusingtheeffectiveinterestrate,whichistheratethatexactlydiscountsestimated
futurecashreceiptsthroughtheexpectedlifeofthefinancialassettothenetcarryingamountofthe
financialasset.
v) Dividends
RevenueisrecognisedwhentheGroupsrighttoreceivethepaymentisestablished.
vi) Rentalrevenue
Rentalrevenuefrominvestment propertiesisaccountedforonastraightlinebasisoverthelease
term.Contingentrentalincomeisrecognisedasincomeintheperiodsinwhichitisearned.Lease
incentivesgrantedarerecognisedasanintegralpartofthetotalrentalincome.
u) Incomeandothertaxes
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities based on the current period's
taxableincome.Thetaxratesandtaxlawsusedtocomputetheamountarethosethatareenacted
orsubstantivelyenactedbythebalancesheetdate.
Deferredincometaxisprovidedonalltemporarydifferencesatthebalancesheetdatebetweenthe
taxbasesofassetsandliabilitiesandtheircarryingamountsforfinancialreportingpurposes.
Deferredincometaxliabilitiesarerecognisedforalltaxabletemporarydifferencesexcept:
whenthedeferredincometaxliabilityarisesfromtheinitialrecognitionofgoodwillorofan
assetorliabilityinatransactionthatisnotabusinesscombinationandthat,atthetimeof
thetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss;or
when the taxable temporary difference is associated with investments in subsidiaries,
associates or interests in joint ventures, and the timing of the reversal of the temporary
differencecanbecontrolledanditisprobablethatthetemporarydifferencewillnotreverse
intheforeseeablefuture.
Deferredincometaxassetsarerecognisedforalldeductibletemporarydifferences,carryforwardof
unusedtaxcreditsandunusedtaxlosses,totheextentthatitisprobablethattaxableprofitwillbe
available against which the deductible temporary differences and the carryforward of unused tax
creditsandunusedtaxlossescanbeutilised,except:
51
ACN120394194
whenthedeferredincometaxassetrelatingtothedeductibletemporarydifferencearises
from the initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor
taxableprofitorloss;or
when the deductible temporary difference is associated with investments in subsidiaries,
associatesorinterestsinjointventures,inwhichcaseadeferredtaxassetisonlyrecognised
totheextentthatitisprobablethatthetemporarydifferencewillreverseintheforeseeable
future and taxable profit will be available against which the temporary difference can be
utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and
reducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailableto
allowallorpartofthedeferredincometaxassettobeutilised.
Deferredincometaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyto
theyearwhentheassetisrealisedortheliabilityissettled,basedontaxrates(andtaxlaws)that
havebeenenactedorsubstantivelyenactedatthebalancesheetdate.
Deferredtaxassetsanddeferredtaxliabilitiesareoffsetonlyifalegallyenforceablerightexiststo
set off current tax assets against current tax liabilities and the deferred tax assets and liabilities
relatetothesametaxableentityandthesametaxationauthority.
Incometaxesrelatingtoitemsrecogniseddirectlyinequityarerecognisedinequityandnotinprofit
orloss.
Taxconsolidationlegislation
Integrated Legal Holdings Limited and its whollyowned Australian controlled entities have
implementedthetaxconsolidationlegislationasof10August2007.
Theheadentity,IntegratedLegalHoldingsLimitedandthecontrolledentitiesinthetaxconsolidated
groupcontinuetoaccountfortheirowncurrentanddeferredtaxamounts.TheGrouphasapplied
thegroupallocationapproachindeterminingtheappropriateamountofcurrenttaxesanddeferred
taxestoallocatetomembersofthetaxconsolidatedgroup.
In addition to its own current and deferred tax amounts, Integrated Legal Holdings Limited also
recognisesthecurrenttaxliabilities(orassets)andthedeferredtaxassetsarisingfromunusedtax
lossesandunusedtaxcreditsassumedfromcontrolledentitiesinthetaxconsolidatedgroup.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are
recognisedasamountsreceivablefromorpayabletootherentitiesintheGroup.Detailsofthetax
fundingagreementaredisclosedinnote7(e)(i).
Any difference between the amounts assumed and amounts receivable or payable under the tax
funding agreement are recognised as a contribution to (or distribution form) whollyowned tax
consolidatedentities.
52
ACN120394194
Othertaxes
Revenues,expensesandassetsarerecognisednetoftheamountofGSTexcept:
when the GST incurred on a purchase of goods and services is not recoverable from the
taxationauthority,inwhichcasetheGSTisrecognisedaspartofthecostofacquisitionof
theassetoraspartoftheexpenseitemasapplicable;and
receivablesandpayables,whicharestatedwiththeamountofGSTincluded.
ThenetamountofGSTrecoverablefrom,orpayableto,thetaxationauthorityisincludedaspartof
receivablesorpayablesinthebalancesheet.
CashflowsareincludedintheCashFlowStatementonagrossbasisandtheGSTcomponentofcash
flows arising from investing and financing activities, which is recoverable from, or payable to, the
taxationauthorityisclassifiedaspartofoperatingcashflows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or
payableto,thetaxationauthority.
v) Earningspershare
Basicearningspershareiscalculatedasnetprofitattributabletomembersoftheparent,adjusted
to exclude any costs of servicing equity (other than dividends), divided by the weighted average
numberofordinaryshares,adjustedforanybonuselement.
Diluted earnings per share is calculated as net profit attributable to members of the company,
adjusted for costs of servicing equity (other than dividends) divided by the weighted average
numberofordinarysharesanddilutivepotentialordinaryshares,adjustedforanybonuselement.
3) FINANCIALRISKMANAGEMENTOBJECTIVESANDPOLICIES
The Group and Companys principal financial instruments comprise receivables, payables, finance
leases,cashandshorttermdeposits.
TheGroupandCompanymanagesitsexposuretokeyfinancial risks,includinginterestrateriskin
accordancewiththeGroupandCompanysfinancialriskmanagementpolicy.Theobjectiveofthe
policy is to support the delivery of the Group and Companys financial targets whilst protecting
futurefinancialsecurity.
The main risks arising from the Group and Companys financial instruments are interest rate risk,
credit risk and liquidity risk. The Group and Company uses different methods to measure and
managedifferenttypesofriskstowhichitisexposed.Theseincludemonitoringlevelsofexposure
to interest rate risk and assessments of market forecasts for interest rate. Ageing analyses and
monitoring of specific credit allowances are undertaken to manage credit risk, and liquidity risk is
monitoredthroughthedevelopmentoffuturerollingcashflowforecasts.
53
ACN120394194
TheBoardreviewsandagreespoliciesformanagingeachoftheserisksassummarisedbelow.For
thepurposesoftheseanalyses,referencetotheGroupincludestheCompany.
RiskExposuresandResponses
Interestraterisk
TheGroupsexposuretomarketinterestratesrelatesprimarilytotheGroupscashandshortterm
deposits,withafloatinginterestrate.
Atbalancedate,theGrouphadthefollowingmixoffinancialassetsexposedtoAustralianvariable
interestraterisk:
FinancialAssets
Netexposure
Consolidated
2008
2007
$
$
5,626,766
8,788,735
5,626,766
8,788,735
Parent
2008
$
3,544,723
3,544,723
2007
$
8,788,735
8,788,735
TheGroupregularlyanalysesitsinterestrateexposuretoensurethatthebestreturnsareachieved
while balancing the long term and short term cash flow requirements for the Groups business
strategies.Withinthisanalysis,considerationisgiventotheGroupsfuturecashrequirements,the
timing of deposits, alternative cash depositing facilities and the mix of fixed and variable interest
rates on bank balances. The Board of Directors oversee the management of cash funds by
managementandhaveestablishedanAcquisitionCommitteetofocusoninvestmentopportunities
throughtheacquisitionoflawfirms.
The following sensitivity analysis is based on the interest rate risk exposures in existence at the
balancesheetdate.
At30June2008,ifinterestrateshadmoved,asillustratedinthetablebelow,withallothervariables
heldconstant,posttaxprofitandequitywouldhavebeenaffectedasfollows:
Judgementsofreasonablypossible
movements:
Consolidated
+0.5%(50basispoints)
0.5%(50basispoints)
Parent
+0.5%(50basispoints)
0.5%(50basispoints)
PostTaxProfit
Higher/(Lower)
2008
2007
$
$
28,134
43,944
(28,134)
(43,944)
17,724
43,944
(17,724)
(43,944)
Equity
Higher/(Lower)
2008
2007
$
$
Thelowermovementinprofitin2008isduetolowerinterestrevenueasaresultoflowervariable
ratecashbalancesheldascomparedto2007.
Creditrisk
CreditriskarisesfromthefinancialassetsoftheGroup,whichcomprisecashandcashequivalents,
tradeandotherreceivablesandworkinprogress.TheGroupsexposuretocreditriskarisesfrom
54
ACN120394194
potentialdefaultofthecounterparty,withamaximumexposureequaltothecarryingamountof
theseinstruments.Exposureatbalancedateisaddressedineachapplicablenote.
TheGroupdoesnotholdanycreditderivativestooffsetitscreditexposure.
The Group manages its credit risk by trading with recognised, trustworthy third parties. In some
instancessecurityovertradereceivablesmayberequestedfromspecificclients,usuallydepending
on the type of legal work being undertaken, as an added measure to guarantee payment in the
eventofanunsuccessfullegaloutcomeoraprotractedmatter.
It is the Groups policy that all clients who wish to trade on credit terms are subject to credit
verificationproceduresincludinganassessmentoftheirindependentcreditrating,financialposition
andpastexperienceonacasebycasebasis.
Inaddition,receivablebalancesaremonitoredonanongoingbasiswiththeresultthattheGroups
exposuretobaddebtsisnotsignificant.
TherearenosignificantconcentrationsofcreditriskwithintheGroupandfinancialinstrumentsare
spreadbetweenreputablefinancialinstitutionstominimisetheriskofdefaultofcounterparties.
Liquidityrisk
TheGroupsobjectiveistomaintainadequateliquiditytomeettheoperatingrequirementsofthe
businessandtofacilitatetheGroupsongoingacquisitionplans.
The table below reflects all contractually fixed amounts for settlement, repayments and interest
resultingfromrecognisedfinancialliabilities.Undiscountedcashflowsfortherespectiveupcoming
fiscal years are presented. Cash flows for financial liabilities without fixed amount or timing are
basedontheconditionsexistingat30June2008.
TheremainingcontractualmaturitiesoftheGroupsandparententitysfinancialliabilitiesare:
CONSOLIDATED
30June2007
Total
30June2008
Financeleases(gross)
Insurancepremiumfundingfacilities
Total
At
Call
$
6
months
$
506,872
506,872
612
months
$
8,788,530
8,788,530
1,081,009
11,573
168,051
1,260,633
15
years
$
2,293
2,293
Total
$
8,425
8,425
9,295,402
9,295,402
1,081,009
22,291
168,051
1,271,351
55
ACN120394194
PARENT
30June2007
Total
30June2008
Total
At
Call
$
6
months
$
506,872
506,872
612
months
$
15
years
$
8,788,530
8,788,530
146,611
146,611
Total
$
9,295,402
9,295,402
146,611
146,611
Liquidity risk is managed on the basis of the businesses needs and is overseen by senior
management.TheGroupmakesuseofmonthlycashflowanalysistoconsidertheGroupsoverall
liquidityriskandtomonitorexistingfinancialliabilitiesaswellaseffectivecontrollingoffuturerisks.
At balance date, the Group has available $1,004,520 of unused credit facilities available for its
immediateuse.
4) SIGNIFICANTACCOUNTINGJUDGEMENTS,ESTIMATESANDASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts in the financial statements. Management
continually evaluates its judgements and estimates in relation to assets, liabilities, contingent
liabilities, revenue and expenses. Management bases its judgements and estimates on historical
experienceandonother variousfactorsitbelievestobereasonableunder the circumstances,the
result of which forms the basis of the carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these estimates under different
assumptionsandconditions.
Management has identified the following critical accounting policies for which significant
judgements,estimatesandassumptionsaremade.Actualresultsmaydifferfromtheseestimates
under different assumptions and conditions and may materially affect financial results or the
financialpositionreportedinfutureperiods.
Further details of the nature of these assumptions and conditions may be found in the relevant
notestothefinancialstatements.
i) Significantaccountingjudgements
Recoveryofdeferredtaxassets
Deferredtaxassetsarerecognisedfordeductibletemporarydifferencesasmanagementconsiders
thatitisprobablethatfuturetaxableprofitswillbeavailabletoutilisethosetemporarydifferences.
Taxation
The Groups accounting policy for taxation requires managements judgement as to the types of
arrangementsconsideredtobeataxonincomeincontrasttoanoperatingcost.Judgementisalso
requiredinassessingwhetherdeferredtaxassetsandcertaindeferredtaxliabilitiesarerecognised
on the balance sheet. Deferred tax assets, including those arising from unrecouped tax losses,
capitallossesandtemporarydifferences,arerecognisedonlywhereitisconsideredmorelikelythan
56
ACN120394194
not that they will be recovered, which is dependent on the generation of sufficient future taxable
profits.
Assumptionsaboutthegenerationoffuturetaxableprofitsdependonmanagementsestimatesof
future cash flows. These depend on estimates of future operating revenue, operating costs,
restoration costs, capital expenditure, dividends and other capital management transactions.
Judgementsarealsorequiredabouttheapplicationofincometaxlegislation.Thesejudgementsand
assumptions are subject to risk and uncertainty, hence there is a possibility that changes in
circumstances will alter expectations, which may impact the amount of deferred tax assets and
deferredtaxliabilitiesnotrecognisedonthebalancesheetandtheamountofothertaxlossesand
temporary differences not yet recognised. In such circumstances, some or all of the carrying
amounts of recognised deferred tax assets and liabilities may require adjustment, resulting in a
correspondingcreditorchargetotheincomestatement.
ii) Significantaccountingestimatesandassumptions
Impairmentofgoodwill
The Group determines whether goodwill is impaired at least on an annual basis. This requires an
estimationoftherecoverableamountofthecashgeneratingunits,usingavalueinusediscounted
cash flow methodology, to which the goodwill is allocated. An impairment loss of $215,826 was
recognisedinthecurrentyear.Theassumptionsusedintheestimationofrecoverableamountand
thecarryingamountofgoodwillincludingasensitivityanalysisarediscussedinnote15.
Sharebasedpaymenttransactions
TheGroupmeasuresthecostofequitysettledtransactionswithemployeesbyreferencetothefair
valueoftheequityinstrumentsatthedateatwhichtheyaregranted.Thefairvalueisdetermined
basedonthemarketpriceofanIntegratedLegalHoldingsLimitedshareatthegrantdate.
5) SEGMENTINFORMATION
TheGroupsprimarysegmentreportingformatisbusinesssegmentsastheGroupsrisksandreturns
areaffectedpredominantlybydifferencesinlegalproductsandservicesperformed.
Abusinesssegmentisadistinguishablecomponentoftheentitythatisengagedinprovidinglegal
products or services that are subject to risks and returns that are different to those of the other
operatingbusinesssegments.ManagementhasassessedthattheGroupoperatesintwobusiness
segments,beinglegalservicesandinformationtechnology.
A geographical segment is a distinguishable component of the entity that is engaged in providing

legal products or services within a particular economic environment and is subject to risk and
returns that are different than those of segments operating in other economic environments.
ManagementhasassessedthattheGroupoperatesinonegeographicalsegment,beingAustralia.
Theoperatingbusinessesareorganisedandmanagedseparatelyaccordingtothenatureofthelegal
productsandservicesprovided,witheachsegmentrepresentingastrategicbusinessunitthatoffers
differentlegalproductsandservesdifferentmarkets.
57
ACN120394194
TheLegalServicesdivisionisanoperatoroflegalpracticesthroughoutAustralia.
TheInformationTechnologydivisionprovidesaninternetportaldesignedtoprovideeasyaccesstoa
rangeoflegalandotherdocumentstothelegalprofessionandpublicalikeandinformationabout
variousareasoflaw.
Transferpricesbetweenbusinesssegmentsaresetonanarmslengthbasisinamannersimilarto
transactions with third parties. Segment revenue, segment expense and segment result include
transfersbetweenbusinesssegments.Thosetransfersareeliminatedonconsolidation.
The following tables present revenue and profit information and certain asset and liability
informationregardingbusinesssegmentsfortheyearended30June2008.TheGroupoperatedas
onebusinessandgeographicalsegmentpriortotheacquisitionofthebusinessesinAugust2007.As
aresult,segmentdisclosuresarenotrequiredforthecomparativeperiod.
Yearended30June2008
Revenue
Professionalfees
Interestrevenue
Otherrevenue
Intersegmentrevenue
Totalsegmentrevenue
Intersegmentelimination
Unallocatedrevenue
Totalconsolidatedrevenue
Result
Segmentresults
Unallocatedexpenses
Profitbeforetaxandfinancecosts
Financecosts
Profit/(loss)beforeincometax
Incometaxexpense
Assetsandliabilities
Segmentassets
Unallocatedassets
Totalassets
Segmentliabilities
Unallocatedliabilities
Totalliabilities
Othersegmentinformation
Capitalexpenditure(a)
Depreciationandamortisation
Impairmentlosses
Othernoncashexpenses
Legal
Services
$
9,384,972
10,540
82,662
9,478,174
3,025,531
8,682,775
(19,767)
6,653,596
(4,433,158)
242,809
(105,944)
(215,826)
1,064,599
Information
Technology
$
790,958
27,275
191
818,424
390,536
1,321,396
344,056
(19,767)
6,520
(16,855)
(3,295)
Total
$
10,175,930
37,815
82,853
10,296,598
391,843
10,688,441
3,416,067
(870,011)
2,546,056
(59,062)
2,486,994
(942,691)
1,544,303
10,004,171
(19,767)
6,451,092
16,435,496
6,997,652
(4,452,925)
(13,877)
2,530,850
249,329
(122,799)
(215,826)
1,061,304
58
ACN120394194
Yearended30June2008
Cashflowinformation
Netcashinflowsfromoperatingactivities
Unallocatednetcashoutflowsfromoperating
activities
Totalconsolidatednetcashinflowsfromoperating
activities
Netcashinflows/(outflows)frominvestingactivities
Unallocatednetcashoutflowsfrominvesting
activities
Totalconsolidatednetcashoutflowsfrom
investingactivities
Netcashinflowsfromfinancingactivities
Unallocatednetcashoutflowsfromfinancing
activities
Totalconsolidatednetcashoutflowsfrom
financingactivities
a)
b)
Legal
Services
$
Information
Technology
$
Total
$
528,878
735,337
(b)
1,264,215
(500,795)
444,022
(4,150,388)
214,432
1,207,442
(3,935,956)
(2,479,046)
(451,528)
4,465,780
288,004
(6,866,530)
4,753,784
(2,256,663)
(4,994,240)
(2,497,119)
TocomplywiththerequirementsofAASB114.57,theGrouphasincludedthecostofsegmentassetsacquiredbywayofbusiness
combinations.
For the purpose of reconciling total cash flows to the cash flow statement, this column also includes unallocated cash flows that
relatetounallocatedrevenues,expenses,assetsandliabilities.
6) REVENUEANDEXPENSES
a)
Otherrevenue
Rentreceived
Sundryincome
CONSOLIDATED
2008
2007
$
$
81,157
1,745
82,902
Salariesandemployeebenefitsexpense
Salariesandwagesexpense
Superannuationexpense
4,468,969
562,542
406,530
5,438,041
92,951
3,214
26,634
122,799
PARENT
2008
$
2007
$
49
49
306,273
26,355
406,530
739,158
314
314
b)
c)
Depreciationofplantandequipment
Amortisationof:
Equipmentunderfinancelease
Identifiedintangibles
59
ACN120394194
d)
e)
Otherexpenses
Authorroyaltyfees
Badanddoubtfuldebts
Otherexpenses
Financecosts
Interestotherentities
Bankfees
CONSOLIDATED
2008
2007
$
$
82,694
16,111
26,254
125,059
25,029
34,033
59,062
PARENT
2008
$
2007
$
189
189
66
428
494
7) INCOMETAX
a) Incometaxexpense
Themajorcomponentsofincometaxexpense
are:
IncomeStatement
Currentincometax
Currentincometaxcharge/(benefit)
Deferredincometax
Relatingtooriginationandreversalof
temporarydifferences
Incometaxexpense/(benefit)reportedin
theincomestatement
CONSOLIDATED
2008
2007
$
$
963,670
(20,979)
942,691
PARENT
2008
$
2007
$
(171,209)
66,143
(105,066)
(302,311)
(302,311)
2,486,994
2,486,994
205
205
(854,396)
(854,396)
205
205
(256,319)
445
28,849
121,959
(105,066)
b)
Amountschargedorcrediteddirectlyto
equity
Deferredincometaxrelatedtoitemscharged
(credited)directlytoequityseenote22
Capitalraisingcosts
c) Numericalreconciliationbetween
aggregatetaxexpenserecognisedinthe
incomestatementandtaxexpense
calculatedperthestatutoryincometax
rate
Areconciliationbetweentaxexpenseand
theproductofaccountingprofitbefore
incometaxmultipliedbytheGroups
applicableincometaxrateisasfollows:
Accountingprofit/(loss)beforetax
Totalaccountingprofit/(loss)beforeincometax
AttheParentEntitysstatutoryincometax
rateof30%(2007:30%)
Adjustmentsinrespectofcurrentincome
taxofpreviousyears
Entertainment
Fringebenefitstax
Impairmentloss
Aggregateincometaxexpense/(benefit)
(302,311)
(302,311)
746,098
4,898
4,988
64,748
121,959
942,691
60
ACN120394194
CONSOLIDATED
d)
Recogniseddeferredtaxassets
andliabilities
Openingbalance
Acquisitions
Chargedtoincome
Chargedtoequity
Otherpayments
Taxconsolidationcontributions
ClosingBalance
Taxexpense/(benefit)inincome
statement
Amountsrecognisedinthe
balancesheet:
Deferredtaxasset
Deferredtaxliability
PARENT
2008
2008
2007
2007
2008
2008
2007
2007
$
Current
Income
Tax
$
Deferred
Income
Tax
$
Current
Income
Tax
$
Deferred
Income
Tax
$
Current
Income
Tax
$
Deferred
Income
Tax
$
Current
Income
Tax
$
Deferred
Income
Tax
(80,972)
(34,292)
(963,670)
20,979
171,209
(66,143)
423,960
423,960
76,370
(1,139,481)
(968,272)
410,647
(968,272)
357,817
942,691
410,647
(105,066)
357,817
410,647
357,817
BALANCESHEET
2008
$
2007
$
363
13,523
827
36,233
38,174
3,887
7,990
97
20,394
5,079
333,086
459,653
(49,006)
410,647
48,976
30
49,006
(49,006)
Deferredincometaxasat30June2008relatestothefollowing:
CONSOLIDATED
i) Deferredtaxassets
Deferredtaxassetsacquiredonacquisitionofbusinesses:
Leasedassets
Employeeprovisions
Unpaidsuperannuation
Employeeprovisions:
Annualleave
Longserviceleave
Doubtfuldebts
Amortisationintangibleassets
Leasedassets
Accruedauditfees
Capitalraisingcosts
Grossdeferredtaxassets
Setoffofdeferredtaxliabilities
Netdeferredtaxassets
ii) Deferredtaxliabilities
Deferredtaxliabilitiesacquiredonacquisitionofbusinesses:
Identifiedintangibleatacquisition
Ownedassetsatacquisition(resetunderACA)
Grossdeferredtaxliabilities
Setoffofdeferredtaxassets
Netdeferredtaxliabilities
61
ACN120394194
Deferredincometaxasat30June2008relatestothefollowing:
PARENT
Deferredtaxassets
Employeeprovisions:
Annualleave
Longserviceleave
Accruedauditfees
Capitalraisingcosts
Grossdeferredtaxliabilities
Setoffofdeferredtaxliabilities
Netdeferredtaxassets
BALANCESHEET
2008
$
2007
$
3,150
67
20,394
1,120
333,086
357,817
357,817
e) Taxconsolidation
i) Membersofthetaxconsolidatedgroupandthetaxsharingarrangement
IntegratedLegalHoldings LimitedanditssubsidiariesformedataxconsolidatedGroupwitheffect
from10August2007.IntegratedLegalHoldingsLimitedistheheadentityofthetaxconsolidated
Group. Members of the Group have entered into a tax funding agreement that provides for the
allocation of income tax liabilities between the entities should the head entity default on its tax
payment obligations. No amounts have been recognised in the financial statements in respect of
thisagreementonthebasisthatthepossibilityofdefaultisremote.
ii) Taxeffectaccountingbymembersofthetaxconsolidatedgroup
MeasurementmethodadoptedunderUIG1052TaxConsolidationAccounting
The head entity and the controlled entities in the tax consolidated Group continue to account for
theirowncurrentanddeferredtaxamounts.TheGrouphasappliedthegroupallocationapproach
indeterminingtheappropriateamountofcurrenttaxesanddeferredtaxestoallocatetomembers
of the tax consolidated Group. The current and deferred tax amounts of the members of the
consolidatedGrouparerecognisedbytheCompany(asheadentityinthetaxconsolidatedGroup).
Natureofthetaxfundingagreement
MembersofthetaxconsolidatedGrouphaveenteredintoataxfundingagreement.Amountsare
recognisedaspayable to orreceivableby theCompanyandeachmemberofthetaxconsolidated
Groupinrelationtothetaxcontributionamountspaidorpayablebetweentheparententityandthe
other members of the tax consolidated Group in accordance with this agreement. Where the tax
contribution amount recognised by each member of the tax consolidated Group for a particular
period is different to the aggregate of the current tax liability or asset and any deferred tax asset
arisingfromunusedtaxlossesandtaxcreditsinrespectofthatperiod,thedistributionisrecognised
asacontributionfrom(ordistributedto)equityparticipants.
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ACN120394194
Taxconsolidationcontributions/(distributions)
Integrated Legal Holdings Limited has recognised the following amounts as taxconsolidation
contributionadjustments.
TotalincreasetotaxpayableofIntegratedLegalHoldingsLimited
Total increase to intercompany assets of Integrated Legal Holdings
Limited
PARENT
2008
$
1,139,481
2007
$
1,139,481
8) DIVIDENDSDECLARED
a) Unrecognisedamounts
Dividendsonordinaryshares:
Finalfrankeddividendfor2008:2.2centspershare
(2007:nil)
CONSOLIDATED
2008
2007
$
$
1,397,843
1,397,843
PARENT
2008
$
2007
$
Afterthebalancesheetdate,theabovedividendswereapprovedbytheBoardon28August2008.
Thisamounthasnotbeenrecognisedasaliabilityin2008butwillbebroughttoaccountin2009.
b) Frankingcreditbalance
Frankingcreditsavailableforthesubsequentfinancialyear:
Franking account balance as at the end of theprevious financial year at
30%(2007:30%)
Franking credits that arose from the payment of income tax payable
duringthefinancialyear
Franking credits that will arise from the payment of income tax payable
forthefinancialyear
Frankingdebitsthatwillarisefromthepaymentoffinaldividendforthe
endofthefinancialyear
PARENT
2008
$
2007
$
76,370
968,272
(419,353)
625,289
9) EARNINGSPERSHARE
Thefollowingreflectstheincomeusedinthebasicanddilutedearningspersharecomputations:
a) Earningsusedincalculatingearningspershare
Forbasicanddilutedearningspershare:
Netprofitattributabletoordinaryequityholdersoftheparent
b) Weightedaveragenumberofshares
Weighted average number of ordinary shares for basic and diluted
earningspershare
CONSOLIDATED
2008
$
2007
$
1,544,303
2008
No.
(17,368,147)
2007
No.
58,012,296
26,516,452
Noinstruments(egshareoptions)existedatbalancesheetdatewhichcouldpotentiallydilutebasic
earningspershareineitheroftheperiodspresented.
63
ACN120394194
Therehavebeennotransactionsinvolvingordinarysharesorpotentialordinarysharesthatwould
significantly change the number of ordinary shares or potential ordinary shares outstanding
betweenthereportingdateandthedateofcompletionofthesefinancialstatements.
10) CASHANDCASHEQUIVALENTS
Cashatbankandinhand
Shorttermdeposits
CONSOLIDATED
2008
2007
$
$
941,045
4,685,721
8,788,735
5,626,766
8,788,735
PARENT
2008
2007
$
$
40,642
3,504,081
8,788,735
3,544,723
8,788,735
Cashatbankearnsinterestatfloatingratesbasedondailybankdepositrates.Thecarryingamounts
ofcashandcashequivalentsrepresentsfairvalue.
Money market deposits are made for varying periods, depending on the immediate cash
requirements of the Group, are at call and earn interest at the respective money market deposit
rates.
11) TRADEANDOTHERRECEIVABLES
Tradereceivables
Allowanceforimpairmentloss(a)
Unbilledclientdisbursements
Prepayments
Interestreceivable
Otherreceivables
Carryingamountoftradeandother
receivables
CONSOLIDATED
2008
2007
$
$
2,275,812
(12,957)
2,262,855
91,419
258,893
36,266
2,085
2,651,518
PARENT
2008
2007
$
$
7,390
14,509
948
22,847
a) Allowanceforimpairmentloss
Trade receivables are noninterest bearing and are generally on 3060 day terms. A provision for
impairmentlossisrecognisedwhenthereisobjectiveevidencethatanindividualtradereceivableis
impaired. An impairment loss of $12,957 (2007: nil) has been recognised by the Group in the
currentyear.Theseamountshavebeenincludedintheothercostsexpenseitem.
Movementsintheprovisionforimpairmentlosswereasfollows:
Asat1July2007
Chargefortheyear
Asat30June2008
12,957
12,957
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ACN120394194
Asat30June2008,theaginganalysisoftradereceivablesisasfollows:
030
days
Total
3160
days
6190
Days
PDNI*
6190
Days
CI*
+91
Days
PDNI*
+91
Days
CI*
2008
Consolidated
2,275,812
1,094,502
413,385
176,972
577,996
2008
Parent
2007
Consolidated
2007
Parent
*PDNIpastduenotimpaired
12,957
CIconsideredimpaired
Receivables past due but not considered impaired are: Consolidated $754,968 (2007: nil). Each
operatingunithasbeenindirectcontactwiththerelevantdebtorandissatisfiedthatpaymentwill
bereceivedinfull.
Otherbalanceswithintradeandotherreceivablesdonotcontainimpairedassetsandarenotpast
due.Itisexpectedthattheseotherbalanceswillbereceivedwhendue.
(b)Fairvalueandcreditrisk
Duetotheshorttermnatureofthesereceivables,theircarryingvalueisassumedtoapproximate
theirfairvalue.
Themaximumexposuretocreditriskisthefairvalueofreceivables.
12) WORKINPROGRESS
Workinprogress
Carryingamountofworkinprogress
CONSOLIDATED
2008
2007
$
$
1,084,352
1,084,352
PARENT
2008
$
2007
$
Allowanceforrecoverableamount
Workinprogressisvaluedatitsnetrealisablevalueafterprovidingforanyforeseeablelossesthat
havebeencalculatedusinghistoricaldata.
13) NONCURRENTRECEIVABLES
Loanstowhollyownedsubsidiaries
CONSOLIDATED
2008
2007
$
$
PARENT
2008
2007
$
$
5,572,639
5,572,639
Relatedpartyreceivables
Loans to wholly owned subsidiaries are not interest bearing and are eliminated on consolidation.
Theparentcompanydoesnotexpecttorecalltheloanwithinthenext12months.
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ACN120394194
14) PLANTANDEQUIPMENT
Reconciliationofcarryingamountsatthebeginningandendoftheperiod
Yearended30June2008
Balanceasat1July2007netofaccumulated
depreciationandimpairment
Additions
Acquisitionofsubsidiary(note29)
Disposals
Depreciationchargefortheyear
Balanceasat30June2008netofaccumulated
CONSOLIDATED
Leased
Equipment
$
Plantand
equipment
$
Total
$
80,826
196,215
(1,199)
(92,951)
13,159
(3,214)
80,826
209,374
(1,199)
(96,165)
182,891
9,945
192,836
Asat30June2008
Cost
Accumulateddepreciationandimpairment
Netcarryingamount
275,842
(92,951)
182,891
13,159
(3,214)
9,945
289,001
(96,165)
192,836
Yearended30June2007
Additions
Disposals
Asat30June2007
Cost
Netcarryingamount
CONSOLIDATED
Leased
Equipment
$
Plantand
equipment
$
Total
$
66
ACN120394194
Yearended30June2008
Balanceasat1July2007netofaccumulated
Additions
PARENT
Leased
Equipment
$
Plantand
equipment
$
3,498
(314)
3,184
Asat30June2008
Cost
Netcarryingamount
3,498
(314)
3,184
Total
$
3,498
(314)
3,184
3,498
(314)
3,184
Yearended30June2007
Additions
Disposals
Asat30June2007
Cost
Netcarryingamount
PARENT
Leased
Equipment
$
Plantand
equipment
$
Total
$
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ACN120394194
15) GOODWILL
a) Reconciliationofcarryingamountsatthebeginningandendoftheperiod
Yearended30June2008
Balanceasat1July2007netofaccumulatedimpairment
Acquisitionofsubsidiary(note29)
Impairment
Balanceasat30June2008netofaccumulatedimpairment
CONSOLIDATED
2008
$
6,546,059
(215,826)
6,330,233
Asat30June2008
Cost(grosscarryingamount)
Accumulatedimpairment
Netcarryingamount
6,546,059
(215,826)
6,330,233
Yearended30June2007
Impairment
CONSOLIDATED
2007
$
Asat30June2007
Accumulatedimpairment
Netcarryingamount
PARENT
2008
$
2,616,164
(96,164)
2,520,000
2,616,164
(96,164)
2,520,000
PARENT
2007
$
(b)DescriptionoftheGroupsgoodwill
After initial recognition, goodwill acquired in a business combination is measured at cost less any
accumulatedimpairmentlosses.Goodwillisnotamortisedbutissubjecttoimpairmenttestingon
anannualbasisorwheneverthereisanindicationofimpairment(refertosection(d)ofthisnote).
(c)Impairmentlossesrecognised
Animpairmentlossof$215,826ongoodwillwasrecognisedinthe2008financialyear.Theimpaired
goodwill related to the acquisition of Law Central Co Pty Ltd and Brett Davies Lawyers. The
impairmentlosshasbeenrecognisedintheIncomeStatementinthelineitemimpairmentloss.
TheLawCentralCoPtyLtdcashgeneratingunitisincludedintheinformationtechnologysegment
andtheBrettDaviesLawyerscashgeneratingunitisincludedinthelegalservicessegment.
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ACN120394194
(d)Impairmenttestsforgoodwillwithindefiniteusefullives
(i)Descriptionofthecashgeneratingunitsandotherrelevantinformation
Goodwill acquired through business combinations has been allocated to three individual cash
generatingunitsforimpairmenttestingasfollows:
TalbotOliviercashgeneratingunit(legalservicesreportablesegmentrefernote5);
BrettDaviesLawyerscashgeneratingunit(legalservicesreportablesegmentrefernote5);
and
LawCentralcashgeneratingunit (informationtechnologyreportablesegmentrefernote
5).
Therecoverableamountsofthecashgeneratingunitshavebeendeterminedbasedonavalueinuse
calculationusingcashflowprojectionsasat30Junethatisbasedonfinancialbudgetsapprovedby
seniormanagementcoveringafiveyearperiod.
Thevalueinuseiscomparedtothenetcarryingamountofgoodwillrecognisedintheaccounts.If
the calculated recoverable amount exceeds the net carrying amount, no impairment loss is
recorded.
(ii)Keyassumptionsusedinvalueinusecalculations
Thekeyassumptionsmadebymanagementindeterminingthevalueinuseinclude:
Goodwillrecognised
Discountrate
Growthinfees
Talbot
Oliver
$3,106,233
18.5%
8.0%
Brett
Davies
Lawyer
$704,000
18.5%
8.0%
Law
Central
$2,520,000
18.5%
8.0%
Discountrate
Thediscountrateappliedof18.5%reflectsmanagement'sestimateofthetimevalueofmoneyand
risks specific to the cost generating units. This is the benchmark used by management to assess
operatingperformanceandtoevaluatefutureinvestmentproposals.
GrowthinFees
The forecast growth in fees of 8% per annum is based on budgeted fee increases, anticipated
inflationandfeegrowthtobegeneratedfromtheclientbase.
(iii)Sensitivitytochangesinassumptions
Management believes that no reasonably possible change in any of the above key assumptions
wouldcausethecarryingvalueofthecashgeneratingunitstoexceedtheirrecoverableamount.
69
ACN120394194
16) INTANGIBLEASSETS
a) Reconciliationofcarryingamountsatthebeginningandendoftheperiod
Yearended30June2008
Balanceasat1July2007netofaccumulatedamortisationand
impairment
Acquisitionofbusiness(note29)
Amortisation
Balanceasat30June2008netofaccumulatedamortisationand
impairment
CONSOLIDATED
2008
$
PARENT
2008
$
163,254
(26,634)
136,620
Asat30June2008
Accumulatedamortisation
Netcarryingamount
163,254
(26,634)
136,620
Yearended30June2007
impairment
Amortisation
impairment
Asat30June2007
Accumulatedamortisation
Netcarryingamount
CONSOLIDATED
2007
$
PARENT
2007
$
b) DescriptionoftheGroupsidentifiedintangibleassets
Intangibles represent the value of leased premises acquired upon the acquisition of the legal
practice of Peter Marks (see note 29) and is carried at cost less accumulated amortisation. This
intangible asset has been assessed as having a finite life and is amortised using the straight line
methodovertheremainingtermofthelease.TheamortisationhasbeenrecognisedintheIncome
Statementinthelineitemdepreciationandamortisationexpense.
70
ACN120394194
17) INVESTMENTSINSUBSIDIARIES
Unlisted
1ordinaryshareheldinTalbotOlivier
PtyLtdtradingasTalbotOlivieratcost
1ordinaryshareheldinTaxLawyers
AustraliaPtyLtdtradingasBrettDavies
Lawyersatcost
57,010,000ordinarysharesheldinLaw
CentralCoPtyLtdatcost
CONSOLIDATED
2008
2007
$
$
PARENT
2008
$
2007
$
712,884
712,886
18) NONCURRENTAVAILABLEFORSALEFINANCIALASSETS
Availableforsalefinancialassets
SharesinListedSecuritiesatfairvalue
CONSOLIDATED
2008
2007
$
$
2,524
2,524
PARENT
2008
$
2,524
2,524
2007
$
Availableforsale investments consist of investments in ordinary shares. The fair value of listed
availableforsale investments has been determined directly by reference to published price
quotationsinanactivemarket.
19) TRADEANDOTHERPAYABLES
CONSOLIDATED
PARENT
2008
2007
2008
2007
$
$
$
$
Tradepayables
859,110
78,629
(1)
Otherpayablesandaccruals
221,899
8,788,530
67,982
8,788,530
Relatedpartypayables(b)
506,872
506,872
1,081,009
9,295,402
146,611
9,295,402
(1) Otherpayablesandaccrualsin 2007relatetoIPOapplication moniesreceivedandheldintrustpriorto listing
withtheASXon17August2007.
a) Fairvalue
Duetotheshorttermnatureofthesepayables,theircarryingvalueisassumedtoapproximatetheir
fairvalue.
b) Relatedpartypayables
Therelatedpartypayablesrelatetocapitalisedexpenditureasdisclosedinthebalancesheet.This
amountrepresentscapitalisedshareissuecoststhathavesubsequentlybeenreflectedinequityasa
deductionfromtheproceedsfromshareissueafterthelistingofIntegratedLegalHoldingsLimited
ontheASXon17August2007.
Fortermsandconditionsrelatingtorelatedpartypayablesrefertonote27.
c) Interestrateandliquidityrisk
Informationregardinginterestrateandliquidityriskexposureissetoutinnote3.
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ACN120394194
20) INTERESTBEARINGLOANSANDBORROWINGS
Current
Obligationsunderfinanceleasesand
hirepurchasecontracts(note30(i))
Insurancepremiumfunding(unsecured)
CONSOLIDATED
2008
2007
$
$
1,713
168,051
169,764
NonCurrent
Obligationsunderfinanceleasesand
hirepurchasecontracts(note30(i))
18,708
18,708
PARENT
2008
$
2007
$
The carrying amount of the Groups current and noncurrent borrowings approximate their fair
value.
Detailsregardingliquidityriskisdisclosedinnote3.
a) Assetspledgedassecurity
The carrying amounts of assets pledged as security for current and noncurrent interest bearing
liabilitiesare:
Financelease
Leasedofficeequipment
Totalassetspledgedassecurity
Note
14
CONSOLIDATED
2008
2007
$
$
27,821
27,821
PARENT
2008
$
2007
$
b) Defaultsandbreaches
Duringtheyeartherewerenodefaultsorbreachesonanyoftheloans.
21) PROVISIONS
Current
Longserviceleave
Annualleave
NonCurrent
Longserviceleave
CONSOLIDATED
2008
2007
$
$
18,555
154,556
173,111
119,986
119,986
PARENT
2008
$
2007
$
10,501
10,501
223
223
72
ACN120394194
22) ISSUEDCAPITAL
Ordinaryshares:
63,538,320(2007:34,736,704)ordinary
fullypaidshares
CONSOLIDATED
2008
2007
$
$
29,729,975
17,368,352
PARENT
2008
$
29,729,975
2007
$
17,368,352
Fullypaidordinarysharescarryonevotepershareandcarrytherighttodividends.Theshareshave
noparvalue.
Movementinordinarysharesonissue:
Openingbalanceat1July2007
Issueofsharestosubscribersofinitialpublicofferingon17August2007at50centsper
share
IssueofsharestoshareholdersofLawCentralCoPtyLtdatadeemedvalueof50cents
pershareaspartoftheconsiderationfortheacquisitionofthecompany
Issueofsharesatamarketvalueof15centspersharetoGFowleron21April2008on
hisappointmentasManagingDirector/CEOoftheCompanysharebasedpayments
Costsassociatedwiththecapitalraising
Incometaxoncapitalraisingcoststakendirectlytoequity
Shares
34,736,704
$
17,368,352
24,833,320
12,416,660
1,258,096
629,048
2,710,200
63,538,320
406,530
(1,514,575)
423,960
29,729,975
Shares
$
Openingbalanceat26June2006
Issuedonincorporation
1
1
Issue of shares at a deemed value of 50 cents per share to vendors of Talbot Olivier
business assets, Brett Davies Lawyers business assets, Law Central Co Pty Ltd
shareholderson29August2006
24,408,193
12,204,096
Issue of shares at a deemed value of 50 cents per share on 29 August 2006 share
basedpayments
Todirectors
1,529,999
764,999
Tosupporters(1)
4,371,603
2,185,802
Issueofsharesatadeemedvalueof50centspershareon28February2007share
basedpayments
Todirectors
586,398
293,199
Tosupporters
20,000
10,000
Issueofsharesatadeemedvalueof50centspershareon28February2007share
basedpayments
Tosupporters
3,820,510
1,910,255
34,736,704
17,368,352
(1) The effect of a correction of error in the previous year reduced the number of shares issued from 7,081,803 to
4,371,603(refernote23).
73
ACN120394194
a) Capitalmanagement
TheGroupsobjectiveswhenmanagingcapitalaretosafeguardtheGroupsabilitytocontinueasa
going concern, in order to provide returns to shareholders, and to maintain an optimal capital
structuretoallowtheGrouptopursueitsfutureacquisitionactivities.
Inordertomaintainoradjustthecapitalstructure,theGroupmayadjusttheamountofdividends
paidtoshareholdersandincreaseordecreasetheGroupsdebt,subjecttothecapitalrequirements
oftheGroupsoperationsatthetime.
TheDirectorshavedeclaredafinaldividendforthe2008financialyearof$1,397,843(2007:Nil).
TheGroupmonitorscapitalonthebasisofthegearingratio.ThelevelofgearingintheCompanyis
withintheacceptablelimitssetbytheDirectorsgiventheimplicationsoftheinitialpublicoffering
andbusinessacquisitionsonlisting.
23) ACCUMULATEDLOSSES
AccumulatedLosses
CONSOLIDATED
2008
2007
$
$
(15,823,884)
(17,368,147)
PARENT
2008
2007
$
$
(18,117,477)
(17,368,147)
Balanceatthebeginningoftheyearas
reportedinthe2007financialreport
Correctionoferror(1)
Restatedbalanceatbeginningofyear
Balanceatendoftheyear
(18,723,247)
1,355,100
(17,368,147)
1,544,303
(15,823,884)
(18,723,247)
1,355,100
(17,368,147)
(749,330)
(18,117,477)
(17,368,147)
(17,368,147)
(17,368,147)
(17,368,147)
(1)
Errorrelatedtotherecognitionofsharebasedpaymentexpensesfor2,710,200sharesoriginally
issued to supporters but subsequently returned into a share trust controlled by the Group. This
representsareversalofsharebasedpaymentexpensesincorrectlyrecognisedforsharesissuedbut
not distributed, and a reversal of the value of the shares recognised, consistent with the
requirementsofUIG112ConsolidationSpecialPurposeEntities.
24) RESERVES
Netunrealisedgainsreserve:
Netunrealisedlossonavailableforsale
investments
CONSOLIDATED
2008
2007
$
$
(1,485)
PARENT
2008
$
(1,485)
2007
$
Netunrealisedgainsreserve
Thisreserverecordsmovementsinthefairvalueofavailableforsalefinancialassets.
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ACN120394194
25) IMPAIRMENTLOSSES
Thecarryingvaluesofassetsarereviewedforimpairmentwheneventsorchangesincircumstances
indicatethatthecarryingvaluemaynotberecoverable.Ifanysuchindicationexistsandwherethe
carrying values exceed the estimated recoverable amount, the assets are written down to their
recoverableamount.
Animpairmentlossof$215,826(2007:$12,204,097)hasbeenrecognisedintheIncomeStatement
inrespectoftheacquisitionofbusinessesduringtheyear(refernote15(c)).
The$12,204,097impairmentlossrecognisedintheprioryearwasinrespectofawritedownofthe
valueofoptionstopurchaselawsfirms.Theoptiontosecuretherighttoacquirethelawfirmsdid
notresultinanyfinancialbenefitintheformofareductioninthesalepriceofthelawfirms.
26) CASHFLOWRECONCILIATION
a)
Reconciliationofnetprofitaftertax
tonetcashflowsfromoperations
Netprofit
Adjustmentsfor:
Impairmentlosses
Badanddoubtfuldebts
Changesinassetsandliabilities:
(Increase)/decreaseintradeandother
receivables
(Increase)/decreaseinworkinprogress
(Increase)/decreaseinnetdeferredtax
assets
Increase/(decrease)intradeandother
payables
Increase/(decrease)inincometax
payable
Increase/(decrease)inprovisions
Netcashfromoperatingactivities
CONSOLIDATED
2008
2007
$
$
2008
$
PARENT
1,544,303
122,799
215,826
16,111
406,530
(749,330)
314
96,164
406,530
(1,491,560)
(884,352)
(22,847)
(20,979)
66,143
374,106
146,610
887,300
(50,653)
1,119,431
205
(171,210)
10,724
(216,902)
205
629,048
629,048
(17,368,147)
12,204,097
5,164,255
2007
$
(17,368,147)
12,204,097
5,164,255
b)
Noncashfinancingandinvesting
activities
Settlementofsubsidiarypurchasewith
shares(note29)
75
ACN120394194
27) RELATEDPARTIES
Transactionswithrelatedparties
Thefollowingtableprovidestheamountoftransactionsthatwereenteredintowithrelatedparties
for the relevant period (for information regarding outstanding balances on related party trade
payablesatperiodendrefernote19):
a) Subsidiaries
TheconsolidatedfinancialstatementsincludethefinancialstatementsofIntegratedLegalHoldings
Limitedandthesubsidiarieslistedinthefollowingtable:
Name
TalbotOlivierPtyLtd
TaxLawyersAustraliaPtyLtd
LawCentralCoPtyLtd
Countryof
Incorporation
Australia
Australia
Australia
%EQUITYINTEREST
2008
2007
100%
100%
100%
INVESTMENT
2008
2007
1
712,884
712,886
b) Ultimateparent
IntegratedLegalHoldingsLimitedistheultimateAustralianparententityandtheultimateparentof
theGroup.
c) Keymanagementpersonnel
DetailsrelatingtoKMP,includingremunerationpaid,areincludedinnote28.
76
ACN120394194
d) Transactionswithrelatedparties
The following table provides the total amount of transactions that were entered into with related
parties for the relevant financial year (for information regarding outstanding balances on related
partytradepayablesatyearend,refertonote19):
RelatedParty
CONSOLIDATED
Parententity:
BrettDaviesLawyerslegaladvice
Subsidiaries:
BrettDaviesLawyerslegaladviceforLawCentral
LawCentrallegaladvicefromBrettDavies
2008
2007
2008
2007
2008
2007
Purchases
from
Related
Parties
$
Salesto
Related
Parties
$
4,400
62,582
62,582
Other
Transactions
withRelated
Parties
$
RelatedParty
PARENT
Subsidiaries:
BrettDaviesLawyerslegaladvice
2008
2007
Purchases
from
Related
Parties
$
Salesto
Related
Parties
$
4,400
Other
Transactions
withRelated
Parties
$
Termsandconditionsoftransactionswithrelatedparties
Sales to and purchases from related parties are made in arms length transactions both at normal
marketpricesandonnormalcommercialterms.
Termsandconditionsofthetaxfundingarrangementaresetoutinnote7(e)(i).
Outstandingbalancesatyearendareunsecured,interestfreeandsettlementoccursincash.
77
ACN120394194
28) KEYMANAGEMENTPERSONNEL
a) DetailsofKeyManagementPersonnel
i) Directors
JDawkins
ATregonning
THenn
GFowler
ii) Executives
BTaylor
BDavies
JMRudd
Chairman(nonexecutive)
Nonexecutivedirector
Managingdirector
Managingdirector/CEO
ChiefExecutive,TalbotOlivier
Companysecretary
ChiefExecutive,BrettDaviesLawyers
Financialcontroller
Companysecretary
appointed27June2006
resigned28April2008
appointed28April2008
resigned28August2008
appointed4September2007
b) CompensationofKeyManagementPersonnel
Shorttermemployeebenefits
Postemploymentbenefits
Otherlongtermbenefits
Terminationbenefits
Sharebasedpayment
2008
$
304,631
138,242
406,530
849,403
2007
$
1,058,199
1,058,199
c) ShareholdingsofKeyManagementPersonnel
OrdinarysharesheldinIntegratedLegalHoldingsLimited:
Directors
JDawkins(4)
(4)
ATregonning
THenn
(1)(4)
Balance
1July2007
Grantedas
Remuneration
NetChange
Other
Balance
30June2008
1,626,398
1,626,398
300,000
300,000
140,000
(140,000)
2,710,200
(4)
GFowler
2,710,200
Executives
(2)(4)
BTaylor
BDavies
(2)(4)
(3)
JMRudd
Total
3,068,340
3,068,340
7,562,916
7,562,916
27,500
27,500
2,710,200
10,518,756
15,295,354
2,066,398
(1)MrHennresignedasManagingDirectoron28April2008.
(2)MrTaylorandMrDavieswereappointedasChiefExecutiveson10August2007.
(3)MrsRuddcommencedemploymenton4September2007.
(4)Thesesharesaresubjectto24monthvoluntaryescrowrestrictionfrom17August2007,whichisthedatetheCompanylistedonthe
ASX.
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ACN120394194
Balance
26June2006
Directors
JDawkins(2)
(2)
ATregonning
(2)
THenn
(1)(2))
WBlack
(1)(2)
HModi
Grantedon
Incorporation
Total
Grantedas
Remuneration
NetChange
Resignationof
Director
Balance
30June2007
1,626,398
1,626,398
300,000
300,000
139,999
140,000
10,000
(10,000)
40,000
(40,000)
2,116,397
(50,000)
2,066,398
(1)MrBlackandMrModiresignedasDirectorson6October2006.
(2)Thesesharesaresubjectto24monthvoluntaryescrowrestrictionfrom17August2007,whichisthedatetheCompanylistedonthe
ASX.
d) OthertransactionswithKeyManagementPersonnelandtheirrelatedparties
LeaseofBusinessPremises
The Companys corporate office, Brett Davies Lawyers and Law Central Co Pty Ltd share business
premisesat201AdelaideTerrace,Perth.ThesepremisesareleasedfromTheDaviesServiceTrust,
an entity that is controlled by Mr Davies, Chief Executive of Brett Davies Lawyers. Monthly lease
rentalsforeachoftheseentitieshavebeencalculatedatcommercialmarketrates.
AmountsrecognisedatthereportingdateinrelationtoothertransactionswithKMP:
Revenueandexpenses
Rentpaid
2008
$
80,428
2007
$
29) BUSINESSCOMBINATIONS
AcquisitionofTalbotOlivier
On 11 January 2006, the company (through its agent, Law Central Co Pty Ltd) and the foundation
partnersofTalbotOlivierenteredintoanOptionAgreementwherebyanoptionwasgrantedtothe
company,exercisablethroughitswhollyownedsubsidiaryTalbotOlivierPtyLtd,toacquire100%of
theTalbotOlivierbusinessassets.Thisagreementwassubsequentlyvariedbyanagreementdated
19September2006and wasfurther amendedby agreements betweenthesamepartiesdated12
March2007and15May2007.
Theoptionwasexercisedon10August2007andthepurchasepriceagreedtobepaidincashupon
theexerciseoftheoptionwas$3,194,648.
TalbotOlivierPtyLtd,tradingasTalbotOlivier,wasincorporatedon10August2007andisawholly
ownedsubsidiaryofIntegratedLegalHoldingsLimited.
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ACN120394194
Thefollowingconstitutesthecalculationoftheconsiderationgivenandthefairvalueofnetassets
acquiredinTalbotOlivier:
Consideration
Cash
Directcostsrelatingtotheacquisition
Totalcashconsideration
Totalacquisitioncost
Netassetsacquired
Assets
Plantandequipment
Workinprogress
Prepayments
Totalassetsacquired
Liabilities
Provisionforinsurancepremium
Totalliabilitiesacquired
Netassetsacquired
Goodwillonacquisition
Fair
Value
$
130,866
200,000
164,079
494,945
134,136
134,136
360,809
3,001,233
3,194,648
167,394
3,362,042
3,362,042
Carrying
Amount
$
130,866
200,000
164,079
494,945
134,136
134,136
360,809
Fromthedateofacquisition,TalbotOlivierhascontributed$1,939,209tothenetprofitaftertaxof
theGroup.
Ifthecombinationhadtakenplaceatthebeginningoftheyear,theprofitfortheGroupwouldhave
been$1,776,365andrevenuewouldhavebeen$11,797,709.
$
Thecashoutflowonacquisitionisasfollows:
Netcashacquiredwiththebusiness

Cashpaid
3,194,648
Netconsolidatedcashoutflow
3,194,648
BrettDaviesLawyers
On30March2007,thecompany(throughitsagent,LawCentralCoPtyLtd)andBrettDavies,owner
oftheBrettDaviesLawyersbusinessassets,enteredintoanOptionAgreementwherebyanoption
wasgrantedtothecompany,exercisablethroughitswhollyownedsubsidiaryTaxLawyersAustralia
PtyLtd,toacquire100%oftheBrettDaviesLawyersbusinessassets.
Theoptionwasexercisedon10August2007andthepurchasepriceagreedtobepaidincashupon
theexerciseoftheoptionwas$804,000.
TaxLawyersAustraliaPtyLtd,tradingasBrettDaviesLawyers,wasincorporatedon8August2007
andisawhollyownedsubsidiaryofIntegratedLegalHoldingsLimited.
80
ACN120394194
acquiredinBrettDaviesLawyers:
Consideration
Cash
Netassetsacquired
Assets
Plantandequipment
Totalassetsacquired
Netassetsacquired
Fair
Value
$
17,454
17,454
17,454
823,662
804,000
37,116
841,116
841,116
Carrying
Amount
$
17,454
17,454
17,454
Thegoodwilldisclosedabove,beingtheexcessofthecostoftheacquisitionovertheidentifiablenet
assetsacquired,isnotfullysupportedbytheresultsofindependentvaluationsandhasbeenwritten
down to the independent valuation amount of $704,000. The impairment expense that has been
recognisedintheIncomeStatementis$119,662.
Fromthedateofacquisition,BrettDaviesLawyershascontributed$89,968tothenetprofitaftertax
oftheGroup.
$

Cashpaid
804,000
804,000
AcquisitionofLawCentralCoPtyLtd
UnderthetermsoftheProspectusdated16May2007,thecompanyofferedtoacquire100%ofthe
fullypaidordinarysharesinthecapitalofLawCentralCoPtyLtd.Theofferwasconditionalupon
theacceptanceoftheofferbyatleast90%oftheLawCentralCoPtyLtdshareholdersby15August
2007.
Thisconditionwassatisfiedinfulland100%oftheLawCentralCoPtyLtdshareholdersacceptedthe
offer.
The consideration offered by Integrated Legal Holdings Limited was 0.105028 fully paid ordinary
sharesinthecompanytogetherwithacashpaymentof$0.04736011forevery1LawCentralCoPty
Ltdshare.Settlementtookplaceon10August2007andIntegratedLegalHoldingsLimitedissued
1,258,096sharesinthecompanyandpaid$2,700,000incashtothevendors.
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ACN120394194
acquiredinLawCentralCoPtyLtd:
Consideration
Cash
Sharesissuedatfairvalue
Netassetsacquired
Assets
Tradeandotherreceivables
Property,plantandequipment
Deferredtaxassets
Liabilities
Incometaxpayable
Provisions
Netassetsacquired
Fair
Value
$
220,953
995,879
37,173
14,684
1,268,689
200,031
15,060
80,972
259,742
555,805
712,884
2,616,164
2,700,000
2,700,000
629,048
3,329,048
Carrying
Amount
$
220,953
995,879
37,173
14,684
1,268,689
95,031
15,060
80,972
259,742
450,805
817,884
Thegoodwilldisclosedabove,beingtheexcessofthecostoftheacquisitionovertheidentifiablenet
assetsacquired,isnotfullysupportedbytheresultsofindependentvaluationsandhasbeenwritten
downtotheindependentvaluationamountof$2,520,000.Theimpairmentexpensethathasbeen
recognisedintheIncomeStatementis$96,164.
Fromthedateofacquisition,LawCentralCoPtyLtdhascontributed$264,456tothenetprofitof
theGroup.
$
(220,953)
Cashpaid
2,700,000
2,479,047
PeterMarksSuccessionLawyers
On 19 September 2007, the company, through its wholly owned subsidiary Talbot Olivier Pty Ltd,
acquired 100% of the legal practice of the late Peter Marks trading as Peter Marks Succession
Lawyers.ThisacquisitionwasmergedintotheexistingpracticeofTalbotOlivier.
The assets purchased include goodwill and business assets excluding all work in progress and
outstandingdebtors.
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ACN120394194
acquiredinthepracticeofPeterMarksSuccessionLawyers:
Consideration
Cash
Netassetsacquired
Assets
Plantandequipment
Intangibleassets
Totalassetsacquired
Liabilities
Deferredtaxliability
Netassetsacquired
Fair
Value
$
10,722
163,254
173,976
48,976
48,976
125,000
125,000
125,000
125,000
Carrying
Amount
$
10,722
10,722
10,722
ItisimpracticabletodisclosePeterMarksSuccessionLawyersprofitandrevenuefortheGroupas
theinformationisnotavailable.TheacquireescontributiontothenetprofitoftheGroupcannotbe
determinedasthisbusinesshasbeenincorporatedintotheTalbotOlivierbusiness.
$

Cashpaid
125,000
125,000
ShayneLeslie
On 28 September 2007, the company, through its wholly owned subsidiary, Talbot Olivier Pty Ltd,
acquiredthelegalpracticeofShayneLeslie.Thisacquisitionwasmergedintotheexistingpracticeof
TalbotOlivier.
Theconsiderationforthepurchaseiscashonly.
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ACN120394194
acquiredinthepracticeofShayneLeslie:
Consideration
Cash
Netassetsacquired
Fair
Value
$
105,000
50,000
55,000
105,000
105,000
Carrying
Amount
$
ItisimpracticabletodiscloseShayneLesliesprofitandrevenuefortheGroupastheinformationis
not available. The acquirees contribution to the net profit of the Group cannot be determined as
thisbusinesshasbeenincorporatedintotheTalbotOlivierbusiness.
$

Cashpaid
105,000
105,000
30) EXPENDITURECOMMITMENTS
i) Leasingcommitments
OperatingleasecommitmentsGroupaslessee
TheGrouphasenteredintooperatingleasesfortherentalofofficespaceatitsvariouscommercial
premises.Thesenoncancellableleaseshaveremainingtermsofbetween4to10years.Theleases
haverenewaloptions.Renewalsareattheoptionofthespecificentitythatholdsthelease.
Futureminimumrentalspayableundernoncancellableoperatingleasesasat30Juneareasfollows:
Withinoneyear
Afteroneyearbutnotmorethanfiveyears
Aftermorethanfiveyears
Totalminimumleasepayments
CONSOLIDATED
2008
2007
$
$
457,637
1,804,788
2,146,872
4,409,297
PARENT
2008
$
2007
$
84
ACN120394194
FinanceleaseandhirepurchasecommitmentsGroupaslessee
TheGrouphasfinanceleasesandhirepurchasecontractsforvariousitemsofplantandequipment
withacarryingamountof$20,127(2007:nil).Thesecontractsexpirewithin1to4years.Theleases
havetermsofrenewalandpurchaseoptions.Renewalsareattheoptionofthespecificentitythat
holdsthelease.
Withinoneyear
Totalminimumleasepayments
Lessamountsrepresentingfinancecharges
Presentvalueofminimumleasepayments
CONSOLIDATED
2008
2007
$
$
13,866
8,425
22,291
(1,870)
20,421
PARENT
2008
$
2007
$
Includedinthefinancialstatementsas:
Currentinterestbearingloansand
borrowings(note20)
Noncurrentinterestbearingloansand
borrowings(note20)
Totalinterestbearingloansandborrowings
CONSOLIDATED
2008
2007
$
$
PARENT
2008
$
2007
$
1,713
18,708
20,421
ii) Plantandequipmentrentalcommitments
TheGrouphascontractualobligationsfortherentalofplantandequipment.Therentalagreements
expirewithin2and3yearsandhavepurchaseoptionsonexpiry.Rentalcommitmentscontracted
foratbalancedatebutnotrecognisedasliabilitiesareasfollows:
Withinoneyear
Totalminimumrentalpayments
CONSOLIDATED
2008
2007
$
$
179,101
190,689
369,790
PARENT
2008
$
2007
$
iii) Remunerationcommitments
Commitmentsforthepaymentofsalaries
andotherremunerationunderlongterm
employmentcontractsinexistenceatthe
reportingdatebutnotrecognisedas
liabilities,payable:
Withinoneyear
CONSOLIDATED
2008
2007
$
$
472,500
294,966
767,466
PARENT
2008
$
272,500
272,500
545,000
2007
$
85
ACN120394194
Amounts disclosed as remuneration commitments include commitments arising from the service
contractsofdirectorsandexecutivesreferredtointheRemunerationReportoftheDirectorsReport
thatarenotrecognisedasliabilitiesandarenotincludedinthecompensationofKMP.
31) CONTINGENCIES
Crossguarantees
Pursuant to Class Order 98/1418, relief has been granted to Talbot Olivier Pty Ltd, Tax Lawyers
Australia Pty Ltd and Law Central Co Pty Ltd from the Corporations Act 2001 requirements for
preparation,auditandlodgementoftheirfinancialreports.
As a condition of the Class Order, Integrated Legal Holdings Limited, Talbot Olivier Pty Ltd, Tax
LawyersAustraliaPtyLtdandLawCentralCoPtyLtdenteredintoaDeedofCrossGuaranteeon16
June2008.TheeffectofthedeedisthatIntegratedLegalHoldingsLimitedhasguaranteedtopay
any deficiency in the event of winding up of either controlled entity or if they do not meet their
obligationsunderthetermsofoverdrafts,loans,leasesorotherliabilitiessubjecttotheguarantee.
The controlled entities have also given a similar guarantee in the event that Integrated Legal
Holdings Limited is wound up or if it does not meet its obligations under the terms of overdrafts,
loans,leasesorotherliabilitiessubjecttotheguarantee.
32) AUDITORSREMUNERATION
TheauditorofIntegratedLegalHoldingsLimitedisErnst&Young.
Amounts received or due and receivable by Ernst &

Young(Australia)for:
anauditorreviewofthefinancialreportof
thecompany
otherservicesinrelationtothecompany
o Taxcompliance
o Taxationservices
o Duediligenceservices
AmountsreceivedordueandreceivablebynonErnst
&Young(Australia)firmsfor:
otherservicesinrelationtothecompany
o
o
Specialauditsrequiredbyregulators
Taxationservices
CONSOLIDATED
2008
2007
$
$
PARENT
2008
$
2007
$
38,475
145,067
183,542
243,730
9,470
32,853
286,053
183,542
507
507
286,560
243,730
9,470
32,853
286,053
6,313
2,144
8,457
294,510
38,475
145,067
183,542
183,542
33) EVENTSAFTERBALANCESHEETDATE
On 28 August 2008, The Directors declared a fully franked final dividend with respect to the year
ended30June2008of2.2centspershare,witharecorddateof17October2008andapayment
dateof7November2008.Thetotalamountofthedividendis$1,397,843.
86
ACN120394194
DirectorsDeclaration
InaccordancewitharesolutionofthedirectorsofIntegratedLegalHoldingsLimited,Istatethat:
1. Intheopinionofthedirectors:
a. Thefinancialstatements,notesandtheadditionaldisclosuresincludedinthedirectors
reportdesignatedasaudited,oftheCompanyandconsolidatedentityareinaccordance
withtheCorporationsAct2001,including:
i. givingatrueandfairviewoftheCompanysandconsolidatedentitysfinancial
positionasat30June2008andoftheirperformancefortheyearendedonthat
date;and
ii. complyingwithAccountingStandardsandCorporationsRegulations2001;and
b. therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebts
asandwhentheybecomedueandpayable.
2. This declaration has been made after receiving the declarations required to be made to the
directors in accordance with section 295A of the Corporations Act 2001 for the financial year
ended30June2008.
Intheopinionofthe directors,asatthedateofthisdeclaration,therearereasonablegroundsto
believe that the members of the closed group comprising the Company and its controlled entities
will be able to meet any obligations or liabilities to which they are or may become subject to by
virtueofthedeedofcrossguaranteereferredtoinNote31.
OnbehalfoftheBoard.
GFowler
ManagingDirector
Sydney,25September2008
87
Independent audit report to members of Integrated Legal Holdings Limited

Scope
We have audited the accompanying financial report of Integrated Legal Holdings Limited (the Company)
and the entities it controlled (the Group) during the year, which comprises the balance sheet as at 30
June 2008, and the Income Statement, Statement of Changes in Equity and Cash Flow Statement for the
year ended on that date, a summary of significant accounting policies, other explanatory notes and the
Directors Declaration of the consolidated entity comprising the company and the entities it controlled at
the years end or from time to time during the financial year.
Directors Responsibility for the Financial Report
The directors of the company are responsible for the preparation and fair presentation of the financial
report in accordance with the Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining
internal controls relevant to the preparation and fair presentation of the financial report that is free from
material misstatement, whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the circumstances. In Note 2, the
directors also state that the financial report, comprising the financial statements and notes, complies with
International Financial Reporting Standards as issued by the International Accounting Standards Board.
Auditors Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our
audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply
with relevant ethical requirements relating to audit engagements and plan and perform the audit to
obtain reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial report. The procedures selected depend on our judgment, including the assessment of the
risks of material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, we consider internal controls relevant to the entitys preparation and fair presentation of
the financial report in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entitys internal controls. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the directors, as well as evaluating the overall presentation of the financial
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Independence
In conducting our audit we have met the independence requirements of the Corporations Act 2001. We
have given to the directors of the company a written Auditors Independence Declaration, a copy of which
is included in the Directors Report. In addition to our audit of the financial report, we were engaged to
undertake the services disclosed in the notes to the financial statements. The provision of these services
has not impaired our independence.
GHM:NR:ILH:022
Liability limited by a scheme approved

under Professional Standards Legislation
Auditors Opinion
In our opinion:
1.
the financial report of Integrated Legal Holdings Limited is in accordance with the Corporations Act
2001, including:
i giving a true and fair view of the financial position of Integrated Legal Holdings Limited and the
consolidated entity at 30 June 2008 and of their performance for the year ended on that date;
and
ii complying with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Regulation 2001.
2.
the financial report also complies with International Financial Reporting Standards as issued by the
International Accounting Standards Board.
Report on the Remuneration Report

We have audited the Remuneration Report included in pages 15 to 23 of the Directors Report for the
year ended 30 June 2008. The directors of the company are responsible for the preparation and
presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001.
Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
Auditors Opinion
In our opinion the Remuneration Report of Integrated Legal Holdings Limited for the year ended 30 June
2008, complies with section 300A of the Corporations Act 2001.
Ernst & Young
G H Meyerowitz
Partner
Perth
25 September 2008
GHM:NR:ILH:022
ACN120394194
ASXAdditionalInformation
AdditionalinformationrequiredbytheAustralianStockExchangeLimitedandnotshownelsewhere
inthisreportisasfollows.Theinformationiscurrentasat4September2008.
a) Distributionofequitysecurities
Ordinarysharecapital
63,538,320fullypaidordinarysharesareheldby943individualshareholders.
Allissuedordinarysharescarryonevotepershareandcarrytherightstodividends.
Thenumbersofshareholdersbysizeofholdingare:
11,000
4
1,0015000
158
5,00110,000
264
10,001100,000
460
100,001andover
57
943
Holdinglessthanamarketableparcel
15
b) Substantialshareholders
Ordinaryshareholders
FullyPaid
Number
Percentage
DaviesSuperannuationFund
7,555,416
11.89
c) 20largestholdersofquotedequitysecurities
Ordinaryshareholders
DaviesSuperannuationFund
HemeryFamilyTrust
JPOlivier
KordicFamilyTrust
SkinnerFamilyTrust
GHGFowler
SandsFamilyTrust
CatelliPorterFamilyTrust
TaylorFamilyTrust
JSDawkins
BBWhitford
TaylorSuperannuationFund
BJMaguire
BradleyMaguireSuperannuationFund
SandsSuperannuationFund
LimtagPtyLimited
KShu
SGLeslieFamilyTrust
GKPhilipson
MLCITrust
FullyPaid
Number
7,555,416
3,068,340
3,068,340
3,068,340
3,028,340
2,710,200
2,268,340
2,191,672
2,000,349
1,626,398
1,500,000
1,067,991
1,009,000
1,000,000
800,000
500,000
488,976
483,380
457,920
370,000
38,263,002
Percentage
11.89
4.83
4.83
4.83
4.77
4.27
3.57
3.45
3.15
2.56
2.36
1.68
1.59
1.57
1.26
0.79
0.77
0.76
0.72
0.58
60.23
90

032.ASX IAW Sept 25 2008 Full Year Statuary Accounts

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Earnings per Share (weighted 2.66

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Ms Tregonning is a graduate of The University of Western Australia, a Fellow of The Institute of

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Mr Fowler is a business studies graduate of The University of Technology, Sydney, a Certified

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Implementation of Board approved budget and Board monitoring of progress against

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Auditor's Independence Declaration to the Directors of Integrated Legal Holdings Limited

Ernst & Young

Liability limited by a scheme approved

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c) No formal remuneration committee has been appointed. The remuneration of an executive

The total maximum remuneration of nonexecutive directors is the subject of a shareholder

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