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## Notes to the Consolidated Financial Statements 

## Cardno Limited and its Controlled Entities for the year ended 30 June 2010 

## 37. DEED OF CROSS GUARANTEE 

Pursuant to ASIC Class Order 98/1418 (as amended) dated 13 August 1998, the wholly-owned subsidiaries listed below are relieved from the Corporations Act 2001 requirements for preparation, audit and lodgement of financial reports, and Directors’ reports. 

It is a condition of the Class Order that the Company and each of the subsidiaries enter into a Deed of Cross Guarantee. The effect of the Deed is that the Company guarantees to each creditor payment in full for any debt in the event of winding up of any of the subsidiaries under certain provisions of the Corporations Act 2001. If a winding up occurs under other provisions of the Act, the Company will only be liable in the event that after six months any creditor has not been paid in full. The subsidiaries have also given similar guarantees in the event that the Company is wound up. 

The subsidiaries subject to the Deed are: 

- Cardno Holdings Pty Ltd 

- Cardno (QLD) Pty Ltd 

- Cardno Staff Pty Ltd 

- Cardno Bowler Pty Ltd 

- Cardno Emerging Markets (Australia) Pty Ltd 

- Cardno (NSW/ACT) Pty Ltd 

A consolidated statement of comprehensive income and consolidated statement of financial position, comprising the Company and controlled entities which are a party to the Deed, after eliminating all transactions between parties to the Deed of Cross Guarantee, for the year ended 30 June 2010 is set out as follows: 

## Statement of comprehensive income and retained earnings 

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