Notes to the Consolidated Financial Statements  Cardno Limited and its Controlled Entities for the year ended 30 June 2010 37. DEED OF CROSS GUARANTEE  Statement of comprehensive income and retained earnings 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:  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:  Page 71 of 80  6 0  2005  $’000  2010  $’000  2009  $’000  Revenue  234,201 211,795 Employee expenses  (119,870) (117,502) Consumables and materials used  (41,514) (34,899) Sub-consultant and contractor costs  (39,305) (37,355) Depreciation and amortisation expenses  (38) (92) Finance costs  (2,384) (3,392) Other expenses  4,572 13,253 Profit before income tax  35,662 31,808 Income tax expense  (380) (2,328) Net profit for the year  35,282 29,480 Other comprehensive income for the year  (475) (711) Total comprehensive income for the year  34,807 28,769 Retained earnings at the beginning of the year  19,181 11,134 Transfers to and from reserves  475 711 Dividends recognised during the year  (23,955) (21,433) Retained earnings at the end of the year  30,508 19,181 Attributable to:  Owners of the Company  30,508 19,181 -  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 