australian securities exchange2011/09/01 · sum sales other total loss incom loss profit loss net...
TRANSCRIPT
Sum
Sales
Other
Total
Loss
Incom
Loss
Profit
Loss
Net lo
PO
FIN
mmary ($'000
s revenue
r revenues
l revenues fro
before income
me tax expens
from continuin
t/(loss) from di
attributable to
oss attributab
OWER(A
3
NAL RES
0)
om continuin
e tax
se
ng operations
iscontinuing o
o minority inter
ble to membe
RLAN LACN: 057 345 78
1 August 201
ULTS 30
ng operations
operations
rest
ers
LIMITE85)
11
0 JUNE 2
1
s 1
(14
(15
(12
ED
011
2011
6,520 1
78
6,598 2
4,290) (9
(784)
5,074) (10
2,659 (4
-
2,415) (13
AF
2010
9,685
1,111
20,796
9,337)
(741)
0,078)
4,178)
316
3,940)
Appendix 4E Final Report
Appendix 4E Final Report
Appendix 4E
Final Report
Name of Entity POWERLAN LIMITED
ACN 057 345 785
Financial Year Ended 30 June 2011
Previous Corresponding Reporting Period 30 June 2010
Results for Announcement to the Market $’000
Revenues from continuing operations Down 16.1% to 16,520
Loss from continuing operations after income tax attributable to members Up 49.6% to (15,074)
Net loss for the period attributable to members Down 10.9% to (12,415)
Dividends (distributions) Amount per security
Franked amount per
security
Final dividend Nil Nil
Previous corresponding period Nil Nil
Record date for determining entitlements to the dividends (if any) N/A
Revenue from continuing operations for the financial year ended 30 June 2011 was $16.5 million (2010: $19.7 million). Other income was $0.1 million for the year (2010: $1.1 million).
The loss from continuing operations before tax was $14.3 million (2010: $9.3 million). The tax expense of $0.8M (2010: $0.7M) for the year relates to the write off of foreign tax credits which are no longer recoverable.
The revenues and related costs of other discontinued operations during the year resulted in a profit of $2.7 million (2010: loss $4.1 million) The significant improvement in profit from discontinued operations was due to the write back of a one-off credit from the Australian Taxation Office, remission of interest of $4.5M, following payment of the final instalment under the terms of the repayment schedule agreed in 2007.
The net loss attributable to members of Powerlan for the year was $12.4 million (2010: $13.9 million). As a result of the loss the Group’s financial position has deteriorated into a net liability position compared with the previous year.
The Group has continued to require additional funding during the year to fund the working capital requirements and on-going losses of Clarity and IMX.
Appendix 4E Final Report
Dividends Date the dividend is payable N/A Record date to determine entitlement to the dividend N/A
Amount per security N/A
Total dividend N/A Amount per security of foreign sourced dividend or distribution N/A
Details of any dividend reinvestment plans in operation N/A
The last date for receipt of an election notice for participation in any dividend reinvestment plans N/A
NTA Backing
Current Period Previous corresponding period
Net tangible asset backing per ordinary security. (7.36)¢ (3.59)¢
Other Significant Information (Needed by an Investor to Make an Informed Assessment of the Entity’s Financial Performance and Financial Position)
Refer to financial statements presented as part of the 2011 Annual Report (attached).
Commentary on the Results for the Period
The earnings per security and the nature of any dilution aspects: Refer to Note 23 in the 2011 Annual Report.
Returns to shareholders including distributions and buy backs: None.
Significant features of operating performance : Significant features of operating performance that may not be apparent in the Results for Announcement to the Market summary at the beginning of this Appendix 4E include:
• Increase in borrowings during the year from $11.1M to $25.8M; and
• Decrease in net assets from $1.9M to a net liability of $11.3M.
For full details please refer to the 2011 Annual Report.
The results of segments that are significant to an understanding of the business as a whole: Refer to Note 21 in the 2011 Annual Report.
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Appendix 4E Final Report
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UAL REJune 20
WERLAN LIMany which is a
N 87 057 345
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785
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nd has been tthe major sha
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caster - Indepaster holds a Bce 1985. Durit Accounting a He has a keebuilt a succestion of accound chairs the Au
cLeod - Indepeod is Victorias. She was apositions in go
nity in Victorsion and the Qthe Royal Aurporation of V) and Chairmaee.
rt
t this report tonded 30 June
erlan in officece since the
Executive ChaPhD in Electrice and electronhe Chairman areholder in Po
dependent Noer 35 years’ e, acquisitionsted Kingdom, Mr Harringto
ngton holds auth Wales. Mr e.
pendent Non-BA (Major in Aing his careerand Finance oen appreciatiossful general nting and busudit Committe
pendent Non-’s Energy and
ppointed to Poovernment agria and as aQueensland Hstralian Colleg
Victoria. She isan of Trustees
ogether with t2011.
e at any time start of the f
airman cal Engineerinnic commerceand Managinowerlan. Dr C
on-Executiveexperience in, take-overs United Statesn has run his
a Bachelor of Harrington ha
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m $1.9 million
S edit facility fro
e found in Notr Ian Campbeprovide continstanding debtoperating per
vailable inform
m CPS and th
mproved opera
ment being un
here are reasoconcern basis
6
was $14.3 millis to the write
an for the yeaposition.
2 months endefirst half of th
sulted in shorgth of the Ausuncertainty in
medium and lource in key s.1 million). Th
senting a 50%odwill relating
costs and im
est, tax, depre
ntinued operatmprovement inralian Taxatio
under the term
al position of t
rom $11.1 mill
to a net liabili
om CPS, whicte 25. Notwithell, the Chairnued financialt until at leastrformance and
mation, includin
he Chairman o
ational perform
ndertaken acro
onable grounds is appropriate
ion (2010: $9.off of foreig
ar was $12.4
ed 30 June 2he year, the ct term delays
stralian dollar n global econoong term contsoftware assehe loss from c
% increase coto Powerlan’s
mpairment of
eciation, impa
tions during thn profit from dn Office, bein
ms of the repay
he Group inclu
ion to $25.8 m
ity of $11.3 mi
ch owns 47.63hstanding the rman of the G support. He31 August 20
d cash flows ov
ng the followin
of the Group;
mance; and
oss the Group
ds to believe te.
.3 million). Thn tax credits
million (2010
2011 decreasehange in salein securing a
resulted in a omies has cauracts. Howeve
ets as it lookscontinuing opempared with t
s investment in
intangible as
airment and am
he year resultdiscontinued ong the remissiyment schedul
ude:
million; and
llion.
3% of the sharcurrent and pGroup and Ce has also ad12. The direcver the period
ng factors:
p,
that the basis
he tax expensewhich are n
0: $13.9 millio
ed by 16.1% es strategy to a number of decrease in r
used a generaer during the s to the futurerations beforethe previous n Clarity.
ssets, from th
mortisation wa
ted in a profitoperations waion of interesle agreed in 2
re capital in Pprior period losChairman of idvised that hectors are confid to 31 August
s for the prepa
e of $0.8 o longer
on). As a
to $16.5 be more new key
revenues al loss of year the
re. Other e income year. No
he same
as $11.9
t of $2.7 as due to t of $4.5 007
Powerlan. sses and ts major
e will not dent that t 2012.
aration of
DividendNo dividepayment
EmployeThe Grou
SignificaThere we
SignificaThe Comrelated pforthcomi
With the the date Directorsof the Gro
Likely DeThe Direoperationhave reaGroup.
EnvironmThe GrouState.
ds ends have beof a final divid
ees up had 125 em
ant Changes ere no significa
ant Events aftmpany has anarty) with effeing Annual Ge
exception of tof this report
s, to affect signoup in future f
evelopmentsectors have ens of the Grouasonable grou
mental Issuesup is not subje
en declared odend for the ye
mployees at 30
in State of Afant changes in
ter Balance Dnnounced theect from 31 Oceneral Meeting
the above, theany item transnificantly the ofinancial years
and Future Rexcluded fromup and the exunds to believ
s ect to any sign
or paid since ear ended 30
0 June 2011 (2
ffairs n the state of a
Date sale of its Ictober 2011. g.
ere has not asaction or eveoperations of ts.
Results m this report pected results
ve that such d
nificant enviro
7
the start of thJune 2011 (2
2010: 128).
affairs of the G
MX Software The transact
risen in the inent of a materithe Group, the
any further s of those opedisclosure is
onmental regu
he year and th010: $nil).
Group during t
and Convertion will be tab
nterval betweeial and unusuae results of tho
information oerations in futlikely to resul
lations under
he directors d
the year.
terTechnologybled for shareh
en the end of al nature likelyose operations
on the likely ure financial ylt in unreason
the laws of th
do not recomm
y divisions to holder approv
the financial yy, in the opinios or the state
developmentyears as the Dnable prejudic
he Commonwe
mend the
CPS (a val at the
year and on of the of affairs
s in the Directors ce to the
ealth and
RemuneThe inforCorporati
The followotherwise
This repofor the ex
Non-Exe
Dr I Cam
Independ
Mr G Har
Mr I Lanc
Ms F McL
Executiv
Mr J New
Mr A Wrig
Mr S Alla
Mr W Tic
The Comgeneral m
RemuneRemunerresponsiban individoverall pe
All seniocontributiopportunbase pac
All remunShares gthose sha
The BoaresponsibmaximumCompanyMeeting.
ration Reportrmation providions Act 2001
wing were keye indicated we
ort details the xecutives rece
ecutive Direct
pbell, Executi
dent Non-Exe
rrington
caster
Leod
ves
wbery - Chief E
gglesworth – C
away – Preside
ckner – Chief E
mpany’s constimeeting.
ration Policyration of senibility and incodual’s achieveerformance.
r executives ions. The spities as long a
ckage, there a
neration paid tgiven to directoares and the a
rd’s policy is bilities having
m aggregate ay’s Constitutio
Fees for no
t (Audited) ded in this rem.
y managemenere key manag
nature and aeiving the high
tors
ve Chairman
ecutive Direc
Executive Offic
Chief Financia
ent, Converter
Executive Offic
tution requires
y or executivesrporates both ement of pre-
receive a basplit of the baas the total emre no addition
to directors anors and other amount payab
to remuneratregard to ind
amount of direon to $500,00n-executives
muneration rep
nt personnel ogement person
mount of remest remunerat
tors
cer (Resigned
al Officer and
rTechnology
cer, IMX
s that one thir
s of the Groufixed and varagreed perfor
se package wase package mployment cos
al tax liabilitie
nd other seniosenior execut
ble. Options ar
te non-executdustry practiceectors’ fees t
00 and can onare not linke
8
port has been
of the Group annel for the en
muneration for tion.
d as Company
appointed as
rd of the Com
p is based oriable remunerrmance indica
which includecan be ame
st to the Compes and complie
or executives tives are valure valued usin
tive directors e and the neehat can be pnly change sued to the per
n audited as r
at any time durntire period.
each key man
y Secretary on
Company Sec
pany’s Directo
on normal comration. Variablators as well a
s a base salaended to takepany or businees with the loc
is valued at thed as the diffeg the Black-Sc
at market rated to obtain apaid to a non-ubject to apprrformance of
required by Se
ring the report
nagement per
11 Nov 2010
cretary on 11
ors retire by ro
mmercial ratese remuneratioas the Compa
ary and supee advantage
ess unit does nal tax authorit
he cost to the erence betweecholes method
tes for their tippropriately qexecutive direroval by sharethe Group. H
ection 308 (3C
ting period an
rson of the Gr
0)
Nov 2010
otation at eac
s for similar on is directly rany or busine
erannuation gof salary pa
not exceed thety guidelines.
Group and exen the marketdology.
ime, commitmqualified directector is limiteeholders at a However, to a
C) of the
nd unless
roup and
h annual
levels of related to ess unit’s
uarantee ackaging e agreed
xpensed. t price of
ment and tors. The d by the General
align the
directors’Company
PerformaAs part okey perfoexecutiveperformaassessed
CompanThe remuTwo of thto be fund
The Comoperationsustainabfrom a clothe year.
$’000
Compa
Loss aft
EPS in
Share p
Director
’ interests wiy.
ance-based Rof each seniorormance indice is involved iance of each od annually.
y Performancuneration polihe major KPIs damental to c
mpany seeks ns of the businble profits fromosing price of
any Performan
ter tax
cents
price at 30 Jun
r and executiv
th those of o
Remunerationr executive’s rcators (“KPIs”)n and has a
of the busines
ce, Shareholdcy has been for the senior
reating shareh
to create shaness units anm ongoing op$0.031 at 30
nce
ne (cents)
ve remuneratio
other shareho
n remuneration ). The KPIs arlevel of contro
ss units. Perfo
der Wealth antailored to aligr executives aholder wealth.
areholder valud setting clea
perations, PowJune 2010 to
2
(2,
(5
on 2
9
olders, the di
package therre set annualol over. These
ormance of the
nd Director agn the senior
are revenue gr.
ue through inar strategic dirwerlan’s shareo $0.013 at 30
2007
,223) (
5.38)
22.5
2,690
irectors are e
re is a performly and are spe KPIs are bae senior execu
and Executiver executive’s irowth and prof
ncreases in threction. Howee price has co
June 2011, re
2008
13,818)
(17.89)
7.6
1,848
encouraged to
mance based ecifically tailo
ased predominutives against
e Remuneratinterests with fitability. The B
he share pricever, due to thontinued to deepresenting a
2009
(11,807)
(14.31)
6.0
1,913
o hold share
component rered to the arenately on the t these agreed
ion shareholder iBoard conside
e by restructuhe delays in decline during
a 58% decreas
2010
(13,940)
(6.67)
3.1
1,470
es in the
elating to eas each financial
d KPIs is
nterests. ers these
uring the delivering the year
se during
201
(12,415
(3.56
1.
1,68
1
5)
6)
.3
80
Dir
De
NDD2
2MH2
2
M
2
2
M
2
2
T22
rectors’ and E
etails of remu
Non–ExecutivDirectors Dr I Campbell 011
010 Mr G Harrington 011
010
Mr I Lancaster
011
010
Ms F McLeod
011
010
Totals 011 010
Executive Dir
uneration for
Cash salary
and fee
($)
ve
224,55
192,30
45,87
45,87
r
45,87
45,87
45,87
26,75
362,16310,80
rectors’ Rem
years ended
Primary Ben
y es
Short term cash
bonus
($)
53 -
03 -
71 -
71 -
71 -
71 -
71 -
58 -
66 -03 -
uneration
30 June
nefits
Non-monetary
($)
- -
- -
- -
- -
- -
- -
- -
- -
- -- -
10
Postemploym
y Supe
annuat
($)
-
- 2
-
-
-
-
-
- 2
- 1- 6
t-ment
Eq
er-tion Opt
($
6,193
9,128
4,129
4,129
4,129
4,129
4,129
3,242
8,580 0,628
uity
ions Term
Ben
$) (
-
-
-
-
-
-
-
-
- -
T
mination nefits
($)
- 23
- 22
- 5
- 5
- 5
- 5
- 5
- 5
- 38- 37
Total Peran
Rel
($)
30,746
21,431
50,000
50,000
50,000
50,000
50,000
50,000
80,746 71,431
rformnce lated %
-
-
-
-
-
-
-
-
- -
R
D
E
Dfo
M
M
M
M
T
Remuneratio
Details of rem
Mr J Newber
2011
2010
Mr A Wriggles-worth
2011
2010
Mr S Allaway
2011
2010
Mr W Tickne
2011
2010
Totals
2011
2010
Employment
Details of conollows:
Name
Mr J Newbery
Mr A Wriggles
Mr S Allaway
Mr W Tickner
This concludes
n of Executiv
muneration fo
Cashsalary a
fees($)
ry
448
435
250
92
y
158
169
er
267
263
1,124
961
Contracts
tracts betwee
y
sworth
s the remuner
ves
or years ende
Primary bh and s
Short tcas
bonu($)
,301
,539
,000
,822
,828 50
,341 50
,621 59
,901 26
,750 109
,603 77
en executive d
Contract
Yes
Yes
Yes
Yes
ration report w
ed 30 June
benefits term h us
Nomone
) ($
-
-
-
-
0,080
0,992
9,118
6,991
9,198
7,983
directors and
which has been
11
Pempl
n- etary
Suann
$)
-
-
-
-
-
-
-
-
-
-
executives of
Duration
-
-
-
-
n audited
ost-oyment E
uper-uation Op($)
15,199
14,461
-
-
-
-
50,355
44,984
65,554
59,445
f Powerlan an
quity Ot
ptions
Termati
ben($) ($
-
-
-
-
-
-
-
-
-
-
nd certain con
Notice
3 months
3 months
1 month
6 months
ther Tomin-ion
nefits $) (
- 4
- 4
- 2
-
- 2
- 2
- 3
- 3
- 1,2
- 1,0
ntrolled entitie
T
s
s
h
s
otal
Pere re
$)
63,500
50,000
50,000
92,822
08,908
20,334
77,095
35,876
99,502
99,032
es are as
Termination P
6 month
6 month
1 month
6 month
rformancelated %
-
-
-
-
24%
23%
-
8%
4%
7%
Payment
hs
hs
h
hs
Equity InOption HThere are
SharehoThe numthe Group
DirectorsThe relevAustralianfollows:
Powerla
Dr I Cam
Mr G Ha
Mr I Lan
Ms F M
Total
Director’Director’s
DirectorsDirectorsof the Co
Dr I Cam
Mr G Ha
Mr I Lan
Ms F M IndemnifThe Comand Offic(2010: $4
Directo
Dr I Cam
Mr I Lan
Ms F M
Total
nstrument DisHolders e no options o
oldings ber of ordinarp, including th
s’ Interests invant interest on Stock Exch
an Limited
mpbell
arrington
ncaster
cLeod
’s Interests ins interests in c
s’ Meetings s’ meetings weompany during
mpbell
arrington
ncaster
cLeod
fication and impany has entcers Insurance42,387).
ors
mpbell
ncaster
cLeod
sclosures Re
outstanding for
ry shares in Pheir personally
n Shares or Oof each directoange in accor
n Contracts
contracts are d
ere held on 11g the year was
B
Eligible
11
11
11
11
insurance of tered into an e cover. The c
Balance aof the y1 July 2
166
7
173
elating to Dire
r directors or e
owerlan held y-related entitie
Options
or in the sharrdance with S
disclosed in N
occasions dus as follows:
Board
Attende
11
11
10
10
officers agreement w
cost for the in
at start year 2010
,105,120
,156,000
190,400
,451,520
12
ectors and Ex
executives.
during the yeaes are set out
res and optionS205G(1) of th
Ordinary sha
ote 22 to the f
uring the year
A
ed Elig
N
3
3
N
with American surance polic
Received duyear on thexercise o
options
xecutives
ar by each dirt below.
ns issued by Phe Corporation
ares
166,105,120
-
7,156,000
190,400
173,451,520
financial state
. Attendance a
Audit Commi
gible At
/A
3
3
/A
Home Assuray for the year
uring he of
s
Od
-
-
-
-
rector and eac
Powerlan, as ns Act, 2001,
0
-
0
0
0
ments.
at meetings by
ttee
ttended
N/A
3
3
N/A
ance Companr ended 30 Ju
Other changeduring the yea
ch of the exec
notified by that the date o
Options
y each of the
Remuneratio
Eligible
N/A
N/A
1
1
ny to provide Dune 2011 was
es ar
Balo
30
-
-
-
-
cutives of
e directors toof this report is
s
directors
on Committee
Attended
N/A
N/A
1
1
Directors $55,030
lance at end of the year 0 June 2011
166,105,12
7,156,00
190,40
173,451,52
o the s as
-
-
-
-
-
e
d
20
00
00
20
Powerlanagainst a
Options No option2011, or
ProceedNo persoproceedinfor all or a
The Com
Non-audThe detaauditor ar
The direcwith the gscope of under the
• all nobje
• nonConPromansha
Auditor’sThe audithis repor
Roundin
The Comstatemen
Dated at
Signed in
Dr I CamChairma
n has not indea liability incurr
ns were grantesince that dat
ings on Behaon has appliedngs to which tany part of tho
mpany was not
dit Services ails of amountre outlined in
ctors are satisgeneral standeach type of
e Corporations
non-audit servectivity of the
ne of the servnduct APES ofessional & Enagement or d
aring economic
s Independentor’s independrt as required
ng of Amount
mpany is an ennts and directo
Sydney on th
n accordance w
mpbell an
emnified or agred by the aud
ed by Powerlae.
alf of Compand for leave ofthe Company ose proceedin
t a party to any
ts paid or payNote 3 (d) to t
sfied that the ard of indepenon-audit se
s Act 2001 wa
vices have beeauditor; and
ices undermin110 Code o
thical Standardecision-makic risks and rew
nce Declaratidence declaraunder Section
ts
ntity to which Aors’ report hav
is 31st day of A
with a resoluti
reed to indemditor.
an to the direc
ny f Court to brinis a party for
ngs.
y such procee
yable to the athe financial st
provision of nndence for aurvice provided
as not comprom
en received an
ne the principlof Ethics forrds Board, incng capacity fowards.
on
ation in relation 307C of the
ASIC Class Ove been rounde
August 2011.
ion of the direc
13
mnify the audito
ctors or the ex
ng proceedingthe purpose o
edings during t
auditor for nontatements.
non-audit servuditors imposed by PKF meamised, for the
nd approved t
les relating tor the Professcluding reviewor the Compan
on to the auditCorporations
Order 98/100 aed to the near
ctors.
I LDi
or of the Com
xecutives durin
gs on behalf oof taking resp
the year.
n-audit service
ices during thed by the Corpans that the a following reas
to ensure that
o auditor indepsional Accou
wing or auditingny, acting as a
t for the finanAct 2001.
applies and, arest thousand
Lancaster rector
mpany or any r
ng the financia
of the Companonsibility on b
es provided d
he year by theporations Act auditor’s indepsons:
they do not im
pendence as sntants issuedg the auditors advocate for t
cial year is pr
ccordingly, amdollars unless
related body c
al year ended
ny or intervenbehalf of the C
during the yea
e auditor is co2001. The na
pendence req
mpact the inte
set out in the d by the Acs own work, acthe Company
rovided on pa
mounts in the s otherwise in
corporate
30 June
ne in any Company
ar by the
ompatible ature and uirement
grity and
Code of ccounting cting in a or jointly
age 14 of
financial dicated.
Tel: 61 2 9251 4100 | Fax: 61 2 9240 9821 | www.pkf.com.au
PKF | ABN 83 236 985 726
Level 10, 1 Margaret Street | Sydney | New South Wales 2000 | Australia
DX 10173 | Sydney Stock Exchange | New South Wales
The PKF East Coast Practice is a member of the PKF International Limited network of legally independent member firms. The PKF East Coast Practice is also a member of the PKF Australia Limited national network of legally independent firms each trading as PKF. PKF East Coast Practice has offices in NSW, Victoria and Brisbane. PKF East Coast Practice does not accept responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
Lead Auditor’s independence declaration under Secti on 307C of the Corporations Act 2001 To the directors of Powerlan Limited and the entities it controlled during the year I declare to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June 2011 there have been:
• no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit, and
• no contraventions of any applicable code of professional conduct in relation to the audit. PKF Paul Bull Partner Sydney 31 August 2011
CorpoGiven thappropria
PrincipleThe direcprotecting
Primary r
• the ach
• the the
• the
• enscom
The perforeview ofBoard Ch
PrincipleThe com
• the exe
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Details ofthe Direcof the Coconsiders
Powerlan
• the
• the par
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The size principle.
PrincipleAll directoThe Grou
• con
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orate Goe size, natureate level of com
e 1 - Lay Solidctors have resg the rights an
responsibilities
establishmenhieve those go
review and aresults agains
approval of th
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ormance of sef performanceharter is public
e 2 - Structureposition of the
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roles of the ividuals.
f the membersctors’ Report. ompany. Thes this to be su
n complies wit
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closure of the
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e 3 - Promoteors and officeup’s code of co
nflicts of intere
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ablish a policy
overnance, complexitympliance with
d Foundationsponsibility for nd interests of
s of the Board
nt of long-termoals;
adoption of anst those budge
he annual and
oup has adeqities.
enior executiv against agreecly available u
e the Board te Board is dete
d comprise beers; and
the Board sho
Chairman of
s of the Board Members of
e Board regulafficient to mee
h this Principle
the Board is n
to establish aoard business
process for ev
ance evaluatio
f the business
e Ethical and ers of Powerlaonduct require
est to be disclo
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y concerning d
ce Statemand ownershall of the revis
ns for Managethe overall co
f the sharehold
d include:
m goals and s
nnual budgetsets;
d half-yearly fin
quate interna
es is evaluateed KPIs. This pon request.
to Add Valueermined using
etween three
ould be an inde
f the Board a
d, their experiethe Board are
arly reviews thet the requirem
e except for:
not independe
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valuation of th
on has not tak
s, plus the ow
Responsible an are requiredes:
osed to the Bo
t in the best in
diversity
15
ment hip structure sed Principles
ement and Ovorporate goverders.
strategic plans
s for the financ
nancial statem
l control proc
ed annually anprocess was
g the following
and twelve d
ependent non
and Chief Exe
ence, expertise able to take he mix of skilments of the C
nt;
committee or t
he Board, Com
ken place.
wnership struct
Decision Mad to discharge
oard at the ear
nterests of the
of Powerlan, s, as outlined
versight rnance of Pow
s for the Grou
cial performan
ments; and
cedures toget
nd submitted tconducted du
guidelines:
irectors, with
n-executive dir
ecutive Office
e, independenindependent
ls and experieCompany
to define the n
mmittees and i
ture, do not ju
aking e their respon
rliest possible
Group;
the Board isin this Statem
werlan and its
up and individ
nce of the Gro
her with appr
to the Remunuring the curre
a majority be
rector.
r should be e
nce, and term professional a
ence of memb
nomination fun
ndividual direc
ustify complete
sibilities ethic
opportunity;
s working towent.
business unit
dual business
oup and mon
ropriate moni
neration Comment reporting p
eing independ
exercised by
of office are sadvice at the bers of the Bo
nction as one
ectors.
e compliance
cally and with
wards an
s and for
s units to
itoring of
toring of
mittee for period. A
ent non-
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set out in expense oard and
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with this
integrity.
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16
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17
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Conso For the y RevenueOther inc ExpenseFinance Loss fro Income tLoss froexpense Profit/(losLoss for
Other coAdjustme
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Loss attr
Minority MembersLoss for
Total OpBasic an ContinuBasic an DiscontiBasic an Dividend The conaccompa
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e come
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ss) from discor the year
omprehensive ents from tran
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0 June
finance costs a
g operations
g operations
ontinued opera
income/(expeslation of fore
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t entity
nings per share
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ary Share
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18
omprehe
nt
me tax
e tax
entities
he year,
nsive incom
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Note
2a 2b
3(a) 3(b)
4(d)
5
23
23
23
19
me is to be
come
20$’0
16,5
(28,81 (2,06
(14,29
(78 (15,07
2,6(12,41
(78
(78
(13,19
(13,19 (13,19
Cen
(3.5
(4.3
0.
read in co
011 000
520 78
19) 69) 90)
84) 74)
659 15)
83)
83)
98)
- 98) 98)
nts
56)
32)
.76
-
onjunction w
2010$’000
19,685
1,111
(28,503) (1,630) (9,337)
(741)(10,078)
(4,178)(14,256)
(515)
(515)
(14,771)
(316) (14,455) (14,771)
Cents
(6.85)
(4.80)
(2.05)
-
with the
Conso As at 30 Current Cash andTrade anInventoriInvestme Assets cTotal Cu Non-CurPlant & eIntangiblDeferredTotal No Total As Current Trade anShort terOther fin Liabilitiesas held fTotal Cu Non-CurTrade anLong termBorrowinTotal No Total Lia Net Asse Equity Issued caReservesAccumulTotal Eq The connotes.
olidated
June
Assets d cash equivand other receives
ents held to m
lassified as heurrent Assets
rrent Assets equipment e assets
d tax assets on-Current As
ssets
Liabilities nd other payabrm provisions ancial liabilitie
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ngs on-Current Li
abilities
ets
apital s ated losses
quity
nsolidated sta
Stateme
alents vables
aturity
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ssets
bles
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ties
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abilities
atement of fin
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ssets classified
nancial posit
19
nancial P
Note
29(a) 6 7 8 9
10 11 12
13 14 15
d 9
13 14 16
17
tion is to be r
Position
2011$’000
2,5752,8743,6321,532
10,613
2,78413,397
29814,414
6514,777
28,174
6,2391,3122,876
10,427
2,96313,390
-243
25,80826,051
39,441
(11,267)
164,302(1,741)
(173,829)(11,267)
read in conju
2010 $’000
5,458 7,682 5,995
- 19,135
-
19,135
442 14,457
384 15,283
34,418
15,018 1,645 4,353
21,016
- 21,016
46 360
11,065 11,471
32,487
1,931
164,302 (958)
(161,413) 1,931
unction with tthe accompa
anying
ConsoAttributaof the co
Balance Loss attrithe consoAdjustmeforeign coReclassiftransferreTotal com(expense
Shares isEquity traof remainsubsidiarBalance Balance Loss attrithe consoAdjustmeforeign coTotal com(expenseBalance This connotes.
olidated able to equityonsolidated e
at 1 July 200ibutable to meolidated entityents from transontrolled entitification adjusted to profit or mprehensive ine) for the year
ssued during tansaction on aning interest inry at 30 June 20
at 1 July 201ibutable to meolidated entityents from transontrolled entitimprehensive ine) for the year at 30 June 20
nsolidated sta
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the year acquisition n
010
0
embers of y slation of ies ncome/
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atement of c
ent of ChIssued Capital
$’000
148,935-
-
-
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15,367 -
164,302
164,302
-
-
-
164,302
changes in eq
20
hanges inForeign
Currency Reserve
$’000
1,077-
372
(887)
(515)
- -
562
562-
(783)
(783)
(221)
quity is to be
n EquityOther
Reserves
$’000
- -
-
-
-
- (1,520)
(1,520)
(1,520)
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(1,520)
e read in conj
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316(316)
-
-
(316)
- -
-
--
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junction with
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(147,473) (13,940)
-
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- -
(161,413)
(161,413) (12,415)
-
(12,415)
(173,829)
h the accomp
Total
$’000
2,855(14,256)
372
(887)
(14,771)
15,367 (1,520)
1,931
1,931(12,415)
(783)
(13,198)
(11,267)
panying
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For the y
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year ended 30
ows from opes from customets to suppliersreceived costs
h used in ope
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ows from finas from issue o
oceeds from repaid to related interest contrih provided by
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nd cash equiv
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Cash Fl
0 June
erating activiters
s and employe
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esting activitiquipment y and busines
aturity investmesting activit
ancing activitof shares, net elated parties parties bution y financing ac
ase) in cash a
alents at the be
valents at the
ash flow state
ow State
ties
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ss, net of cash
ments ties
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ctivities
and cash
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end of the ye
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21
ement
Not
29(b
10h
1722, 222, 2
e year
ear
be read in co
201te $’00
28,11(41,946
1(132
b) (13,958
0 (193
(1,532(1,725
7 25 12,8025
12,80
(2,883
5,45
2,57
onjunction wit
1 2010 00 $’000
0 29,548 6) (38,591) 0 45
2) (349) 8) (9,347)
3) (244) - (1,520)
2) - 5) (1,764)
- 15,367 00 8,290
- (9,000) - (316)
00 14,341
3) 3,230
58 2,228
75 5,458
th the accom
mpanying not
tes.
Notes For the y Note 1. S a) Intr
The“Gr OpeTherelainte
•
•
•
On whi ScoTheAusBoa Theto stat Themodass CurTheunle RepTheis fo RegLevNor
to and Foyear ended 30
Summary of S
roduction e financial staroup”). Powerla
erations and e principal actated services ellectual prope
Clarity - promanage netquality of ctelecom indu
Converter Tmigrations aMicrosoft enoperations u
IMX Softwabanking indoperations u
17 March 20ch is subject t
ope of finance financial statstralian Accouard and the Co
e financial statInternational tements and n
e financial stadified, where
sets and financ
rrency e financial statess otherwise
porting perioe financial stator the year en
gistered officvel 3, 15 Blue rth Sydney, NS
orming Par0 June 2011
Significant Ac
atements covean is a listed p
principal acttivities of the Gthat enable c
erty. These act
ovides proventworks, develo
customer servustry segment
Technology and reduce thnvironment. Tunder segmen
are - offers soustries. Thes
under segmen
11, the Directto shareholde
ial statementtements are aunting Standaorporations Ac
tements of PoFinancial Re
notes also com
atements haveapplicable, b
cial liabilities.
tements are p stated. This i
d tements are pded 30 June 2
ce Street SW 2060
rt of the C
ccounting Po
er the consolpublic compan
tivities Group during customers to tivities were d
n, pre-integratop and sell mvices for multt.
- delivers softe risks associ
These activitiesnt reporting.
ftware solutiose activities ant reporting.
tors announcers’ approval.
ts a general purpards and intect 2001.
owerlan Limiteeporting Stanmply with Inter
e been prepaby the measu
presented in As Powerlan’s f
presented for t2010.
22
Consolidat
olicies
lidated entity ny incorporate
the financial achieve prod
elivered throu
ted solutions market leadingti-vendor, mu
ftware and seiated with largs are now clas
ons for the travare now class
ed the propos
pose financial rpretations, a
ed and controlndards (AIFRSrnational Finan
ared on an acurement at fai
Australian currfunctional and
the year ende
ted Financ
of Powerlan ed and domicil
year were theductivity gainsugh three oper
that are usedg products, fullti-service net
rvices that simge-scale IT dessified as held
vel money, forified as held
sed sale of Co
report that haadopted by th
lled entities, cS) in their encial Reportin
ccruals basis ir value of se
rency and round presentation
d 30 June 201
cial Statem
Limited and ed in Australia
e provision of s by leveraginrating divisions
by service plfill customer otworks. Clari
mplify enterpreployment projd for sale and
reign exchangfor sale and s
onverterTechn
as been prepahe Australian
comply with allentirety ensurg Standards.
and are baselected non-cu
nded to the necurrency.
11. The comp
ments
controlled ena.
software solung the Groups:
providers to roorders, and aity operates w
rise file and aojects, particul
shown as dis
ge and the intshown as dis
nology and IM
ared in accordAccounting S
l Australian eqring that the
sed on historiurrent assets
earest thousa
parative report
ntities (the
utions and p’s unique
oll-out and assure the within the
application arly in the
scontinued
ernational scontinued
MX to CPS
dance with Standards
quivalents financial
cal costs, , financial
nd dollars
ing period
AutThehas
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the prep
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thorisation ofe financial stats the power to
e following is aparation of therwise stated.
e principal accntrolled entities
pendence on e Company iswerlan. Detailsiod losses anairman of its mvised that he wectors are conr the period to
er taking into a
continued fin
the pipeline
ongoing pru
directors haparation of the
gnificant Judge directors evtorical knowledure events andoup.
e following keimation uncert
y estimates –e Group assesy lead to imp
sessing recove
ould the actuculations then
y judgments e directors beeivable from c
y judgments
f financial statements were amend the fin
a summary ofhe financial sta.
counting polics, are stated in
funding froms dependent os of the fundind negative omajor sharehowill not requirenfident that tho 31 August 20
account all of t
nancial suppo
and anticipate
udent cost man
ve concludede financial stat
gment and Kevaluate estimdge and best d are based o
ey assumptiontainty at the ba
– impairment sses impairmepairment of aserable amount
ual results di an impairmen
–provision foelieve that nocustomers as a
– Accrued re
atements authorised fo
nancial statem
f the material atements. The
cies adopted bn order to ass
m CPS on a credit fang facility can
operating casholder, CPS, ha
repayment ofhe Company w012.
the available i
ort from CPS a
ed improved o
nagement bein
d that there tements on a g
ey Assumptioates and judavailable curr
on current tren
ns have beenalance date:
ent at each ressets in accots incorporate
ffer significannt loss may oc
or impairmen provision forat 30 June 20
evenue
23
or issue on thements.
accounting poese accountin
by the Group,sist in the gene
acility from CPn be found inh flows, Dr Ias agreed to pf any of the ouwill achieve im
nformation, in
and the Chairm
operational pe
ng undertaken
are reasonabgoing concern
ons dgments incorrent informationds and econo
n made conc
eporting date bordance with n
a number of k
ntly from theccur.
nt of receivabr impairment
011.
e 31 August 2
olicies adopteng policies hav
, comprising oeral understan
PS, which own Note 25. Noan Campbell
provide continutstanding debmproved oper
ncluding the fo
man of the Gro
erformance; an
n across the G
ble grounds n basis is appr
rporated into on. Estimates omic data, ob
cerning the fu
by evaluating note 1(n). Vakey estimates
e estimated r
les of receivable
011 by the Di
ed by the Grouve been cons
of the parent ending of the fin
wns 47.63% ootwithstanding , the Chairmaued financial
bt until at leastrating perform
llowing factors
oup;
nd
Group,
to believe thropriate.
the financial assume a reatained both ex
uture and the
conditions splue-in-use calwhich are out
esults incorp
s is required
irectors. The
up and Powersistently applie
entity Powerlanancial statem
of the share c the current aan of the Grsupport. He t 31 August 20
mance and ca
s:
hat the basis
statements asonable expexternally and
e other key s
pecific to the Glculations pertlined in note
porated in va
to cover the
Company
rlan in the ed, unless
an and its ments.
capital in and prior oup and has also 012. The
ash flows
s for the
based on ectation of within the
ources of
Group that rformed in 11.
lue-in-use
e amounts
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d) Fin
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e) Con
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crued revenuesis and whichmpletion basisecasts of cosgment.
ancial Assetsancial assets oup becomes
inancial assetpire or are traatement of Finpires.
ancial assets ed or determinng the effectiv
estments in suue.
ancial liabilitieortised cost usstanding at th
e amortised cncipal repaymd maturity amo
nsolidation Pe operating rentrol ceases. T
Group have bfinancial stat
own as a sepa
e consolidatedntrol exists whd operating poectives of Pow
ere controlledve been includ
venue Recogvenue represevices provided
e represents e has not yet
s over the perists to complet
s and Financand financial
party to the co
t is derecogniansferred and ancial Positio
comprise of able payment
ve interest met
ubsidiaries no
es comprising sing the effecte balance dat
cost of a finaents, plus or
ount and minu
Policy sults of contro
The effects of been eliminatetements. Outsarate item in th
d financial stahere Powerlanolicies of anowerlan.
d entities haveded/excluded f
gnition ents the fair vd by the Group
earned revenbeen invoiceod of installattion which ar
cial Liabilitiesl liabilities areontractual prov
sed when theno longer con when the o
trade and othts that are not thod.
t included in th
trade and othtive interest me plus, where
ancial asset ominus cumula
us any write-do
olled entities aall transactioned on consolid
side interests he consolidate
tements compn has the capaother entity so
e entered or lefrom the date
value of the cp, net of disco
24
ue which hased. The calcultion, implemenre generally d
s e recognised visions of the
e contractual ontrolled by thobligation spe
her receivablequoted in an
he above cate
her payables, method. Trade
applicable, an
or a financial ative amortisaown for impair
are included frns, including adation. Detailsin the equity
ed financial sta
prise the accoacity to domino that the oth
eft the consolidcontrol was o
consideration rounts and taxe
s been calculalation of reventation and prdifficult to asc
on the Statemfinancial instru
rights to the ce Group. A ficified in the c
es. These areactive market
egories are ref
provisions anaccounts pay
ny accrued int
liability is theation of any drment or inabil
rom the date any unrealiseds of controlledand results o
atements.
ounts of Powenate the decisiher entity ope
dated entity dubtained or unt
received or rees.
ated on a pernue recogniseovision of serv
certain and ar
ment of Finanument.
cash flows fronancial liabilitontract is disc
non-derivativand are meas
flected at cost
nd other borroyable representerest.
e amount initifference betwlity to collect.
control is obtad profit or lossd entities are cof the entities
erlan and all oion making in
erates with Po
uring the yeartil the date con
eceivable from
rcentage of ced on a percrvices requiresre therefore s
ncial Position
om the financty is removedcharged or ca
ve financial assured at amor
t less any imp
owings are ment the principa
tially recognisween the initia
ained and untses, between contained in Nthat are cont
of its controllerelation to the
owerlan to ac
r, their operatintrol ceased.
m clients for g
completion centage of s accurate subject to
when the
cial assets d from the ncelled or
ssets with rtised cost
airment of
easured at al amounts
sed minus al amount
il the date entities in
Note 20 to trolled are
d entities. e financial chieve the
ng results
goods and
SalRevoccrece
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•
le of goods invenue from thcurred with neivable is con
ivery of softwsis measured anticipated th
venue from revenue receiveognised on a
ork in progresasured at cosicipated they a
erest revenueerest revenue
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vidend revenuidend revenue
ases ases of fixed a
not the legal ses are capitayments, includer their estimatover the term lease interest
ase payments recognised a
more represen
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ome Taxes ome taxes are
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is recognised
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ue e is recognise
assets where sownership, aralised, recordiding any guarated useful life of the lease. Lt expense for
for operatingas an expensentative of the ti
s under operatenses on a strhich benefits a
e accounted fo
onsequences s;
nse fees ods is recogni
vendor obligable.
ction with servprofit recogniseed for in full.
services o maintenancasis over the p
to services rerecognised tofor in full.
using the effe
are recognisedthe Group will
d upon receip
substantially ae transferred ting an asset aanteed residuof the asset w
Lease paymenthe period.
leases, where on a straightme pattern in
ing leases wilraight line basare diminished
or using the co
of recovering
25
ised when a sgations remai
vices to be rened to date les
ce contracts isperiod of the c
endered is reo date less pro
ective yield ba
d at their fair comply with a
pt of the divide
all the risks anto entities in thand a liability al values. Lea
where it is likents are allocat
re substantiallt line basis ovwhich benefit
l be recognisesis unless anotd.
omprehensive
g (settling) a
signed contracning and wh
ndered is recoss provision fo
s initially creditcontract.
cognised on ovision for for
asis.
value where tall conditions.
end.
nd benefits inche Group are equal to the
ased assets aly that the Groted between t
y all the risks ver the lease tts are diminish
ed as liabilitiesther systemat
e liability metho
ll assets/(liab
ct exists, delivhere the colle
ognised on peor foreseeable
ted to unearne
the percentagreseeable los
there is a reas
idental to the classified as fpresent value
are amortised oup will obtainhe reduction o
and benefits erm unless an
hed.
s. The incentivic basis is mo
od whereby:
ilities) are ref
very to a custection of the
ercentage of ce losses. Whe
ed revenue a
ge of complesses. Where lo
sonable assur
ownership of finance leasese of the minimon a straight-
n ownership ofof the lease lia
remain with tnother system
ves are recognore representa
flected in the
tomer has resulting
completion ere losses
nd is then
tion basis osses are
rance that
the asset, s. Finance
mum lease -line basis f the asset ability and
he lessor, matic basis
nised as a tive of the
e financial
•
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current anto equity it
a deferredavailable t
deferred tperiod whe
x consolidatiowerlan and itislation as of 1
e head entity, rent and defer
sing from unus
sets or liabilitieamounts rece
y difference bereement are rities.
ventories ork in progresognised to daull.
ceivables ade accounts rcrued interest
rrowings ans and borro
balance datetements in the
ant & Equipmnt & equipmen
items of plant
plant & eq
furniture a
leasehold
disposal of aount of the as
asset’s carryiestimated reco
nd deferred taxtems or to a b
d tax asset is to realise the a
ax assets anden the asset is
on ts wholly own1 July 2003.
Powerlan, anrred tax amoused tax credits
es arising undivable from or
etween the amrecognised as
ss is recogniste less provisi
receivables anand less, whe
owings are rece plus accruee period in whi
ent nt are stated a
and equipme
quipment at be
and fittings at 1
improvements
an item of planset is recognis
ng amount is overable amo
x is recogniseusiness comb
recognised toasset; and
d liabilities ares realised or th
ned Australian
nd the controlunts and in adds assumed fro
der tax fundingr payable to ot
mount assumes a contributio
sed on the pion for foresee
nd other receivere applicable,
cognised in thed interest. Boich they are in
at cost.
nt are depreci
etween 20% a
13%; and
s, over the pe
nt & equipmensed as a gain
written down unt.
26
d as income obination;
o the extent th
re measured ahe liability set
n controlled e
led entities indition to its ow
om controlled e
g agreementsther entities in
ed and the amon to or distr
percentage ofeable losses. W
vables represe, provision for
he financial staorrowing costncurred.
iated at the fo
nd 40%;
eriod of the lea
nt, the differenor loss on dis
to its recover
or expense ex
hat it is probab
at the tax ratetled.
entities have
the tax conswn amounts alentities in the t
s with the tax n the Group.
mounts receivaribution from
f completion Where losses
ent the principdoubtful acco
atements on ts are recogn
llowing rates u
ase.
nce between sposal.
able amount i
xcept to the ex
ble that a futu
es that are ex
implemented
olidated grouplso recognise tax consolidat
consolidated
able or payablthe wholly ow
basis measurare anticipate
pal amounts dounts.
the basis of thised as an ex
using the strai
the sales proc
f the carrying
xtent that the t
ure taxable pro
xpected to ap
d the tax con
p account for the deferred t
ted group.
entities are re
e under the tawned tax con
red at cost ped they are pr
ue at balance
he nominal amxpense in the
ight line metho
ceeds and the
amount is gre
tax relates
ofit will be
pply to the
nsolidation
their own tax assets
ecognised
ax funding nsolidated
plus profit rovided for
date plus
mounts at e financial
od.
e carrying
eater than
m) IntaGoGooacqWhstatimp
ResExpDevfutu
Deveco
n) Imp
At wherecouseamofutu
Impnot amo
o) Non
Nonbe at tdispcon
An assin facum
Nonothe
Nonare groin c
angibles odwill odwill, represe
quired, is recoerever there tement of com
pairment testin
search & Devpenditure durvelopment cosure economic
velopment coonomic benefit
pairment of Aeach reportinether there isoverable amo
e, is comparedount is expenure cash flows
pairment testinpossible to es
ount of the ca
n-current ass
n-current asserecovered printhe lower of thposal groups tndition and the
impairment losets of disposaair value less
mulative impai
n-current asseer expenses a
n-current asse presented seups classified
current liabilitie
enting the excognised as anis an indicatiomprehensive ng.
velopment ring the resests are capitalbenefits and t
osts have a fts over the use
Assets ng date, Manas any indicatioount of the assd to the asset’snsed to the stas are discounte
ng is performestimate the recsh-generating
sets or dispos
ets and assetsncipally througheir carrying ato be classifie
eir sale must b
oss is recognal groups to facosts to sell orment loss pre
ets are not deattributable to
ets classified aeparately on t as held for sa
es.
cess of the con asset and non that the gincome. Good
arch phase ised only whehese benefits
inite life and eful life of the
agement revieon that those set, being the s carrying valuatement of coed to their pre
ed at the repocoverable amo
g unit to which
sal groups cl
s of disposal ggh a sale tranamount and faed as held for be highly proba
ised for any iair value less cof a non-curreeviously recog
preciated or athe liabilities o
as held for sahe face of theale are presen
27
st of acquisitionot amortisedoodwill may bdwill is alloca
of a project en technical fe can be meas
are amortiseproject.
ews the carryassets have
higher of the ue. Any exces
omprehensive esent value us
orting date forount of an ind the asset bel
assified as h
groups are clansaction ratherair value lesssale, they muable.
initial or subscosts to sell. Ant asset and a
gnised.
amortised whiof assets held
ale and the ase financial ponted separatel
on over the fa, but tested fobe impaired, ated to cash
is recogniseeasibility studieured reliably.
ed on a syste
ying values obeen impaire
asset’s fair vass of the asset
income. In asing a pre-tax d
r intangible asdividual asset, ongs.
eld for sale
assified as heldr than throughcosts to sell.
ust be availab
equent write A gain is recogassets of disp
le they are cla for sale conti
ssets of dispossition, in currey on the face
air value of theor impairmentthe impairmengenerating un
ed as an exes identify tha
ematic basis
of its intangibled. If such analue less costst’s carrying vassessing valuediscount rate.
ssets with indethe Group est
d for sale if thh continuing us
For non-currele for immedia
down of the ngnised for anyosal groups, b
assified as henue to be reco
sal groups claent assets. Thof the stateme
e identifiable nt at the repornt is recognisnits for the p
xpense when at the project w
matched to t
le assets to n indication es to sell and it
alue over its ree in use, the
efinite lives. Wtimates the re
heir carrying ase. They are
rent assets or ate sale in the
non-current ay subsequent but not in exce
ld for sale. Intognised.
assified as hehe liabilities oent of financia
net assets rting date. sed in the urpose of
incurred. will deliver
the future
determine exists, the ts value in
ecoverable estimated
Where it is ecoverable
mount will measured assets of
eir present
ssets and increases
ess of any
terest and
ld for sale of disposal al position,
p) Inve
Invetheirecl
Finaexprew
Hel
Helfixematmat
q) ConA cthatincu
r) Sho
Shocomservabsmed
TheGroThesala
The
s) Lon
Loncomemp
TheGrousincas
t) Eve
Assconcrite
estments and
estments andir classificatiolassification to
ancial assets pired or have wards of owner
d to maturity i
d to maturity ed maturities tturity. Held toturities less th
ntingent Liabcontingent losst, after takingurred and, a re
ort-term Emport term empmpensation bevices are rend
sences, profit dical care, hou
e provision foroup has a pree provision haaries and past
e undiscounte
ng-term Empng-term empmpensation anployee service
ese benefits aoup in respectng market yiesh flows.
ents after thesets and liabilnditions existineria are disclo
d other financ
other financion. Classificatio other catego
are derecogbeen transferrrship.
investments
investments athat the consoo maturity fin
han 12 months
bilities s is recogniseg into accounteasonable est
ployee Benefiployee benefenefits) whichdered. They co
sharing and using, car and
r employee bsent obligatio
as been calcult experience re
d amount of s
loyee Benefitloyee benefi
nd profit sharines are rendere
re measured t of services
elds on nation
e Reporting Dlities are adjung at the balaosed in Note 2
cial assets
al assets are ion is determi
ories is restrict
nised when tred and the co
are non-derivaolidated entitynancial assetss from the end
d as an expet any related timate of the a
ts fits are emplh fall due witomprise wagebonuses pay
d service good
enefits to wagn to pay resulated after takegarding staff
short-term ben
ts its include lng and bonuseed.
as the presenprovided by eal governmen
Date usted for evennce date. Imp7.
28
measured atined based oted.
the rights to onsolidated e
ative financiay's managemes are include
d of the reporti
nse and a liabprobable rec
amount of the
loyee benefitthin 12 monthes, salaries, soyable within 1ds.
ges, salaries lting from em
king into consif departures a
nefits expected
long-service es payable 12
nt value of theemployees to nt bonds with
nts occurring portant events
t either amortin the purpose
receive cash ntity has trans
l assets with ent has the poed in non-curng period, wh
bility if it is procovery, an asresulting loss
ts (other thahs after the eocial security o12 months an
and annual leployee serviceideration estimnd includes re
d to be paid is
leave, long-2 months or m
estimated futreporting datterms to mat
after the repos after the rep
sed cost or fae of the acqu
flows for thesferred substa
fixed or deterositive intentiorrent assets, ich are classif
obable that futset has beencan be made
n terminationend of the yeobligations, shnd non-manda
eave represenes provided umated future inelated on-costs
recognised as
-term disabiliore after the e
ture cash outfle. These casurity that mat
orting date thorting date wh
air value depeuisition and su
e financial assantially all the
rminable paymon and ability
except for thfied as current
ture events wn impaired or e.
n benefits anear in which hort-term comatory benefits
nts the amounp to the reporncreases in ws.
as an expense
ity benefits, end of the yea
lows to be mash flows are dtch expected
hat provide evhich do not m
ending on ubsequent
sets have risks and
ments and to hold to hose with t assets.
will confirm a liability
nd equity employee pensation
s such as
nt that the rting date.
wages and
.
deferred ar in which
ade by the discounted timings of
vidence of meet these
u) Cas
Cas
•
•
•
v) Goo
Revwheparreco
w) For
Forratetranexpwhediffeand
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x) Sup
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y) Ado
Cer30 inteGro
(i)
sh and Cash sh and cash e
cash on ha
investmen
cash in tra
ods and Servvenues, expenere the amounrt of the cost ognised inclus
reign Currencreign currencye at the date onslated at thepenses in the sen deferred inerences on nod are included
e results andperinflationary nslated into th
• assets a• income
approximcase inc
• all resul
consolidationd of borrowinognised in otht of the net invfit or loss, as p
perannuationntributions arenefits to emplo
option of Newrtain new accoJune 2011 r
erpretations isoup):
AASB 9 Finarising fromAASB 9 (eff
Equivalents equivalents co
and and at ca
nts in money m
ansit.
vices Tax nses and assent of GST incof acquisition sive of GST.
cy Transactioy transactions of the transace spot rate atstatement of c
n equity as quaon-monetary fin the fair val
d financial poeconomy) th
e presentation
and liabilities aand expense
mation of the come and expting exchange
, exchange difngs and otheher comprehevestment are part of the gain
n e made by toyees. Contrib
w and Reviseounting standreporting perios set out belo
ancial Instrumm AASB 9 and fective from 1
mprise:
ll deposits wit
market instrum
ets are recogncurred is not re
of an asset o
ons, Balanceoccurring durtions. Foreignt the reportingcomprehensivalifying cash financial assetue reserve in
osition of all hat have a funn currency as
are translated s are translatcumulative e
enses are trane differences a
fferences ariser financial innsive incomerepaid, a propn or loss on sa
he Group to butions are pai
ed Accountingards and interod. The Grouw (this list is
ments, AASB 2AASB 2010-7January 2013
29
h banks or fin
ments maturing
nised net of thecoverable froor part of an
es and Translring the year an currency mog date. Excha
ve income in thflow hedges ats and liabilitieequity.
the group enctional currefollows:
at the closingted at averageeffect of the ranslated at the are recognised
ing from the tnstruments dee. When a forportionate shaale where app
employee suid monthly and
g Standardsrpretations haup's assessmnot complete
2009-11 Amen7 Amendments3).
ancial instituti
g within three
e amount of gom the taxatioitem of expen
lations are converted onetary items oange differenche period in w
and qualifying es are reported
entities (noneency different
g rate at the ree exchange raates prevailingdates of the t
d in other com
ranslation of aesignated as reign operatioare of such explicable.
uperannuationd charged as
ave been publment of the ime, but represe
ndments to Aus to Australian
ons, net of ba
months; and
goods and servon authority, tnse. Receiva
to Australian coutstanding atces are recog
which exchangnet investmend as part of th
e of which hfrom the pre
eporting date ates (unless thg on the transransactions) a
mprehensive in
any net investmhedges of
on is sold or axchange differ
n funds whichan expense w
ished that arempact of thesents the stand
ustralian Accoun Accounting S
ank overdrafts
vices tax (GSTthen it is recoables and pay
currency usinat the reportinggnised as rev
ge rates changnt hedges. Tre fair value ga
has the curreesentation cur
his is not a resaction datesand ncome
ment in foreigsuch investm
any borrowingrences is recla
h provide accwhen incurred.
e not mandatose new standdards that ap
unting StandaStandards aris
;
T), except gnised as
yables are
g the spot g date are venues or ge, except ransaction ain or loss
ency of a rrency are
easonable , in which
gn entities, ments are gs forming assified to
cumulated
ory for the dards and ply to the
ards sing from
(ii)
(iii)
(iv)
(v)
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z) Com
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aa) Rou
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AASB 9 addliabilities. Thpotential imp
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AASB 124 sinconsistencfrom 1 July
AASB 2010Improvemen
AASB 2010make numeStandards ayet to asses
AASB 2010
AASB 2010Australian Ato the text oBoard. Thpotential imp
AASB 2011Convergenc
AASB 2011Australian InternationaGroup intenthe financial
AASB 2011Personnel D
AASB 2011Standards BThe Group impact on th
mparative Figere required b
conform to the
unding of Amwerlan has apancial stateme
dresses the clahe Group intepact on the fin
SB 124 RelatStandards (ef
simplifies the cies from the 2011 and is ye
-4 Further Amnt Project (effe
0-4 introduceserous non-urand Interpretass any potentia
-5 Amendmen
0-5 introducesAccounting Staof Internationahe Group intepact on the fin
-1 Amendmence Project (effe
1-1 introducesAccounting S
al Financial Rds to apply thl statements.
-4 AmendmenDisclosure Req
1-4 introducesBoard to remointends to ap
he financial sta
gures by accounting
e changes in p
mounts pplied the relieents and direct
assification, mends to apply nancial statem
ed Party Disclffective from 1
definition of adefinition of aet to assess a
mendments to Aective from 1 J
s amendmentsrgent but nections. The Groal impact on th
nts to Australia
s amendmentandards and Ial Financial Rnds to apply
nancial statem
nts to Australiaective from 1 J
s amendmentStandards an
Reporting Stane new standa
nt to Australianquirements (ef
s amendmenove the indivipply the new atements.
g standards, thpresentation fo
ef available untors' report hav
30
measurement athe new stan
ments.
losures and A1 January 201
a related parta related partyany potential im
Australian AccJanuary 2011)
s as a consecessary ameroup intends tohe financial st
an Accounting
ts that make Interpretations
Reporting Stanthe new stan
ments.
an AccountingJuly 2011).
ts that make nd Interpretatndards betweard from 1 July
n Accounting ffective from 1
nts that arise dual key manstandard from
he reclassificaor the current f
nder ASIC Clave been round
and de-recognndard from 1
AASB 2009-121).
ty, clarifying it. The Group impact on the f
counting Stan).
equence of thendments to o apply the neatements.
g Standards (e
numerous es, including amndards by thendard from 1
g Standards ar
numerous etions for theen Australian
y 2011 and is y
Standards to R1 July 2013).
from a decnagement perm 1 July 2011
ation of compafinancial year.
ass Order 98/ded off to the
nition of financJuly 2013 an
2 Amendments
ts intended mntends to appfinancial state
dards arising
e annual impa range of
ew standard fr
effective from
ditorial amenmendments to
e International July 2011 an
rising from the
ditorial amene purpose of and New Zeyet to assess
Remove Indiv
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aratives has b
100 and acconearest $1,00
cial assets andnd is yet to as
s to Australian
meaning and eply the revisedements.
from the Annu
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from 1 July 20
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ndments to a o reflect changl Accounting S
nd is yet to as
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vidual Key Man
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been performe
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unts in the
N
F
(
(
N
F
L(
Note 2: Reve
For the year e
(a) Revenu
Sale of
ServiceTotal s
(b) Other iInterestRealiseExport Other Total o
Note 3: Loss
For the year e
Loss from con(a) Expens
EmployCost of Travel eOperatiMarketiProfessCommuRealiseDeprecUnrealiProvisioBad deAmortisOther eTotal eimpairm
enue
ended 30 June
ue
goods
es revenue sales revenue
ncome t received
ed foreign currmarket grants
ther income
s from conti
ended 30 June
ntinuing operatses, excludinyee benefit expf sales expenses ing lease - mining and promosional fees unication expeed foreign currciation of propesed foreign exon for doubtfubts written off
sation of contrexpenses expenses, exment
e
e
rency gain s
nuing opera
e
tions includesng finance copenses
nimum lease potion
enses rency loss erty, plant & exchange loss l debts
fracts acquired
xcluding fina
ations
: sts
payments
equipment
nce costs an
31
nd
2011$’000
3,422
13,098 16,520
9 - -
6978
2011$’000
17,123 4,409 2,398 925 880 966 464 318 227 141 68 49 43 808
28,819
2010$’000
6,316
13,36919,685
45932133
11,111
2010$’000
16,360 3,067 2,265 1,129
941 999 541
-359 645 210 813 208 966
28,503
N
F
(
(
(
N
F
(
(
If (
(
Note 3: Loss
For the year e
(b) FinancFinance- othe- direTotal fi
(c) Individloss fincomeChange- imp- emp
(d) AuditoRemun- aud- tax
Note 4: Incom
For the year e
(a) IncomeIncomeForeign
(b) Prima f30% (2operatiTax at 3Add/(de- non- net - ben
Income tax (bfrom continu
(c) UnrecoDeferrebenefitsextent tbe avadifferenNet tem
(d) DeferreForeign
s from conti
ended 30 June
ce costs e cost includeer persons
ector related inance costs
dual (revenuefrom contine tax expensees of provisionairment of recployee benefit
r’s remuneraneration of the dit and review compliance &
me tax
ended 30 June
e tax expensee tax expense n tax credits w
facie tax exp2010: 30%) onions 30% (2010:30educt) tax effen-allowable ite
temporary diffnefit of tax lossbenefit)/expening operation
ognised temped tax assets s of which withat it is probailable against
nces can be utmporary differe
ed tax – forein tax credits w
nuing opera
e
s:
es)/expensesnuing operae include: ns for: ceivables ts
ationauditor for: of the financia
& other service
e
e comprises:
written off
ense/(benefitn the loss fro
0%) ect of : ms ferences reveses not recognnse attributabns
porary differenot brought
ill only be recable that futur which deductilised. ences
ign tax creditwritten off
ations (cont
s included iations befor
al statementses
t) calculated om continuin
rsed nised ble to loss
nces to account, thcognised to the tax profits w
ctible tempora
ts
32
t’d)
in re
3
at ng
he he will ary
2011$’000
162,0532,069
1,011345
$174,283 1170,333 1344,616 3
2011$’000
(784)
(4,522)
(1,074)108
(3,556)
-
9
(784)
2010$’000
20
1,6101,630
577(186)
$91,07697,97389,049
2010$’000
(741)
(3,023)
3681,351
(4,742)
-
287
(741)
N
F
OCa(pd(
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Note 5: Disc
For the year e
On 17 MaConverterTecha result disco(considered aprocess of beidiscontinued).(a) Financ
RevenuServiceTotal re Other iWrite bNet inteOther inTotal o Expens Cost o Lease Employ Deprec Profes Travel Other eTotal e
FinancFinance- otheTotal fi Profit/(IncomeProfit/(discon
(b) Cash flThe netwhich hstatemeNet casNet casNet casNet incoperati
ontinued op
ended 30 June
arch 2011, hnology and Iontinued ope
as held for saing sold or clo
cial performan
ues es and licenseevenues
income ack of ATO de
erest income ncome
other income
ses, excludinf sales rental expensyee expensesciation of propsional fees expenses expenses
expenses, exc
ce costs e costs expener persons inance costs
(loss) from die tax benefit (loss) after in
ntinued opera
low informatit cash flows ohave been incent are as follosh used in opesh used in invesh provided bycrease in cashions
perations
e
the DirectoMX to CPS w
erations reprele) and other
osed down and
nce
revenue
ebt no longer
ng finance co
ses s perty, plant & e
cluding finan
se
iscontinued o
come tax froations
ion of the discontincorporated intows: erating activitieesting activitiey financing acth in discontin
ors announcwhich is subjecesent Conver
companies (d do not cond
required
sts
equipment
ce costs
operations
m
nued operationo the cash flo
es es tivities nued
33
Note
ced the prct to shareholrterTechnologyrefer Note 20uct any busin
13
ns ow
2011$’000
roposed saleders’ approvay, IMX Soft0) which are iess (considere
9,1269,126
4,540196138
4,874
1,745 546
8,205 122 79
397 647
11,741
--
2,259400
2,659
(5,539)(58)
5,687
90
2010$’000
e of l. As tware n the ed as
7,6287,628
--
240240
1,319 480
7,963 143 163 425 824
11,317
729729
(4,178)-
(4,178)
(6,075)(91)
6,310
144
F
N
A
C
T
FT EIs
A
N
P
P
P
P
T
For the year e
(c) CarryinFair vadisconCash aReceivaInventoOther cPlant &Total a Trade aTotal li Net ass
Refer to Noteincluded withi
Note 6: Trad
As at 30 June
Current Trade rProvisioPrepayDepositOther
Total current
Fair Values The carrying a
Effective InterInformation coset out in Note
The ageing of
As at 30 June
Not past due
Past due 0 - 3
Past due 31 -
Past due 61 -
Past due 91 d
Total receiva
ended 30 June
ng amounts oalue of assetsntinued operand cash equivables
ory current assets & equipment assets
and other payaiabilities
sets/(liabilitie
e 9 for detailn the above.
e and other
receivables on for impairm
yments ts
trade and ot
amount of trad
rest Rates andoncerning the e 24.
f trade receiva
30 days
60 days
90 days
ays
bles
e
of assets ands and liabilitieations valents
ables
es)
ls on assets
r receivables
ment of receiva
her receivabl
de and other re
d Credit Risks effective inte
ables is detaile
d liabilities es of
and liabilities
s
ables
les
eceivables ap
rest rate and
ed below:
34
s held for sal
proximate fair
credit risk of
G
2011$’000
6292,255
3429098
3,414
2,9632,963
451
le pertaining
2011$’000
2,556- (
3153-
2,874
r value.
both trade an
2011$’000
Gross Pro
584
1,428
194
-
350
2,556
2010$’000
8----8
5,7735,773
(5,765)
to IMX and C
2010$’000
7,863(1,011)
43835
3577,682
nd other recei
$’000
vision
-
-
-
-
-
-
Converter
ivables is
N
A WT
N
A TT
N
A
Current trademarkets in whfor are consid
The movemen
As at 30 June
Opening bala
Amount class
Additional pro
Amounts use
Foreign curreClosing bala
Note 7: Inven
As at 30 June
Work in progreTotal invento
Note 8: Inves
As at 30 June
Term depositsTotal investm
Note 9: Asse
As at 30 June
(a) Assets cTradeInvenPlantOtheTota
(b) Liabilitieclassifie
AccoAccruUneaOthe
e receivables ahich the Groupdered recovera
nt in the provis
e
ance
sified as held f
ovisions
ed
ency exchangeance
ntories
ess - at cost ories
stments hel
s ments held to
ets and liabi
classified as he receivables ntories t & equipmentr assets l assets
es directly assd as held for
ounts payable uals arned revenuer payables
are generally p operates, avable.
sion for impair
for sale
e differences
d to maturit
maturity
ilities classi
held for sale
t
sociated withr sale
e
on 45-day teverage collecti
rment of recei
ty
fied as held
h assets
35
erms. Howeveion is close to
vables in resp
(
d for sale
Note
5
5
r, consideringo 90 days. All
pect of trade re
2011$’0001,011
(2)
-
(1,009)
-
-
2011$’000
3,6323,632
2011$’000
1,5321,532
2011$’000
2,2563429890
2,784
650467
1,171675
2,963
g the nature oreceivable pa
eceivables is d
2010$’0001,588
-
210
(745)
(42)
1,011
2010$’000
5,9955,995
2010$’000
--
2010$’000
-----
-----
of the businesast due unless
detailed below
ss and the s provided
w:
N
A
PL
LL
FL
T
MBAADB
N
A
G
N
RBAB GbTT
Note 10: Plan
As at 30 June
Plant & equipmLess: accumu
Leasehold impLess: accumu
Furniture & fittLess: accumu
Total plant &
Movements inBalance at begAssets reclassAdditions Depreciation eBalance at en
Note 11: Inta
As at 30 June
Goodwill
Net carrying v
ReconciliationBalance at begAmortisation Balance at en
Goodwill is allobased on the GTelecom IndusTotal goodwi
nt & Equipm
ment - at cost lated deprecia
provements - alated deprecia
tings - at cost lated deprecia
equipment
n carrying amginning of yeasified as held f
expense nd of year
angible Asse
value of good
n of carrying amginning of yea
nd of year
ocated to casGroup’s reporstry ll
ment
ation
at cost ation
ation
mounts ar for sale
ets
dwill
mount of intanar
h generating urting segments
ngibles:
units which ares.
36
Plant &Equipme
$’
(2
e
2011$’000
578(307) (
271
22(6)16
16(5)11
298
&ent
Leasehimprove
000
401(93)182
219)271
2011$’000
14,414
14,414
14,457(43)
14,414
14,41414,414
2010$’000
2,167(1,766)
401
208(188)
20
136(115)
21
442
holdement
Furn& Fitt
$’000
20
--
(4)16
2010$’000
14,457
14,457
14,665(208)
14,457
14,45714,457
iture tings
Tota
$’000 $
21
(17) (11 (4) (11
al
$’000
442(110)
193(227)
298
The recoverais calculated period and byappropriate W
A summary of
As at 30 JuneTelecom Indu
The carryingdetermined w
Low
High
The value-incurrent salecalculated taperiods whicDiscount rate
Note 12: D
As at 30 Ju
Deferred tWithholdingTotal defe
The movemetax credits w
ble amount ofbased on the
y using a termWeighted Aver
f key assumpt
G
e ustry
g value of goowhen both sen
n-use calculatis pipeline, h
aking into accoch are consises are pre-tax
eferred Tax
une
ax assets g tax credits rred tax asse
ent in deferredwritten off and i
f each cash gee present valuinal value at tage Cost of C
tions used in t
Growth rates %
2011 20-49
odwill is mostnsitivities are a
ons are baseistorical weig
ount historical stent with the and are adjus
Assets
ets
d tax assets dis debited to ta
enerating unit ue of managehe end of the
Capital (“WACC
the carrying va
2010 30-66
t sensitive to applied simulta
d on budgets hted averagegross margininflation rate
sted to incorpo
during the yeaax expense in
37
t is determinedment and boa4-year period
C”) at the beg
alue of each C
Discount rat%
201123.0
the followinganeously:
Di
prepared for e and industrns as well as ees applicable orate risks ass
ar is the net ofn the statemen
d based on vaard approved d. The cash floinning of the b
CGU :
tes Te
201023.0
assumptions
scount rates%
+1.5
-1.5
each CGU. Try growth ratestimated weigto the locatiosociated with
2011$’000
6565
f withholding tnt of comprehe
alue-in-use cacash flow pro
ows are discoubudget period.
erminal valuerates %
20112.5
and the pote
Terminvalue gro
rates %
-0.5
+0.5
These budgetstes to projectghted averageons in which ta particular se
2010$’000
384384
tax credits recensive income
lculations. Vaojections overunted using a.
e growth %
2010 2.5
ential impact
nal owth %
$’00
5 (8,3
5 5,
ts use a combt revenues. Ce inflation ratethe segments
egment.
ceived, less we.
lue-in-use r a 4-year n industry
has been
00
318)
660
bination of Costs are s over the s operate.
withholding
Note 13: Tr
As at 30 Ju
Current Trade payaAccruals Other payaTotal curre Non-CurreOther payaTotal non-
ATO Debt Included in omillion) (inclu2007, the ATmonthly instapaid the final
Note 14: Pr
As at 30 Jun
Current Employee Other provTotal curre Non-CurreEmployee Total non- Total prov
rade and Ot
une
ables
ables ent trade and
ent ables -current trade
other payablesuding principaTO confirmedallments of $8l installment.
rovisions
ne
benefits isions ent provision
ent benefit -current prov
visions
ther Payable
d other payab
e and other p
s (current) is aal and interes an arrangem87,523 with th
ns
visions
es
bles
ayables
an amount outt) for a tax lia
ment allowing he final install
38
tstanding to thability incurredthe Group to ment in May
2011$’000
2,0903,380
7696,239
--
he Australian d in financial settle this de2011. During
2011$’000
1,312-
1,312
243243
1,555
2010$’000
3,0075,1526,859
15,018
4646
Tax Office (“Ayears 2002 a
ebt in full throug the year (De
2010$’000
1,63015
1,645
360360
2,005
ATO”) of Nil (2and 2003. Onugh the paymec 2010) the
2010: $5.5 n 13 April
ment of 48 Company
N
A
UT
N
A
N T
PfoAw$
As at 30 Jun
Number ofNumber of
Reconciliabenefits Balance at Liability recAdditional pCharges agUnused amNet foreignBalance at
Provision A provisionpresent vais based oincluded in
Note 15: Oth
As at 30 June
Unearned reveTotal unearne
Unearned revand maintenaincome on a m
Note 16: Bor
As at 30 June
Non-Current Interes
Total non-cur
Pursuant to a or and pay th
Agreement) thwas secured b$30 million.
ne
f employees f employees
ation of carry
t beginning of classified as hprovisions gainst the pro
mounts reversen currency exct end of year
for Employeen has been reclue of future c
on historical d note 1(r) and
her Current
enue ed revenue
venue relates tance revenue monthly basis
rrowings
t bearing liabirrent borrowi
Loan Note Suhe Issue Priceat the Compa
by a fixed and
at year end
ying amounts
year held for sale
visions ed
change movem
e Benefits cognised for ecash flows in rdata. The mead note 1(s) of t
Liabilities
to invoices whwhich is usuaas and when
lities - related ings
ubscription Age (as defined any agreed to a
floating charg
s of employee
ment
employee benerespect of longasurement anhe financial st
hich are raisedlly invoiced quthe services a
parties
greement datein the Loan Aallot and issue
ge, established
39
e
efits relating tog service leavd recognition tatements.
d prior to serviuarterly or annare provided.
Note
ed 10 May 20Agreement) to e to CPS on thd on 11 May 2
2011
No125
$’000
1,990(432)
585(523)(24)(41)
1,555
o annual and e, the probabicriteria relati
2011$’000
2,8762,876
ices being delnually in adva
2011$’000
25,80825,808
05 ("Loan Agthe Company
he terms set o2005, refer No
2010
No128
$’000
1,804-
717(507)
(5)(19)
1,990
long service leility of long seng to employ
2010$’000
4,3534,353
ivered. This mnce. Unearne
2010$’000
11,06511,065
reement"), CPy for a Note (
out in the Loante 26. The Co
eave. In calcuervice leave beyee benefits h
mainly relates ted revenue is b
PS agreed to (as defined inn Agreement. ompany has a
ulating the eing taken have been
to support brought to
subscribe the Loan The Note
a facility of
Tms
N
The balance omillion) of whicsubsequent to
Note 17: Iss
As at 30 Jun
(a) Ordina348,744ordinary
(b) MovemBalance348,74482,526,8Nil (201issued Cost of Balance
Effective 1 Jauthorised cordinary sha
Ordinary shaof shares heeach shareho
UnmarketabDuring the pthe number o
Capital risk The Group’sso that it canstructure to r
The Group acapital. Debin the StatemThe Group is
The Group d
outstanding to ch $21.8 milliothe reporting
sued Capital
e
ary Shares 4,251 (2010: 8y shares
ents during te at the beginn4,251 fully paid822) 0: 266,217,42
capital raising
e at the end o
July 1998, theapital. Accordres.
ares participateld. At shareholder has one
ble Parcels previous year, of shareholder
managemen objectives wh
n provide retureduce the cos
actively monitobt is calculatedment of Financs exploring op
does not engag
CPS Investmon is principadate.
l
82,526,822) fu
the year ning of the yead ordinary sha
29) fully paid o
g
of the year
e Company Ladingly, the Co
te in dividendsholder meetinge vote on a sho
the Companyrs reducing fro
t hen managingrns for sharehst of capital.
ors capital on d as total intercial Position ptions to reduc
ge in any sign
ents under thel (2010: $9.8
ully paid
ar ares (2010:
ordinary shares
aw Review Acompany does
s and the procgs each ordinow of hands.
y facilitated thom 5,300 as o
g capital are toholders and be
the basis of arest bearing finplus debt. Thece the gearing
nificant transac
40
e Loan Note amillion). The
s
ct abolished tnot have auth
ceeds on the nary share is e
he sale of unmon 30 June 20
o safeguard tenefits for oth
a gearing rationancial liabilit
e Group’s policratio.
ctions that are
at the 30 June Company ha
2011$’000
164,302 1
164,302 1
--
164,302 1
he concept ofhorised capita
winding up ofentitled to one
marketable pa10 to 1,216 as
he Group’s aber stakeholde
o. This ratio ies. Total capcy is to mainta
e speculative in
e 2011 was $2as not borrowe
2010$’000
64,302
48,935
15,973(606)
164,302
f par value shal or par value
f Powerlan in e vote when a
rcels held by s on 30 June 2
bility to continrs and to mai
is calculated apital is calculaain a gearing
n nature.
25.8 million (2ed any additio
hares and thee in respect of
proportion to a poll is called
shareholders 2011.
ue as a goingntain an optim
as debt divideated as equity
ratio of less t
010:$11.1 onal funds
e concept of f the issued
the number d, otherwise
resulting in
g concern, mal capital
ed by total as shown
than 50%.
The gearing
As at 30 Ju
Gearing Ra
Debt
Equity
Total capit Gearing rat
Note 18:
For the y
OperatinNon-cancnot capita Not later Later thaTotal ope
Property lelease agrefactor.
Note 19:
For the y
Proposed Balance o
ratio was as f
une
atio
tal
tio
Capital and
year ended 30
ng lease commcelable operaalised in the fi
than one yearn one year buerating lease
eases are nonements gener
Dividends
year ended 30
d ordinary divi
of franking ac
follows:
Leasing Co
June
mitments ating leases cnancial statem
r ut not later thae commitmen
n-cancellable, rally require th
June
dends
count
ommitments
contracted foments:
n five years ts
with rent payhat minimum l
41
(1
s
or but
yable monthlylease paymen
2011$’000
25,808 1
11,267)
14,541 1
178%
2011$’000
5181,1851,703
y in advance. nts are increas
2011$’000
-
4,091
2010$’000
1,065
1,931
2,996
85%
2010$’000
4771,3601,837
Contingent sed annually
2010$’000
-
4,091
rental provisiby CPI or a p
ons within percentage
NP
CAACC
C
C I NO
**
Note 20: ConPowerlan is th
Controlled EnACN: 056 159Arrangement iClarity PhilippClarity Group
Clarity PT ClarClarity SCG PhiClarity OClarity OClarity OClarity OClarity O
Commercial SCommeComme
Converter TecConver
IMX Software IMX So
No 4 ResourceOmnix Holding
Omnix Odysse
* These com
restructuriPowerlan’s
ntrolled Enthe ultimate par
ntities 9 963 Pty Limitin 2002) ** ines Pty LimiteHoldings Pty International P
Clarity Techrity Systems InServices Pty Lilippines Inc. *OSS (MalaysiOSS Limited *OSS (SingapoOSS SoftwareOSS (Bulgaria
Software Limiteercial Softwareercial Software
PWR Powerchnology, Inc. rter TechnologGroup Pty Lim
oftware UK Limes Pty Limitedgs Limited ** Software Limi
ey Software Li
mpanies are nng of the Gros future comp
ities rent entity in th
ted (subject to
ed Limited Pty Limited nology Malaysndonesia Limited ** ia) Sdn Bhd ** ore) Pte Limitee India Pvt. Lima) EOOD ed ** e Services Tee Services (Horlan (Malaysia(formerly Pow
gy Private Limmited mited d (deregistere
ited mited **
no longer tradoup a processliance costs.
he wholly own
o Deed of Com
sia Sdn Bhd **
ed mited
chnologies Limoldings) Limite
a) Sdn Bhd **werlan USA Inited
ed)
ding and theres has been ini
42
ned group.
mpany
*
mited ** ed **
ncorporated)
e is no intentitiated to liquid
Country ofIncorporatio
Australia
AustraliaAustraliaAustraliaMalaysiaIndonesiaAustralia
PhilippinesMalaysia
United KingdoSingapore
India Bulgaria
Hong KongHong KongHong KongMalaysia
USA United Kingdo
AustraliaUnited Kingdo
AustraliaUnited KingdoUnited KingdoUnited Kingdo
on that they wdate these no
fon
Percen
2011100%
100%100%100%100%100%100%
s 100%100%
om 100%100%100%100%
g 100%g 100%g 100%
100%100%
om 100%100%
om 100%-
om 100%om 100%om 100%
will resume. on-trading enti
ntage of SharHeld
2010% 100%
% 100%% 100%% 100%% 100%% 100%% 100%% 100%% 100%% 100%% 100%% 100%% - % 100%% 100%% 100%% 100%% 100%% 100%% 100%% 100%
100%% 100%% 100%% 100%
As part of theities and furth
res
0 %
% % % % % % % % % % %
% % % % % % % % % % % %
e ongoing her reduce
N
Note 21: Seg
For the year 2011 Revenue Other income Expenses, eximpairment Finance costProfit/(loss)income tax e
Income tax bProfit/(loss)the parent eTotal assets
Total liabilitieNet liabilitieOther Acquisition oDepreciation 2010 Revenue Other income Expenses, eximpairment Finance costProfit/(loss)income tax eIncome tax eLoss from oexpense Loss attributaLoss attribuparent entityTotal assets
Total liabilitieNet assets/(Other Acquisition oDepreciation
gment Repo
ended 30 Jun
e
xcluding finan
ts from operatiexpense
benefit/(expen attributable
entity
es es
of non-current n
e
xcluding finan
ts from operatiexpense
expense operations aft
able to minoritutable to memy
es (liabilities)
of non-current n
orting
ne
nce costs and
ions before
se) to members
assets
nce costs and
ions before
ter income ta
ty interest mbers of the
assets
of
ax
43
Telecom Industry
$’000
16,520 78
16,598(28,819)
(2,069) (14,290)
(784)
(15,074)
25,389 (35,722)
(10,333)
193227
19,685 1,111
20,796 (28,503)
(1,630) (9,337)
(741) (10,078)
(316)
(9,762) 32,160
(29,889) 2,271
147359
DiscontinuedOperations
$’000
9,1264,874
14,000(11,741)
-2,259
400
2,659
2,785(3,719)
(934)
7,628240
7,868(11,317)
(729)(4,178)
-(4,178)
(4,178)2,257
(2,597)(340)
97
d s To0 $’0
6 25,64 4,90 30,5) (40,56
- (2,069 (12,03
0 (38
9 (12,41
5 28,1) (39,44
) (11,26
- 1- 2
8 27,30 1,38 28,6) (39,82
) (2,35) (13,51
- (74) (14,25
- (3
) (13,947 34,4
) (32,48) 1,9
7 2- 3
otal 000
646 952 598 60)
69) 31)
84)
15)
174 41)
67)
193 227
313 351 664 20)
59) 15)
41) 56)
316)
40) 417
86) 931
244 359
N
N
F (
Note 21: SeThe operatindecision to stwo reportab
1.
2.
The comparanoted above
Note 22: Rel
For the year e
(a) DirectoSecurecompanDr I Cathe assThe cDr I CaNovemon the L
MonMonMonIntethe AmorendIn Adepthe
DMA InIan Lancover, insuranPowerla
Insuat c
The balance $11.1 million)funds subseq
egment Repong segments sell the IMX sle segments o
Telecom induclarity divisionDiscontinued Software) and
ative informat.
ated Party D
ended 30 June
ors - related ed borrowings ny related ampbell) and ssets of certai
charge was ampbell becaber 2005. InteLoan Note. nies received nies repaid bynies owed by erest paid/paya
year ount paid/paydered Aug 2009, an posit to Westp
lease of office
nsurance Brokncaster, securelectronics a
nce and comman during the urance chargecommercial rat
outstanding t) of which $21uent to the ba
orting (contare based onoftware and Cof the consolid
ustry – consistsn) operations –
d enterprise m
tion for the pr
Disclosure
e
entities (“Loan Note”
to Powsecured by a in entities coestablished
ame a directoerest is payab
by Powerlan fy Powerlan to CPowerlan to Cable to CPS in
yable to CPS
amount was pac to secure e accommoda
kers Pty Ltd, red Directors aand informatiomercial genera
year. es were at armtes
o CPS Invest1.8 million is palance date.
’d) n the reports Converter Tecdated entity ar
s of software a
incorporates tmanagement (C
rior year 2010
”) provided bywerlan’s CDeed of Cha
ntrolled by Pon 11 May
or of Powerlable at 12% pe
from CPS CPS
CPS n relation to th
in relation to
provided by Ca bank guaration.
a company reand Officers inon technologyal liability insur
m’s length and
tments under principal (2010
44
reviewed by chnology divisre:
and services p
the previously ConverterTech
0 reportable s
y CPS (a Chairman, arge over Powerlan. y 2005,
an on 28er annum
he loan in
services
CPS as a antee for
elated to nsurance y liability rance for
charged
the Loan No0: $9.0 million
the chief opesions to CPS (
provided to the
reported segmhnology).
segments hav
CON2011
$
12,800,000-
25,808,3972,052,576
531,855
-
180,183
ote at the 30 Jn). The Compa
erating decisio(refer to note
e telecom indu
ments of finan
e been restat
NSOLIDATED 2010
$
8,290,0009,000,000
11,064,6261,610,295
545,969
513,391
214,450
June 2011 waany has not b
on maker. Fo27) at 30 Jun
ustry (compris
ncial services
ted to reflect
0 $
0 0 6 5
9
1
0
as $25.8 milliborrowed any
ollowing the ne 2011 the
sing
(IMX
the change
on (2010: additional
N(bTo
ND
InM
M
M
EM
M
M
M
F
(
Inin
AGin
Note 22: Relb) Key manag
The following otherwise:
Non-ExecutiveDr I Campbell
ndependent NMr G Harringto
Mr I Lancaster
Ms F McLeod
Executives Mr J Newbery
Mr A Wrigglesw
Mr S Allaway
Mr W Tickner
For the year e
(c) IndivcompNon-ePrimaPost-eTotal ExecPrimaPost-eTermTotal Total
nformation rencluded as pa
Apart from the Group since thnterests existin
ated Party Dgement persowere key m
e directors
Non-executivon
(resigned as C
worth – appoin
ended 30 June
idual directopensation disexecutive dirary benefits employment b non-executiv
utives ary benefits employment bination benefit executives
egarding indivrt of the direct
details disclohe end of theng at year-end
Disclosure (onnel anagement p
ve directors
Company Sec
nted as Comp
e
rs and execusclosures rectors
benefits ve directors
benefits ts
vidual directortors’ report on
osed in this noe previous find.
(cont’d)
personnel of
cretary on 11 N
pany Secretary
tives
rs’ and execu pages 7 to 10
ote, no directoancial year a
45
the Group th
November 201
y on 11 Novem
utives’ compe0.
or has enteredand there wer
hroughout the
10)
mber 2010
2011$
362,16618,580
380,746
1,233,94865,554
-1,299,502
1,680,248
ensation is p
d into a materre no other m
e reporting pe
2010 $
310,803 60,628
371,431
1,039,587 59,445
- 1,099,032
1,470,463
rovided in th
ial contract wmaterial contra
eriod, unless
he remunerati
with the Compaacts involving
indicated
ion report
any or the directors’
N(dTa
Ps
N
F TNs Wda B CNs Wda B DNp Wda B
NT
•
•
•
•
•
•
Note 22: Reld) Other tra
Transactions bavailable to oth
Powerlan provervices to all d
Note 23: Ear
For the year e
Total OperatiNet loss used share ($’000)
Weighted aveduring the yeaand diluted ea
Basic and dil
Continuing ONet loss used share ($’000)
Weighted aveduring the yeaand diluted ea
Basic and dil
DiscontinuedNet profit/(lossper share ($’0
Weighted aveduring the yeaand diluted ea
Basic and dil
Note 24: FinaThe Group und
cash assdeposits bills of exreceivablpayablesborrowing
ated Party Dansactions wbetween relateher parties unl
vides generaldivisions. The
rnings per S
ended 30 June
ons in calculating
rage number oar used in the arnings per sha
uted earning
Operations in calculating
rage number oar used in the arnings per sha
uted earning
d Operations s) used in calc00)
rage number oar used in the arnings per sha
uted earning
ancial Risk dertakes trans
ets
xchange es
s gs
Disclosure (with related pa
ed parties areless otherwise
l managemenese services a
Share
e
basic and dilu
of ordinary shcalculation of are (number):
s per share (
basic and dilu
of ordinary shcalculation of are (number):
s per share (
culating basic
of ordinary shcalculation of are (number):
s per share (
Managemensactions in a ra
(cont’d) arties e on normal ce stated.
nt, finance, hare recovered
uted earnings
ares outstandearnings per
cents)
uted earnings
ares outstandearnings per
cents)
and diluted ea
ares outstandearnings per
cents)
nt ange of financ
46
commercial ter
human resouvia a corporat
per
ding share
per
ding share
arnings
ding share
cial instrument
rms and cond
rces, informate overhead c
CON2
(12,
348,744
(3
(15,
348,744
(4
2
348,744
ts including:
ditions no mor
ation technoloharge.
NSOLIDATED2011 2
415) (13,
,251 203,588
3.56) (6
074) (9,
,251 203,588
4.32) (4
,659 (4,
,251 203,588
0.76 (2
re favorable th
ogy and adm
D 2010
940)
8,243
6.85)
762)
8,243
4.80)
178)
8,243
2.05)
han those
ministration
Tfo
Tfib
Wacin
(
(
i)
T
T
S
These activitiesoreign currenc
The Group’s onancial perfor
by the Board o
When appropriaccordance wicreate an oblignstrument, ass
a) FinanciaThe carry
b) Risks an
Market riMarket ris
Compone
) Interest r
Interest rinstrumeninstrumenrates refe
The interest ra
As at 30 June
Financial asCash and cas
Trade and ot
Deposits
Total financiFinancial lia
Trade and ot
Borrowings
Total financi
The effective in
Sensitivity an
s result in expcy risks), credi
overall risk mrmance. Finan
of Directors.
iate the Groupth Board app
gation or rightset or obligatio
al assets and ying amount o
nd mitigation
risk sk is the risk t
ents of market
rate risk rate risk refernt will fluctuatents in the formerenced to the
te exposure o
e
sets: sh equivalents
her receivable
ial assets bilities
her payables
ial liabilities
nterest rate on
alysis
posure to a nuit risk, operatio
management pncial risk mana
p seeks to entroved policiest that effectiveon.
liabilities of financial ass
that the fair va
t risk are:
rs to the risk e due to chan
m of loans frome Reserve Ban
of the assets a
Note
s 29(a)
es 6
8
13
16
n the Group’s
mber of financonal risk and l
program seeksagement is ca
er into derivats to manage eely transfers o
sets and financ
alue or future c
that the valuges in market
m CPS (refer Nnk of Australia
nd liabilities o
Amount
$'000
2,575
2,874
1,532
6,981
6,239
25,808
32,047
net debt at 30
47
cial risks, incluliquidity risk.
ks to mitigate arried out by t
tive transactioexposure to foone or more o
cial liabilities a
cash flows will
ue of a financt interest ratesNotes 25). Tha’s cash rate.
of the consolid
2011 Avg Fro
% %
-
-
-
-
12.0 12
0 June 2011 w
uding market
these risks ahe Chief Fina
ons relating to oreign currencof the risks as
approximate th
l fluctuate bec
cial instrumens. The Group he interest rate
ated entity are
INTEREST RA
om To
%
- -
- -
- -
- -
2.0 12.0
was 9.7% (201
risk (comprisin
and reduce vncial Officer u
forward foreigcy risk. Thesesociated with
heir fair value.
cause of chang
t or cash flowholds interest
es on deposits
e as follows:
ATE RANGE
Amount
$'000
5,458
7,682
-
13,140
15,064
11,065
26,129
0: 7.4%).
ng interest rat
volatility of theunder policies
gn currency coe derivative in
an underlying
.
ges in market
ws associatedt rate sensitive
s at bank are o
2010 Avg Fro
% %
0.7
-
-
4.1
12.0 1
te risk and
e Group’s approved
ontracts in struments g financial
prices.
d with the e financial on floating
om To
% %
- 4.4
- -
- -
- 11.1
2.0 12.0
Tvp
NAteJth
S
Bin
i
The table belovariables held parallel shifts in
Note 24: FinaA sensitivity oferm and long-une 2011 fromhree rate mov
Sensitivity ana
For the year e
If interest rateheld constant
If interest rateheld constant
Based on the sncrease in inte
i) Foreign
Foreign cfluctuate primarily currencie
The Grou
Australian
United St
United Ki
Indian rup
Euro
The foreaggregat
The GrouAustralianis managexposure
The Grouto hedgeinstrumen
ow shows the constant, tak
n the yield cur
ancial Risk f 10 per cent -term Australiam around 6.7%ements, which
alysis on financ
ended 30 Jun
es were 10 % t - increase/(d
es were 10% t - increase/(d
sensitivity anaerest expense
currency riskcurrency risk rdue to changfrom firm co
es other than A
up is exposed
n dollar
tates dollar
ingdom pound
pee
ign currency ing the net ex
up minimizes n dollars wherged by monitoe.
up plans to ene foreign currents.
effect on proking into accorves are assum
Managemenhas been selean dollar inter% to 8.1% reph is reasonabl
ce costs and n
e
higher with aldecrease) in pr
lower with all decrease) in pr
alysis, if intere on the interes
k refers to the res in foreign cmmitment or Australian Dol
to foreign exc
d
risk is assesxposure and th
exposure to fre possible anoring expected
ter into forwarency moveme
fit/(loss) if inteount all undermed.
nt (cont’d) ected as this rest rates. 10 presenting a 7ly possible in t
net profit of int
ll other variablrofit
other variablerofit
est rates were st bearing net
risk that the vacurrency exchhighly probablars or with pr
change risk fro
Indo
Phili
Sing
Mala
Hong
ssed for eachhe cash flow fo
foreign currennd economicald movements
rd foreign currents. The Gr
48
erest rates harlying exposur
is consideredper cent sens4 basis point the current ec
terest rate mo
les
es
10 per cent h debt.
alue of a finanhange rates. Tble forecast trices depende
om various cu
onesian rupiah
ppine pesos
gapore dollar
aysian ringgit
g Kong dollar
h individual cuor that currenc
ncy risk by initlly favourable
s in exchange
rency contractroup does no
ad been 10 peres. Concurre
d reasonable gsitivity provideshift in each d
conomic enviro
ovements
CONSO2011
$’000
(207)
207
higher, finance
ncial commitmThe Group’s fotransactions font on foreign c
rrency exposu
h
urrency and fcy.
tially seeking to do so. Wh rates and wh
ts and have apot intend to tr
er cent higherent movement
given the curres a range in direction. Thisonment.
OLIDATED 2010
$’000
(163)
163
e costs would
ment, recognisoreign currencor receipts ancurrencies.
ures, primarily
for each hedg
contracts effehere this is nothere possible
pproved limits rade in any o
r or lower withts in interest
rent level of bthe interest ra
s would repres
be impacted
sed asset or licy exchange rnd payments
y with respect
ge type, calc
ectively denomt possible the seeking to h
s with banks another type of
h all other rates and
both short-ates at 30 sent about
, being an
iability will risk arises settled in
to:
culated by
minated in exposure
hedge that
nd traders derivative
NFdfo
T
Note 24: FinaForeign currendifferent functioreign currenc
The tables belo
As at 30 June
Trade receiv
Australian do
United States
United Kingd
Euro
Others
Total Trade payabAustralian do
United States
United Kingd
Philippine Pe
Others
Total
Foreign curre
For the year e
Revenue
Australian do
United States
United Kingd
Indonesian R
Malaysian Ri
Euro
Others
Total Expenses
Australian do
United States
United Kingd
Singapore do
Indonesian ru
Philippine pe
Euro
Malaysian Ri
Others
Total
ancial Risk ncy risk also aonal currency
cy reserve.
ow show the G
e
vables
ollar
s dollar
om pound
bles ollar
s dollar
om pound
eso
ency exposure
ended 30 Jun
ollar
s dollar
om pound
Rupiah
ngitt
ollar
s dollar
om pound
ollar
upiah
so
nggit
Managemenarises on trany. The foreig
Group’s foreig
e: revenues an
e
nt (cont’d) nslation of thegn currency ga
n currency ex
Not
6
13
nd expenses b
49
e net assets oains or losse
xposure:
te 2011$’000
4
92
2
1
7
6 2,5
8
2
3
1
3
2,09
by currency
2011$’000
3,4
4,1
1,42
2,2
1,3
3,2
6
16,59
16,16
1,8
5,9
4
1,74
8
1,7
1,1
9
30,8
of non-Australs arising from
201$’00
67 1,38
22 5,59
84 22
67 18
16 48
56 7,86
93 50
71 75
70 57
76 85
80 32
90 3,00
201$’00
18 1,21
51 8,80
21 2,41
82
76 2,57
74 4,19
76 1,59
98 20,79
68 15,40
64 2,70
37 5,42
50 88
47 1,53
16 1,88
85 99
56 83
65 47
88 30,13
lian controlledm this risk are
10 00
82
96
20
82
83
63
02
53
76
54
22
07
10 00
16
01
17
-
70
99
93
96
07
00
23
85
37
81
91
35
74
33
d entities whice recorded th
ch have a rough the
NSTra
Awfo
AraAafaa
Tre
Fthth
CCfiF
•
•
Tbec
Note 24: FinaSensitivity anThe following tates, on a tota
An adverse mworsening of toreign currenc
A sensitivity ofates and the
Australian dollaadverse moveavourable mov
assessing the G
The Groups feceivables an
Sensitivity an
For the year
If Australian dwith all other increase/(dec
If Australian dall other variaincrease/(dec
For the Group he foreign curhe net assets
Credit risk Credit risk is thnancial loss to
Financial Posit
the G
the G
Trade and othbusiness, goveexposure to acondition of the
ancial Risk alysis table shows tal portfolio bas
ovement in ethe financial pcy risk exposu
f 10 per cent volatility obs
ar exchange rement in the vement wouldGroup’s expos
foreign currend payables de
nalysis on net
r ended 30 Ju
dollar were 10variables held
crease) in prof
dollar were 10ables held concrease) in prof
the foreign curency translatof foreign con
he risk that a o be incurred.tion except ca
roup has a po
roup manages
her receivableernmental and
a single custoe Group’s cust
Managemen
he effect on psis, with all oth
exchange rateposition. A fa
ure and an imp
has been seerved both o
rate against thrate of 10 p
d decrease thesure to foreign
ncy risk expoenominated in
profit of foreig
une
0 per cent strod constant - fit
0 per cent weanstant - fit
urrency translion reserve. T
ntrolled entities
contracting en The Group h
ash and cash e
olicy for establ
s exposure to
es consist of d geographica
omer or grouptomers and if
nt (cont’d)
profit/(loss) asher variables h
es implies an avourable moprovement in t
lected as thisn an historicae Unites Stateer cent woulde rate to 0.95n currency mo
osure from rforeign curren
gn currency mo
nger
aker with
ation risk assoThe impact ons.
ntity will not chas exposure equivalents. T
ishing credit li
individual ent
amounts dueally diverse sps of customerequired, an a
50
s at the reportheld constant,
increase in thovement in exthe financial p
s is consideredal basis and es dollar at thed increase th
5359 (2010: 0ovements.
recognised asncies.
ovement:
CO2$’
(1
ociated with tn the foreign c
complete its obto credit risk oTo help mana
imits for all co
tities the Grou
e from a largsectors. The ers. Ongoingallowance for d
ting date of a taking into ac
he Group’s foxchange ratesosition.
d reasonable market expe
e reporting dahe rate to 1.1.77068). This
ssets and lia
NSOLIDATED2011 2’000 $’
154 (4
154)
he foreign invcurrency transl
bligation undeon all financialge this risk:
unterparties; a
up transacts bu
ge number oGroup does
g credit evaludoubtful debts
10 per cent mccount all unde
oreign currencs implies a re
given the curctations for fu
ate was 1.059516550 (2010: s range is con
abilities arises
D 2010
000
485)
485
vestments resuation reserve
er a financial il assets includ
and
usiness with
f customers not have any
uation is perfos is raised.
movement in erlying exposu
cy risk exposueduction in the
rrent level of uture movem55 (2010: 0.85
0.94194) whnsidered reaso
s primarily fr
ults in some vrelates to tran
nstrument andded in the Sta
spread acrosy significant cormed on the
exchange ures.
ure and a e Group’s
exchange ent. The 5631). An here as a onable for
rom trade
volatility to nslation of
d cause a atement of
ss various credit risk e financial
NLL
•
•
•
T•
•
•
Trec
Note 24: FinaLiquidity risk Liquidity risk in
the Group
the Group
The Grou
To help reduce
has a liqu
has the c(refer No
actively in
The table beloemaining peri
contractual und
Consolidated 2011 Financial liaTrade and othBorrowings Total financia 2010 Financial liabTrade and othBorrowings Total financia
ancial Risk
ncludes the ris
p will not have
p will be force
up may be una
e these risks tuidity policy w
continued finante 25) ; and
nvestigates ot
ow analyses thod at the repdiscounted ca
d
bilities her payables
al liabilities
bilities her payables
al liabilities
Managemen
k that as a res
e sufficient fun
ed to sell finan
able to settle o
he Group: here funding r
ncial support o
ther capital ma
he Group’s finporting date tosh flows.
Note <
13 16
16
nt (cont’d)
sult of our ope
nds to settle a
cial assets at
or recover a fin
requirements f
of the Chairm
anagement ini
nancial liabilitieo the contract
< 1 month $’000
1
2,090 -
2,090
4,061 -
4,061
51
erational liquid
transaction o
a value which
nancial asset.
for the next tw
an of the Com
itiatives, includ
es, by type, intual maturity d
1-3 months $’000
4,149 -
4,149
5,151 -
5,151
dity requireme
n the due date
h is less than t
welve months
mpany, includi
ding rights iss
nto their relevdate. The am
3 months-1 year$’000
---
5,806-
5,806
nts:
e;
heir market va
are forecast o
ng the line of
ue during the
ant maturity gounts disclose
1-5 years$’000
- 25,808
25,808
4611,06511,111
alue; or
on a weekly ba
credit provide
year.
groupings based in the tab
s 0
Tot$’00
- 6,238 25,808 32,04
6 15,065 11,061 26,12
asis;
ed by CPS
sed on the le are the
tal 00
39 08 47
64 65 29
NP2auC
NCdw
Ut
C
C
C
C
I
Tis
NTItfo
Orsf
Note 25: FinPursuant to a 2011, the Comadvances that under the LoanCompany has
Note 26: ConCertain contindivestment of warranties or u
Under the termhe assets of P
Clarity Group H
Clarity Internat
Clarity Philippi
Clarity Service
MX Software
Term depositsssued to a cus
Note 27: EveThe Company t is planned torthcoming An
Other than theeport any item
significantly thinancial years
ancing ArraLoan Agreem
mpany incurrewill result in
n Note at the 3not borrowed
ntingent Liagent liabilitiesbusinesses. A
undertakings.
ms of the LoanPowerlan and
Holdings Pty L
tional Pty Lim
nes Pty Limite
es Pty Limited
Group Pty Lim
of $1,531,857stomer.
ents Subseqhas announc
that the sale nnual Genera
e above, therem transaction e operations
s.
angements ment with CPSed interest chathe aggregate30 June 2011any additiona
abilities s may exist inAt the date of
n Agreement wthe following e
Limited (forme
ited (formerly
ed
mited
7 (Refer Note
quent to Repced the sale of
will take placl Meeting.
e has not arisor event of aof the Group,
S, the Compaarges on this e draw down e was $25.8 m
al funds subse
respect of wf this report n
with CPS, Powentities it cont
erly Clarity Glo
Clarity Interna
8) are held as
porting Datef its divisions Ice subsequen
sen in the intea material and the results o
52
any has a $30facility at 12%
exceeding $30illion of which
equent to the b
warranties provno claims are
werlan obtainetrols:
obal Solutions
ational Limited
s security by H
e MX Software
nt to the repo
erval between d unusual natuof those opera
0M line of cre% per annum0M. The balan $21.8 million balance date.
vided and undpending or h
ed a Loan Not
Pty Limited)
d)
HSBC as a gu
and Converteorting date an
the end of thure likely, in tations or the s
dit. During th. The Compance outstandinis principal (2
derstandings have been ma
te secured by
uarantee again
erTechnology td will be tabl
he financial yehe opinion of state of affairs
he year endedny may requeng to CPS Inv
2010: $9.0 mil
given in respade in respec
a Deed of Ch
nst performan
to CPS, a relaled for approv
ear and the dathe Directors
s of the Group
d 30 June est further vestments lion). The
ect to the t of these
harge over
nce bonds
ated party. val at the
ate of this s, to affect p in future
N
N F
Note 28: ParAs at year en
Current asseTotal assets Current liabiliTotal liabilitieIssued capitaRetained earTotal shareho Loss for the yTotal compre Contingent liaUnder the terof Charge ov
Note 29: Not
For the year e
(a) Reconci
For the pcash on instrumenbank ovestatemenStatemen
Cash at bTotal cas
(b) Reconcito operaLoss attriNon casDepreciaGoodwill ImpairmeBad debtUnrealiseChange disposalInterest aWrite off Other acc(Increase(Increase(IncreaseIncrease/Increase/Increase/Net cash
rent Entity Innded 30 June
ts
ities es al rnings olders’ equity
year ehensive incom
abilities rms of the Loa
ver the assets
tes to the Ca
ended 30 June
liation of caspurposes of thhand and in nts with termserdrafts. Cashnt of cash flownt of Financial
bank and deposh and cash eliation of netting loss afteibutable to meh flows in los
ation impairment /a
ent of receivabts written off ed foreign currin assets andls of controlleaccrued of deferred tacruals and proe)/decrease ine)/decrease ine)/decrease in/(decrease) in/(decrease) in/(decrease) inh used in ope
nformation e
me/(expenses
an Agreement of Powerlan a
ash Flow St
e
sh he statement o
bank and invs of less than h at the end ows is reconcile
Position as f
osits at call equivalents at cash provider income taxembers of paress from opera
amortization obles
rency gain/(losd liabilities, ned entities
x assets ovisions writte trade and oth inventories deferred tax a trade and oth unearned and other provisio
erating activit
)
with CPS, Poand the entities
tatement
of cash flows, vestments in m90 days, net o
of the year asd to the relatefollows:
at end of yearded by operatx ent entity ating activitie
f contracts
ss) net of purchas
n off/(back) her receivables
assets her payables d advance revons ties
53
owerlan obtains it controls. R
cash includesmoney markeof outstanding
s shown in theed items in the
rting activities
es
ses and
s
venue
( 1 (1
ned a Loan NoRefer Note 25
s et g e e
s
2011$’000
191 26,096 (1,382) 27,070) 164,302 65,276)
(974)
(8,621) (8,621)
ote secured by5 and 26.
CONSO2011$’000
2,5752,575
(12,415)
22743
136
(783)
1,742-
(4,729)2,3282,021
319(2,515)
(306)(26)
(13,958)
2010 $’000
874 20,097 (1,031)
(12,135) 164,302
(156,340) 7,962
(7,617) (7,617)
y a Deed
OLIDATED 2010 $’000
5,458 5,458
(13,940)
440 -
513 812 597
1,999 749
- (1,513)
3,904 (189)
(2,770) (50) 101
(9,347)
DirectThe direc
(a)
(b)
(c)
(d)
(e)
The direcfinancial
Signed in
Dr I CamChairma Dated at
tors’ Decctors of Power
in the directodisclosures th11, are in acc
(i) givinits pe
(ii) comInter
the financial snote 1;
the remuneracomply with A2001 and the
there are reathey become
At the date ofentities identifdue and paya
ctors have beeyear ended 30
n accordance w
mpbell an
t Sydney this
clarationrlan limited de
ors’ opinion thhat are containcordance with
ng a true and ferformance, fo
plying with rpretations) an
statements al
ation disclosuAustralian Acc
Corporations
asonable groudue and paya
f this declaratified in note 20
able.
en given the d0 June 2011, a
with a resoluti
s 31st day of
n clare that:
he financial staned in the Remthe Corporatio
fair view of theor the financia
Australian And Corporation
so comply wi
res that are ccounting Stand
Regulations 2
nds to believeable.
on there are r0 will be able
declarations bas required by
ion of the direc
August 2011
54
atements andmuneration reons Act 2001,
e consolidatedal year ended
Accounting Stns Regulations
ith Internation
contained in dard AASB 122001; and
e that the Co
reasonable grto meet any o
by the Chief Exy Section 295A
ctors.
Mr I LanDirector
1
d notes on paeport in the Dir including:
d entity’s finanon that date; a
tandards (incs 2001; and
nal Financial R
the Remuner24 Related Pa
mpany will be
rounds to belieobligations or
xecutive OfficA of the Corpo
ncaster r
ages 22 to 53rectors’ report
ncial position aand
cluding the
Reporting Sta
ration report irty Disclosure
e able to pay
eve that the Cliabilities as a
er and Chief Forations Act 20
3 and the remt, set out on p
as at 30 June
Australian A
andards as dis
in the Directoes, the Corpor
its debts as a
Company and tand when the
Financial Offic001.
muneration ages 8 to
2011 and
Accounting
sclosed in
ors’ report ations Act
and when
the Group y become
cer for the
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The PKF East Coast Practice is a member of the PKF International Limited network of legally independent member firms. The PKF East Coast Practice is also a member of the PKF Australia Limited national network of legally independent firms each trading as PKF. PKF East Coast Practice has offices in NSW, Victoria and Brisbane. PKF East Coast Practice does not accept responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
Independent Auditor's Report To the members of Powerlan Limited Report on the Financial Report
We have audited the accompanying financial report of Powerlan Limited, which comprises the statement of financial position as at 30 June 2011, the statement of comprehensive income, statement of changes in equity and cash flow statement for the year then ended, notes comprising a summary of significant accounting policies, other explanatory information, and the directors' declaration of Powerlan Limited (the company) and the consolidated entity. The consolidated entity comprises the company and the entities it controlled at the year's 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 Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In Note 1(a), the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards. Auditor’s 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. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about 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 the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s 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 entity’s internal control. 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 complied with the independence requirements of the Corporations Act 2001. Auditor’s Opinion In our opinion: (a) the financial report of Powerlan Limited is in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2011 and of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b) the financial report complies with International Financial Reporting Standards as disclosed in
Note 1(a).
Report on the Remuneration Report We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2011. 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.
Auditor’s Opinion In our opinion the Remuneration Report of Powerlan Limited for the year ended 30 June 2011, complies with section 300A of the Corporations Act 2001. PKF Paul Bull Partner Sydney 31 August 2011
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