EPX LIMITED - Annual Report 2021 | FinancialReports.eu

EP & T Pty Limited and its aggregated companies

For the year ended 30 June 2019

Financial statements

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Section	Page
Responsible Body’s Report	3
Aggregated Statement of Profit or Loss and Other Comprehensive Income	7
Aggregated Statement of Financial Position	8
Aggregated Statement of Cash Flows	10
Notes to the Aggregated Financial Statements	11
Directors’ Declaration	40
Auditor’s Independence Declaration	41
Independent Auditor’s Report	42

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Responsible Body’s Report

The Responsible Body consists of the Directors of EP & T Pty Limited. The Responsible Body presents their report on EP & T Pty Limited and its aggregated companies (the “Aggregated Group”) for the financial year ended 30 June 2019.

The Aggregated Group consist of the following entities:

EP & T Pty Limited (ABN 87 060 381 142)
EP & T Global Limited (UK)
EP & T Global Limited (HK)
EP & T FZ LLC (Dubai)

Director details of Aggregated Companies

The names of the Directors of each of the above entities in office at any time during or since the end of the financial years are:

EP & T Pty Limited (ABN 87 060 381 142)

Kirthi Gunaratne
Upali Gunaratna

EP & T Global Limited (UK)

Kirthi Gunaratne

EP & T Global Limited (HK)

Kirthi Gunaratne
EP & T FZ LLC (Dubai)
Kirthi Gunaratne

Principal activities

During the year, the principal activities of entities within the Aggregated Group was providing energy conservation and environmental solutions to energy and water users.

There have been no significant changes in the nature of these activities during the year.

Review of operations and financial results

The net loss after tax of the Aggregated Group for the year ended 30 June 2019 is $2,518,212 (2018: restated loss $378,274).

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Dividends

In respect of the years, dividends for the following amounts were paid by each of the entities:

EP & T Pty Limited

No dividend was paid during the financial year ended 30 June 2019.
An unfranked dividend of $933,735 was paid during the financial year ended 30 June 2018

EP & T Global Limited (UK)

No dividend was paid during the financial year ended 30 June 2019.
No dividend was paid during the financial year ended 30 June 2018.

EP & T Global Limited (HK)

No dividend was paid during the financial year ended 30 June 2019.
No dividend was paid during the financial year ended 30 June 2018.

EP & T FZ LLC

No dividend was paid during the financial year ended 30 June 2019
A dividend of $440,364 was paid during the financial year ended 30 June 2018.

Options

No options over issued shares or interests in the Company were granted during or since the end of the financial year and there were no options outstanding at the date of this report.

Events arising since the end of the reporting period

Subsequent to year-end, the company has issued $3,456,000 of convertible notes in EP & T Pty Limited at the same terms as the noteholders at 30 June 2019.

In September 2020, Mr Trent Knox was appointed as interim CEO of the Aggregated Group.

Subsequent to year-end, $1,370,000 of convertible notes which had an expiry date before 30 June 2021, have had their maturity date extended 30 June 2021.

Subsequent to the end of the financial year, the COVID-19 outbreak was declared a pandemic by the World Health Organization in March 2020. We have seen a significant impact on our business to date. The outbreak and the response of Governments in dealing with the pandemic is interfering with general activity levels within the community, the economy and the operations of our business.

The scale and duration of these developments remain uncertain as at the date of this report however they are having an impact on our earnings, cash flow and financial condition. It is not possible to estimate the impact of the outbreak’s near-term and longer effects or Governments’ varying efforts to combat the outbreak and support businesses. This being the case, we do not consider it practicable to provide a quantitative or qualitative estimate of the potential impact of this outbreak on the Aggregated Group at this time.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

reporting period. As the outbreak of COVID-19 occurred after 30 June 2019, its impact is considered an event that is indicative of conditions that arose after the reporting period and accordingly, no adjustments have been made to financial statements as at 30 June 2019 for the impacts of COVID-19.

The aggregated group has been eligible to participate in various government stimulus packages which have been implemented worldwide to provide relief from the impacts of COVID-19. At the date of this report, the Aggregated Group has received financial benefit totalling $568,684 in stimulus payments.

No other matters or circumstances have arisen since the end of the financial year, which significantly affected or may significantly affect the operations of the Aggregated Group, the results of those operations, or the state of affairs of the Group in future financial years.

Likely developments and expected results

Likely developments in the operations of the Aggregated Group and the expected results of those operations in the future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the Aggregated Group.

Environmental legislation

The Aggregated Group’s operations are not regulated by any significant environmental regulators under a law of the jurisdiction it operates in.

Indemnities given to, and insurance premiums paid for, auditors and officers

Insurance of officers

During the year, the Aggregated Group paid a premium to insure officers of the various entities. The officers of the entities covered by the insurance policy include all Directors in the Aggregated Group.

The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of the Company, and any other payments arising from liabilities incurred by the officers in connection with such proceedings, other than where such liabilities arise out of conduct involving a willful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else to cause detriment to the Company.

Details of the amount of the premium paid in respect of insurance policies are not disclosed as such disclosure is prohibited under the terms of the contract.

The Aggregated Group has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify any current or former officer of each of the entities against a liability incurred as such by an officer.

Indemnity of auditors

During the financial year, the Company has not indemnified its auditors for any costs incurred defending an action against them nor has any insurance premiums been paid.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Proceedings of behalf of the Aggregated Group

No person has applied to the Court for leave to bring proceedings on behalf of the Aggregated Group, or to intervene in any proceedings to which the Aggregated Group is a party, for the purpose of taking responsibility on behalf of the Aggregated Group for all or part of those proceedings.

Signed in accordance with a resolution of the Responsible Body.

Kirthi Gunaratne Director

Dated this 13[th] day of October 2020

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Aggregated Statement of Profit or Loss and Other Comprehensive Income

For year ended 30 June

	Notes	2019	2018 (Restated)
		$	$
Revenue	4	11,507,388	9,807,324
Other income	5	703,214	1,144,660
Raw materials and consumables used	6	(1,840,699)	(1,830,648)
Employee benefits expense	6	(7,617,975)	(7,090,608)
Depreciation expense	6	(122,605)	(117,934)
Sales and marketing expense		(301,924)	(424,871)
Occupancy costs	6	(638,789)	(634,561)
Consultancy costs		(679,688)	(450,920)
Other expenses		(1,403,766)	(564,743)
Impairment of inventory		(429,697)	-
Impairment of receivables		(637,869)	-
Change in fair value of convertible notes	16	(953,989)	-
Finance costs	6	(318,877)	(144,401)
Loss before income tax		(2,735,276)	(306,702)
Income tax benefit / (expense)	7	217,064	(71,572)
Loss for the year after tax		(2,518,212)	(378,274)
Other comprehensive income, net of tax		23,233	27,632
Total comprehensive loss for the year		(2,494,979)	(350,642)

This statement should be read in conjunction with the notes to the financial statements.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Aggregated Statement of Financial Position

As at 30 June

		2019	2018 (Restated)	2017 (Restated)
	Notes	$	$	$
Assets
Current
Cash and cash equivalents	8	620,794	366,151	510,500
Financial assets	9	59,027	59,027	171,376
Trade and other receivables	10	2,889,212	1,565,385	2,143,233
Inventories	11	825,543	1,346,056	1,357,226
Other current assets	12	308,258	312,019	188,801
Income tax receivable	13	736,321	1,008,182	572,483
Total current assets		5,439,155	4,656,820	4,943,619
Non-current
Trade and other receivables	10	4,283,875	2,580,730	2,684,560
Deferred tax assets	13	413,184	196,119	165,954
Plant & Equipment	14	158,564	247,522	268,231
Total non-current assets		4,855,623	3,024,371	3,118,745
Total assets		10,294,778	7,681,191	8,062,364
Liabilities
Current
Trade and other payables	15	3,001,537	1,873,810	2,106,265
Borrowings	16	2,594,292	556,306	771,210
Provisions	17	1,019,273	927,331	676,777
Total current liabilities		6,615,102	3,357,447	3,554,252
Non-current
Trade and other payables	15	1,112,742	105,952	-
Borrowings	16	2,146,465	1,500,000	-
Provisions	17	23,940	25,714	57,403
Total non-current liabilities		3,283,147	1,631,666	57,403
Total liabilities		9,898,249	4,989,113	3,611,655
Net assets		396,529	2,692,078	4,450,709
Equity
Issued Capital	18	2,018,870	1,929,386	1,856,051
Retained Earnings		(1,668,182)	740,084	2,599,682
Foreign Currency Translation Reserve	18	45,841	22,608	(5,024)
Total equity		396,529	2,692,078	4,450,709

This statement should be read in conjunction with the notes to the financial statements.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Aggregated Statement of Changes in Equity

For the year ended 30 June

				Foreign
				Currency
		Share	Retained	Translation	Total
	Notes	capital	earnings	reserve	equity
		$	$	$	$
As at 30 June 2017 (reported)		1,856,051	2,986,704	(5,024)	4,837,731
Correction ofpriorperiod error	3	-	(387,022)	-	(387,022)
At July 1, 2017 Restated		1,856,051	2,599,682	(5,024)	4,450,709
Loss for the year (restated)		-	(378,274)	-	(378,274)
Othercomprehensiveincome		-	-	27,632	27,632
Total comprehensive income		-	(378,274)	27,632	(350,642)
Foreign exchange movement in equity	18	73,335	(107,225)	-	(33,890)
Dividendspaid	27	-	(1,374,099)	-	(1,374,099)
At June 30, 2018 Restated		1,929,386	740,084	22,608	2,692,078
Loss for the year		-	(2,518,212)	-	(2,518,212)
Othercomprehensiveincome		-	-	23,233	23,233
Totalcomprehensiveincome		-	(2,518,212)	23,233	(2,494,979)
Foreign exchange movement in equity	18	89,484	109,946	-	199,430
At June 30, 2019		2,018,870	(1,668,182)	45,841	396,529

This statement should be read in conjunction with the notes to the financial statements.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Aggregated Statement of Cash Flows

For the year ended 30 June

For the year ended 30 June
	Notes	2019	2018
		$	$
Operating activities
Receipts from customers		8,908,044	10,582,068
Payments to suppliers and employees		(12,072,117)	(12,176,098)
Income taxes received		889,747	112,291
Interest received	5	95,532	3
Finance costs		(272,289)	(77,282)
Net cash used in operating activities	24	(2,451,083)	(1,559,018)
Investing activities
Purchase of property, plant and equipment		(31,526)	(97,225)
Movement in term deposits		-	112,349
Net cash used in investing activities		(31,526)	15,124
Financing activities
Proceeds from convertible notes net of issue costs		1,913,716	1,500,000
Advancesfromshareholder		1,006,790	114,449
Net cash from financing activities		2,920,506	1,614,449
Net change in cash and cash equivalents		437,897	70,555
Cashand cashequivalents, beginning ofyear		(190,155)	(260,710)
Cash and cash equivalents, end ofyear	8	247,742	(190,155)

This statement should be read in conjunction with the notes to the financial statements.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Notes to the Aggregated Financial Statements

1. General information and statement of compliance

a. Statement of Compliance

The Responsible Body have prepared the financial statements of the Aggregated Group for the year ended 30 June 2019 for the purposes of listing on the Australian Stock Exchange. The Aggregated Group is not a Consolidated Group as there is no direct ownership between the aggregated entities.

The Aggregated Group consists of the following entities:

EP & T Pty Limited (ABN 87 060 381 142)
EP & T Global Limited (UK)
EP & T Global Limited (HK)
EP & T FZ LLC (Dubai)

The aggregation has been performed as described in the accounting policies below.

These financial statements have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (established by AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements ).

EP&T Pty Limited and its Aggregated Companies is a for-profit entity for the purpose of preparing the financial statements.

The aggregated financial statements for the year ended 30 June 2019 were approved and authorised for issue by the Directors on 13 October 2020.

b. Basis of preparation

The financial statements have been prepared on an accruals basis and are based on historical costs unless otherwise stated in the notes.

c. Going Concern

The Aggregated Group has incurred a loss for the year after tax of $2,518,212 (2018: loss of $378,274) and had net operating cash outflows of $2,451,083 for the year ended 30 June 2019 (2018: $1,559,018 outflow). As at 30 June 2019 the Aggregated Group has net assets of $396,529 (2018: $2,692,078).

The Responsible Body has reviewed their future cash flow requirements and believe that the Aggregated Group has sufficient cash reserves to meet its debts as when they fall due for the a period of 12 months from the date of this report. However the ability to satisfy these cash flow requirements is dependent on the Aggregated Group being able to generate positive cash flow through one or a combination of the following:

Continued support from the ultimate beneficial shareholder.
Raise new debt or equity capital.
Deriving revenue through new projects and recurring services.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Adjusting costs structures to a level which can be supported by exiting contracted annuity revenue streams.

Subsequent to year end the ultimate beneficial shareholder has continued to provide financial support to the Aggregated Group.

During the year ended 30 June 2019, the Aggregated Group raised $1,913,716 of convertible notes (net of fees) from external investors. Subsequent to year end, a further $3,456,000 of convertible notes has been issued. The Aggregated Group is continuing to seek new capital through the issuance of further convertible notes to fund project installation costs and is working towards seeking equity capital sufficient to fund the current revenue growth being experienced. Convertible notes with a face value of $1,500,000 on issue at 30 June 2019 (refer to Note 16) which were due to mature at various dates from November 2019 onwards have had their maturity dates extended until 30 June 2021, unless they have been converted into equity prior to the revised maturity date. On maturity, the notes plus any accrued interest are required to be redeemed in cash. The notes automatically convert into equity in the event of an Initial Public Offering, Reverse Take Over or trade sale of the Aggregated Group (a Conversion Event). Management is actively pursuing completion of a Conversion Event prior to the maturity date of the Convertible notes, however, in the absence of a Conversion Event within this timeframe then the Aggregated Group will need to achieve one of the following outcomes:

Negotiate an extension to the maturity date of the Convertible Notes with the note holders.
Raise external funding sufficient to repay the face value plus accrued interest on maturity.

The current schedule of Notes on issue (including those issued subsequent to year-end) is listed below along with the revised maturity dates as at the date of this report:

Month	Face Value of Notes Maturing
Callable	$300,000
October 2020	$330,000
April 2021	$171,000
May 2021	$273,000
June 2021	$2,426,000
July 2021	$500,000
September 2021	$82,000
October 2021	$179,000
December 2021	$1,250,000
After 1 January 2022	$1,445,000

The Responsible Body are continually reviewing cost structures in its operating subsidiaries and making the appropriate changes to maximise their cash flow and profitability. While the Aggregated Group experienced growth in its contracted projects base during the 2019 financial year, the rate at which this growth can be continued has to be balanced against the additional working capital demands selling and installing new projects place on the Aggregated Group and the effect of Covid 19 on the business. The Responsible Body believes that in the absence of available working capital to execute new projects and grow revenues, the cost base of the Aggregated Group is flexible enough to be aligned with the current contracted recurring revenue base and therefore enable operations to be self-funded on an ongoing basis.

As a result of the above matters, there is material uncertainty as to whether the Aggregated Group will continue as a going concern and, therefore, whether it will realise its assets and settle its liabilities and commitments in the normal course of business at the amounts stated in the financial report.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Notwithstanding the above, the Responsible Body are confident they will be successful in one of or a combination of the above factors and on this basis the financial report has been prepared on a going concern basis. Accordingly, no adjustments have been made to the financial report relating to the recoverability and classification of the asset carrying amounts and of liabilities that might be necessary should the Aggregated Group not continue as a going concern.

1.4 New and revised standards that are effective for these financial statements

A number of new and revised standards became effective for annual periods beginning on or after 1 July 2018. The adoption of these standards has not had a material impact on the Aggregated Group.

AASB 9 Financial Instruments

AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement . It makes major changes to the previous guidance on the classification and measurement of financial assets and introduces an ‘expected credit loss’ model for impairment of financial assets. In the year ended 30 June 2019, a provision for expected credit loss of $637,869 was recognised in the Aggregated Statement of Profit or Loss and Other Comprehensive Income.

AASB 9 also contains new requirements on the application of hedge accounting. The new hedge accounting looks to the align hedge accounting with entities’ risk management activities look to align hedge accounting more closely with entities’ risk management activities by increasing the eligibility of both hedged items and hedging instruments and introducing a more principles-based approach to assessing hedge effectiveness.

For trade receivables and contract assets under AASB 9 the Group applies a simplified approach of recognising lifetime expected credit losses as these items do not have a significant financing component.

Other amended standard adopted by the Group which do not have a material impact on the financial statements

AASB 2017-1 Amendments to Australian Accounting Standards – Transfers to Investment Property, Annual Improvements 2017-2016 Cycle and other Amendments

AASB 2016-5 Amendments to Australian Accounting Standards - Classification and Measurement of Sharebased Payment Transactions

Interpretation 22 Foreign Currency Transactions and Advance Consideration

2. Summary of accounting policies

a. Overall considerations

The aggregated financial statements have been prepared using the significant accounting policies and measurement bases summarised below.

b. Basis of aggregation

The aggregated financial statements incorporate the financial information of each of the following entities:

EP & T Pty Limited (ABN 87 060 381 142)
EP & T Global Limited (UK)
EP & T Global Limited (HK)
EP & T FZ LLC (Dubai)

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Consistent accounting policies are employed by each entity in the presentation and preparation of their financial information. All inter-company balances and transactions between entities in the Aggregated Group, including any unrealised profits or losses, have been eliminated on aggregation.

Functional and presentation currency

The Aggregated Group financial statements are presented in Australian Dollars ($AUD), which is also the functional currency of the EP & T Pty Limited.

Foreign currency transactions and balances

Foreign currency transactions are translated into the functional currency of the respective Aggregated Group entity, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the re-measurement of monetary items at year end exchange rates are recognised in profit or loss. Non-monetary items are retranslated at year-end using the spot rate.

Foreign operations

In the Aggregated Group’s financial statements, all assets, liabilities and transactions of Aggregated Group entities with a functional currency other than $AUD are translated into $AUD upon aggregation. The functional currency of the entities in the Aggregated Group has remained unchanged across the reporting periods.

On Aggregation, assets, liabilities and equity have been translated into $AUD at the closing rate at the reporting date. Income and expenses have been translated into $AUD at the average rate over the reporting period. Exchange differences are charged and/or credited to other comprehensive income and recognised in the currency translation reserve in equity.

c. Operating segments

Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of resources to operating segments and assessing their performance.

d. Revenue

Revenue arises mainly from the sale of energy saving equipment and services and contracts for the installation of such systems (Projects Revenue), after-sales monitoring (Contracted Service Revenue) and maintenance services (Service and Maintenance Revenue). To determine whether to recognise revenue, the Company follows a 5-step process:

Identifying the contract with a customer
Identifying the performance obligations
Determining the transaction price
Allocating the transaction price to the performance obligations
Recognising revenue when/as performance obligation(s) are satisfied.

The Company usually enters into transactions involving a package of the Company’s products and services, for example for the construction of the energy saving system and related after-sales service, monitoring and maintenance. In all cases, the total transaction price for a contract is allocated amongst the various performance obligations based on their relative stand-alone selling prices. The transaction price for a contract excludes any amounts collected on behalf of third parties.

Revenue is recognised either at a point in time or over time, when (or as) the Company satisfies performance obligations by transferring the promised goods or services to its customers. The Company recognises contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these amounts

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

as other liabilities in the statement of financial position. Similarly, if the Company satisfies a performance obligation before it receives the consideration, the Company recognises either a contract asset or a receivable in its statement of financial position, depending on whether something other than the passage of time is required before the consideration is due.

Projects Revenue – revenue from the sale of goods is recognized at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and cessation of all involvement in those goods. Revenue from the installation of the system is recognized over time based on percentage of completion assessed on costs incurred as a percentage of total installation costs.

Contracted Service Revenue is recognized over time as the services are provided to the customer.

Service and Maintenance Revenue is recognized at a point in time when the service or maintenance has been provided.

All revenue is stated net of the amount of Goods and Services Tax (GST) or Value Added Tax (VAT).

e. Operating expenses

Operating expenses are recognised in profit or loss upon utilisation of the service or at the date of their origin. Expenditure for warranties is recognised and charged against the associated provision when the related revenue is recognised.

f. Plant and equipment

Each class of plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment

Plant and equipment are measured at cost less depreciation and impairment losses.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of profit or loss and other comprehensive income during the financial period in which they are incurred.

Depreciation

The depreciable amount of all fixed assets including building and capitalised leased assets, but excluding freehold land, is depreciated on a straight line basis over their useful lives to the Company commencing from the time the asset is held ready for use. Leased assets and leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the assets.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset	Estimated useful life
Leasehold improvements:	5 years
Plant and equipment:	4 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting period date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of profit or loss and other comprehensive income.

Impairment of non-financial assets

At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of profit or loss and other comprehensive income.

Impairment testing is performed annually for intangible assets with indefinite lives and intangible assets not yet available for use. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

g. Leased assets

Operating leases

Where the Aggregated Group is a lessee, payments on operating lease agreements are recognised as an expense on a straight-line basis over the lease term. Associated costs, such as maintenance and insurance, are expensed as incurred.

h. Financial instruments

Recognition, initial measurement and derecognition

Financial assets and financial liabilities are recognised when the Aggregated Group becomes a party to the contractual provisions of the financial instrument, and are measured initially at fair value adjusted by transactions costs, except for those carried at fair value through profit or loss, which are measured initially at fair value.

Subsequent measurement of financial assets and financial liabilities are described below. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.

Classification and initial measurement of financial assets

Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable).

For the purpose of subsequent measurement, financial assets other than those designated and effective as hedging instruments are classified into amortised costs.

All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade receivables which is presented within other expenses.

Classifications are determined by both:

The entities business model for managing the financial asset
The contractual cash flow characteristics of the financial assets

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Subsequent measurement financial assets

Financial assets at amortised cost

Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVPL):

they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments.

Impairment of Financial assets

AASB 9’s impairment requirements use more forward looking information to recognize expected credit losses - the ‘expected credit losses (ECL) model’. Instruments within the scope of the new requirements included loans and other debt-type financial assets measured at amortised cost and FVOCI, trade receivables, contract assets recognised and measured under AASB 15 and loan commitments and some financial guarantee contracts (for the issuer) that are not measured at fair value through profit or loss.

The Aggregated Group considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

In applying this forward-looking approach, a distinction is made between:

financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk (‘Stage 1’); and
financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low (‘Stage 2’).

‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting date. ‘12month expected credit losses’ are recognised for the first category while ‘lifetime expected credit losses’ are recognised for the second category.

Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected life of the financial instrument.

Trade and other receivables and contract assets

The Aggregated Group makes use of a simplified approach in accounting for trade and other receivables as well as contract assets and records the loss allowance at the amount equal to the expected lifetime credit losses. In using this practical expedient, the Company uses its historical experience, external indicators and forwardlooking information to calculate the expected credit losses using a provision matrix. The Company assess impairment of trade receivables on a collective basis as they possess credit risk characteristics based on the days past due.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Classification and measurement of financial liabilities

The Aggregated Group’s financial liabilities include borrowings, trade and other payables and derivative financial instruments. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the Company designated a financial liability at fair value through profit or loss.

Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or losses recognised in profit or loss (other than derivative financial instruments that are designated and effective as hedging instruments). All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss are included within finance costs or finance income.

Derivative financial instruments

Derivative financial instruments are accounted for at FVPL.

i. Inventories

Inventories are measured at the lower of cost and net realisable value. The cost of manufactured products includes direct materials, direct labour and an appropriate portion of variable and fixed overheads. Overheads are applied on the basis of normal operating capacity. Costs are assigned on the basis of weighted average costs.

Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

j. Income tax

The income tax expense for the year comprises current income tax expense and deferred tax expense. Current and deferred income tax expense is charged or credited directly to other comprehensive income instead of the profit or loss when the tax relates to items that are credited or charged directly to other comprehensive income.

Current tax

Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities are therefore measured at the amounts expected to be paid to the relevant taxation authority.

Deferred tax

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well unused tax losses.

Current and deferred income tax expense is charged or credited directly to equity instead of the profit or loss when the tax relates to items that are credited or charged directly to equity.

Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets are recognised to the extent of existing taxable temporary differences that are likely to negate the effects of any deductible temporary differences, unused tax losses or unused tax credits.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

k. Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

l. Equity, reserves and dividend payments

Share capital represents the fair value of shares that have been issued. Any transaction costs associated with the issuing of shares are deducted from share capital, net of any related income tax benefits.

Foreign currency translation reserve

Comprises foreign currency translation differences arising on the translation of financial statements of the Aggregated Group’s foreign entities into $AUD.

Retained earnings

Retained earnings include all current and prior period retained profits.

Dividend distributions payable to equity shareholders are included in other liabilities when the dividends have been approved in a general meeting prior to the reporting date.

All transactions with owners of the parent are recorded separately within equity.

m. Employee benefits

Short-term employee benefits

Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. Examples of such benefits include wages and salaries, non-monetary benefits and accumulating sick leave. Short-term employee benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled.

Other long-term employee benefits

The Aggregated Group’s liabilities for annual leave, long service leave and end of service gratuity are included in other long term benefits as they are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are measured at the present value of the expected future payments to be made to employees. The expected future payments incorporate anticipated future wage and salary levels, experience of employee departures and periods of service, and are discounted at rates determined by reference to market yields at the end of the reporting period on high quality corporate bonds that have maturity dates that approximate the timing of the estimated future cash outflows. Any re-measurements arising from experience adjustments and changes in assumptions are recognised in profit or loss in the periods in which the changes occur.

The Aggregated Group presents employee benefit obligations as current liabilities in the statement of financial position if the Group does not have an unconditional right to defer settlement for at least 12 months after the reporting period, irrespective of when the actual settlement is expected to take place.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Post-employment benefit plans

The Aggregated Group provides post-employment benefits through various defined contribution plans.

n. Provisions, contingent liabilities and contingent assets

Provisions for product warranties, legal disputes, onerous contracts or other claims are recognised when the Aggregated Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic resources will be required from the Group and amounts can be estimated reliably. Timing or amount of the outflow may still be uncertain.

Restructuring provisions are recognised only if a detailed formal plan for the restructuring has been developed and implemented, or management has at least announced the plan’s main features to those affected by it. Provisions are not recognised for future operating losses.

Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their present values, where the time value of money is material.

Any reimbursement that the Aggregated Group can be virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision.

No liability is recognised if an outflow of economic resources as a result of present obligation is not probable. Such situations are disclosed as contingent liabilities, unless the outflow of resources is remote in which case no liability is recognised.

o. Goods and Services Tax (GST) and Value Added Tax (VAT)

Revenues, expenses and assets are recognised net of the amount of GST or VAT, except where the amount of GST or VAT incurred is not recoverable from the Tax Office. In these circumstances the GST or VAT is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST or VAT.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST or VAT components of investing and financing activities, which are disclosed as operating cash flows.

p. Significant management judgement in applying accounting policies and estimation uncertainty

When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.

The following are significant management judgements in applying the accounting policies of the Aggregated Group that have the most significant effect on the financial statements.

The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results.

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results may be substantially different.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Revenue recognition on projects

Revenue relating to the projects is determined with reference to the stage of completion of the transaction at reporting date and where the outcome of the contract can be estimated reliably. Stage of completion is determined with reference to the services performed to date for performance obligations satisfied over time as a percentage of total anticipated services to be performed. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent that related expenditure is recoverable.

Contract liabilities (deferred revenue) / contract assets (unbilled receivables) is therefore held in the Statement of Financial position depending on the stage of satisfaction of the performance obligation completed over time.

Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the Aggregated Group’s future taxable income against which the deferred tax assets can be utilised. In addition, significant judgement is required in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions. Deferred tax assets have only been recognised for timing differences.

Impairment

In assessing impairment, management estimates the recoverable amount of each asset or cash-generating unit based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.

Useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical obsolescence that may change the utility of certain software and IT equipment.

Inventories

Management estimates the net realisable values of inventories, taking into account the most reliable evidence available at each reporting date. The future realisation of these inventories may be affected by future technology or other market-driven changes that may reduce future selling prices.

Provisions – Warranties

The amount recognised for warranties for which customers are covered for the cost of repairs is estimated based on management’s past experience and the future expectations of defects.

Provisions – Long Service Leave and end of service gratuity

As discussed in Note 1, the liability for long service leave and end of service gratuity is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, attrition rates and pay increases through promotion and inflation have been taken into account.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Guaranteed Energy Savings

In accordance with certain contracts signed with customers, the Aggregated Group guarantees a pre-determined value of energy savings following the substantial completion of the contract. The savings are stipulated in the contracts based on the company’s engineering reports. The savings are guaranteed annually and generally for a period of five years. To date there has been no instances of energy savings guaranteed to clients not being met. Accordingly in the view of the directors, the possibility of any such amounts becoming a liability is remote and as such no liability or contingent liability has been reflected in the financial statements (see Note 24).

Fair value of financial instruments

Management uses valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as far as possible but this is not always available. In that case management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in an arm’s length transaction at the reporting date (see Note 16).

Provisions – stock obsolescence

The amount recognised for inventory obsolescence is estimated based on the nature of stock, primarily the provision is for slow moving items, which have become obsolescent as newer stock is available.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

3. Correction of Prior Period Error

The Group has previously not accrued for legislated end of service gratuity payments which will be payable to eligible employees of one of the aggregated group entities as required under employment laws of the United Arab Emirates.

The correction of this omission affects the following components of the Aggregated Group’s financial statements:

Current liabilities – Provisions
Retained Earnings / (Accumulated Loss)
Total comprehensive loss for the year through adjustment to Employee Benefits Expense

Impact on Aggregated Statement of Financial Position

			Restated June
June 2018	June 2018	Adjustment	2018
	$	$	$
Current Liabilities
Provisions	492,059	435,272	927,331
Total Liabilities	4,553,841	435,272	4,989,113
Equity
Retained Earnings /(Accumulated Loss)	1,175,356	(435,272)	740,084
Total Equity	3,127,350	(435,272)	2,692,078
			Restated June
June 2017	June 2017	Adjustment	2017
	$	$	$
Current Liabilities
Provisions	289,755	387,022	676,777
Total Liabilities	3,224,633	387,022	3,611,655
Equity
Retained Earnings /(Accumulated Loss)	2,986,704	(387,021)	2,599,682
Total Equity	4,837,731	(387,021)	4,450,709

Impact on Aggregated Statement of Profit and Loss

			Restated June
June 2018	June 2018	Adjustment	2018
	$	$	$
Employee benefits expense	(7,042,358)	(48,250)	(7,090,608)
Profit/(Loss) beforeincome tax	(258,452)	(48,250)	(306,702)
Total comprehensive loss for theyear	(302,392)	(48,250)	(350,642)

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

			Restated June
June 2017	June 2017	Adjustment	2017
	$	$	$
Employee benefits expense	(6,887,387)	(47,444)	(6,934,831)
Profit/(Loss) beforeincome tax	445,019	(47,444)	397,575
Total comprehensive loss for theyear	(87,164)	(47,444)	(134,608)

4. Revenue

The Group’s revenue may be analysed as follows for each major product and service category:

	2019	2018
	$	$
Projects revenue	5,894,043	4,343,775
Contracted service revenue	5,159,646	4,782,951
Service and maintenance revenue	453,699	680,598
Total revenue	11,507,388	9,807,324
Timing of revenue recognition
Goods transferred at a point in time	5,894,043	4,343,775
Services transferred over time	5,613,345	5,463,549
Total revenue	11,507,388	9,807,324

5. Other Income

5. Other Income
	2019	2018
	$	$
R&D rebate	617,887	1,023,407
Foreign exchange	(10,205)	118,603
Finance income	95,532	2,650
Total other income	703,214	1,144,660

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

6. Expenses

		2018
	2019	Restated
	$	$
a. Expenses
• Cost of sales	1,840,699	1,830,648
• Operating lease payments	638,789	634,561
• Depreciation	122,605	117,934
b. Employee expenses
Salary and wages	6,934,937	6,402,618
Social security costs	196,228	212,235
Superannuation and otherpension arrangements	486,810	475,755
Total Employee expenses	7,617,975	7,090,608
c. Finance costs
• Interest expense	318,877	144,401

7. Income tax expense

7. Income tax expense
	2019	2018 Restated
	$	$
(a)The major components of tax expense comprise:
Tax expense comprises:
· current tax expense	(227,563)	171,672
Deferred tax expense / (income):
· origination and reversal of temporary differences	12,937	(43,994)
· utilisation of unused tax losses	(2,438)	(56,106)
Tax expense	(217,064)	71,572

(b)Reconciliation of income tax to accounting profit:
Loss before tax	(2,735,276)	(306,702)
Prima facie tax payable on profit from ordinary activities before income tax at 27.5% (2018: 27.5%)	(752,201)	(84,343)
Add/(less) tax effect of:
· Difference in overseas tax rates	(163,875)	(91,046)
· Other non-allowable items	513,526	284,582
· Temporary timing difference adjustment	(230,001)	(43,994)
· Adjustment to tax effect of carried forward losses not recognised	12,937	13,830
· Increase/(decrease) in tax effect of income tax losses not recognised	402,550	(7,457)
Actual tax expense	(217,064)	71,572
Weighted average effective tax rate	8%	-23%

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Note 13 provides information on deferred tax assets.

8. Cash and cash equivalents

Cash and cash equivalents consist the following:

ash and cash equivalents consist the following:
	2019	2018
	$	$
Cashat bankandin hand:	620,794	366,151
Total cash and cash equivalents	620,794	366,151
Add:Overdraft (note16)	(373,052)	(556,306)
Total cash and cash equivalents	247,742	(190,155)

9. Financial assets

9. Financial assets
	2019	2018
	$	$
Term deposits	59,027	59,027
Total financial assets	59,027	59,027

Term deposits have a fixed interest rate at of 0.85% per annum. The net carrying value of term deposits is considered a reasonable approximation of fair value.

10. Trade and other receivables

Trade and other receivables consist of the following:

	2019	2018
	$	$
Current
Trade and other receivables	2,965,831	1,565,385
Less: allowance for expected credit losses	(76,619)	-
Total current trade and other receivables	2,889,212	1,565,385
Non-current
Trade and other receivables	4,845,125	2,580,730
Less: allowance for expected credit losses	(561,250)	-
Total non-current trade and other receivables	4,283,875	2,580,730

The net carrying value of trade receivables is considered a reasonable approximation of fair value.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

The Group recognises lifetime expected credit losses for all trade and other receivables as these items do not have a significant financing component. In measuring the expected credit losses, trade and other receivable balances due from customers who have consistently failed to make payments within 180 days of invoice date but who are engaged with the Aggregate Group on alternative payment arrangements are assessed for expected credit losses on an individual basis. The remaining trade and other receivables have been assessed on a geographical basis as each territory can possess different credit risk characteristics. Trade receivables are written off when there is no reasonable expectation of recovery.

The expected credit loss for trade and other receivables as at 30 June 2019 was determined as follows:

	Individually Assessed Receivables	Remaining Receivables	Total
Expected credit loss rate	38.8%	1.05%	8.2%
Gross carrying amount	1,473,699	6,337,257	7,810,956
Lifetime expected credit losses	571,415	66,454	637,869

There were no expected credit losses for trade and other receivables as at 30 June 2018.

The movement in the trade and other receivables loss allowance for the year ended 30 June 2019 is:

	Total
Opening loss allowance as at 1 July 2018	-
Loss allowance recognised during the year	637,869
Loss allowance as at 30 June 2019	637,869

11. Inventories

Inventories consist of the following:

nventories consist of the following:
	2019	2018
	$	$
Inventories at cost	1,255,240	1,346,056
Less: provision for stock obsolescence	(429,697)	-
Total inventories	825,543	1,346,056

In 2019, a total of $1,203,155 of inventories was included in profit and loss as an expense (2018: $607,785). This includes an amount of $429,697 resulting from write down of inventories (2018: $Nil).

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

12. Other current assets

	2019	2018
	$	$
Prepayments	308,258	312,019
Total other current assets	308,258	312,019

13. Income tax

13. Income tax
	2019	2018
	$	$
Current
Income tax receivable	736,321	1,008,182
Total	736,321	1,008,182
Non-current
Deferred tax asset	413,184	196,119
Total	413,184	196,119

Movements in deferred tax assets as follows:

		Recognised
		in profit and
Deferred tax assets	1-Jul-18	loss	30-Jun-19
	$	$	$
Current liabilities
Provisions	34,375	193,703	228,078
Blackhole costs	-	29,882	29,882
Pension and other employee obligations	161,744	(6,520)	155,224
Total	196,119	217,065	413,184

		Recognised
		in profit and
Deferred tax assets	1-Jul-17	loss	30-Jun-18
	$	$	$
Current liabilities
Provisions	45,000	(10,625)	34,375
Pension and other employee obligations	120,954	40,790	161,744
Total	165,954	30,165	196,119

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

14. Plant and equipment

Details of the Group’s plant and equipment and their carrying amount are as follows:

	Office	Leasehold Improvements	IT equipment	Other equipment	Total
	$	$	$	$	$
Gross carrying amount
Balance 1 July 2017	354,738	344,767	628,065	129,741	1,457,311
Additions	12,450	22,356	62,419	-	97,225
Balance 30 June 2018	367,188	367,123	690,484	129,741	1,554,536
Depreciation and impairment
Balance 1 July 2017	(329,374)	(156,100)	(573,865)	(129,741)	(1,189,080)
Depreciation	(14,954)	(69,783)	(33,197)	-	(117,934)
Balance 30 June 2018	(344,328)	(225,883)	(607,062)	(129,741)	(1,307,014)
Carrying amount 30 June 2018	22,860	141,240	83,422	-	247,522
Gross carrying amount
Balance 1 July 2018	367,188	367,123	690,484	129,741	1,554,536
Additions	2,266	-	29,260	-	31,526
Effect of movements in exchange rates	3,970	821	1,129	-	5,920
Balance 30 June 2019	373,424	367,944	720,873	129,741	1,591,982
Depreciation and impairment
Balance 1 July 2018	(344,328)	(225,883)	(607,062)	(129,741)	(1,307,014)
Depreciation	(9,796)	(73,105)	(39,704)	-	(122,605)
Effect of movements in exchange rates	(3,093)	(105)	(601)	-	(3,799)
Balance 30 June 2019	(357,217)	(299,093)	(647,367)	(129,741)	(1,433,418)
Carrying amount 30 June 2019	16,207	68,851	73,506	-	158,564

All depreciation charges are included within depreciation expense.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

15.	Trade and other payables
		2019	2018
		$’000	$’000
Current
Trade payables		1,336,264	975,185
Sundry payables	and accrued expenses	1,665,273	898,625
Total current trade and other payables		3,001,537	1,873,810
Non-current
Shareholder related payable		1,112,742	105,952
Total non-current trade and other payables		1,112,742	105,952

The carrying values of trade payables and short-term bank overdrafts are considered to be a reasonable approximation of fair value.

The shareholder related payable amount is unsecured, non-interest bearing and will not be called for a period of at least 12 months from balance date.

16. Borrowings

16. Borrowings
	2019	2018
	$	$
Current
Bank overdraft	373,052	556,306
Convertible notes - current	1,134,744	-
Embedded derivative at FVPL	1,099,716	-
Borrowing costs	(13,220)	-
Total current borrowings	2,594,292	556,306
Non-current
Convertible notes	1,478,344	1,134,744
Embedded derivative at FVPL	741,185	365,256
Borrowing costs	(73,064)	-
Total non-current borrowings	2,146,465	1,500,000

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Borrowings at amortised cost

The interest rate on bank overdraft is 6.0% per annum. The carrying amount of the bank overdraft is considered to be a reasonable approximation of the fair value.

The convertible notes were issued with a 24 month maturity date, those maturing prior to 30 June 2021 have has their maturity date extended with the earliest maturing in June 2021. The terms of the notes are as follows:

Redemption 24 months unless converted earlier Forced conversion to ordinary shares in case of a liquidity event within 24 months of Conversion issuance Liquidity event IPO, Reverse Take Over (RTO) or trade sale Interest None if converted within 12 months due to a liquidity event other than a trade sale Interest rate 10% p.a. compounded daily from date of issue subject to the above Interest capitalisation Noteholders can elect to capitalise the interest Offer price Price of ordinary share - under prospectus for IPO/RTO - offered by the purchaser in a trade sale Conversion price Tranche 1 – Face Value of $2,000,000 - 55% of the offer price Tranche 2 - Face Value of $1,500,000 - 75% of the offer price Conversion price (interest) 100% of the offer price

The current schedule of Notes on issue is listed below along with the revised maturity dates as at the date of this report:

report:
Maturity date (as at report date)	Maturity date (as at balance date)	Face Value of Notes Maturing
November 2019	June 2021	$850,000
December 2019	June 2021	100,000
January 2020	June 2021	50,000
February 2020	June 2021	$150,000
March 2020	June 2021	$50,000
June 2020	June 2021	$300,000
September 2020	June 2021	$170,000
October 2020	June 2021	$330,000
May 2021	May 2021	$444,000
June 2021	June 2021	$1,056,000

Borrowings at FVPL

The embedded derivative at FVPL is the fair value of the conversion feature of the notes. The estimated fair value of the embedded derivative is categorised within Level 2 of the fair value hierarchy. The change in fair value estimate has been determined by an independent expert at $953,989 estimated using a present value technique, the Probability Weighted Expected Returns Method.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

17. Provisions

The carrying amounts and movements in the provisions account are as follows:

	Annual Leave	Long Service Leave	End of Service Gratuity	Total
	$’000	$’000	$’000	$’000
Carrying amount 1 July 2017 (Restated)	150,859	196,298	387,022	734,179
Amount accrued	425,462	81,306	48,250	555,018
Amount utilised	(324,521)	(11,631)	-	(336,152)
Carrying amount 30 June 2018 (Restated)	251,800	265,973	435,272	953,045
Amount accrued	436,549	53,098	95,778	585,425
Amount utilised	(427,219)	(23,369)	-	(450,588)
Reversals	-	(44,669)	-	(44,669)
Carrying amount 30 June 2019	261,130	251,033	531,050	1,043,213

Total provisions split between current and non-current:

	2019	2018 Restated
	$	$
Current provisions	1,019,273	927,331
Non-current Provisions	23,940	25,714
Total provisions	1,043,213	953,045

18. Equity

Issued capital

The share capital of the Aggregated Group consists only of fully paid ordinary shares in each aggregated entity; the shares do not have a par value. All shares are equally eligible to receive dividends and the repayment of capital and represent one vote at the shareholders’ meeting of each of the entities.

	2019	2018
	Shares	Shares
Shares issued and fully paid:
EP & T Pty Limited	5,000	5,000
EP & T Global Limited (UK)	325,000	325,000
EP & T Global Limited (HK)	7,175,000	7,175,000
EP & T FZ LLC (Dubai)	300	300
Total contributed equity at 30 June	7,505,300	7,505,300
	2019	2018
	$	$
Shares issued and fully paid:
Beginning of the year	1,929,386	1,856,051

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Foreign exchange movement	89,484	73,335
Total contributed equity at 30 June	2,018,870	1,929,386

The movements above are due to the changes in the foreign exchange spot rate at balance date to which issued capital is converted to AUD for the purposes of the aggregation.

Capital Management

The Aggregated Group does not have a limited amount of authorised capital and issued shares do not have a par value. Management controls the capital of the Aggregated Group in order provide the shareholders with adequate returns and ensure that the Aggregated Group can fund its operations and continue as a going concern. There are no externally imposed capital requirements. Management effectively manages the Aggregated Group’s capital by assessing the Aggregated Group’s financial risks and adjusting its capital structure in response to changes in these risks and in the market.

Foreign currency translation reserve

Comprises foreign currency translation differences arising on the translation of financial statements of the Aggregated Group’s foreign entities into $AUD.

19. Financial assets and liabilities

Categories of financial assets and liabilities

Note 2(g) provides a description of each category of financial assets and financial liabilities and the related accounting policies. The carrying amounts of financial assets and financial liabilities in each category are as follows:

ollows:
	Notes	Amortised cost	Total
		2019	2019
		$	$
Financial assets
Cash and cash equivalents	8	620,794	620,794
Trade and other receivables	10	7,173,087	7,173,087
Other short-term financial assets	9	59,027	59,027
Total financial assets at 30 June		7,852,908	7,852,908

			Other
	Notes	Borrowings at FVPL	liabilities Amortised	Total
			cost
		2019	2019	2019
		$	$	$
Financial liabilities
Trade and other payables	15	-	4,114,279	4,114,279
Current borrowings	16	1,099,716	1,507,796	2,607,512
Non-current borrowings	16	741,185	1,478,344	2,219,529
Total financial liabilities at 30 June		1,840,901	7,100,419	8,941,320

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

The financial instrument classifications in the prior period are as follows:

	Notes	Amortised cost	Total
		2018	2018
		$	$
Financial assets
Cash and cash equivalents	8	366,151	366,151
Trade and other receivables	10	4,146,115	4,146,115
Other short-term financial assets	9	59,027	59,027
Total financial assets at 30 June		4,571,293	4,571,293

			Other
	Notes	Borrowings at FVPL	liabilities Amortised	Total
			cost
		2018	2018	2018
		$	$	$
Financial liabilities
Trade and other payables	15	-	1,979,762	1,979,762
Current borrowings	16	-	556,306	556,306
Non-current borrowings	16	365,256	1,134,744	1,500,000
Total financial liabilities at 30 June		365,256	3,670,812	4,036,068

20. Related party transactions

Aggregated Group entities:

EP & T Pty Limited (ABN 87 060 381 142)
EP & T Global Limited (UK)
EP & T Global Limited (HK)
EP & T FZ LLC (Dubai)

All transactions between aggregated group entities have been eliminated in the aggregation.

The Company’s main related parties outside of the aggregated group are as follows:

Energy Save Pty Ltd

Energy Save Pty Ltd provides motor vehicles and IT equipment for EP & T Pty Limited’s use on a month to month basis. During 2019 Energy Save Pty Ltd charged $69,600 (2018: $69,600) excluding GST. The outstanding balance of $146,740 (2018: $75,560) is included in trade payables.

Kinetic Pacific Pty Ltd ATF Lion Trust

Kinetic Pacific Pty Ltd ATF Lion Trust subscribed to $295,000 of convertible notes issued by EP & T Pty Limited during the 2019 financial year (2018: Nil).

Transactions with related parties

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Transactions between related parties are on commercial terms and conditions no more favourable than those available to other parties.

Shareholder Loans:

Details of loans with shareholders are disclosed in Note 15.

Key management personnel:

Key management of the Aggregated Group are the Directors and members of the Advisory Committee along with key management being the Chief Executive Officer, Chief Financial Officer and Snr Vice President - Global Operations. Refer below for details of remuneration disclosures relating to key management personnel.

Transactions with key management personnel

Key management personnel remuneration includes the following expenses:

	2019	2018
	$	$
Short-term benefits	1,275,787	1,158,230
Long-term benefits	43,012	29,710
Total remuneration	1,318,799	1,187,940

21. Operating segments

Identification of reportable operating segments

The Aggregated Group has identified its operating segments based on the internal reports that are reviewed and used by the Board (the chief operating decision maker ('CODM')) in assessing performance and determining the allocation of resources.

Segment information is reported to the CODM on the basis of the product/service delivered. The Aggregated Group's products and services are the same within both geographical segments.

The information reported to the CODM is on a monthly basis.

Major customers

There are no significant customers in any reported segment that comprise greater than 10% of the segments

aggregated revenues.

The aggregated Group has identified its operating segments based on the markets they serve.

	2019 2018 $ $
Revenue Australia United Kingdom Hong Kong Middle East Eliminate inter-aggregated group transactions Segment net operating profit / (loss) before tax Australia United Kingdom Hong Kong Middle East Segment assets Australia United Kingdom Hong Kong Middle East	5,226,198 6,202,112 2,397,840 2,715,374 1,275,690 1,181,521 3,745,017 1,163,467 (1,137,357) (1,455,150)
	11,507,388 9,807,324
	(3,073,822) (1,182,471) (448,626) 684,776 14,744 (325,572) 772,428 564,815
	(2,735,276) (258,452)
	7,472,528 7,823,510 2,096,249 1,706,688 379,860 113,122 4,627,524 1,166,650

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Eliminate inter-aggregated group balances Segment liabilities Australia United Kingdom Hong Kong Middle East Eliminate inter-aggregated group balances	(4,281,383) (3,128,779)
	10,294,778 7,681,191
	6,276,094 3,852,285 2,863,010 2,025,973 1,326,548 1,025,373 3,661,707 547,082 (4,229,110) (2,896,872)
	9,898,249 4,553,841

22. Contingent liabilities

The Aggregated Group has contingent liabilities of $59,027 as at 30 June 2019 relating to bank guarantees held on property leases (2018: $59,027).

Nature of liability	Beneficiary	Amount	Expiry Dates
Financial Guarantee	Bellpen Pty Limited	A$59,027	General Bank Guarantee

Other property lease guarantees have been paid as deposits for Dubai, HK and UK premises to the amount of $63,022 (2018: $128,014).

23. Leases

Operating leases as lessee

The Aggregated Group leases property under operating lease. The future minimum lease payments are as follows:

ollows:
	Minimum lease payments due
	Within 1 year 1 to 5 years After 5 years Total $’000 $’000 $’000 $’000
30-Jun-19	404,016 461,991 - 866,007
30-Jun-18	518,007 614,018 237,258 1,369,283

Leases are for office space in Australia, Hong Kong, UK and Dubai and also for office equipment in Australia.

Lease expense during the period amounted to $638,789 (2018: $634,561) representing the minimum lease payments.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

24. Cash Flow Information

	2019	2018 (Restated)
	$	$
Reconciliation of Cash Flow from Operations with
Profit after Income Tax
(Loss) after income tax	(2,518,212)	(378,274)
Non-cash flows in profit and loss:
Depreciation and amortisation	122,605	117,934
Foreign currency gain/(loss)	220,542	(6,258)
Impairment of inventory	429,697	-
Impairment of receivables	637,869	-
Change in fair value of convertible notes	953,989	-
Changes in assets and liabilities:
(Increase)/decrease in trade and other receivables	(3,664,841)	(700,918)
(Increase)/decrease in other assets	3,761	(123,218)
(Increase) / decrease in tax receivables	271,861	(435,699)
(Increase) / decrease in deferred tax assets	(217,065)	(30,165)
Decrease / (increase) in inventories	90,816	11,170
Increase / (decrease) in trade and other payables	1,127,727	(232,455)
(Decrease) / increase in employee provisions	90,168	218,865
Net cash flow from operations	(2,451,083)	(1,559,018)

25. Guaranteed Energy Savings

In accordance with certain contracts signed with customers, the Aggregated Group companies guarantee a predetermined value of energy savings following installation of monitoring equipment and the commencement of monitoring and reporting services. The Aggregated Group is obligated to pay the customer in cash for a shortfall between actual savings achieved and the guaranteed energy savings amount. The savings are stipulated in the applicable contracts and are based on modelled savings determined by the Aggregated Group’s engineers and technical services team. The timeframe for measurement of guaranteed ranges from annually to a maximum of 5 years as stipulated in the individual service contracts. For annual savings guarantees, a shortfall in guaranteed savings reimbursed to a customer can be recovered from any excess savings achieved by that same customer in future years. The guarantees are unsecured.

The maximum remaining savings guaranteed to customers and the timeframes for measurement are shown below:

Guarantee measurement date	Within 12	In 1-2	In 3-5	Over 5	Total
	months	years	years	Years
Uncovered actual guaranteed savings *	-	283,634	5,270,008	-	5,553,641

Calculated as total guarantee amount less actual savings achieved to date

To date there have been no instances of energy savings guaranteed to customers not being met and accordingly no claims for payment by any customers have been received. Accordingly in the view of the directors, the possibility of any amounts disclosed above becoming probable and hence, actual liabilities, is considered to be remote.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

26. Events After the Reporting Date

Subsequent to year-end, the company has issued $3,456,000 of convertible notes in EP & T Pty Limited at the same terms as the noteholders at 30 June 2019. Convertible notes with a face value of $1,500,000 on issue at 30 June 2019 (refer to Note 16) which were due to mature at various dates from November 2019 onwards have had their maturity dates extended until 30 June 2021, unless they have been converted into equity prior to the revised maturity date.

Subsequent to the end of the financial year, the COVID-19 outbreak was declared a pandemic by the World Health Organization in March 2020. The aggregated group has seen a significant impact on its business to date. The outbreak and the response of Governments in dealing with the pandemic is interfering with general activity levels within the community, the economy and the operations of the aggregated group’s business.

The scale and duration of these developments remain uncertain as at the date of this report however they are having an impact on the aggregated group’s earnings, cash flow and financial condition. It is not possible to estimate the impact of the outbreak’s near-term and longer effects or Governments’ varying efforts to combat the outbreak and support businesses.

The financial statements have been prepared based upon conditions existing at 30 June 2019 and considering those events occurring subsequent to that date, that provide evidence of conditions that existed at the end of the reporting period. As the outbreak of COVID-19 occurred after 30 June 2019, its impact is considered an event that is indicative of conditions that arose after the reporting period and accordingly, no adjustments have been made to financial statements as at 30 June 2019 for the impacts of COVID-19.

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

27. Dividends

No dividends were paid or declared in the 2019 financial year.

For the 2018 financial year, all dividends paid and declared have been offset against shareholder loans. Dividends paid or declared in the financial year are as follows:

EP & T Pty Limited

An unfranked dividend of $933,735 was paid during the financial year ended 30 June 2018.
EP & T FZ LLC (Dubai)
A dividend of $440,364 was paid during the financial year ended 30 June 2018.

28. Company details

The registered office and principal place of business of the Aggregated entities are:

EP & T Pty Limited (ABN 87 060 381 142) Suite 2, 407 Pacific Highway Artarmon NSW 2064

EP & T Global Limited (UK) 84 Kingsway, Holborn London WC2B 6AE, UK

EP & T Global Limited (HK) 11/F, Tower 2 Lippo Centre 89 Queensway, Admiralty, Hong Kong

EP & T FZ LLC (Dubai) Unit 1006, Al Thuraya Tower 1 Dubai Media City

EP&T Pty Limited Aggregated Group For the year ended 30 June 2019

Directors’ Declaration

1 In the opinion of the Directors of the Responsible Body:
a The Aggregated Group financial statements and notes:
- i Give a true and fair view of its financial position as at 30 June 2019 and of its performance for the financial year ended on that date; and
- ii Comply with Australian Accounting Standards – Reduced Disclosure Requirements (including the Australian Accounting Interpretations) to the extent described in Note 1; and

b There are reasonable grounds to believe that the Aggregated Group will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the Directors.

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Director Kirthi Gunaratne

Dated the 13[th] day of October 2020

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Level 17, 383 Kent Street Sydney NSW 2000

Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230

T +61 2 8297 2400 F +61 2 9299 4445 E [email protected] W www.grantthornton.com.au

Auditor’s Independence Declaration

To the Directors of EP&T Pty Limited and its aggregated entities

As lead auditor for the audit of EP&T Pty Limited and its aggregated entities for the year ended 30 June 2019, I declare that, to the best of my knowledge and belief, there have been no contraventions of any applicable code of professional conduct in relation to the audit.

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Grant Thornton Audit Pty Ltd Chartered Accountants

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P J Woodley Partner – Audit & Assurance

Sydney, 13 October 2020

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

www.grantthornton.com.au

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

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Level 17, 383 Kent Street Sydney NSW 2000

Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230

T +61 2 8297 2400 F +61 2 9299 4445 E [email protected] W www.grantthornton.com.au

Independent Auditor’s Report

To the Members of EP & T Pty Limited

Report on the audit of the financial report

Opinion

We have audited the financial report of EP & T Pty Limited (the Company), and its aggregated companies (the Aggregated Group) which comprises the aggregated statement of financial position as at 30 June 2019, the aggregated statement of profit or loss and other comprehensive income, aggregated statement of changes in equity and aggregated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the Directors declaration of the Responsible Body.

In our opinion, the accompanying financial report of the Aggregated Group:

a presents fairly, in all material respects, the Aggregated Group’s financial position as at 30 June 2019 and of its performance and cash flows for the year then ended in accordance with the accounting policies described in Note 2; and
b Complies with Australian Accounting Standards – Reduced Disclosure Requirements to the extent described in Note 1.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Aggregated Group in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion..

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

www.grantthornton.com.au

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

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Material uncertainty related to going concern

We draw attention to Note 1c in the financial statements, which indicates that the Aggregated Group incurred a net loss of $2,518,212 during the year ended 30 June 2019, and as of that date, the Aggregated Group’s current liabilities exceeded its current assets by $1,175,947. As stated in Note 1c, these events or conditions, along with other matters as set forth in Note 1c, indicate that a material uncertainty exists that may cast significant doubt on the Aggregated Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Emphasis of matter – basis of accounting

We draw attention to Note 2.b of the financial report, which indicates that financial statements are prepared on an aggregated basis since 1 July 2015. They are not a consolidated group under AASB 10 Consolidated Financial Statements. The financial statements of the Aggregated Group have been prepared for the purpose of listing on the Australian Stock Exchange in accordance with the accounting policies described in Note 2.

Information other than the financial report and auditor’s report thereon

The Directors of the Responsible Body are responsible for the other information. The other information comprises the information included in the Aggregated Group’s annual report for the year ended 30 June 2019, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors’ of the Responsible Body for the financial report

Management is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards – Reduced Disclosure Requirements. The Directors’ of the Responsible Body responsibility also includes such internal control as the Directors of the Responsible Body determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Directors of the Responsible Body are responsible for assessing the Aggregated Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors of the Responsible Body either intend to liquidate the Aggregated Group or to cease operations, or have no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Aggregated Group’s financial reporting process.

Auditor’s responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

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A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar4.pdf. This description forms part of our auditor’s report.

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Grant Thornton Audit Pty Ltd Chartered Accountants

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P J Woodley Partner – Audit & Assurance Sydney, 13 October 2020

AI assistant

EPX LIMITED — Annual Report 2021

64865_rns_2021-05-10_26b5f078-6853-4d5d-9aea-e9632d198940.pdf

EP & T Pty Limited and its aggregated companies

Contents

Responsible Body’s Report

Director details of Aggregated Companies

EP & T Pty Limited (ABN 87 060 381 142)

EP & T Global Limited (UK)

EP & T Global Limited (HK)

Principal activities

Review of operations and financial results

Dividends

EP & T Pty Limited

EP & T Global Limited (UK)

EP & T Global Limited (HK)

EP & T FZ LLC

Options

Events arising since the end of the reporting period

Likely developments and expected results

Environmental legislation

Indemnities given to, and insurance premiums paid for, auditors and officers

Insurance of officers

Indemnity of auditors

Proceedings of behalf of the Aggregated Group

Aggregated Statement of Profit or Loss and Other Comprehensive Income

Aggregated Statement of Financial Position

Aggregated Statement of Changes in Equity

Aggregated Statement of Cash Flows

For the year ended 30 June

Notes to the Aggregated Financial Statements

1. General information and statement of compliance

a. Statement of Compliance

b. Basis of preparation

c. Going Concern

AASB 9 Financial Instruments

2. Summary of accounting policies

a. Overall considerations

b. Basis of aggregation

Functional and presentation currency

Foreign currency transactions and balances

Foreign operations

c. Operating segments

d. Revenue

e. Operating expenses

f. Plant and equipment

Plant and equipment

Depreciation

Impairment of non-financial assets

g. Leased assets

h. Financial instruments

Classification and initial measurement of financial assets

Subsequent measurement financial assets

Financial assets at amortised cost

Impairment of Financial assets

Trade and other receivables and contract assets

Classification and measurement of financial liabilities

Derivative financial instruments

i. Inventories

j. Income tax

Deferred tax

k. Cash and cash equivalents

l. Equity, reserves and dividend payments

Foreign currency translation reserve

Retained earnings

m. Employee benefits

Short-term employee benefits

Other long-term employee benefits

n. Provisions, contingent liabilities and contingent assets

o. Goods and Services Tax (GST) and Value Added Tax (VAT)

p. Significant management judgement in applying accounting policies and estimation uncertainty

Revenue recognition on projects

Recognition of deferred tax assets

Impairment

Inventories

Provisions – Warranties

Provisions – Long Service Leave and end of service gratuity

Guaranteed Energy Savings

Fair value of financial instruments

Provisions – stock obsolescence

EPX LIMITED Annual Report 2021