EPX LIMITED — Interim / Quarterly Report 2021

May 10, 2021

EP & T Pty Limited and its aggregated companies

For the half year ended 31 December 2020

Interim Report

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

Contents

Responsible Body’s Report	1
Aggregated Statement of Profit or Loss and Other Comprehensive Income	2
Aggregated Statement of Financial Position	3
Aggregated Statement of Changes in Equity	4
Aggregated Statement of Cash Flows	5
Notes to the Consolidated Financial Statements	6
Director’s Declaration	20
Independent Auditor’s Report	21

iii

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

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 half year ended 31 December 2020.

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)

Directors details

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

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

• Kirthi Gunaratne

• Upali Gunaratna

• Richard Pillinger (13/10/2020 to 28/10/2020)

EP & T Global Limited (UK)

• Kirthi Gunaratne

EP & T Global Limited (HK)

• Kirthi Gunaratne

EP & T FZ LLC (Dubai)

• Kirthi Gunaratne

Review of operations and financial results

The net loss after tax of the Aggregated Group for the half year ended 31 December 2020 is $2,885,347 (half year ended 31 December 2019: loss $1,722,471).

Signed in accordance with a resolution of the Directors.

Kirthi Gunaratne Director

Dated the 17th day of March 2020

1

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

Aggregated Statement of Profit or Loss and Other Comprehensive Income

For half year ended 31 December

For half year ended 31 December
Notes 2020 $	2019 $
Revenue 3,223,118 Other income 1,011,981 Raw materials and consumables used (178,016) Employee benefits expense (3,667,355) Depreciation expense 6 (253,201) Sales and marketing expense (81,472) Occupancy costs (110,314) Consultancy costs (12,739) Other expenses (591,524) Impairment of inventory - Impairment of receivables (1,929,517) Change in fair value of convertible notes (3,296) Finance costs (448,126)	3,503,427 376,552 (403,996) (3,453,650) (269,862) (35,641) (105,182) (130,967) (832,754) - (25,279) - (388,774)
Loss before income tax (3,040,461) Income tax (expense) / benefit 155,114	(1,766,125) 43,654
Loss for the year after tax (2,885,347)	(1,722,471)
Other comprehensive (loos) / income, net of tax (352,404)	20,581
Total comprehensive loss for the year (3,237,751)	(1,701,891)

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

2

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

Aggregated Statement of Financial Position

As at

		31 Dec 2020	30 Jun 2020
	Notes	$	$
Assets
Current
Cash and cash equivalents		647,036	835,085
Trade and other receivables		2,438,932	3,091,899
Inventories		1,518,115	1,386,861
Other current assets		348,447	275,778
Contract assets		441,059	77,323
Income tax receivable		525,904	627,963
Total current assets		5,919,493	6,294,909
Non-current
Trade and other receivables		430,732	2,310,110
Financial assets		67,938	67,938
Deferred tax assets		690,332	535,218
Plant & Equipment	6	1,078,781	893,835
Total non-current assets		2,267,783	3,807,101
Total assets		8,187,276	10,102,010
Liabilities
Current
Trade and other payables		3,869,948	3,272,822
Borrowings	7	7,164,980	5,196,232
Provisions	8	1,144,311	1,142,336
Lease liabilities	9	325,265	373,785
Total current liabilities		12,504,504	9,985,175
Non-current
Trade and other payables		810,681	1,048,359
Borrowings	7	1,407,600	2,401,651
Provisions	8	28,725	-
Lease liabilities	9	322,900	480,851
Total non-current liabilities		2,569,906	3,930,861
Total liabilities		15,074,410	13,916,036
Net assets		(6,887,134)	(3,814,026)
Equity
Issued Capital	10	1,887,455	2,054,753
Retained Earnings		(8,251,993)	(5,698,587)
Foreign Currency Translation Reserve		(522,596)	(170,192)
Total equity		(6,887,134)	(3,814,026)

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

3

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

Aggregated Statement of Changes in Equity

For the period ended

For the period ended
			Foreign
			Currency
		Retained	Translation
	Share capital	earnings	reserve	Total equity
	$	$	$	$
At July 1, 2019	2,018,870	(554,141)	45,841	1,510,570
Loss for the period	-	(1,684,014)	-	(1,684,014)
Othercomprehensiveloss	-	-	20,581	20,581
Totalcomprehensiveloss	-	(1,684,014)	20,581	(1,663,433)
Foreign exchange movement in
equity	26,864	(42,621)	-	(15,758)
At December 31, 2019	2,045,734	(2,280,776)	66,422	(168,621)
At July 1, 2020	2,054,753	(5,698,587)	(170,192)	(3,814,026)
Loss for the period	-	(2,885,347)	-	(2,885,347)
Othercomprehensiveloss	-	-	(352,404)	(352,404)
Totalcomprehensiveloss	-	(2,885,347)	(352,404)	(3,237,751)
Foreign exchange movement in
equity	(167,298)	331,941	-	164,643
At December 31, 2020	1,887,455	(8,251,993)	(522,596)	(6,887,134)

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

4

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

Aggregated Statement of Cash Flows

For the half year ended 31 December

For the half year ended 31 December
	2020	2019
	$	$
Operating activities
Receipts from customers	4,704,378	4,545,573
Payments to suppliers and employees	(5,923,170)	(5,595,512)
Income taxes received	479,198	221,191
Interest received	133,529	130,816
Finance costs	(48,524)	(99,916)
Net cash used in operating activities	(654,589)	(797,848)
Investing activities
Purchase of property, plant and equipment	(452,551)	(7,645)
Movement in term deposits	-	(8,911)
Net cash used in investing activities	(452,551)	(16,557)
Financing activities
Proceeds from convertible notes net of issue costs	950,000	1,881,000
Advances from shareholder	-	(63,911)
Net cash from financing activities	950,000	1,817,089
Net change in cash and cash equivalents	(157,140)	1,002,684
Cash and cash equivalents, beginning of year	265,997	247,742
Cash and cash equivalents, end of year	108,857	1,250,426

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

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EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

Notes to the Consolidated Financial

Statements

1 General information and basis of preparation

Basis of preparation

The Responsible Body have prepared the condensed interim financial statements of the Aggregated Group for the half year ended 31 December 2020 for the purposes of listing on the Australian Securities 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 general purpose interim financial statements have been prepared in accordance with the requirements of AASB 134 Interim Financial Reporting . They do not include all of the information required in annual financial statements in accordance with Australian Accounting Standards, and should be read in conjunction with the aggregated group financial statements for the year ended 30 June 2020.

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

The accounting policies adopted are consistent with those of the previous financial year, except for the adoption of new and amended standards as set out below.

The aggregated interim financial statements have been approved and authorised for issue by the Directors on xx March 2021.

2 New or Revised Standards or Interpretations

Accounting pronouncements which have become effective from 1 July 2020 and have therefore been adopted do not have a significant impact on the Aggregated Group’s financial results or position.

At the date of authorisation of these consolidated financial statements, several new, but not yet effective, Standards and amendments to existing Standards, and Interpretations have been published by the IASB. None of these Standards or amendments to existing Standards have been adopted early by the Aggregated Group. Management anticipates that all relevant pronouncements will be adopted for the first period beginning on or after the effective date of the pronouncement. New Standards, amendments and Interpretations not adopted in the current year have not been disclosed as they are not expected to have a material impact on the Aggregated Group’s financial statements.

3 Estimates

When preparing the interim financial statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results.

The judgements, estimates and assumptions applied in the interim financial statements, including the key sources of estimation uncertainty were the same as those applied in the aggregated Group’s last annual financial statements for the year ended 30 June 2020.

6

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

4 Going concern

The Aggregated Group has incurred a loss after tax for the half year ended December 2020 of $2,885,347 (half year 2019: loss of $1,722,471) had net operating cash outflows of $654,589 (2019: outflow of $797,848) and as at 31 December 2020, current liabilities exceeded current assets by $6,585,011 (June 2020: deficiency of $3,690,266). As at 31 December 2020 the Aggregated Group has net liabilities of $6,887,134 (30 Jun 2020 net liabilities: $3,814,026).

The Responsible Body has reviewed their future cash flow requirements and note that the Aggregated Group has issued Convertible Notes with the following maturity profiles. On maturity, the notes plus any accrued interest are required to be redeemed in cash, unless they have been converted into equity prior to their maturity dates:

uired to be redeemed in cash, unless	they have been converted into e
Month	Face Value of Notes Maturing
May 2021	$150,000
June 2021	$3,350,000
July 2021	$500,000
September 2021	$82,000
October 2021	$179,000
December 2021	$1,250,000
May 2022	$320,000
June 2022	$25,000
After 1 July 2022	$1,100,000

The Aggregated Group does not currently have sufficient cash reserves to fund the cash redemption of the Convertible Notes which mature within the period of 12 months from the date of signing this report, provided they have not been converted into equity prior to their maturity dates.

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.

During the half year ended December 2020, the Aggregated Group raised $950,000 (net of costs) of convertible notes from external investors. Subsequent to the end of the half year to December 2020 EP & T Global Limited (HK) has received a 5 year term bank loan for the equivalent to $580,000 with an annual interest rate of 2.75%. The Aggregated Group is continuing to seek new capital through the issuance of further convertible notes to fund project installation costs and operating cash requirements. 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.

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

The Responsible Body are continually reviewing cost structures in its operating aggregated entities 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 half year ended December 2020, the rate at which this growth can be continued has to be balanced against the additional working capital demands selling and installing new

7

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

projects place on the Aggregated Group. Installation of new projects awarded to the Aggregated Group during the half year ended December 2020 was impacted by COVID-19 restrictions which limited access to client sites. This in turn has delayed commencement of billing and subsequent cash receipt from customers. 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.

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.

5 Significant events and transactions

The financial position and performance of the Aggregated Group was not impacted by any significant events and transactions during the six months to 31 December 2020.

The operations of the Aggregated Group are not seasonal or cyclical in nature.

8

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

6 Property, plant and equipment

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

Office $	Leasehold Improve- ments IT equipment Other equipment Right-of- use asset Project equipment $ $ $ $ $	Total $
Gross carrying amount Balance 1 July 2019 373,424 Additions 4,864 Effect of movements in exchangerates 658	367,944 720,873 129,741 1,181,837 - - 2,781 - - - (394) (137) - 14,636 -	2,773,819 7,645 14,763
Balance 31 December 2019 378,946	367,550 723,517 129,741 1,196,473 -	2,796,227
Depreciation and impairment Balance 1 July 2019 (357,217) Depreciation (5,433) Effect of movements in exchangerates 629	(299,093) (647,367) (129,741) - - (36,195) (17,359) - (210,875) - (320) (123) - - -	(1,433,418) (269,862) 186
Balance 31 December 2019 (362,020)	(335,608) (664,850) (129,741) (210,875) -	(1,703,094)
Carrying amount 31 December 2019 16,926	31,942 58,667 - 985,598 -	1,093,133
Gross carrying amount Balance 1 July 2020 378,802 Additions 5,088 Effect of movements in exchange rates (33,881)	367,945 723,652 129,741 1,240,335 - - 10,298 - - 437,165 34,253 (1,741) - (6,512) -	2,840,475 452,551 (7,881)
Balance 31 December 2020 350,009	402,198 732,209 129,741 1,233,823 437,165	3,285,145
Depreciation and impairment Balance 1 July 2020 (362,517) Depreciation (3,865) Effect of movements in exchange rates 38,809	(350,598) (672,669) (129,741) (431,115) - (2,131) (13,724) - (214,553) (18,928) (40,018) (5,314) - - -	(1,946,640) (253,201) (6,523)
Balance 31 December 2020 (327,573)	(392,747) (691,707) (129,741) (645,668) (18,928)	(2,206,364)
Carrying amount 31 December 2020 22,436	9,451 40,502 - 588,155 418,237	1,078,781

All depreciation and impairment charges are included within depreciation expense.

9

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

7 Borrowings

7 Borrowings
	31 Dec 2020	30 Jun 2020
	$	$
Current
Bank overdraft	538,179	569,088
Convertible notes - current	3,853,924	2,613,089
Embedded derivative at FVPL	2,826,643	2,049,516
Convertible note issue costs	(53,766)	(35,461)
Total current borrowings	7,164,980	5,196,232
Non-current
Convertible notes	145,896	1,285,783
Embedded derivative at FVPL	1,300,350	1,175,149
Convertible note issue costs	(38,646)	(59,281)
Total non-current borrowings	1,407,600	2,401,651

Borrowings at amortised cost

The interest rate on bank overdraft is 4.6% per annum. The carrying amount of the bank overdraft is considered to be a reasonable approximation of the fair value.

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 rate 10% p.a. compounded daily from date of issue 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 $3,511,000 - 70% of the offer price Tranche 3 – Face Value of $1,445,000 - 50% of the offer price Conversion price (interest) 100% of the offer price

10

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

The convertible notes are issued with a 24 month maturity date, however, certain notes with maturity dates prior to 30 June 2021 have had their maturity dates extended. The current schedule of Notes on issue is listed below along with the revised maturity dates as at the date of this report:

Month	Face Value of Notes Maturing
May 2021	$150,000
June 2021	$3,350,000
July 2021	$500,000
September 2021	$82,000
October 2021	$179,000
December 2021	$1,250,000
May 2022	$320,000
June 2022	$25,000
After 1 July 2022	$1,100,000

Borrowings at FVPL

The embedded derivative at FVPL is the fair value of the conversion feature of the notes. There has been no movement in the fair value of the embedded derivative from issue to balance date and hence no fair value movement has been recorded in the income statement at period-end.

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 company management at $3,296, estimated using a present value technique, the Probability Weighted Expected Returns Method.

11

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

8 Provisions

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

The carrying amounts and movements in the provisions account are as follows:
Annual Leave Long Service Leave End of Service Gratuity $ $ $	Total $
Carrying amount 1 July 2019 261,130 251,033 531,050	1,043,213
Amount accrued 210,165 11,792 38,457 Amount utilised (248,210) (26,877) - Amount reversed - (19,271) -	259,117 (274,632) (19,271)
Carrying amount 31 December 2019 223,085 216,677 569,507	1,009,269
Carrying amount 1 July 2020 304,415 216,741 621,180	1,142,336
Amount accrued 215,825 55,057 (44,398) Amount utilised (179,410) (9,353) - Amount reversed - - (7,021)	226,484 (188,763) (7,021)

Total provisions split between current and non-current:

	31 Dec	30 Jun
	2020	2020
	$	$
Current provisions	1,144,311	1,142,336
Non-current Provisions	28,725	-
Total provisions	1,173,036	1,142,336

12

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

9 Lease Liabilities

9 Lease Liabilities
	31 Dec	30 Jun
	2020	2020
	$	$
Current lease liabilities	325,265	373,785
Non-current lease liabilities	322,900	480,851
Total lease liabilities	648,165	854,636

Future minimum lease payments at 31 December 2020 are as follows:

	Within one year	One to two years	Two to three years	Total
	$	$	$	$
31 December 2020
Lease payments	372,464	338,039	-	710,503
Finance charges	(47,199)	(15,139)	-	(62,338)
Net present values	325,265	322,900	-	648,165
30 June 2020
Lease payments	438,443	355,703	160,271	954,418
Finance charges	(64,658)	(31,709)	(3,414)	(99,782)
Net present values	373,785	323,994	156,858	854,636

13

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

10 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.

	31 Dec	30 Jun
	2020	2020
	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 as at	7,505,300	7,505,300
	31 Dec	30 Jun
	2020	2020
	$	$
Shares issued and fully paid:
Beginning of the period	2,054,753	2,018,870
Foreign exchange movement	(167,298)	35,883
Total contributed equity as at	1,887,455	2,054,753

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.

11 Dividends

No dividends were paid or declared in the half year ended 31 December 2020 (2019: none).

14

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

12 Financial assets and liabilities

Categories of financial assets and liabilities

The carrying amounts of financial assets and financial liabilities in each category are as follows:

	Amortised cost	Total
	31 Dec	31 Dec
	2020	2020
	$	$
Financial assets
Cash and cash equivalents	647,036	647,036
Trade and other receivables	2,869,664	2,869,664
Total financial assets	3,516,700	3,516,700

		Other
	Borrowings at FVPL	liabilities Amortised	Total
		cost
	31 Dec	31 Dec	31 Dec
	2020	2020	2020
	$	$	$
Financial liabilities
Trade and other payables	-	4,680,629	4,680,629
Current borrowings	2,826,643	4,392,103	7,218,746
Non-current borrowings	1,300,350	145,896	1,446,246
Total financial liabilities	4,126,993	9,218,628	13,345,621

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

	Amortised cost	Total
	30 June	20 June
	2020	2020
	$	$
Financial assets
Cash and cash equivalents	835,085	835,085
Trade and other receivables	5,402,009	5,402,009
Total financial assets	6,237,094	6,237,094

15

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

		Other
	Borrowings at FVPL	liabilities Amortised	Total
		cost
	30 Jun 2020	30 Jun 2020	30 Jun 2020
	$	$	$
Financial liabilities
Trade and other payables	-	4,321,181	4,321,181
Current borrowings	2,049,516	3,182,177	5,231,693
Non-current borrowings	1,175,149	1,285,783	2,460,932
Total financial liabilities	3,224,665	8,789,141	12,013,806

16

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

13 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.

The aggregated Group has identified its operating segments based	on the markets they serve.
For the half year ended 31 December	2020 2019 $ $
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 As at	2,193,770 2,524,663 955,212 963,714 148,810 197,758 516,655 433,930 (591,329) (616,638)
	3,223,118 3,503,427
	(1,327,897) (980,701) 248,328 (119,435) (281,710) (381,913) (1,679,182) (284,077)
	(3,040,461) (1,766,125)
	Dec 2020 Jun 2020 $ $
Segment assets Australia United Kingdom Hong Kong Middle East Eliminate inter-aggregated group balances Segment liabilities Australia United Kingdom Hong Kong Middle East Eliminate inter-aggregated group balances	9,242,836 8,955,949 2,607,069 2,281,605 184,927 260,994 2,773,981 4,588,165 (6,621,537) (5,984,703)
	8,187,276 10,102,010
	11,177,346 9,736,707 3,506,979 3,440,279 1,969,476 1,963,428 4,481,337 4,615,069 (6,060,728) (5,839,447)
	15,074,410 13,916,036

17

EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

14 Contingent liabilities

The Aggregated Group has contingent liabilities of $67,938 as at 31 December 2019 relating to bank guarantees held on property leases (2019: $67,938).

Nature of liability Beneficiary Amount Expiry Dates Financial Guarantee Bellpen Pty Limited A$67,938 General Bank Guarantee

Other property lease guarantees have been paid as deposits for Dubai, HK and UK premises to the amount of $54,896 (2019: $63,022).

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. In the view of the directors, the possibility of any amounts disclosed above becoming probable and hence, actual liabilities, is considered to be remote.

15 Events after the reporting date

In January 2021 EP & T Global Limited (HK) received a 5 year term bank loan for the equivalent to $580,000 with an annual interest rate of 2.75%. The loan is secured with a personal guarantee given by the sole Director of EP & T Global Limited (HK).

During the course of January 2021 and February 2021, 100% of the shareholdings in the following Aggregated Group entities were transferred to an entity controlled by Kirthi Gunaratne, EP&T Global Limited (ABN 645 144 314):

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

• EP & T Global Limited (UK)

• EP & T Global Limited (HK)

At the date of this report, it is intended that 100% of the shareholding of EP & T FZ LLC (Dubai) will also be transferred to EP&T Global Limited (ABN 645 144 314) in due course.

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 Aggregated Group in future financial years.

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EP&T Pty Limited Aggregated Group For the half year ended 31 December 2020

16 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

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EP&T Pty Limited Aggregated Group For the year ended 31 December 2020

Director’s Declaration

• 1 In the opinion of the Responsible Body:

• a The Aggregated Group interim financial statements and notes:

  • i Giving a true and fair view of its financial position as at 31 December 2020 and of its performance for the half-year ended on that date; and

  • ii Complying with Australian Accounting Standard AASB 134 Interim Financial Reporting ; 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.

Director Kirthi Gunaratne

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Dated the 17th day of March 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 info.nsw@au.gt.com W www.grantthornton.com.au

Independent Auditor’s Review Report

To the Members of EP & T Pty Limited

Report on the review of the half year financial report

Conclusion

We have reviewed the accompanying half year 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 31 December 2020, and 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 half year ended on that date, a description of accounting policies, other selected explanatory notes, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half year financial report of EP & T Pty Limited does not give a true and fair view of the Aggregated Group’s financial position as at 31 December 2020 and of its performance and cash flows for the half-year ended on that date in accordance with Accounting Standard AASB 134 Interim Financial Reporting to the extent described in Note 1.

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence and ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Material uncertainty related to going concern

We draw attention to Note 4 in the financial report, which indicates that the Aggregated Group incurred a net loss of $2,885,347 during the half year ended 31 December 2020 and, as of that date, the Aggregated Group's current liabilities exceeded its current assets by $6,585,011. As stated in Note 4, these events or conditions, along with other matters as set forth in Note 4, indicate that a material uncertainty exists that may cast significant doubt on the Aggregated Group's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.

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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Directors’ responsibility for the half year financial report

The Directors of the Company are responsible for the preparation of the half year financial report that gives a true and fair view in accordance with Australian Accounting Standards and for such internal control as the Directors determine is necessary to enable the preparation of the half year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the half year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half year financial report is not giving a true and fair view of the Aggregated Group’s financial position as at 31 December 2020 and its performance and cash flows for the half year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting to the extent described in Note 1.

A review of a half year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Grant Thornton Audit Pty Ltd Chartered Accountants

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P J Woodley Partner – Audit & Assurance Sydney, 17 March 2021

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