MACH7 TECHNOLOGIES LIMITED - Annual Report 2012

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SAFETY MEDICAL PRODUCTS LIMITED

ABN 26 007 817 192

2012 ANNUAL REPORT

Safety Medical Products Limited Directors’ report For the year ended 30 June 2012

The Directors present their report together with the financial report of Safety Medical Products Limited (the Company) for the year ended 30 June 2012 and the auditor’s report thereon.

Contents of Directors’ report	Contents of Directors’ report	Page
1.	Directors	3
2.	Directors’ Meetings	3
3.	Corporate Governance Statement	4
4.	Remuneration report	5
4.1	Principles of compensation	5
4.2	Analysis of bonuses included in remuneration	6
4.3	Options over equity instruments granted as compensation	6
4.4	Directors’ and executive officers’ remuneration	7
5.	Principal activities and review of operations	8
6.	Operating and financial review	8
7.	Dividends	8
8.	Events subsequent to reporting date	8
9.	Likely developments	9
10.	Directors’ interests	9
11.	Indemnification of officers	9
12.	Lead auditor’s independence declaration	9
13.	Proceedings on behalf of the Company	9
14.	Auditor and Non-Audit Fees	9

Safety Medical Products Limited Directors’ report For the year ended 30 June 2012

1. Directors

The directors of the Company during or since the end of the financial year are:

Name and qualifications Experience and special responsibilities Peter Christie Director and Chairman appointed 6 October 2010. Chairman Mr Christie graduated from Curtin University with a Bachelor of Business Aged 50 in 1983 and is a qualified Accountant and Tax Agent. He has 20 years experience and has developed extensive hospitality and property interests. Simon Lill Director appointed 6 October 2010. Director Mr Lill has a BSc (Pharmacol.) and a Masters of Business Administration, Aged 50 both from The University of Western Australia. He has a background of over 25 years of stockbroking, capital raising, management, business development and analysis for a range of small and start-up companies, both in the manufacturing and resources industries. Stephen Hewitt-Dutton Director and Company Secretary appointed 6 October 2010. Director and Company Mr. Hewitt-Dutton has over 20 years of experience in accounting, Secretary company secretarial and corporate finance matters. He holds a Bachelor Aged 42 of Business from Curtin University and an affiliate of the Institute of Chartered Accountants.

Directorships of other listed companies

Directorships of other listed companies held by directors in the 3 years immediately before the end of the financial year are as follows:

Name	Company	Period of directorship
Peter Christie	Carnavale Resources Limited	28 April 2006 – current
	Triangle Energy Limited	2 July 2008 – 20 November 2009
	Narhex Life Sciences Limited	13 January 2011–current
Simon Lill	Natural Fuel Limited	18 May 2010 – current
	Narhex Life Sciences Limited	13 January 2011–current
Stephen Hewitt-Dutton	Reclaim ResourcesLimited	13March 2012 -current

2. Directors’ meetings

The number of directors’ meetings and the number attended by each of the directors of the Company during the financial year are:

			Audit Committee	Audit Committee	Remuneration	Remuneration
	Board	Meetings	Meetings		Committee	Meetings
Director	No.		No.		No.
	Attended	No. Held	Attended	No. Held	Attended	No. Held
Mr P Christie	5	5	-	-	-	-
Mr S Lill	5	5	-	-	-	-
MrSHewittDutton	5	5	-	-	-	-

Safety Medical Products Limited Directors’ report For the year ended 30 June 2012

3. Corporate Governance Statement

The Company has adopted comprehensive systems of control and accountability as the basis for the administration of corporate governance. The Board is committed to administering the policies and procedures with openness and integrity, pursuing the true spirit of corporate governance commensurate with the Company’s needs. To the extent they are applicable, the Company has adopted the Eight Essential Corporate Governance Principles and Best Practice Recommendations (“Recommendations”) as published by ASX Corporate Governance Council.

The Company’s Corporate Governance policy is available on the Company’s website. As the Company’s activities develop in size, nature and scope, the size of the Board and the implementation of additional corporate governance structures will be given further consideration.

Principle 1 – Lay solid foundations for management and oversight

The Board and management have agreed on their respective roles and responsibilities and the functions reserved to the Board and management. The Board has established and adopted a Board Charter for this purpose. The Board has also established a Nomination and Remuneration Committee Charter which, among other functions, guides the Board in its evaluation of the performance of senior executives.

Principle 2 – Structure the Board to add value

The Board ultimately takes responsibility for corporate governance, and will be accountable to the Shareholders for the performance of the Company. The functions and responsibilities of the Board are set out in the Company’s Constitution and the Corporations Act.

The Board does not currently have a majority of independent directors. It is comprised of one independent director and two non-independent directors. The existing structure is considered appropriate given the small scale of the Company’s enterprise and the associated economic restrictions this places on the Company. The existing structure is aimed at maximising the financial position of the Company by keeping its operating costs to a minimum.

No separate nomination committee has been formed. However, the Company has adopted a Nomination and Remuneration Committee Charter. The role of the nomination committee is carried out by the full Board in accordance with the Nomination and Remuneration Committee Charter. The Board considers that at this stage, no efficiencies or other benefits would be gained by establishing a separate committee.

Principle 3 – Promote ethical and responsible decision making

All Directors, managers and employees are expected to act with the utmost integrity and objectivity, striving at all times to enhance the reputation and performance of the Company. The Board has established a Code of Conduct to guide the Directors, managers, contractors, employees and officers of the Company. A Share Trading Policy has also been established.

Principle 4 – Safeguard integrity in financial reporting

The Directors require the Chief Financial Officer and Chief Executive Officer and external company auditors to state in writing to the Board that the Company’s financial condition and operational results and are in accordance with relevant accounting standards.

A separate audit committee has not been formed. However, the Company has adopted an Audit Committee Charter. The role of the audit committee is carried out by the full Board in accordance with the Audit Committee Charter. The Board considers that given its size, no efficiencies or other benefits would be gained by establishing a separate audit committee.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2012

3. Corporate Governance Statement (continued)

Principle 5 – Make timely and balanced disclosure

The Directors are committed to keeping the market fully informed of material developments to ensure compliance with the Listing Rules and the Corporations Act. The Directors have established a written policy and procedure to ensure compliance with the disclosure requirements of the Listing Rules.

Principle 6 – Respect the rights of Shareholders

The Directors have established a communications strategy to promote effective communication with Shareholders and encourage effective participation at general meetings. As well as ensuring timely and appropriate access to information for all investors via announcements to the ASX, the Company will ensure that all relevant documents are released on the Company’s website.

Principle 7 – Recognise and manage risk

The Directors have established a Risk Management Policy regarding the oversight and management of material business risks.

Principle 8 – Remunerate fairly and responsibly

A separate remuneration committee has not been formed. However, the Company has adopted a Nomination and Remuneration Committee Charter. The role of the Remuneration Committee is carried out by the full Board in accordance with the Nomination and Remuneration Committee charter. The Board considers at this stage, no efficiencies or other benefits would be gained by establishing a separate Committee.

Other information

Further information relating to the Company’s corporate governance practices and policies has been made publicly available on the Company’s web site at www.safetymed.com.au.

4. Remuneration report – audited

Remuneration is referred to as compensation throughout this report.

4.1 Principles of compensation

This report outlines the remuneration arrangements in place for directors of Safety medical Products Limited in accordance with the requirements of the Corporation Act 2001 and its Regulations. For the purpose of this report, Key Management Personnel (KMP) of the Company are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Company, directly or indirectly, and includes the executives in the Company receiving the highest remuneration.

Details of Key Management Personnel

Mr. Peter Christie Chairman Mr. Simon Lill Director

Mr. Stephen Hewitt-Dutton Director and Company Secretary

Remuneration Policy

The Board is responsible for determining and reviewing compensation arrangements for the Directors. The Board assesses the appropriateness of the nature and amount of emoluments of such officers on a periodic basis by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a high quality board and executive team. The Company does not link the nature and amount of the emoluments of such officers to the Company’s financial or operational performance. The expected outcome of this remuneration structure is to retain and motivate Directors.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2012

4. Remuneration report – audited

As part of its Corporate Governance Policies and Procedures, the Board has adopted a formal Remuneration Committee Charter. Due to the current size of the Company and number of directors, the Board has elected not to create a separate Remuneration Committee but has instead decided to undertake the function of the Committee as a full Board under the guidance of the formal charter.

The rewards for Directors’ have no set or pre-determined performance conditions or key performance indicators as part of their remuneration due to the current nature of the business operations. The Board determines appropriate levels of performance rewards as and when they consider rewards are warranted. The Company has no policy on executives and directors entering into contracts to hedge their exposure to options or shares granted as part of their remuneration package.

The ASX Listing Rules specify that the aggregate remuneration of non-executive directors shall be determined from time to time by a general meeting. The latest determination was at the Annual General Meeting held on 25 November 2003 when shareholders approved an aggregate remuneration of not more than $300,000 per year.

The table below shows the performance of the Company as measured by loss per share since 2008:

	2012	2011	2010	2009	2008
Net profit/(loss) after tax	(423,674)	$1,367,566	($4,488,342)	($3,874,198)	($4,418,046)
Basic EPS	(0.1¢)	0.7¢	(4.9¢)	(4.2¢)	(6.1¢)
Share price at year end	$0.01	$0.02	$0.04	$0.04	$0.09
Dividends paid	Nil	Nil	Nil	Nil	Nil

Details of Remuneration

Details of the nature and amount of each element of the emolument of each Director and Executive of the Company, including all key management personnels as required by the Corporations Act 2001, for the financial year are below in note 4.4.

Key management personnel and other executives

The overall level of key management personnel’s compensation takes into account the performance of the Company over a number of years and includes both financial and non-financial measures of performance. In the period since the Company listed on ASX it has been in the development and evaluation phase of its operations, as such the directors consider that comparing compensation directly with profitability is not warranted during this stage.

Loans to Directors and Executives

There were no loans to directors and executives during the financial year ending 30 June 2012.

4.2 Analysis of bonuses included in remuneration

There were no short term cash bonuses paid during the reporting period or the prior reporting period.

4.3 Options over equity instruments granted as compensation

There were no options over ordinary shares in the Company granted as compensation to key management personnel during the reporting period or the prior reporting period. No options were granted since the end of the financial year.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2012

4. Remuneration report – audited (continued) 4.4 Directors’ and executive officers’ remuneration

Details of the nature and amount of each major element of the remuneration for the year ended 30 June 2012 (and the previous period) of each director of the Company receiving the highest remuneration and other key management personnel are:

2012 Directors	Short-term	Post employment Superannuation benefits Total $ $	Share-based payments	Total Proportion of remuneration performance related Value of options and shares as proportion of remuneration $ % %
	Salary & fees STI Cash bonus $ $		Options Shares $ $
Non-executive directors
Mr P Christie (Chairman)	40,000 -	- -	- -	40,000 - -
Mr S Lill	36,000 -	- -	- -	36,000 - -
MrSHewitt-Dutton(Company Secretary)	36,000 -	- -	- -	36,000 - -
Total compensation: key management personnel 2012	112,000 -	- -	- -	112,000 - -
2011 Directors
Non-executive directors Mr P Christie (Chairman) Mr S Lill MrSHewitt-Dutton(Company Secretary)
	12,500 -	- -	- -	12,500 - -
	10,000 -	- -	- -	10,000 - -
	10,000 -	- -	- -	10,000 - -
Total compensation: key management personnel 2011	32,500 -	- -	- -	32,500 - -

No compensation was paid in 2011 or 2012 in respect to the following classes: Non-Monetary; Other Short-term employee benefits; Pension or other post-employment or long-term benefits; termination benefits.

This is the end of the audited remuneration report.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2012

5. Principal activities and review of operations

The Company has maintained its relevant retractable syringe patents for the Secure Touch syringe in the key markets of Australia and the USA. During the year the Company has reviewed various opportunities available to it to further develop its technology.

The first option is to license or sell the technology to an existing manufacturer who may be vulnerable to further legislative moves towards safety. This is the Company’s preferred route as the simplest entry to market, though the value of the outcomes is uncertain.

The second option is to form a joint venture with an existing manufacturer to produce and market the SecureTouch syringe in commercial quantities. A suitable manufacturer is being sought, but Safety Medical will still require a significant sum of money to allow it to remain in the JV.

A third option was considered, this being to develop manufacturing equipment anew (estimated $12 to $16M) and to commence manufacture and marketing on our own. Apart from the upfront development costs, the Company would also require the marketing and support infrastructure to market, sell and distribute the products.

To date the Company has not been able to successfully move forward with any of the above options, but is continuing to seek the correct partners in relation to options one and two.

As the avenues for commercialisation of the SecureTouch syringe have not yet been successful the Company has entered into a Heads of Agreement for the acquisition of Kisara Gold Pty Ltd (“ Kisara ”), an Australian unlisted company, and its wholly owned Brazilian subsidiary Mineração Caiçara Ltda, holder of the Silvina Gold Project in the Bahia state of Brazil. It is currently proceeding with Due Diligence procedures in order to determine or otherwise whether to proceed with the acquisition.

The Company also continues to hold an option to acquire tenements in the Three Rivers Area of north Western Australia from Brutus Constructions Pty Ltd. The tenement EL 52/2605 and EL 52/2656 are both granted.

6. Operating and financial review

The Statement of Comprehensive Income shows a net loss attributable to members of $423,674 compared with a profit of $1,367,566 for the previous period.

The Statement of Financial Position shows an decrease in net assets from $1,831,001 to net assets of $1,407,326.

Refer to table in Note 4 of the Directors’ report for shareholder returns

7. Dividends

No dividends have been paid or declared by the Company to members since the end of the previous financial year.

8. Events subsequent to reporting date

Subsequent to the Heads of Agreement with Kisara, the Company is currently in the process of finalising the Share Sale Agreement.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2012

9. Likely developments

Other than disclosed elsewhere in this report, likely development of the operations of the Company and the expected results of those operations have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the Company.

10. Directors’ interest

The relevant interest of each director in the shares and options over such instruments issued by the Company as notified by the directors to the ASX in accordance with section 205G(1) of the Corporations Act 2001 and the ASX Listing Rules, at the date of this report is as follows:

		Ordinary shares	Options over ordinary	Convertible Notes
			shares	over ordinary shares
Mr	Peter Christie	5,500,000	-	-
Mr	Stephen Hewitt-Dutton	2,000,000	-	-
Mr	Simon Lill	3,000,000	-	-

11. Indemnification of officers

The Company has agreed subject to and so far as may be permitted by the Corporations Act 2001 to indemnify each past, current and future director and officers against all liabilities that may arise from their position as directors and officers of the Company or any wholly-owned subsidiary of the Company. The agreement stipulates that the Company will meet the full amount of any such liabilities, including costs and expenses. No indemnification has been paid with respect to the Company’s auditors.

12. Lead auditor’s independence declaration

The lead auditor’s independence declaration is set out on page 39 and forms part of the directors’ report for the financial year ended 30 June 2012.

13. Proceedings on behalf of the Company

As at the date of this report, there are no leave applications or proceedings brought on behalf of the Company under section 237 of the Corporations Act 2001 .

14. Auditor and Non-Audit Services

Bentleys Audit & Corporate (WA) Pty Ltd has been appointed by The Directors. Their appointment will be put to the members for ratification at the Annual General Meeting.

Details of the amounts paid to the auditor of the Company, Bentleys, and its related practices for audit and non-audit services provided during the year are set out in Note 9 of the Notes to the financial statements.

Dated at Perth this 31[st] day of August 2012.

Signed in accordance with a resolution of the directors:

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Simon Lill Director

Safety Medical Products Limited Financial Statements For the year ended 30 June 2012

Contents of the Financial Statements	Contents of the Financial Statements	Page
	Statement of comprehensive income statement	11
	Statement of changes in equity	12
	Statement of financial position	13
	Statement of cash flows	14
NOTES TO THE FINANCIAL STATEMENTS
Note 1	Reporting entity	15
Note 2	Basis of preparation	15
Note 3	Significant accounting policies	16
Note 4	Determination of fair values	25
Note 5	Segment reporting	25
Note 6	Revenue	27
Note 7	Other income	27
Note 8	Financial income and expense	27
Note 9	Auditors’ remuneration	27
Note 10	Trade and other receivables	27
Note 11	Deferred acquisition costs	27
Note 12	Trade and other payables	27
Note 13	Income tax expense	28
Note 14	Earnings per share	29
Note 15	Share capital	30
Note 16	Dividends	30
Note 17	Cash and cash equivalents	30
Note 18	Cash flow information	31
Note 19	Financial risk management	31
Note 20	Key management personnel	34
Note 21	Contingent liabilities	35
Note 22	Events subsequent to reporting date	35
Note 23	Directors’ declaration	36
	Independent auditor’s report to the members of Safety Medical Products Limited	37
	Lead auditor’s independence declaration	39
	Additional ASX information	40
	Offices and officers	42

Safety Medical Products Limited Statement of Comprehensive Income For the year ended 30 June 2012

Note	2012 $ 2011 $
Revenue 6 Cost of sales Gross profit Other income Business development, marketing & intellectual property expenses Accounting and audit fees Administrators fees Directors’ and company secretarial fees Legal fees Consultancy and corporate advisors Administrative expenses Results from operating activities Financial income 8 Financial expense 8 Impairment Loss Profit/(loss) before tax Income tax (expense)/benefit 13 Profit/(loss) after tax from continuing operations Profit/(loss) from discontinued operations Profit/(loss) for the year Other comprehensive income Total comprehensive loss for the year Attributable to: Equity holders of parent Non-controlling interest Earnings per share From continuing and discontinued operations: Basic earnings per share (cents) 14 From continuing operations: Basic earnings per share (cents) 14 From discontinued operations: Basic earnings per share (cents) 14	- 15,766 - (5,755)
	- 10,011 - 820,135 (11,986) (37,723) (67,967) (60,660) - (58,158) (160,000) (56,500) (11,883) (59,267) (168,718) - (75,045) (99,579)
	(495,599) 458,259 72,454 28,746 (529) (1,851) - (132,142)
	(423,674) 353,012 - -
	(423,674) 353,012 - 1,014,554
	(423,674) 1,367,566 - -
	(423,674) 1,367,566
	(423,674) 1,367,566 - -
	(423,674) 1,367,566
	(0.1) 0.7 (0.1) 0.2 - 0.5

The statement of comprehensive income should be read in conjunction with the notes to the financial statements.

Safety Medical Products Limited Statement of Changes in Equity For the financial year ended 30 June 2012

2012 Note	Issued Capital Accumulated losses Equity compensation reserve Non- controlling Interest Total equity $ $ $ $ $	Issued Capital Accumulated losses Equity compensation reserve Non- controlling Interest Total equity $ $ $ $ $
Balance at 1 July 2011 2,779,628 (948,628) Loss for the year - (423,674) Total comprehensive income for the year - (423,674) Transactions with owners, in their capacity as owners, and other transfer Shares Issued - - Transaction costs - - Closing balance at 30 June 2012 2,779,628 (1,372,302) Amounts are stated net of tax 2011	2,779,628 (948,628) - (423,674)	- - 1,831,000 - - (423,674)
	- (423,674)	- - (423,674)

	- - - -	- - - - - -
	2,779,628 (1,372,302)	- - 1,407,326

Balance at 1 July 2010 10,954,673 (14,712,738) Profit for the year - 1,367,566 Total comprehensive income for the year - 1,367,566 Transactions with owners, in their capacity as owners, and other transfer Conversion of convertible notes under DOCA 700,000 - Reduction of capital as approved at the general meeting (11,654,673) 11,654,673 Reversal of expired options - 741,871 Shares Issued 15 3,130,000 - Transaction costs (350,372) - Derecognition of non- controlling interest upon disposal of Pureste - - Balance at 30 June 2011 2,779,628 (948,628)	10,954,673 (14,712,738) - 1,367,566	741,871 (1,420,372) (4,436,566) - - 1,367,566
	- 1,367,566	- - 1,367,566
		- - 700,000 - - - (741,871) - - - - 3,130,000 - - (350,372) - 1,420,372 1,420,372
	2,779,628 (948,628)	- - 1,831,000

Amounts are stated net of tax

The statement of changes in equity should be read in conjunction with the notes to the financial statements.

Safety Medical Products Limited Statement of Financial Position As at 30 June 2012

Note	2012 $ 2011 $
Assets Cash and cash equivalents 17 Trade and other receivables 10 Inventories Total current assets Non-current assets Deferred acquisition cost 11 Property, plant and equipment Total non-current assets Total assets 5 Liabilities Trade and other payables 12 Loans and borrowings Employee benefits Total current liabilities Total liabilities 5 Net assets / (deficiency) Equity Issued capital 15 Reserves Accumulated losses Equity attributable to equity holders of the company Non-controlling interest Total equity	999,423 1,546,875 155,984 41,013 - -
	1,155,407 1,587,888
	330,000 280,000 - -
	330,000 280,000
	1,485,407 1,867,888
	78,081 36,888 - - - -
	78,081 36,888
	78,081 36,888
	1,407,326 1,831,000
	2,779,628 2,779,628 - - (1,372,302) (948,628)
	1,407,326 1,831,000 - -
	1,407,326 1,831,000

The statement of financial position should be read in conjunction with the notes to the financial statements.

Safety Medical Products Limited Statement of Cash Flows For the ear ended 30 June 2012 y

Note	2012 $ 2011 $
Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees Cash generated from operations Interest paid Net cash used in operating activities 18 Cash flows from investing activities Interest received Acquisition of exploration assets Proceeds from disposal of property, plant and equipment Net cash from investing activities Cash flows from financing activities Proceeds from issue of share capital Capital raising costs paid Payments in relation to Deed of Company Arrangement Repayment of borrowings Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at 1 July Overdraft extinguished by Deed of Company Arrangement Cash and cash equivalents at 30 June	- 18,159 (569,377) (593,461)
	(569,377) (575,302) (529) (1,851)
	(569,906) (577,153)
	72,454 28,746 (50,000) (100,000) - 66,025
	22,454 (5,229)
	- 2,950,000 - (350,372) - (973,025) - 1,343
	- 1,627,946
	(547,452) 1,045,564 1,546,875 66,009 - 435,302
	999,423 1,546,875

The statement of cash flows should be read in conjunction with the notes to the financial statements.

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

1 Reporting entity

Safety Medical Products Limited (the "Company") is a company domiciled in Australia. The financial statements of the Company for the financial year ended 30 June 2012 relates to Safety Medical Products Limited as a single entity following the disposal of all subsidiaries during the previous financial year. The Company is involved in the research and development of medical syringe technology and mineral exploration.

2 Basis of preparation

(a) Statement of Compliance

The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (‘AASBs’) adopted by the Australian Accounting Standards Board (‘AASB’) including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001 . The financial report of the Company also complies with the IFRSs and interpretations adopted by the International Accounting Standards Board.

The financial report was authorised for issue by the directors on 31[st] August 2012.

(b) Basis of measurement

The financial report is prepared on the historical cost basis.

(c) Functional and presentation currency

The financial report is presented in Australian dollars which is the Company’s functional currency and the functional currency of all subsidiaries.

(d) Critical accounting judgements, estimates and assumptions

The preparation of financial statements requires management to make judgements, estimates and assumptions that effect the application of accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are described in the following notes:

Environmental Issues

Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or enacted environmental legislation, and the directors understanding thereof. At the current stage of the company’s development and its current environmental impact the directors believe such treatment is reasonable and appropriate.

Taxation

Balances disclosed in the financial statements and the notes thereto, related to taxation, are based on the best estimates of directors. These estimates take into account both the financial performance and position of the Company as they pertain to current income taxation legislation, and the directors understanding thereof. No adjustment has been made for pending or future taxation legislation. The current income tax position represents that directors’ best estimate, pending an assessment by the Australian Taxation Office.

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

3 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in the financial report and have been applied consistently by the Company.

(a) Foreign currency transactions

Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to Australian dollars at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to Australian dollars at foreign exchange rates ruling at the dates the fair value was determined.

(b) Financial instruments

Recognition and Initial Measurement

Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes a party to the contractual provisions of the instrument. Trade date accounting is adopted for financial assets that are delivered within timeframes established by marketplace convention.

Financial instruments are initially measured at fair value plus transaction costs where the instrument is not classified as at fair value through profit and loss. Transactions costs related to instruments classified as at fair value through profit and loss are expensed to profit or loss immediately. Financial instruments are classified and measured as set out below.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits, associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

Classification and subsequent measurement

Finance instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or cost.

Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense item in profit or loss.

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

3 Significant accounting policies (continued)

(b) Financial instruments (continued)

The Company does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of Accounting Standards specifically applicable to financial instruments.

(i) Financial assets at fair value through profit or loss

Financial assets are classified at “fair value through profit or loss” when they are held for trading for the purpose of short-term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a Group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss.

(ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost.

Loans and receivables are included in current assets, where they are expected to mature within 12 months after the end of the reporting period.

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the Company’s intention to hold these investments to maturity. They are subsequently measured at amortised cost.

Held-to-maturity investments

Held-to-maturity investments are included in non-current assets where they are expected to mature within 12 months after the end of the reporting period. All other investments are classified as current assets.

(iv) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

They are subsequently measure at fair value with changes in such fair value (ie gains or losses) recognised in other comprehensive income (except for impairment losses and foreign exchange gains and losses). When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss.

Available-for-sale financial assets are included in non-current assets where they are expected to be sold within 12 months after the end of the reporting period. All other financial assets are classified as current assets.

(v) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

3 Significant accounting policies (continued)

(b) Financial instruments (continued)

Derecognition

(c) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.

Costs include expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour and any other costs directly attributable to bring the asset to a working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

(ii) Subsequent costs

The Company recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost is incurred if it is probable that the future economic benefits embodied within the item will flow to the company and the cost of the item can be measured reliably. All other costs are recognised in the income statement as an expense as incurred.

(iii) Depreciation

With the exception of freehold land, depreciation is charged to the income statement using the diminishing value method over the estimated useful lives of each part of an item of property, plant and equipment. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The estimated useful lives in the current and comparative periods are as follows:

plant and equipment 3 - 13 years
fixtures and fittings 5 - 9 years  motor vehicles 5 years The residual value, the useful life and the depreciation method applied to an asset are reassessed at least annually.

(d) Intangible assets

(i) Research and development

Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognised in the income statement as an expense as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalised if the product or process is technically and commercially feasible and the Company has sufficient resources to complete development.

The expenditure capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads. Other development expenditure is recognised in the income statement as an expense as incurred. Capitalised development expenditure is stated at cost less accumulated amortisation and impairment losses.

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

3 Significant accounting policies (continued)

(d) Intangible assets (continued)

(ii) Subsequent expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed as incurred.

(e) Leases

Leases in terms of which the Company assumes substantially all the risks and benefits of ownership are classified as finance leases.

Other leases are operating leases and are not recognised on the Company’s balance sheet. Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of the lease. Lease incentives received are recognised in the income statement as an integral part of the total lease expense and spread over the lease term.

(f) Impairment

(i) Financial assets

A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flow of that asset.An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate. An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value.

Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in Company’s that share similar credit risk characteristics. All impairment losses are recognised in the income statement. Any cumulative losses in respect of an available-for-sale financial asset recognised previously in equity are transferred to the income statement.

An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For financial assets measured at amortised cost, the reversal is recognised in the income statement. For available-for-sale financial asset that are equity securities, the reversal is recognised directly in equity.

(ii)

Non-financial assets

The carrying amounts of the Company’s assets, other than inventories (see accounting policy g), and deferred tax assets (see accounting policy m), are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. For goodwill assets that have indefinite lives, recoverable amount is estimated at each reporting date.

An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets or groups. Impairment losses are recognised in the income statement. Impairment losses recognised in respect of cashgenerating units are allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit (group of units) and then, to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. 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 an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

3 Significant accounting policies (continued)

(f) Impairment (continued)

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation and amortisation, if no impairment loss had been recognised.

(g) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution pension plans are recognised as an expense in the income statement when they are due.

(h) Provisions

A provision is recognised in the statement of financial position when the Company has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, when appropriate, the risks specific to the liability.

(i) Finance income and expense

Finance income comprises interest revenue on funds invested. Interest revenue is recognised in the income statement as it accrues, using the effective interest rate method. Finance expenses comprise interest expenses on borrowings. Interest expense is recognised in the income statement as it accrues, using the effective interest rate method. For the purposes of the statement of cash flows, interest earned is recognised in investing activities and interest paid is recognised in operating activities.

(j) Income tax

Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: initial recognition of goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, nor differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Additional income taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the related dividend.

(k) Goods and Services Tax

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

3 Significant accounting policies (continued)

(k) Goods and Services Tax (continued)

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet.

Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

(l) Earnings per share

The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding of the effects of all dilutive potential ordinary shares, which comprise share options.

(m) Segment reporting

A segment is a distinguishable component of the Company that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments.

(n) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits available on demand with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are reported within short-term borrowings in current liabilities in the statement of financial position.

(o) Exploration and Development Expenditure

Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable area of interest. These costs are only capitalised to the extent that they are expected to be recovered through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in relation to that area of interest.

Costs of site restoration are provided over the life of the project from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with local laws and regulations and clauses of the permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on an undiscounted basis.

Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly the costs have been determined on the basis that the restoration will be completed within one year of abandoning the site.

During the year, SafetyMed paid consideration to acquire tenements. Subsequent to year end, an extension of 13 months was granted for the consideration. As such, it has been classified as deferred acquisition cost.

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

3 Significant accounting policies (continued)

(p) Comparatives

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

Where the Company has retrospectively applied an accounting policy, made a retrospective restatement of items in the financial statements or reclassified items in its financial statements, an additional statement of financial position as at the beginning of the earliest comparative period will be disclosed.

(q) Issued Capital

Ordinary shares

Incremental costs directly attributable to issue of ordinary shares and share options are recognised as a deduction from equity, net of any related income tax benefit.

(r) New standard and interpretations

In the current year, the Company have adopted all of the new and revised Standards and Interpretations issued by the Accounting Standards Board (“AASB”) that are relevant to their operations and effective for the current annual reporting period. The adoption of these new and revised Standards and Interpretations have not resulted in any significant change to the Company’s accounting policies.

The following new and revised Standards and Interpretations have been adopted in the current period and have affected the amounts reported in these financial statements. Details of other Standards and Interpretations adopted in these financial statements but that have had no effect on the amounts reported are set out below.

This Standard is applicable retrospectively and includes revised requirements for the classification and measurement of financial instruments, as well as recognition and derecognition requirements for financial instruments. The Company has not yet determined any potential impact on the financial statements.

The key changes made to accounting requirements include:
simplifying the classifications of financial assets into those carried at amortised cost and those carried at fair value;
simplifying the requirements for embedded derivatives;
removing the tainting rules associated with held-to-maturity assets;
removing the requirements to separate and fair value embedded derivatives for financial assets carried at amortised cost;
allowing an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Dividends in respect of these investments that are a return on investment can be recognised in profit or loss and there is no impairment or recycling on disposal of the instrument;
requiring financial assets to be reclassified where there is a change in an entity’s business model as they are initially classified based on: (a) the objective of the entity’s business model for managing the financial assets; and (b) the characteristics of the contractual cash flows; and
requiring an entity that chooses to measure a financial liability at fair value to present the portion of the change in its fair value due to changes in the entity’s own credit risk in other comprehensive income, except when that would create an accounting mismatch. If such a mismatch would be created or enlarged, the entity is required to present all changes in fair value (including the effects of changes in the credit risk of the liability) in profit or loss.
AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010–2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements [AASB 1, 2, 3, 5, 7, 8, 101, 102, 107, 108, 110, 111, 112, 116, 117, 119, 121, 123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140, 141, 1050 & 1052 and Interpretations 2, 4, 5, 15, 17, 127, 129 & 1052] (applicable for annual reporting periods commencing on or after 1 July 2013).

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

3 Significant accounting policies (continued)

(r) New standard and interpretations (continued)

AASB 1053 establishes a revised differential financial reporting framework consisting of two tiers of financial reporting requirements for those entities preparing general purpose financial statements:

Tier 1: Australian Accounting Standards; and
Tier 2: Australian Accounting Standards – Reduced Disclosure Requirements.

Tier 2 of the framework comprises the recognition, measurement and presentation requirements of Tier 1, but contains significantly fewer disclosure requirements.

The following entities are required to apply Tier 1 reporting requirements (ie full IFRS):

for-profit private sector entities that have public accountability; and
the Australian Government and state, territory and local governments.

Since the Company is a for-profit private sector entity that has public accountability, it does not qualify for the reduced disclosure requirements for Tier 2 entities.

AASB 2010–2 makes amendments to Australian Accounting Standards and Interpretations to give effect to the reduced disclosure requirements for Tier 2 entities. It achieves this by specifying the disclosure paragraphs that a Tier 2 entity need not comply with as well as adding specific “RDR” disclosures.

AASB 2009–12: Amendments to Australian Accounting Standards [AASBs 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052] (applicable for annual reporting periods commencing on or after 1 January 2011).

This Standard makes a number of editorial amendments to a range of Australian Accounting Standards and Interpretations, including amendments to reflect changes made to the text of IFRSs by the IASB. The Standard also amends AASB 8 to require entities to exercise judgment in assessing whether a government and entities known to be under the control of that government are considered a single customer for the purposes of certain operating segment disclosures. The amendments are not expected to impact the Company.

AASB 2010–4: Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13] (applicable for annual reporting periods commencing on or after 1 January 2011).

This Standard details numerous non-urgent but necessary changes to Accounting Standards arising from the IASB’s annual improvements project. Key changes include:

clarifying the application of AASB 108 prior to an entity’s first Australian-Accounting-Standards financial statements;
adding an explicit statement to AASB 7 that qualitative disclosures should be made in the context of the quantitative disclosures to better enable users to evaluate an entity’s exposure to risks arising from financial instruments;
amending AASB 101 to the effect that disaggregation of changes in each component of equity arising from transactions recognised in other comprehensive income is required to be presented, but is permitted to be presented in the statement of changes in equity or in the notes;
adding a number of examples to the list of events or transactions that require disclosure under AASB 134; and
making sundry editorial amendments to various Standards and Interpretations.

This Standard is not expected to impact the Company.

AASB 2010–5: Amendments to Australian Accounting Standards [AASB 1, 3, 4, 5, 101, 107, 112, 118, 119, 121, 132, 133, 134, 137, 139, 140, 1023 & 1038 and Interpretations 112, 115, 127, 132 & 1042] (applicable for annual reporting periods beginning on or after 1 January 2011).

This Standard makes numerous editorial amendments to a range of Australian Accounting Standards and Interpretations, including amendments to reflect changes made to the text of IFRSs by the IASB. However, these editorial amendments have no major impact on the requirements of the respective amended pronouncements.

AASB 2010–6: Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets [AASB 1 & AASB 7] (applicable for annual reporting periods beginning on or after 1 July 2011).

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

3 Significant accounting policies (continued)

(r) New standard and interpretations (continued)

This Standard adds and amends disclosure requirements about transfers of financial assets, especially those in respect of the nature of the financial assets involved and the risks associated with them. Accordingly, this Standard makes amendments to AASB 1: First-time Adoption of Australian Accounting Standards, and AASB 7: Financial Instruments: Disclosures, establishing additional disclosure requirements in relation to transfers of financial assets.

This Standard is not expected to impact the Company.

AASB 2010–7: Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] (applies to periods beginning on or after 1 January 2013).

This Standard makes amendments to a range of Australian Accounting Standards and Interpretations as a consequence of the issuance of AASB 9: Financial Instruments in December 2010. Accordingly, these amendments will only apply when the entity adopts AASB 9.

As noted above, the Company has not yet determined any potential impact on the financial statements from adopting AASB 9.

AASB 2010–8: Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying Assets [AASB 112] (applies to periods beginning on or after 1 January 2012).

This Standard makes amendments to AASB 112: Income Taxes.

The amendments brought in by this Standard introduce a more practical approach for measuring deferred tax liabilities and deferred tax assets when investment property is measured using the fair value model under AASB 140: Investment Property.

Under the current AASB 112, the measurement of deferred tax liabilities and deferred tax assets depends on whether an entity expects to recover an asset by using it or by selling it. The amendments introduce a presumption that an investment property is recovered entirely through sale. This presumption is rebutted if the investment property is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the investment property over time, rather than through sale.

The amendments brought in by this Standard also incorporate Interpretation 121 into AASB 112.

The amendments are not expected to impact the Company.

– AASB 2011-9: Amendments to Australian Accounting Standards – Presentation of Other Comprehensive Income [AASB 101]

This standard requires entities to group items presented in other comprehensive income on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). The amendments are not expected to impact the Company.

AASB 11 – Joint Arrangements

This standard replaces AASB 131 Interests in Joint Ventures and UIG- 113 Jointly- controlled Entities – Nonmonetary Contributions by Ventures. AASB 11 uses the principle of control in AASB 10 to define joint control, and therefore the determination of whether joint control exists may change. In addition it removes the option to account for jointly controlled entities (JCEs) using proportionate consolidation. Instead, accounting for a joint arrangement is dependent on the nature of the rights and obligations arising from the arrangement. Joint operations that give the venturers a right to the underlying assets and obligations themselves is accounted for by recognising the share of those assets and obligations. Joint ventures that give the venturers a right to the net assets is accounted for using the equity method. Consequential amendments were also made to other standards via AASB 2011-7 and amendments to AASB128.

The standard are not expected to impact the Company.

AASB 12 – Disclosure of Interest in Other Entities

This standard includes all disclosures relating to an entity’s interests in subsidiaries, joint arrangements, associates and structures entities. New disclosures have been introduced about the judgements made by management to determine whether control exists, and to require summarised information about joint arrangements, associates and structured entities and subsidiaries with non-controlling interests.

The standard are not expected to impact the Company.

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

3 Significant accounting policies (continued) (r) New standard and interpretations (continued)

AASB 13 – Fair Value Measurement

This standard establishes a single source of guidance under AASB for determining the fair value of assets and liabilities. AASB 13 does not change when an entity is required to use fair value, but rather, provides guidance on how to determine fair value when fair value is required or permitted. Application of this definition may result in different fair values being determined for the relevant assets.

AASB 13 also expands the disclosure requirements for all assets or liabilities carried at fair value. This includes information about the assumptions made and the qualitative impact of those assumptions on the fair value determined.

Consequential amendments were also made to other standards via AASB 2011-8.

The standard are not expected to impact the Company.

4 Determination of fair values

A number of the Company’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and / or disclosure purposes based upon the following methods. Where applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

(i) Trade and other receivables

The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date.

5 Segment reporting

Identification of reportable segments

Segment information is presented in respect of the Company’s business segments. Business segments are based on the Company’s management and internal reporting structure.

Basis of accounting for purposes of reporting by operating segments

Accounting policies adopted

Inter-segment pricing is determined on an arm’s length basis.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise income-earning assets and revenue, and corporate assets and expenses.

Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one period.

Types of products and services by segment

Safety Medical Products (SafetyMed)

Development, production and commercialisation of a range of medical products, focusing principally on the SecureTouch™single use manual retractable safety syringe.

Exploration and Evaluation and assessment of mineral mining tenements in the Three Evaluation Rivers area of Western Australia.

Geographical segments

The Company operates in only one geographical segment, Australia. As such, information is not presented on the basis of geographical segments.

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

5 Segment reporting (continued)

Segment reporting (continued)
	SafetyMed Exploration and Evaluation		Eliminations	Company
Business segments	2012 $ 2011 $ 2012 $ 2011 $		2012 $ 2011 $	2012 $ 2011 $
External revenues Inter-segment revenues Total segment revenue Segment result Unallocated expenses Results from operating activities Net financing revenue /(costs) Impairment Loss/Assets written off Gain on deconsolidation of subsidiaries Profit/(Loss) for the year Profit/(Loss) for the year	- 15,766 - - - - - -		- - - -	- 15,766 - -

	- 15,766 - -		- -	- 15,766
	(471,881) 458,259 (23,718) - - - - -		- - - -	(495,599) 458,259 - -

	(471,881) 458,259 (23,718) - 71,925 26,895 - - - (1,310,303) - - - - - -		- - - - - 1,178,161 - 1,014,554	(495,599) 458,259 71,925 26,895 - (132,142) - 1,014,554



	(399,956) (825,149) (23,718) -		- 2,192,715	(423,674) 1,367,566
	SafetyMed	Exploration and Evaluation	Eliminations	(423,674) 1,367,566
				Total
Business segments	2012 $ 2011 $	2012 $ 2011 $	2012 $ 2011 $	2012 $ 2011 $
Segment assets Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities Capital expenditure Depreciation	1,115,814 1,546,875 39,594 41,013	330,000 280,000 - -	-- - -- -	1,445,814 1,826,875 39,594 41,013
	1,155,406 1,587,888	330,000 280,000	-- -	1,485,407 1,867,888
	78,081 36,888 - -	- - - -	- -- - -- -	78,081 36,888 - -
	78,081 36,888	- -	-- -	78,081 36,888
	- -	330,000 280,000	-- -	330,000 280,000 - -
	- -	- -	-- -

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

Note 6 Revenue Sales from continuing operation Total revenue 7 Other income Gain on settlement of creditors Total other income 8 Financial income and expense Interest revenue on bank deposits Financial income Interest expense on financial liabilities measured at amortised cost Net Financial income from continuing operations 9 Auditors’ remuneration Bentleys (SA) Partnership Audit and review of the financial reports Bentleys Audit & Corporate (WA) Pty Ltd Audit and review of the financial reports Taxation services Preparation of investigating accountants report 10 Trade and other receivables *Current* Trade and other receivables Deposit for Kisara Acquisition Other 11 Deferred acquisition costs Deferred acquisitions costs 12 Trade and other payables Trade payables and accrued expenses	2012 $ 2011 $
	- 15,766
	- 15,766
	- 820,135
	- 820,135
	72,454 28,746
	72,454 28,746 (529) (1,851)
	71,925 26,895
	- 19,690 29,159 9,090 3,200 3,800 - 7,500
	32,359 40,080
	54,405 36,018 100,000 -
	1,579 4,995
	155,984 41,013
	330,000 280,000
	330,000 280,000
	78,081 36,888
	78,081 36,888

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

Note 13 Income tax expense (a) Income tax expense Current tax Deferred tax Deferred income tax expense included in income tax expense comprises: - (Increase) in deferred tax assets - Increase in deferred tax liabilities (b) Reconciliation of income tax expense to prima facie tax payable The prima facie tax payable on profit from ordinary activities before income tax is reconciled to the income tax expense as follows: Prima facie tax on operating profit at 30% Add / (Less) Tax effect of: Entertainment Fines & penalties Impairment expense Other adjustments Prior year adjustment Deferred tax asset not brought to account Income tax attributable to operating loss The applicable weighted average effective tax rates are as follows: Balance of franking account at year end (c) Deferred tax assets Tax Losses Others Set-off deferred tax liabilities 10(d) Net deferred tax assets Less deferred tax assets not recognised Net tax assets	2012 $ 2011 $
	- - - -
	- -
	- 97,714 - (97,714)
	- -
	(127,103) 105,904 - 151 - 81 - (626,417) 1,609 24,539 753,144 - (627,650) 495,743
	- -
	nil% nil% nil nil 1,324,853 2,327,786 21,602 8,632
	1,346,455 2,336,417 - -
	1,346,455 2,336,417 (1,346,455) (2,336,417)
	- -

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

13 Income tax expense (continued)

13	I t tid
	ncome ax expense (connue)			2012		2011
		Note		$		$
(d)	Deferred tax liabilities
Exploration expenditure					-	-
					-	-
Set-off deferred tax assets		10(c)			-	-
Net deferred tax liabilities					-	-
(e)	Tax losses
Unused tax losses for which no deferred tax asset has been recognised				4,416,176		6,983,357
Potential deferred tax assets attributable to tax losses and exploration expenditure				carried forward have not
been brought to account at 30 June 2012 because the directors do not believe it				is appropriate to regard
realisation of the deferred tax assets as probable at this point in time. These benefits will only be obtained if:
i.	the company derives future assessable income of a nature and of	an amount sufficient				to enable the
benefit from the deductions for the loss and exploration expenditure to be realised;
ii.	the company continues to comply with conditions for deductibility imposed by law; and
iii.	no changes in tax legislation adversely affect the company in realising the benefit from				the deductions
for the loss and exploration expenditure.
14	Earnings per share
	Reconciliation of earnings to profit or loss:
	Earnings used to calculated basis EPS
	Profit/(loss) attributable to equity holders			(423,674)		1,367,566
	Reconciliation of earnings to profit or loss from continuing
	operations:
	Earnings used to calculated basis EPS from continuing operations
	Profit/(loss) from continuing operations attributable to equity holders			(423,674)		353,012
	Reconciliation of earnings to profit or loss from discontinued
	operations:
	Profit/(loss) from discontinued operations			-		1,014,554
	Less Profit/(loss) attributable to non-controlling interest in respect to
	discontinued operations			-		-
	Earnings used to calculated basis EPS from discontinued operations			-		1,014,554
				No.		No.
	Weighted average number of shares
	Ordinary shares on issue at 1 July	16	396,455,466			16,455,466
	Effect of shares issued			-		181,730,030
	Weighted average number of ordinary shares at 30 June		396,455,466			198,185,496
	Effect of share options and convertible notes on issue			-		-
	Weighted average number of ordinary shares (diluted) at 30 June		396,455,466			198,185,496

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

15 Share capital

Issued and paid-up capital

Issued and paid-up capital
396,455,466 (2011: 396,455,466) ordinary shares fully paid, net of capital raising cost	2,779,628	2,779,628
Ordinary shares	No.	$
Balance at 1 July 2010:	79,478,245	10,954,763
12 Aug 2010: Conversion of convertible note	2,800,000	700,000
8 Nov 2010: Consolidation of securities from general meeting	(65,822,779)	(700,000)
23 Nov 2010: shares issued at $0.005 as part of recapitalisation of the company	150,000,000	750,000
23 Dec 2010: shares issued at $0.01 as part of the Prospectus raising	173,250,000	1,732,500
18 Jan 2011: shares issued at $0.01 as part of the Prospectus raising	46,750,000	467,500
12 Apr 2011: shares issued at $0.018 as option to acquire Three Rivers tenement	10,000,000	180,000
Balance at 30 June 2011:	396,455,466	14,084,763
No share transactions	-	-
Balance at 30 June 2012:	396,455,466	14,084,763

Terms and conditions

Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at shareholders’ meetings. Share have no par value.

In the event of winding up of the Company, ordinary shareholders rank after all other shareholders and creditors and are fully entitled to any proceeds of liquidation.

No dividends were paid or proposed during the current or prior financial years.

Capital Management

Safety Medical Products’working capital, being current assets less current liabilities, has decreased from a surplus of $1,551,000 in 2011 to a surplus of $1,077,326 in 2012, due to the aforementioned DOCA and recapitalisation of the Company in the prior year. There are no externally imposed capital requirements.

16 Dividends

No dividends were paid or proposed in the current or prior financial years.

Note 17 Cash and cash equivalents Bank balances Term Deposit Bank overdrafts	2012 $ 2011 $
	999,423 546,875 - 1,000,000 - -
	999,423 1,546,875

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

Note 18 Cash flow information (a) Reconciliation of cash flows from operating activities Profit / (loss) for the year Non-cash flows in profit: Depreciation Settlement out of net DOCA proceeds Loss on disposal of available for sale financial assets Gain on settlement of creditors Interest Income 8 Impairment Loss continued operations Assets written off Gain on deconsolidation of subsidiary Impairment Loss discontinued operations Operating profit before changes in working capital and provisions Change in assets and liabilities, net of the effects from disposal of businesses: (Increase)/decrease in inventories (Increase)/decrease in trade and other receivables (Increase)/decrease in tax assets and deferred tax assets Increase/(decrease) in trade and other payables Increase/(decrease) in provisions for employee benefits Net cash from operating activities	2012 $ 2011 $
	(423,674) 1,367,566 - - - (35,105) - - - (820,135) (72,454) (28,746) - - - 132,142 - (1,014,554) - -
	(496,128) (3,303,688) - 5,754 (114,972) (2,874) - - 41,194 (4,558) - (176,643)
	(73,778) (178,321)
	(569,906) (577,153)

19 Financial risk management

Exposure to credit, interest rate and currency risks arises in the normal course of the Company’s business.

(a) Foreign currency risk

The Company is not currently exposed to foreign currency risk.

(b) Credit risk exposures

The Company is not currently exposed to credit risk.

At the balance sheet date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet.

Credit risk related to balances with banks and other financial institutions is managed by the Board in accordance with approved board policy. Such policy requires that surplus funds are only invested with counterparties with a Standard & Poor’s rating of at least AA-. The following table provides information regarding the credit risk relating to cash and money market securities based on Standard & Poor’s counterparty credit ratings.

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

19 Financial risk management (continued)

inancial risk management (continued)
Note Cash and cash equivalents: – AA rated 18	Company 2012 2011 $ $ 999,423 1,546,875
	999,423 1,546,875

(c) Net fair values of financial assets and liabilities Valuation approach

The methods used in determining fair values of financial instruments are disclosed in note 4. The carrying amounts and net fair values of financial assets and liabilities as at the reporting date are as follows:

follows:
Financial assets Cash assets Trade and Other Receivables Term deposits Total financial assets Financial liabilities Trade and Other Payables Loans and borrowings Total financial liabilities	2012 2011 Carrying amount $ Net fair value $ Carrying amount $ Net fair value $
	999,423 999,423 546,875 155,984 155,984 41,013 - - 1,000,000	546,875 41,013 1,000,000
	1,155,407 1,155,407 1,587,888	1,587,888
	78,081 78,081 36,888 - - -	36,888 -
	78,081 78,081 36,888	36,888

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

19 Financial risk management (continued)

(d) Interest rate risk 30 June 2012

Cash Assets are exposed to fluctuations in interest receivable as the terms stipulate that interest accrues daily.

The Company’s exposure to interest rate risk and the effective interest rate for classes of financial assets and financial liabilities is set out below:

Floating interest rate $ 1 year or less $	1 to 5 years $ More than 5 years $	Non- Interest Bearing $ Total $
999,423 - - -	- - - -	- 999,423 155,984 155,984
999,423 -	- -	155,984 1,155,407
- -	- -	78,081 78,081
- -	- -	78,081 78,081
546,875 - - - - 1,000,000 - - - - - -		- 546,875 - 1,000,000 41,013 41,013
589,315 -	- -	106,307 695,622
- -	- -	36,888 36,888
- -	- -	36,888 36,888

(e) Liquidity risk

Liquidity risk arises from the possibility that the Company might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The Company manages this risk through the following mechanisms:

preparing forward-looking cash flow analysis in relation to its operational, investing and financing activities; and
only investing surplus cash with major financial institutions;

The Board will assess the requirements of managing liquidity risk periodically and make amendments to the risk management mechanisms as are appropriate for the Company’s operations.

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

20 Key management personnel and Related parties

The following were key management personnel of the Company during the entire reporting period, unless otherwise indicated.

Non-executive directors

Mr Peter Christie (Chairman) from 6 October 2010

Mr Simon Lill (Director) from 6 October 2010

Mr Stephen Hewitt-Dutton (Director and Company Secretary) from 6 October 2010

Note Key management personnel compensation The key management personnel compensation are as follows: Short-term employee benefits Post-employment benefits	2012 $ 2011 $
	112,000 32,500 - -
	- -

No compensation was paid in respect to share-based payments, other long-term benefit, or termination benefits

At the 30 June 2012 executive remuneration paid or payable amounted to:
Mr Simon Lill $36,000 (2011: $10,000)
Mr Stephen Hewitt-Dutton $36,000 (2011: $10,000)
Mr Peter Christie $40,000 (2011: $12,500)

Individual directors and executives compensation disclosures

Information regarding individual directors and executives’ compensation and some equity instruments disclosures as permitted by the Corporations Regulations 2M.3.03 and 2M.6.04 is provided in the Remuneration Report section of the Directors’ report in Section 4.

Apart from the details disclosed in this note, no director has entered into a material contract with the Company since the end of the previous financial year and there were no material contracts involving directors’ interests existing at year end.

Other key management personnel transactions

A number of key management personnel, or their related parties, hold positions in other entities that result in them having control or significant influence over the financial or operating policies of those entities.

A number of these entities transacted with the Company in the reporting period. The terms and conditions of the transactions with management persons and their related parties were no more favourable than those available, or which might reasonably be expected to be available, on similar transactions to non-director related entities on an arm’s length basis.

The are no amounts recognised during the year relating to key management personnel and their related parties.

Safety Medical Products Limited Notes to the financial statements 30 June 2012 Annual Financial Report

20 Key management personnel and Related parties (continued)

Movement in shares

The movement during the reporting period in the number of ordinary shares of Safety Medical Products Limited held, directly, indirectly or beneficially, by each key management personnel, including their related parties is as follows:

parties is as follows:
			Received on
	Held at	Granted as	exercise of	Other net	Held at
	1July 2011	remuneration	options	changes	30 June 2012
Directors
Mr Simon Lill	3,000,000	-	-		3,000,000
Mr Stephen Hewitt-Dutton	2,000,000	-	-		2,000,000
Mr Peter Christie	5,500,000	-	-		5,500,000
			Received on
	Held at	Granted as	exercise of	Other net	Held at
	1July 2010	remuneration	options	changes	30 June 2011
Directors
Mr Simon Lill	-	-	-	3,000,000	3,000,000
Mr Stephen Hewitt-Dutton	-	-	-	2,000,000	2,000,000
Mr Peter Christie	-	-	-	5,500,000	5,500,000
Mr John Darley and related parties(1)	1,004,479	-	-	800,000	1,804,479
Mr John Riemelmoser and related parties(1)	11,135,233	-	-	1,200,000	12,335,233
Dr Joseph Nicholas(1)	671,000	-	-	17,864	688,864
Executives
Mrs V Allinson	-	-	-	-	-
Mr Robert Doley and related parties	2,500,000	-	-	(2,500,000)	-

(1) Directors resigned on 10 October 2010.

21 Contingent Liabilities

There are no contingent liabilities as at the date of this report.

22 Events Subsequent to Reporting Date

Subsequent to the Head of Agreement with Kisara, the Company is currently in the process of finalising the Share Sale Agreement.

Safety Medical Products Limited 30 June 2012 Annual Financial Report

Directors Declaration

The directors of Safety Medical Products Limited (the Company) are declare that:

1) the financial statements and notes thereto are in accordance with the Corporations Act 2001, including:
a) giving a true and fair view of the financial position of the Company as at 30 June 2012 and of their performance, as represented by the results of their operations and cash flows, for the financial year ended on that date; and
b) complying with Accounting Standards in Australia; and
2) the financial report and notes thereto also complies with International Financial Reporting Standards as disclosed in note 2(a);
3) c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
In accordance with s295(a) of the Corporations Act 2001, the Chief Executive Officer and Chief Financial Officer have each declared that:
1) the financial records of the company for the financial year have been properly maintained in accordance with s286 of the Corporations Act 2001;
2) the financial statement and notes for the financial year comply with Accounting Standards; and
3) the financial statement and notes for the year give a true and fair view;

Dated at Perth this 31[st] day of August 2012

This declaration is signed in accordance with a resolution of the directors pursuant to s295(5) of the Corporations Act 2001.

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Simon Lill Director

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We have audited the accompanying financial report of Safety Medical Products Limited (“the Company”), which comprises the statement of financial position as at 30 June 2012, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory notes, and the directors’ declaration.

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The directors of the Company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In Note 2, the directors also state, in accordance with Accounting Standards AASB 101: Presentation of Financial Statements that the financial statements comply with International Financial Reporting Standards .

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Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

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

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In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001.

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In our opinion:

a. The financial report of Safety Medical Products Limited is in accordance with the Corporations Act 2001 , including:
i. giving a true and fair view of the Company’s financial position as at 30 June 2012 and of its performance for the year ended on that date; and
ii. complying with Australian Accounting Standards and the Corporations Regulations 2001 ; and
b. The financial report also complies with International Financial Reporting Standards as disclosed in Note 2.

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We have audited the Remuneration Report included on pages 5 to 7 in directors’ report for the year ended 30 June 2012. The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

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In our opinion, the Remuneration Report of Safety Medical Products Limited for the year ended 30 June 2012, complies with section 300A of the Corporations Act 2001 .

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BENTLEYS RANKO MATIC CA Chartered Accountants Director

DATED at PERTH this 31[st] day of August 2012

To The Board of Directors

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As lead audit director for the audit of the financial statements of Safety Medical Products Limited for the financial year ended 30 June 2012, I declare that to the best of my knowledge and belief, there have been no contraventions of:

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the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

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any applicable code of professional conduct in relation to the audit.

Yours faithfully

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BENTLEYS Chartered Accountants

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RANKO MATIC CA Director

DATED at PERTH this 31[st] day of August 2012

Safety Medical Products Limited 30 June 2012 Annual Financial Report ASX Additional Information

Shareholder Information

Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed elsewhere in this report is set out below. The information is as at 15 August 2012.

Shareholdings as at 15 August 2012

Substantial shareholders

There are no substantial shareholders.

Distribution of security holders

Category	Number of Holders
1 – 1,000	365
1,001 – 5,000	547
5,001 – 10,000	195
10,001 – 100,000	232
100,001 and over	237
	1,576

Unmarketable parcels

The number of shareholders holding less than a marketable parcel is 1,316 There is only one class of share and all ordinary shareholders have equal voting rights.

On-market buyback

There is no current on-market buy-back

Securities subject to escrow

The Company has no securities that are subject to escrow.

Safety Medical Products Limited 30 June 2012 Annual Financial Report ASX Additional Information

Twenty largest shareholders – Ordinary Shares

Twenty largest shareholders – Ordinary Shares
	Number of	Percentage
	ordinary	of capital
Name	shares held	held
LIVALE PTY LTD	17,600,000	4.44
BANSKIN PTY LTD	17,000,000	4.29
MR PAUL GREGORY BROWN & MRS JESSICA ORIWIA BROWN <BROWN SUPER FUND
A/C>	17,000,000	4.29
FOSTER WEST SECURITIES PTY LTD	10,000,000	2.52
MILWAL PTY LTD	10,000,000	2.52
CODE CAPITAL PTY LTD	10,000,000	2.52
BRUTUS CONSTRUCTIONS PTY LTD	9,000,000	2.27
IML HOLDINGS PTY LTD	8,000,000	2.02
PRAHA NOMINEES PTY LTD	6,800,000	1.72
HOLDREY PTY LTD	6,000,000	1.51
MR SIMON EDWARD WRIGHT	5,980,211	1.51
MR HOWARD DAMIAN HOLMES	5,000,000	1.26
TRIDENT CAPITAL PTY LTD	5,000,000	1.26
GREENWEST PTY LTD	5,000,000	1.26
MR SIMON CLARKE MONTGOMERY & MRS REBECCA FLER MONTGOMERY <THE MONTY
SUPER FUND A/C>	5,000,000	1.26
MAGAURITE PTY LTD	5,000,000	1.26
STONEHURST (WA) PTY LTD	4,999,999	1.26
PANDROS INVESTMENTS PTY LTD	4,938,723	1.25
CAPEWIND NOMINEES PTY LTD	4,500,000	1.14
GRAND PEARL INVESTMENTS PTY LTD	4,200,000	1.06
TOTAL	161,018,933	40.61

Offices and Officers

Company Secretary

Mr Stephen Hewitt-Dutton

Principal Registered Office

Safety Medical Products Limited

c/o Trident Management Services Pty Ltd

Level 24 44 ST George’s Terrace Perth, WA 6000

Principal Place of Business

Safety Medical Products Limited Level 24 44 ST George’s Terrace Perth, WA 6000

Location of Share Registry

Link Market Services Limited Ground Floor, 178 St Georges Terrace Perth WA 6000 Telephone: (08) 9211 6670

Stock Exchange

The Company is listed on the Australian Securities Exchange. The Home Exchange is Perth.

Other Information

Safety Medical Products Limited, incorporated and domiciled in Australia, is a publicly listed company limited by shares.

AI assistant

MACH7 TECHNOLOGIES LIMITED — Annual Report 2012

65285_rns_2012-08-30_4edac298-a194-4a45-b058-bbd293b6dd73.pdf

SAFETY MEDICAL PRODUCTS LIMITED

ABN 26 007 817 192

2012 ANNUAL REPORT

1. Directors

Directorships of other listed companies

2. Directors’ meetings

3. Corporate Governance Statement

Principle 1 – Lay solid foundations for management and oversight

Principle 2 – Structure the Board to add value

Principle 3 – Promote ethical and responsible decision making

Principle 4 – Safeguard integrity in financial reporting

3. Corporate Governance Statement (continued)

Principle 6 – Respect the rights of Shareholders

Principle 7 – Recognise and manage risk

Other information

4. Remuneration report – audited

4.1 Principles of compensation

Details of Key Management Personnel

Remuneration Policy

4. Remuneration report – audited

Details of Remuneration

Key management personnel and other executives

Loans to Directors and Executives

4.2 Analysis of bonuses included in remuneration

4.3 Options over equity instruments granted as compensation

4. Remuneration report – audited (continued) 4.4 Directors’ and executive officers’ remuneration

5. Principal activities and review of operations

6. Operating and financial review

7. Dividends

8. Events subsequent to reporting date

9. Likely developments

10. Directors’ interest

11. Indemnification of officers

12. Lead auditor’s independence declaration

13. Proceedings on behalf of the Company

14. Auditor and Non-Audit Services

Safety Medical Products Limited Statement of Changes in Equity For the financial year ended 30 June 2012

1 Reporting entity

2 Basis of preparation

(a) Statement of Compliance

(b) Basis of measurement

(c) Functional and presentation currency

(d) Critical accounting judgements, estimates and assumptions

Environmental Issues

Taxation

3 Significant accounting policies

(a) Foreign currency transactions

(b) Financial instruments

Recognition and Initial Measurement

Derecognition

Classification and subsequent measurement

3 Significant accounting policies (continued)

(b) Financial instruments (continued)

(i) Financial assets at fair value through profit or loss

(ii) Loans and receivables

(iii) Held-to-maturity investments

Held-to-maturity investments

(iv) Available-for-sale financial assets

(v) Financial liabilities

3 Significant accounting policies (continued)

(b) Financial instruments (continued)

Derecognition

(c) Property, plant and equipment

(ii) Subsequent costs

(iii) Depreciation

(d) Intangible assets

3 Significant accounting policies (continued)

(d) Intangible assets (continued)

(ii) Subsequent expenditure

(e) Leases

(f) Impairment

(i) Financial assets

(ii)

Non-financial assets

3 Significant accounting policies (continued)

(f) Impairment (continued)

(g) Employee benefits

MACH7 TECHNOLOGIES LIMITED Annual Report 2012