SCIDEV LTD — Interim / Quarterly Report 2014

Apr 29, 2014

Appendix 4C Quarterly report for entities admitted on the basis of commitments

ABN 25 001 150 849

Level 3 100 Mount Street North Sydney NSW 2060 Australia PO Box 1507 North Sydney NSW 2059 Australia

Phone: 02-9954 7888 Email: mail@intec.com.au Website: www.intec.com.au ASX code: INL

Companies Announcements Office Australian Securities Exchange

30 April 2014

Quarterly Activities Report: Appendix 4C March 2014

Attached is the March 2014 Quarterly Report for Entities Admitted on the Basis of Commitments (Appendix 4C) for Intec Ltd (ASX Code: INL, Intec or the Company).

Science Developments Pty Ltd

The Company owns a 50% interest in Science Developments Pty Ltd (SciDev) and holds an option to increase its ownership to 100% based on an agreed formula related to the future profitability of SciDev.

At the time of Intec’s acquisition of a 50% interest, SciDev’s customer base was agribusiness and mining. Within the agribusiness segment the customer base was almost exclusively in the dairy processing industry. The financial performance of SciDev during the Quarter was impacted by an unscheduled plant shutdown at one of its major customers within this sector. In addition, the dairy processing industry in Australia is undergoing a period of change that is impacting on the competitive position and thus production volumes of certain industry participants, including within SciDev’s historic customer base. Furthermore, since Intec’s acquisition of its 50% interest, SciDev’s cost base has increased due to investment in business development activities and the entering into of contractual employment arrangements with the SciDev management team. As a consequence of all these matters, SciDev incurred a small loss for the Quarter although sales rebounded in March following under budget performance in January and February 2014.

During the Quarter SciDev aggressively commenced the diversification of its customer base within the dairy processing sector. This included the successful completion of production trials of SciDev products at dairy processing facilities in New South Wales and Victoria. One of these facilities has now converted to SciDev product and in respect of the other, finalisation of trial results are awaited. In addition, during the current quarter production trials of SciDev product are scheduled at a further two dairy processing facilities.

The basis for Intec’s acquisition of an interest in SciDev was the opportunity to expand product sales into other industry sectors and geographical areas. This commenced during the Quarter with SciDev achieving its first sales to participants in both the quarrying industry and the chicken processing industry. Further production trials within these two industry sectors are scheduled to

30 April 2014

Appendix 4C Page 1

Appendix 4C Quarterly report for entities admitted on the basis of commitments

occur during the current quarter. Business development activities also continued in the coal industry and the sewage industry and may result in production trials during the current quarter. Whilst significant effort is being put into business development activities within new industry sectors, the financial impact of these efforts will take time to emerge.

Other

No production activities occurred at the Burnie Research Facility (the Facility) during the Quarter. However, it is expected that the Facility will operate during the current quarter treating industrial waste from Automotive Components Limited (ACL) (Receivers and Managers Appointed) (In Liquidation). ACL is a supplier to the Australian automotive sector and hence its future is uncertain. The future operating status of ACL is expected to be resolved during the current quarter, dependent upon which the Company will consider options for the Facility. These could include continued operation of the Facility on a campaign basis to treat ACL sourced material, or either its sale or decommissioning.

The status of the IRC Project remains unchanged. The completed engineering design package will be delivered to the client upon receipt of an overdue payment due to Intec International Projects Pty Ltd (IIP), an incorporated 50:50 joint venture between the Company and Mr Reza Maghzian.

Corporate

The Company continues to investigate other acquisition opportunities, principally those either complementary or supplementary to SciDev.

The Appendix 4C, including the consolidated statement of cash flows, represents a consolidation of the cash flows of the Company, its wholly owned subsidiaries and SciDev. The cash balance of the Company at 31 March 2014 was $1.836 million.

Intec Ltd

==> picture [168 x 40] intentionally omitted <==

Kieran Rodgers Managing Director

30 April 2014

Appendix 4C Page 2

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Name of entity	Name of entity	Name of entity	Name of entity
Intec Ltd
ABN				Quarter ended ("current quarter")
25 001 150 849				31 March 2014
Consolidated statement of cash flows
				Current quarter	Year to date (9 months)
				$A'000	$A'000
Cash flows related to operating activities
1.1 Receipts fromproduct sales and related debtors				271	656
1.2 Payments for
	(a)advertisingand marketing			-	-
	(b)zinc bearingconcentrate cost of sales			-	-
	(c) production facilitycosts			(144)	(340)
	(d)administration costs and corporate overheads			(359)	(1,042)
1.3 Dividends received				-	-
1.4 Interest and other items of a similar nature received				12	69
1.5 Interest and other costs of financepaid				-	(1)
1.6 Income taxpaid				(35)	(35)
1.7 Royaltyincome				-	-
1.8 Other Income
- R&D tax offset				-	129
- Other				52	119
Net Operating Cash Flows				(203)	(445)
Cash flows related to investing activities
1.9 Payment for acquisition of:
	(a)businesses(50% of Science Developments PtyLtd)			-	(1,300)
	(b)equityinvestments			-	-
	(c)intellectualproperty			-	-
	(d) physical non-current assets			-	-
	(e)other non-current assets			-	-
1.10 Proceeds from disposal of:				-	-
	(a)businesses			-	-
	(b)equityinvestments			-	-
	(c)intellectualproperty			-	-
	(d) physical non-current assets			-	99
	(e)other non-current assets			-	-
1.11 Loans to other entities				-	-
1.12 Loans repaid byother entities				-	-
1.13 Other: Refund of Security Bonds Cashacquired				- -	79 3
Net investing cash flows				-	(1,119)
1.14 Total operating and investing cash flows				(203)	(1,564)

Intec Ltd

30 April 2014

Appendix 4C Page 3

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Appendix 4C (Continued) Quarterly report for entities admitted on the basis of commitments

			Current	Year to date
			quarter	(9 months)
			$A'000	$A'000
Cash flows related to financing activities
1.15 Proceeds from issues of shares,options,etc.			-	-
1.16 Proceeds from sale of forfeited shares			-	-
1.17 Proceeds from borrowings			-	71
1.18 Repayment of borrowings			(60)	(61)
1.19 Dividendspaid			-	-
1.20 Other(provide details if material)			-	-
Net financing cash flows			(60)	10
Net increase(decrease) in cash held			(263)	(1,554)
1.21 Cash at beginningofquarter/year			2,112	3,403
1.22 Exchange rate adjustments to item 1.20			-	-
1.23 Cash at end of quarter/year			1,849	1,849
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
1.24	Aggregate amount of payments to the parties included in item 1.2		89
1.25	Aggregate amount of loans to the parties included in item 1.10		-
1.26	Explanation necessary for an understanding of the transactions
	Directors’ fees are atnormalcommercial rates.
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but Nil
did not involve cash flows
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Nil

30 April 2014

Appendix 4C Page 4

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Appendix 4C (Continued)

Quarterly report for entities admitted on the basis of commitments

Financing facilities available

Add notes as necessary for an understanding of the position.

Financing facilities available Add notes as necessaryfor an understandingof theposition.
	Amount	Amount
	available	used
	$A'000	$A'000
3.1 Loan facilities	250	162
3.2 Credit standby arrangements	Nil	Nil

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of thequarter(as shown in the	Current	Previous
consolidated statement of cash flows)to the related items in the	quarter	quarter
accounts is as follows.	$A'000	$A'000
4.1 Cash on hand and at bank	90	116
4.2 Deposits at call	159	96
4.3 Bank overdraft	-	-
4.4 Term Deposits	1,600	1,900
Total:cash at end of quarter (item 1.23)	1,849	2,112
Acquisitions and disposals	Acquisitions	Disposals
of business entities	(Item 1.9(a))	(Item 1.10(a))
5.1 Name of entity
5.2 Place of incorporation or registration
5.3 Consideration for acquisition or disposal
5.4 Total net assets
5.5 Nature of business

Acquisitions and disposals

of business entities

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does/ ~~does not~~ give a true and fair view of the matters disclosed.

Sign here: Date: 30 April 2014 (Director ~~/Company secretary~~ )

[Print name: ] [Kieran Rodgers]

Notes

30 April 2014

Appendix 4C Page 5

Appendix 4C Quarterly report for entities admitted on the basis of commitments

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.

	6.2	- reconciliation of cash flows arising from
	operating
		activities to operating profit or loss
	9.2	- itemised disclosure relating to acquisitions
	9.4	- itemised disclosure relating to disposals
	12.1(a)	- policy for classification of cash items
	12.3	- disclosure of restrictions on use of cash
	13.1	- comparative information

1. Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

30 April 2014

Appendix 4C Page 6