VOLT GROUP LIMITED - Annual Report 2011

Enerji Limited ABN 62 009 423 189

Annual Report 31 December 2011

Enerji Limited

Directors’ report ...................................................................................................................... 2 Insert Auditor’s Independence Declaration ..................................................................... 12 Consolidated statement of comprehensive income ...................................................... 13 Consolidated statement of financial position .................................................................. 15 Consolidated statement of changes in equity ................................................................. 16 Consolidated statement of cash flows .............................................................................. 17 Notes to the financial statements ...................................................................................... 18 Declaration of by Directors ................................................................................................. 47 Independent auditor’s review report to the members of Enerji Limited ....................... 48 ASX additional information as at 30 March 2012 ............................................................. 49

Enerji Limited

Corporate directory

Directors	Honourable Mr Ian Campbell
	Chairman
	Mr Greg Pennefather
	Managing director and CEO
	Mr Rolf Hasselström
	Non-executive director
Company Secretary	Mr Geoffrey Reid
Divisional general manager	Engineering
	Mr Peter Wassell
Notice of annual general meeting	The annual general meeting of ENERJI LIMITED
	will be held at BDO 38 Station Street Subiaco
	time 9.30am
	date on or about 16th May 2012
Principal Registered Office in Australia	Ground Floor
	10 Ord Street
	West Perth WA 6005
	(08) 9268 3800
Share register	Link Market Services Pty Ltd
	Ground Floor
	178 St George’s Terrace
	Perth WA 6000
Auditors	BDO Audit (WA) Pty Ltd
	38 Station Street
	Subiaco WA 6008
Solicitors	Steinepreis Paganin
	Level 4, 16 Milligan Street
	Perth WA 6000
Bankers	Bankwest Perth CSC
	108 St Georges Terrace
	Perth WA 6000
Stock exchange listings	ENERJI Limited shares are listed on the Australia
	Securities Exchange (ASX: ERJ) and in the United
	States on the OTCQX (OTCQX: ENYLY)
Internet Address	www.enerji.com.au

Enerji Limited

Directors’ report

31 December 2011

Your directors present their report on the consolidated entity (referred to hereafter as the group) consisting of Enerji Limited (“Enerji” or “the Company”), and the entities it controlled at the end of, or during, the year ended 31 December 2011.

Directors

The following persons were directors of Enerji Limited during the whole of the half-year and up to the date of this report:

IG Campbell GD Pennefather

R Hasselström

Principal activities

During the year the principal continuing activities of the group consisted of the purchase and installation of Opcon Powerboxes to generate emission free electricity.

Operating and financial review

Operating Review

During the year the consolidated entity’s operations involved the development of its green power utility business by signing it’s first power purchase agreement with the Western Australian government owned regional power utility, Horizon Power. This has resulted in delivery of the first third generation Opcon Powerbox into Australia and the planning for the implementation of installation at the Carnarvon Power Station.

In October, the company signed two memorandums of understanding with Energy Developments and Poseidon Nickel. Negotiations are progressing well with both parties.

Review of consolidated financial condition

The consolidated entity recorded an operating loss after income tax of $1,986,473 (2010: $9,709,404 loss). The loss including the following items of significance:

amortisation of distribution right acquired ($1,009,404) The net assets of the consolidated entity were $7,940,359 (2010: $6,981,558).

As at balance date the Group had cash available of $327,356 and has established a Bond facility of $6,250,000 to be used to finance the implementation of its green power utility service at customer sites.

Cash From Operations

The net cash outflow from operating activities of $2,326,148 and net cash outflow from investing activities of $1,717,386, pre-dominantly being payments for Opcon Powerboxes, was funded by capital raisings of $2,724,437 and the drawdown of $1,250,00 of bonds. The cash balance at year end was $327,356.

Corporate Structure

Enerji is a company limited by shares that is incorporated and domiciled in Australia. Enerji has three fully owned subsidiaries Jamalcom Pty Ltd, Letharji Pty Ltd and Cogen Power Pty Ltd.

Capital Structure

As at the date of this report the Company had 760,169,575 fully paid ordinary shares and 64,737,700 options over ordinary shares on issue. The options have an exercise price of $0.20 and an expiry date of 31 December 2016.

Enerji Limited Directors’ report

31 December 2011

Significant changes in the state of affairs

Contributed equity increased by $2,366,263 (from $47,760,410 to $50,126,673) as the result of private placements, rights issue, the issue of shares for services rendered and on conversion of bonds, see note 20.

The company issued 100 convertible bonds during the year which are convertible into ordinary shares as per bond facility agreement, see note 17.

Dividends

There were no dividends paid or declared by the Company to members since the end of the previous financial year.

Events subsequent to reporting date

Other than the matters discussed above there has not been since end of the financial year any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

Likely developments

The directors foresee that the 2012 financial year will build on the positive results achieved during 2011 and continue the focus on:

Acquisition of new customers;
Delivery of the Carnarvon town site project and subsequent customer projects based on the Opcon Powerbox;
Generating revenue;
Maintain administration costs at current levels.

Further information about likely developments in the operations of the Group and the expected results of those operations in future financial years has not been included in this report because disclosure of the information would be likely to result in unreasonable prejudice to the Group.

Information on directors

The Honourable IG Campbell. Chair – Non-executive. Experience and expertise

Non-executive director and chair for two years. Extensive experience in the resource, environment, and energy industries, in both the private and public sectors. Mr Campbell has 17 years of Australian Government service, culminating in his appointment to the Federal Cabinet as Minister for Environment and Heritage. From 1996 through to 2007, he was a member of the Howard government Ministry. Serving as Parliamentary Secretary to the Treasurer (Peter Costello) for 4 years, he had responsibility for the Corporations Law Economic Reform Program. He attended the World Bank Board of Governors and IMF Annual meetings in 2002 and 2003. Mr Campbell served in a range of other portfolios in the Ministry and Cabinet as well as being a member of the Prime Minister’s leadership group, the Expenditure Review Committee (Razor Gang) of Cabinet and Manager of Government Business in the Senate.

In addition to his public and former ministerial profile as a key member of the Australian Federal Government, Mr Campbell has had a distinguished business career. Prior to entering Parliament, he worked as an Executive Director of a major commercial and industrial property agency.

Enerji Limited Directors’ report

31 December 2011

Other current directorships

Non-executive director of four other public companies: Austal Ltd (director since 2007), ASG Group Ltd (director since 2007), Solco Ltd (director since 2008) and Proto Resources and Investment Ltd (director since 2008). Also chairman of the North West Iron Ore Alliance (a private infrastructure group) and chairman of the Princess Margaret Hospital Foundation.

Former directorships in last 3 years

None.

Special responsibilities

Chair of the board

Interests in shares and options

4,000,000 ordinary shares in Enerji Limited

GD Pennefather. Managing Director.

Experience and expertise

Managing director for two years. The founder of CoGen ORC Power and has been developing the business model and researching the technology for 3 years. He is an engineer by training and his previous role was the principal consultant at leading Perth engineering consultancy, Titan Consultants. Prior to joining Titan Consultants, Mr Pennefather has been involved in several start up businesses and served on the boards of ASX listed companies. He was a co-founder of Request Broadband which introduced DSL broadband into Australia.

Other current directorships

None.

Former directorships in last 3 years

None.

Special responsibilities

Managing Director

Interests in shares and options

55,287,459 ordinary shares in Enerji Limited 2,169,502 options in Enerji Limited

R Hassleström. Non-executive director.

Experience and expertise

Mr Hasselström is the President and CEO of Opcon AB and holds a Master of Business Administration from the Stockholm School of Economics.

Other current directorships

President of all companies in the Opcon Group, EKF Enskild Kapitalförvaltning AB; MNW Music Records Group; Lycknis AB; Calamus AB; Calamusgruppen AB; Svenska Rotor Holding AB; RMH Holding AB; Rolf Hasselström Konsult och Förvaltning AB; Landström Arkitekter AB; TPC Components AB; Rotor Estonia OÜ and GEP Action AB.

Enerji Limited Directors’ report

31 December 2011

Former directorships in last 3 years

None.

Special responsibilities

None.

Interests in shares and options

4,000,000 ordinary shares in Enerji Limited 4,000,000 options in Enerji Limited

Company Secretary

The company secretary is Mr Geoffrey Reid BBus CPA. Mr Reid was appointed to the position of company secretary in on 25 February 2011. Before joining Enerji Ltd he held similar roles in mining and the oil and gas industries.

The previous company secretary Mr Greg MacMillan resigned on 25 February 2011.

Meetings of directors

Meetings of directors
	Full meetings of directors
	A	B
I G Campbell	5	5
G D Pennefather	5	5
R Hasselström	5	5

A = Number of meetings attended

B = Number of meetings held during the time the director held office or was a member of the committee during the year

Share options

At the date of this report unissued ordinary shares of the Company under option are:

Expiry date	Exercise price	Number of shares
30 June 2015	$0.03	330,210,211
31 December 2016	$0.20	40,737,700

Shares issued on exercise of options

During or since the end of the financial year, the Company issued ordinary shares as a result of the exercise of options as follows (there are no amounts unpaid on the shares issued):

Number of shares	Amount paid on each share
nil	-

Enerji Limited Directors’ report 31 December 2011

Remuneration report - Audited

This remuneration reports sets out remuneration information for Enerji Limited’s non-executive directors, executive directors and other key management personnel.

Name	Position
Non-executive and executive directors – see pages 4 to 6 above
Other key management personnel
G Reid	Chief financial officer and company secretary
P Wassell	Chief Engineer

Key management personnel have authority and responsibility for planning, directing and controlling the activities of the Company. The company secretaries included Geoffrey Reid and Greg MacMillan. Mr MacMillan resigned on 25 February 2011 and Mr Reid was appointed on 25 February 2011

Compensation levels for key management personnel of the Company are set competitively to attract and retain appropriately qualified and experienced directors and senior executives.

The compensation structures for executives are designed to attract suitably qualified candidates, reward the achievement of strategic objectives and achieve the broader outcome of the creation of value for shareholders. The compensation structure takes into account the executives’ capability and experience, level of responsibility and ability to contribute to the Company’s performance, including, in particular, the establishment of revenue streams and growth in the Company’s share price.

Fixed compensation consists of a base salary (calculated on a total cost basis, including any fringe benefits tax related to employee benefits) as well as employer contributions to superannuation funds. Compensation levels are reviewed annually by the remuneration committee through a process that considers individual and company achievement.

There was no performance linked remuneration during the reporting period. There is no performance hurdles included in executive directors or key management personnel’s employment contracts. All securities issues to key management and executive directors are approved by the shareholders in general meetings. This is the only link between remuneration and shareholder wealth.

There is only a short history of the compensation structure for the Company. The remuneration committee and the directors consider that the Company’s progress to date and the share price levels achieved do not provide any indication that the compensation structure is inappropriate.

The key management personnel of the Company as at the date of this report being:

Greg Pennefather, who is a full time employee, is employed under an executive services agreement and there is no specific term under the agreement. Greg Pennefather may terminate the agreement without cause by giving written notice of three months and the Company may terminate the agreement by giving written notice of 12 months or a termination payment of 12 months fees.

Ian Campbell is employed under a non-executive services agreement, which requires a commitment of a minimum 20 days a year. Mr Campbell may terminate the agreement without cause by giving written notice and the Company may terminate the agreement should, for any reason, Mr Campbell is disqualified or prohibited by law from being or acting as a director or from being involved in the management of a company.

Rolf Hasselström is employed under a non-executive services agreement, which requires a commitment of a minimum 20 days a year. Mr Hasselström may terminate the agreement without cause by giving written notice and the Company may terminate the agreement should, for any reason, Mr Hasselström is disqualified or prohibited by law from being or acting as a director or from being involved in the management of a company.

Enerji Limited Directors’ report

31 December 2011

Geoffrey Reid, who is a full time employee, is employed under an employment contract, there is no specific term under the agreement. Mr Reid may terminate the agreement without cause by giving written notice of one month and the Company may terminate the agreement by giving written notice of one month.

The aggregate cash remuneration of all non-executive directors was set at $400,000 per annum at a general meeting held on 1 December 2009. The Company makes contributions at the statutory minimum rate to superannuation funds nominated by directors, in addition to the base fee. Directors’ fees cover all main board activities and committee memberships. All securities issues to non-executive directors are approved by the shareholders in general meeting.

Details of remuneration

Details of the nature and amount of each element of remuneration of each director (including key management personnel) of the Company and the group are: Key management of the group and other executives of the company and the group 2011

	Short -term employee benefits	Short -term employee benefits	Post - employm ent benefits	Share-based payments1	Total
	Cash salary and fees	Non- monetary benefits	Superannuati on
Non-executive directors I Campbell R Hasselström	$ 131,420 50,004	$ 2,024 -	$ 9,000 -	$ 17,310 -	$ 159,754 50,004
Sub-total non- executive directors	181,424	2,024	9,000	17,310	209,758
Executive directors G Pennefather Other key management personnel G Reid3 P Wassell G Macmillan2	270,154 146,923 187,000 6,000	8,006 - - -	24,314 13,223 16,830 -	- - 11,709 -	302,474 160,146 215,539 6,000
Total key management personnel compensation	791,501	10,030	63,367	29,019	893,917

1 Share and options based payments were made to directors or key management personnel in the form of interest on employee share loans under the employee share scheme.

2 Mr MacMillan was the company secretary and resigned on 25 February 2011. He was paid through consulting company Australian Heritage Group.

3 Mr Reid was appointed company secretary on 25 February 2011. Before this appointment he was the company’s chief financial officer, retaining this position with the new appointment. Amounts shown above include all Mr Reid’s remuneration during the reporting period, whether as a company secretary or as the chief financial officer.

Enerji Limited Directors’ report

31 December 2011

Key management of the group and other executives of the company and the group

2010

2010
	Short -term employee benefits		Post - employm ent benefits	Share-based payments1
	Cash salary and fees	Non- monetary benefits	Superannuati on		Total
Non-executive directors I Campbell R Hasselström	$ 113,750 50,004	$ - -	$ 9,224 -	$ - -	$ 122,974 50,004
Sub-total non- executive directors	163,754	-	9,224	-	172,978
Executive directors G Pennefather Other key management personnel G Reid2 P Wassell3 G Macmillan	250,000 - - 90,000	10,000 - - -	22,500 - - -	- - - -	282,500 - - 90,000
Total key management personnel compensation	503,754	10,000	31,724	-	545,478

1 No share and options based payments were made to directors or key management personnel in 2010.

2 Mr Reid was appointed company secretary in 2011, therefore any payment for providing employee services were not in capacity as company secretary and therefore not reported.

3 Mr Wassell was not regarded as key management personnel in 2010 and therefore no reporting of employee benefits in 2010.

There were no long term or performance benefits received by key management and the directors, accordingly this information is not included in the above table.

The overall level of key management personnel and director compensation would normally take into account the performance of the Group over a number of years. In late 2009, there was a material change in the nature of the business of the Group and all key management personnel and directors have changed, accordingly there has been no historical performance analysis of the Group and remuneration provided.

During the reporting period no payments were made to a person before the person took office as part of the consideration for the person agreeing to hold office.

Enerji Limited Directors’ report

31 December 2011

The relative proportions of remuneration that are linked to performance and those that are fixed are as follows:

	Fixed remuneration 2011 2010	Fixed remuneration 2011 2010	At risk - STI 2011 2010	At risk - STI 2011 2010	At risk - LTI 2011 2010	At risk - LTI 2011 2010
Executive directors of Enerji Limited
G Pennefather	100%	100%	-	-	-	-
Other key management personnel of the group
G Reid2 P Wassell3 G Macmillan	100% 100% -	- - 100%	- - -	- - -	- - -	- - -
Other company and group executive
I Campbell	100%	100%	-	-	-	-
R Hasselström	100%	100%	-	-	-	-

Service agreements

On appointment to the board, all non-executive directors enter into a service agreement with the company in the form of a letter of appointment. The letter summarises the board policies and terms, including compensation, relevant to the office of director.

Remuneration and other terms of employment for the managing director are also formalised in a service agreement. The agreement provides for the provision of performance related bonuses, other benefits including car allowance and participation, when eligible, in the Enerji Ltd Employee Option Plan. Other major provisions of the agreement relating to remuneration are set out below.

	Term of agreement	Base salary including superannuation1	Termination benefit2
G Pennefather, Managing Director	Not specified	316,100	12 months base salary

1 Base salary quoted are for the year ended 31 December 2011; it is reviewed annually by the remuneration committee.

2 Termination benefits are payable on early termination by the company; other than for gross misconduct, unless otherwise indicated.

Share-based compensation

The shares and options were issued as an alternate remuneration to cash, to provide consideration for their ongoing commitment and contribution to the Company. As such there was no employment performance conditions related to the shares and options or cash remuneration provided during the period.

The Board does not have a policy that restricts the holders of securities issued as share based payments as part of their remuneration from entering into other arrangements that limit their exposure to losses that would result from share price decreases. The Board is not aware of any holder entering into any such arrangements.

No options over ordinary shares in the Company that were granted as compensation to directors during the reporting period.

Other than noted above no terms of equity-settled share based payment transactions (including options granted as compensation to a key management person or director) have been altered or modified by the Company during the reporting period.

Enerji Limited Directors’ report 31 December 2011

Shares under option

Unissued ordinary shares of Enerji Limited under option at the date of this report are as follows:

	Ordinary shares	Options over
		ordinary shares
I Campbell	4,000,000	-
G Pennefather1	55,287,459	2,169,502
R Hasselström	4,000,000	4,000,000

! 12,500,000 of the shares and 1,750,000 of the options are held by Jamalexal Pty Ltd of which Mr Pennefather is a director, shareholder, and beneficiary. In addition, 1,039,341 of the shares and 153,935 of the options are held by Mrs Pennefather, Mr Pennefather’s wife.

All of the options held by directors at the date of this report were received in their capacity as shareholders of the Company pursuant to the bonus options issue completed on 21 December 2009. Shareholder approval was obtained at the AGM on 31 May 2010 for the company, at it’s discretion, issue 4,000,000 shares under the group’s employee share plan to Ian Campbell on 24[th] February 2011.

Share Trading Policy

In the interests of shareholder confidence and compliance with insider trading laws, the Company has formal policies governing the trading of the Company’s securities by Directors, officers and employees. Details of Directors’ shareholdings are disclosed above.

The policy prohibits Directors and employees from engaging in short term trading of any of the Company’s securities and buying or selling the Company’s securities if they possess unpublished, pricesensitive information.

Directors and senior management must wait three business days following significant announcements by the Company, including the release of the quarterly report, half-yearly results, the preliminary annual results and the lodgement of the Company’s Annual Report (subject to the prohibition of dealing in the Company’s securities if they possess unpublished price sensitive information) before dealing in the company’s securities.

Directors and senior management must also receive written approval from the Chairman, in his absence the Company Secretary, before buying or selling Company securities. The Chairman must obtain written approval from the Chief Executive Officer or Company Secretary.

The Company’s Share Trading Policy is available in the ‘Corporate Governance’ section of the Company’s website.

This is the end of the Audited Remuneration Report.

Indemnification and insurance of officers and auditors indemnification

During the financial year, Enerji Limited paid a premium of $15,540 to insure the directors and secretaries of the company and its Australian-based controlled entities.

The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of entities in the group, and any other payments arising from liabilities incurred by the officers in connection with such proceedings. This does not include such liabilities that arise from conduct involving a wilful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else or to cause detriment to the company. It is not possible to apportion the premium between amounts relating to the insurance against legal costs and those relating to other liabilities.

Enerji Limited Directors’ report

31 December 2011

Environmental regulation

The group is subject to significant environmental regulation in respect of it’s installation of Opcon Powerboxes and the subsequent generation of electricity as set out below:

Installation of Opcon Powerboxes

Works approval is required before installation work can commence on a site under the Western Australian Environmental Protection Act 1986. The relevant authority was provided with required information, and to the best of the director’s knowledge, all activities have been undertaken in compliance with the requirements of the works approvals in place.

Proceedings on behalf of the company

No person has applied to the court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the company, or to intervene in any proceedings to which the company is a party, for the purpose of taking responsibility on behalf of the company for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf of the company with leave of the Court under section 237 of the Corporations Act 2001 .

Corporate governance statement

In recognising the need for the highest standards of corporate behaviour and accountability, the directors support the principles of good corporate governance. The Company’s Corporate Governance Statement is contained at the end of the annual report.

Auditors’ remuneration

There were no non audit services provided by the auditors during the reporting period. The auditors’ remuneration is disclosed in Note 23 to the financial statements.

Auditor’s independence declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 13.

This report is made in accordance with a resolution of directors.

GD Pennefather Director

Perth

Dated 30[th] March 2012

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

Tel: +8 6382 4600 Fax: +8 6382 4601 www.bdo.com.au

==> picture [77 x 30] intentionally omitted <==

30 March 2012

Enerji Limited The Board of Directors Ground Floor 10 Ord Street West Perth WA 6005

Dear Sirs,

DECLARATION OF INDEPENDENCE BY BRAD MCVEIGH TO THE DIRECTORS OF ENERJI LIMITED

As lead auditor of Enerji Limited for the year ended 31 December 2011, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Enerji Limited and the entities it controlled during the period.

==> picture [69 x 47] intentionally omitted <==

Brad McVeigh Director

BDO Audit (WA) Pty Ltd Perth, Western Australia

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania.

Enerji Limited

Consolidated statement of comprehensive income

For the year ended 31 December 2011

or the year ended 31 December 2011
Revenue from continuing operations Notes Other Income 7 Employment benefits expense Directors payments Director payments on termination Share based payments 31b Consulting and professional costs Depreciation and amortisation 8 Impairment of assets Travel costs Corporate fees Settlement of obligations Other expenses Finance income Finance costs Loss before income tax Income tax benefit 9 Loss from continuing operations Loss for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Loss is attributable to: Owners of Enerji Limited Total comprehensive income for the year is attributable to: Owners of Enerji Limited	2011 2010 18,735 6,229 (684,676) (861,024) (512,232) (616,149) - (430,750) (45,411) (583,500) (824,785) (663,129) (1,059,577) (975,469) - (4,980,036) (125,276) (182,396) (57,681) (176,323) - (120,000) (385,802) (351,217) 9,724 74,274 (2,069) -
	(3,669,050) (9,859,490) 1,682,577 150,086
	(1,986,473) (9,709,404)
	(1,986,473) (9,709,404)

	- -

	(1,986,473) (9,709,404)
	(1,986,473) (9,709,404)
	(1,986,473) (9,709,404)

Enerji Limited

Consolidated statement of comprehensive income (continued)

Earnings per share for loss from continuing operations
attributable to the ordinary equity holders of the company:
Basic loss per share	30	($0.003)	($0.016)
Diluted loss per share		n/a	n/a
Earnings per share for loss attributable to the
ordinary equity holders of the company:
Basic loss per share	30	($0.003)	($0.016)
Diluted loss per share		n/a	n/a

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Enerji Limited

Consolidated statement of financial position

As at 31 December 2011

As at 31 December 2011
Notes ASSETS Current assets Cash and cash equivalents 10 Prepayments and other receivables 11 Total current assets Non-current assets Prepayments and other receivables 11 Deferred tax assets 12 Property, plant and equipment 13 Intangible assets 14 Total non-current assets Total assets LIABILITIES Current Liabilities Trade and other payables 15 Provisions 16 Total current liabilities Non-current Liabilities Loans and borrowings 17 Deferred tax liabilities 18 Provisions 19 Total non-current liabilities Total liabilities Net assets EQUITY Contributed equity 20 Reserves 21 Accumulated losses Capital and reserves attributable to owners of Enerji Limited Total equity	2011 2010 327,356 484,527 5,807,059 47,585
	6,134,415 532,112
	- 5,741,022 168,258 - 2,948,927 268,280 3,030,972 4,040,376
	6,148,157 10,049,678

	12,282,572 10,581,790
	3,009,800 2,041,432 65,450 58,800
	3,075,250 2,100,232
	891,964 - - 1,500,000 374,999 -
	1,266,963 1,500,000

	4,342,213 3,600,232

	7,940,359 6,981,558
	50,126,673 47,760,410 5,594,249 5,015,238 (47,780,563) (45,794,090)
	7,940,359 6,981,558
	7,940,359 6,981,558

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

Enerji Limited

Consolidated statement of changes in equity

For the year ended 31 December 2011

Notes At 1 January 2010 Total comprehensive income for the year Loss for the year Total comprehensive income for the period Transactions with owners in their capacity as owners Contribution of equity related to business combination 20 Contribution of equity, net of transaction costs 20 Equity-based payment transactions Share options exercised 20 At 31 December 2010 At 1 January 2011 Total comprehensive income for the year Loss for the year Total comprehensive income for the period Transactions with owners in their capacity as owners Contribution of equity, net of transaction costs 20 Equity-based payment transaction Employee shares scheme Conversion of convertible notes 21 At 31 December 2011	Attributable to owners of Enerji Limited Share capital Reserve Accumulated losses Total equity 36,262,679 4,931,740 (36,084,686) 5,109,733
	- - (9,709,404) (9,709,404)
	- - (9,709,404) (9,709,404)
	8,340,284 - - 8,340,284 2,655,939 83,500 - 2,739,439 500,000 - - 500,000 1,508 - - 1,508
	11,497,731 83,500 - 11,581,231
	47,760,410 5,015,238 (45,794,090) 6,981,558
	47,760,410 5,015,238 (45,794,090) 6,981,558
	- - (1,986,473) (1,986,473)
	- - (1,986,473) (1,986,473)
	2,021,099 459,237 - 2,480,336 137,664 74,363 - 212,027 - 45,411 - 45,411 207,500 - - 207,500
	2,366,263 579,011 - 2,945,274
	50,126,673 5,594,249 (47,780,563) 7,940,359

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Enerji Limited

Consolidated statement of cash flows

For the year ended 31 December 2011

Note Cash flows from operating activities Payments to suppliers and employees (inclusive of goods and services tax) R&D tax refund Interest paid Net cash outflow from operating activities 29 Cash flows from investing activities Interest received Payments for property, plant and equipment Repayments from related party Prepayments for acquisition of property, plant and equipment Net cash outflow from investing activities Cash flows from financing activities Proceeds from issue of shares and other equity securities Proceeds from issue of convertible notes Proceeds from exercise of share options Payment of transaction costs Net cash inflow from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at end of the year	2011 2010 (2,713,397) (5,334,833) 389,318 (2,069) -
	(2,326,148) (5,334,833)
	9,724 74,274 (1,057,459) (176,301) - 1,938,580 (669,651) (2,198,220)
	(1,717,386) (361,667)
	2,724,437 2,785,970 1,250,000 - - 1,508 (88,074) (130,031)
	3,886,363 2,657,447
	(157,171) (3,039,053) 484,527 3,523,580
	327,356 484,527

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Enerji Limited

Notes to the financial statements

31 December 2011

1 Reporting entity

Enerji Limited (the “Company”) is a company domiciled in Australia. The address of the Company’s registered office is Ground floor, 10 Ord Street, West Perth WA 6005. The consolidated financial statements of the Company as at and for the year ended 31 December 2011 comprise the Company and its subsidiaries (together referred to as the “Group” and individually as “Group entities”). The Group primarily is involved in the international marketing of energy recovery and clean energy generation solutions.

2 Basis of preparation

(a) Statement of compliance

The financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (AASBs) (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The consolidated financial statements of the Group comply with International Financial Reporting Standards (IFRSs) and interpretations adopted by the International Accounting Standards Board (IASB).

(b) Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis.

(c) Functional and presentation currency

These consolidated financial statements are presented in Australian dollars, which is the Company’s and each of it’s subsidiary’s functional currency.

(d) Critical accounting estimates and judgements

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

i. Critical judgements in applying the entity’s accounting policies
a) In the 2010 financial statements, the group made a significant judgement about the impairment of an intangible asset, namely distribution rights.

The group follows the guidance of AASB 138 Intangible Assets to determine when an intangible asset is impaired. The determination requires significant judgement. In making this judgement, the group evaluates, among other factors, the fair value of the rights against the cost.

Note 14 Intangible – The fair value of the intangible was measured using an independent valuation and then impaired down to the agreed value as set out in the put and call option agreement, as exercised on 14 September 2009. This price being $0.11.

(e) Changes in accounting policies

No changes to the Group’s accounting policies for the year.

(f) Going concern

The financial statements have been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the normal course of business.

The Group has incurred a comprehensive loss after tax for the year ended 31 December 2011 of $1,986,473 (2010: $9,709,404) and experienced net cash outflows from operating activities of $2,326,148 (2010: $5,334,833).

In order to continue to make instalments on further Powerboxes and fund working capital, the Group may be required to raise equity or secure debt funding.

Enerji Limited

The Directors believe that at the date of signing the financial statements, there are reasonable grounds to believe that having regard to matters set out above, the Group will be able to raise sufficient funds to meet its obligations as and when they fall due.

3. Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, and have been applied consistently by Group entities.

(a) Basis of consolidation

(i) Business combinations

The acquisition method of accounting is used to account for all business combinations, including business combinations involving entities or businesses under common control, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the group. The consideration transferred also includes the fair value of any contingent consideration arrangement and the fair value of any pre-existing equity interest in the subsidiary. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. On an acquisitionby-acquisition basis, the group recognises any non-controlling interest in the acquiree, either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets.

The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the group’s share of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain purchase.

Measuring goodwill

The Group measures goodwill as the fair value of the consideration transferred less fair value of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date.

Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the Group to the previous owners of the acquiree, and equity interests issued by the Group. Consideration transferred also includes the fair value of any contingent consideration.

Contingent liabilities

A contingent liability of the acquiree is assumed in a business combination only if such a liability represents a present obligation and arises from a past event, and its fair value can be measured reliably.

Transaction costs

Transaction costs that the Group incurs in connection with a business combination, such as finder’s fees, legal fees, due diligence fees, and other professional and consulting fees, are expensed as incurred.

(ii) Subsidiaries

Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Group. In the Company’s financial statements, investments in subsidiaries are carried at cost.

(iii) Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.

Enerji Limited

(b) Foreign currency

(i) Foreign currency transactions

Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.

(c) Financial instruments

(i) Non-derivative financial assets

The Group initially recognises loans and receivables and deposits on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument.

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The Group has the following non-derivative financial assets.

Loans and receivables

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. Loans and receivables comprise trade and other receivables.

(ii) Non-derivative financial liabilities

The Group recognises financial liabilities (including liabilities designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expire. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The Group has non-derivative financial liabilities comprising trade and other payables which are recognised initially at fair value and subsequently at amortised cost.

(iii) Share capital

Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity, net of any tax effects.

Enerji Limited

(d) Cash and cash equivalents

Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

(e) Property, plant and equipment

(i) Recognition and measurement

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

Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located, and capitalised borrowing costs. Cost also may include transfers from other comprehensive income of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within other income in profit or loss.

(ii) Subsequent costs

The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group, and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.

(iii) Depreciation

Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value.

Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset.

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

•

Plant and equipment 5 years

• Computers 4 years • Fixtures and fittings 10 years • Major components 10 - 15 years.

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

(f) Leases

Operating lease payments are recognised as an operating expense in the statement of comprehensive income on a straight-line basis over the lease term.

Enerji Limited

(g) Intangible assets

(i) Goodwill

Goodwill is measured at cost less accumulated impairment losses.

(ii) Research and development

Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognised in profit or loss as incurred.

Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditure is capitalised only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. The expenditure capitalised includes the cost of materials, direct labour and overhead costs that are directly attributable to preparing the asset for its intended use, and capitalised borrowing costs. Other development expenditure is recognised in profit or loss as incurred.

Capitalised development expenditure is measured at cost less accumulated amortisation and accumulated impairment losses.

(iii) Amortisation

Amortisation is recognised in the profit and loss on a straight-line basis over the estimated useful lives of the intangible assets from the date they are available for use unless such lives are indefinite. Goodwill and intangible assets with an indefinite useful life are not amortised but systematically tested for impairment annually. The estimated useful lives for the current and comparative periods are as follows:

Distribution Licence 5 years

(iv) Distribution rights

Costs associated with the initial acquisition of Jamalcom Pty Ltd, the holder of the distribution rights for Opcon Powerboxes in Australia are capitalised as intangible assets. The directors review the carrying value of the Distribution Rights to ensure the carrying value does not exceed it’s recoverable amount and, and if an impairment in value arises, the intangible asset is written down.

(h) Leased assets

Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.

Other leases are operating leases and, are not recognised in the Group’s statement of financial position.

(i) Impairment

(i) Financial assets (including receivables)

A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

Objective evidence that financial assets (including equity securities) are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, the disappearance of an active market for a security. In addition, for an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment.

Enerji Limited

The Group considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified.

In assessing collective impairment the Group uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends.

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 asset’s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against receivables. Interest on the impaired asset continues to be recognised through the unwinding of the discount. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.

(ii) Non-financial assets

The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For goodwill, and intangible assets that have indefinite useful lives or that are not yet available for use, the recoverable amount is estimated each year at the same time.

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 the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”). Subject to an operating segment ceiling test, for the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment is tested reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination.

The Group’s corporate assets do not generate separate cash inflows. If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs.

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.

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 indications 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 or amortisation, if no impairment loss had been recognised.

Enerji Limited

(j) Employee benefits

(i) Termination benefits

Termination benefits are recognised as an expense when the Group is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Group has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting period, then they are discounted to their present value.

(ii) Employee leave benefits

Wages & salaries and annual leave liabilities for wages and salaries, including non-monetary benefits, are expected to be settled within 12 months of the reporting date and are recognised in respect of employees' services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled. Expenses for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable.

A liability is recognised for the amount expected to be paid under short-term cash bonus or profitsharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(iii) Share-based payment transactions

The grant date fair value of share-based payment awards granted to employees is recognised as an employee expense, with a corresponding increase in equity.

Share-based payment arrangements in which the Group receives goods or services as consideration for its own equity instruments are accounted for as equity-settled share-based payment transactions, regardless of how the equity instruments are obtained by the Group.

(k) Provisions

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. 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 the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

(l) Finance income and finance costs

Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit or loss, using the effective interest method.

Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, and impairment losses recognised on financial assets. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective interest method.

Foreign currency gains and losses are reported on a net basis.

(m) Income tax

Income tax expense comprises current and deferred tax. Current and deferred tax are recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.

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

Enerji Limited

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries and associates and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognised for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Additional income tax expenses that arise from the distribution of cash dividends are recognised at the same time that the liability to pay the related dividend is recognised. The Group does not distribute non-cash assets as dividends to its shareholders.

(n) 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.

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.

(o) Earnings per share

The Group 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 adjusted for the effects of all dilutive potential ordinary shares, which comprise convertible notes and share options granted to employees.

(p) Segment reporting

Determination and presentation of operating segments

The Group determines and presents operating segments based on the information that internally is provided to the CEO, who is the Group’s chief operating decision maker.

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating segments’ operating results are regularly reviewed by the Group’s CEO to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.

Segment results that are reported to the CEO include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly

Enerji Limited

corporate assets (primarily the Company’s headquarters), head office expenses, and income tax assets and liabilities.

Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible assets other than goodwill.

(q) New standards and interpretations not yet adopted

Reference	Title	Summary	Application date of standard	Impact on consolidated financial report	Application date for Group
AASB 9 (issued December 2009 and amended December 2010)	Financial Instruments	Amends the requirements for classification and measurement of financial assets. The following requirements have generally been carried forward unchanged from AASB 139 Financial Instruments: Recognition and Measurement into AASB 9. These include the requirements relating to: • Classification and measurement of financial liabilities; and • Derecognition requirements for financial assets and liabilities. However, AASB 9 requires that gains or losses on financial liabilities measured at fair value are recognised in profit or loss, except that the effects of changes in the liability’s credit risk are recognised in other comprehensive income.	Periods beginning on or after 1 January 2013	Due to the recent release of these amendments and that adoption is only mandatory for the 31 December 2013 year end, the entity has not yet made an assessment of the impact of these amendments. The entity does not have any financial liabilities measured at fair value through profit or loss. There will therefore be no impact on the financial statements when these amendments to AASB 9 are first adopted.	1 January 2013
AASB 10 (issued August 2011)	Consolidated Financial Statements	Introduces a single ‘control model’ for all entities, including special purpose entities (SPEs), whereby all of the following conditions must be present: • Power over investee (whether or not power used in practice) • Exposure, or rights, to variable returns from investee • Ability to use power over investee to affect the entity’s returns from investee.	Annual reporting periods commencing on or after 1 January 2013	When this standard is first adopted for the year ended 31 December 2013, there will be no impact on transactions and balances recognised in the financial statements because the entity does not have any special purpose entities.	1 January 2013

Enerji Limited

Reference	Title	Summary	Application date of standard	Impact on consolidated financial report	Application date for Group

AASB 11 (issued August 2011)	Joint Arrangements	Joint arrangements will be classified as either ‘joint operations’ (where parties with joint control have rights to assets and obligations for liabilities) or ‘joint ventures’ (where parties with joint control have rights to the net assets of the arrangement). Joint arrangements structured as a separate vehicle will generally be treated as joint ventures and accounted for using the equity method (proportionate consolidation no longer allowed). However, where terms of the contractual arrangement, or other facts and circumstances indicate that the parties have rights to assets and obligations for liabilities of the arrangement, rather than rights tonet assets, the arrangement will be treated as a joint operation and joint venture parties will account for the assets, liabilities, revenues and expenses in accordance with the contract.	Annual reporting periods commencing on or after 1 January 2013	When this standard is first adopted for the year ended 31 December 2013, there will be no impact on transactions and balances recognised in the financial statements because the entity’s current joint venture is unincorporated and accounted for as stated in note 1(g). When the joint venture is incorporated, it will be accounted for using the equity method.	1 January 2013
AASB 13 (issued September 2011)	Fair Value Measurement	Currently, fair value measurement requirements are included in several Accounting Standards. AASB 13 establishes a single framework for measuring fair value of financial and non- financial items recognised at fair value in the balance sheet or disclosed in the notes in the financial statements. Additional disclosures required for items measured at fair value in the balance sheet, as well as items merely disclosed at fair value in the notes to the financial statements. Extensive additional disclosure requirements for items measured at fair value that are ‘level 3’ valuations in the fair value hierarchy that are not financial instruments, e.g. land and buildings, investment properties etc.	Annual reporting periods commencing on or after 1 January 2013	Due to the recent release of this standard, the entity has yet to conduct a detailed analysis of the differences between the current fair valuation methodologies used and those required by AASB 13. However, when this standard is adopted for the first time for the year ended 31 December 2013, there will be no impact on the financial statements because the revised fair value measurement requirements apply prospectively from 1 January 2013. When this standard is adopted for the first time on 1 January 2013, additional	1 January 2013

Enerji Limited

Reference	Title	Summary	Application date of standard	Impact on consolidated financial report	Application date for Group
				disclosures will be required about fair values.
AASB 2011-9 (issued September 2011) AASB 2011-9 (issued September 2011) cont...	Amendments to Australian Accounting Standards - Presentation of Items of Other Comprehensive Income	Amendments to align the presentation of items of other comprehensive income (OCI) with US GAAP. Various name changes of statements in AASB 101 as follows: • 1 statement of comprehensive income– to be referred to as ‘statement of profit or loss and other comprehensive income’ • 2 statements– to be referred to as ‘statement of profit or loss’ and ‘statement of comprehensive income’. OCI items must be grouped together into two sections: those that could subsequently be reclassified into profit or loss and those that cannot.	Annual periods commencing on or after 1 July 2012	When this standard is first adopted for the year ended 31 December 2013, there will be no impact on amounts recognised for transactions and balances for 31 December 2013 (and comparatives). However, the statement of comprehensive income will include name changes and include subtotals for items of OCI that can subsequently be reclassified to profit or loss in future (e.g. foreign currency translation reserves) and those that cannot subsequently be reclassified (e.g. fixed asset revaluation surpluses).	1 January 2012
AASB 1054 (issued May 2011)	Australian Additional Disclosures	Moves additional Australian specific disclosure requirements for for-profit entities from various Australian Accounting Standards into this Standard as a result of the Trans-Tasman Convergence Project. Removes the requirement to disclose each class of capital commitment and expenditure commitment contracted for at the end of the reporting period (other than commitments for the supply of inventories).	Annual reporting periods commencing on or after 1 July 2011	When this Standard is adopted for the first time for the year ended 31 December 2012, the financial statements will no longer include disclosures about capital and other expenditure commitments as these are no longer required by AASB 1054.	1 January 2011
AASB 12 (issued August 2011)	Disclosure of Interests in Other Entities	Combines existing disclosures from AASB 127_Consolidated and_ Separate Financial Statements,	Annual reporting periods	As this is a disclosure standard only,	1 January 2013

Enerji Limited

Reference	Title	Summary	Application date of standard	Impact on consolidated financial report	Application date for Group
		AASB 128_Investments in_ Associates_and AASB 131_Interests in Joint Ventures. Introduces new disclosure requirements for interests in associates and joint arrangements, as well as new requirements for unconsolidated structured entities.	commencing on or after 1 January 2013	there will be no impact on amounts recognised in the financial statements. However, additional disclosures will be required for interests in associates and joint arrangements, as well as for unconsolidated structured entities.

No further new/amended accounting standards or interpretations are applicable.

4. Determination of fair values

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

(i) Share-based payment transactions

The fair value of options issued as share-based payment are measured using the Black-Scholes formula. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for changes expected due to publicly available information), weighted average expected life of the instruments (based on historical experience and general option holder behaviour), expected dividends, and the risk-free interest rate (based on government bonds).

The fair value of performance shares issued as share-based payment is based on the fair value of performance options granted, which is measured using a Black-Scholes formula. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for changes expected due to publicly available information), weighted average expected life of the instruments (based on historical experience and general option holder behaviour), expected dividends, and the risk-free interest rate (based on government bonds).

The fair value of the shares issued as share-based payment are measured based on the share price on the date of issue.

5. Financial risk management

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The executive directors are responsible for developing and monitoring risk management policies and report regularly to the Board of Directors on their activities. Details of credit risk, liquidity risk, currency risk, interest rate risk and capital management are disclosed in Note 32 to the financial statements.

Enerji Limited

6 Segment information

(a) Description of segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The Group considers the business from an installation type and geographic perspective, which at present is only Australia. Installation types will include mine sites and town sites.

(b) Segment information provided to the chief operating decision maker

The segment information provided to chief operating decision maker for the year ended 31 December 2011 is as follows:

2011	Australia
Total segment revenue	-
Revenue from external customers	-
Earnings before interest and tax	2,635,337
Total segment assets	12,114,314
Total segment liabilities	4,342,213

The segment information provided to chief operating decision maker for the year ended 31 December 2010 is as follows:

2010	Australia
Total segment revenue	-
Revenue from external customers	-
Earnings before interest and tax	8,974,140
Total segment assets	10,581,790
Total segment liabilities	2,100,232

(c) Other segment information

(i) Adjusted EBIT

Management assesses the performance of the operating segment based on a measure of adjusted EBIT. This measurement basis excludes impairments when the impairment is the result of an isolated, non-recurring event. Interest income and expenditure are not allocated to segments, as this type of activity is a function of the group managing the overall cash position.

A reconciliation of adjusted EBIT to operating profit before income tax is provided as follows:

Adjusted EBIT Amortisation of distribution rights Interest revenue Interest expenses Loss before tax from continuing operations	2011 2010 (2,635,337) (8,974,140) 1,041,368 959,624 (9,724) (74,274) 2,069 -
	(3,669,050) (9,859,490)

Enerji Limited

(ii) Segment assets

Amounts provided to management with respect to total assets are measured in a manner consistent with that of the financial statements. These assets are allocated based on the operations of the segments and the physical location of the asset.

Reportable segment assets are reconciled to total assets as follows:

Segment assets Unallocated: Deferred tax assets Total assets as per balance sheet	2011 2010 12,114,314 10,581,790 168,258 -
	12,282,572 10,581,790

(iii) Segment liabilities

Amounts provided to management with respect to total liabilities are measured in a manner consistent with that of the financial statements. These assets are allocated based on the operations of the segments and the physical location of the asset.

Reportable segment liabilities are reconciled to total liabilities as follows:

Segment liabilities Unallocated: Deferred tax liabilities Total liabilities as per balance sheet 7 Other income Realised foreign exchange loss (net) Unrealised foreign exchange gain (net) 8 Expenses Loss before income tax includes the following specific expenses: Depreciation Plant and equipment Total depreciation Amortisation Distribution rights Total amortisation expense Rental expenses relating to operating leases Defined contribution superannuation expense		2011 2010 4,342,213 2,100,232 - 1,500,000
		4,342,213 3,600,232
		2011 2010 (39,297) 6,229 58,032 - 18,735 6,229 2011 2010 18,209 15,845
		18,209 15,845
		1,009,404 959,624
		1,009,404 959,624
		20,941 20,941 86,563 90,989

Enerji Limited

9 Income tax expense

(a) Income tax expense

9 Income tax expense (a) Income tax expense
Write-back of tax effect on tax treatment of impairment Write-off of tax effect on tax treatment of impairment Receipt of a R&D tax offset Total income tax benefit in loss Attributable to: Continuing operations	2011 2010 (168,259) - (1,125,000) (389,318) (150,086)
	(1,682,577) (150,086)
	(1,682,577) (150,086)
	(1,682,577) (150,086 )

Under the R&D tax concession legislation, small companies can claim an R&D tax offset, section 73J of the Income Tax Assessment Act 1936 (ITAA 1936), that is, a refundable tax offset, equivalent to the value of certain deductions available under the R&D tax concession. For the 2010 year, total eligible R&D expenditure was $1,038,181, total section 73B of ITAA 1936 notional 125% R&D tax concession deduction was $1,297,727 therefore R&D tax offset refund entitlement @ 30% was $389,318.

(b) Numerical reconciliation of income tax expense to prima facie tax payable

(b) Numerical reconciliation of income tax expense to prima facie tax payable
Loss from continuing operations before income tax expense Tax at the Australian tax rate of 30% (2010 – 30%) Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Non-deductible expenses Deductible expenses Income tax benefit	2011 2010 3,669,050 9,859,490
	(1,100,715) (2,957,847) (739,515) 2,495,486 157,653 312,275
	(1,682,577) (150,086)

10 Current assets – Cash and cash equivalents

Cash at bank and in hand 11 Current assets - Prepayments and other receivables Current Prepayments – Opcon Powerboxes Other receivables	2011 2010 327,356 484,527 327,356 484,527 2011 2010 5,641,559 - 165,500 47,585 5,807,059 47,585

Non-current

Prepayments – Opcon Powerboxes - 5,741,022

During the year to 31 December 2011, unsecured prepayments totalling $1,405,287 (December 2010: $2,198,220) have been made to Opcon AB for six 3rd Generation Powerboxes ordered. Invoices

Enerji Limited

received in the year, but not paid, for further progress payments on Opcon Powerboxes totals $1,001,852.

Opcon prepayments are now classified as current because the company will take delivery and install the remaining five ordered Opcon Powerboxes over the 2012 year.

No receivables have been impaired during the period.

12 Non-current assets – Deferred tax assets

The balance comprises temporary differences attributable to (at 30%): Amortisation of distribution rights s40 expenditure – capital raising costs Audit fees Website expenditure Unrealised foreign exchange gains Employee leave provisions Prepayments Superannuation Total deferred tax assets	2011 2010 302,821 - (78,040) - (8,838) - (112) - (17,410) - 1,995 - (34,235) - 2,077 -
	168,258 -

13 Non-current assets - Property, plant and equipment

At 1 January 2010 Cost or fair value Accumulated depreciation Net book amount (see below) Year ended 31 December 2010 Opening net book amount Additions Depreciation charge Closing net book amount At 31 December 2010 Cost or fair value Accumulated depreciation Net book amount Year ended 31 December 2011 Opening net book amount Additions Transfers from prepayments Depreciation charge	Construction in progress Office furniture, fittings and equipment Total - 112,627 112,627 - (4,803) (4,803)
	- 107,824 107,824
	- 107,824 107,824 165,563 10,738 176,301 - (15,845) (15,845)
	165,563 102,717 268,280
	165,563 123,365 123,365 - (20,648) (20,648)
	165,563 102,717 268,280
	165,563 102,717 268,280 698,263 2,007 700,270 1,998,585 - 1,998,585 - (18,208) (18,208)

Enerji Limited

Balance at 31 December 2011 At 31 December 2011 Cost or fair value Accumulated depreciation Net book amount	2,862,411 86,516 2,948,927
	2,862,411 125,373 2,987,785 - (38,857) (38,857)
	2,862,411 86,516 2,948,928

14 Non-current assets - Intangible assets

At 1 January 2010 Cost Accumulated amortization and impairment Net book amount Year ended 31 December 2010 Opening net book amount Additions – acquisition of Jamalcom Pty Ltd Impairment of asset Amortisation charge Closing net book amount At 31 December 2010 Cost Impairment of asset -2010 Accumlated amortisation and impairment Net book amount Year ended 31 December 2011 Opening net book amount Amortisation charge Closing net book amount At 31 December 2011 Cost Impairment of asset - 2010 Accumlated amortisation and impairment Net book amount	Distribution rights - -
	-
	- 8,340,284 3,340,284 959,624
	4,040,376
	8,340,284 3,340,284 959,624
	4,040,376
	4,040,376 1,009,404
	3,030,972
	8,340,284 3,340,284 1,969,028
	3,030,972

Amortisation charge

The amortization charge is recognized in the following item in the consolidated statement of comprehensive income:

Depreciation and amortisation	2011 2010 1,009,404 959,624
	1,009,404 959,624

Enerji Limited

Intangible assets include distribution rights associated with the purchase of Jamalcom Pty Ltd with a carrying value of $ 3,030,972. The remaining amortisation period relating to the distribution rights is 3 years.

15 Current liabilities - Trade and other payables

Trade payables - Opcon AB Trade payables - other 6 Current liabilities - Provisions Employee	2011 2010 1,996,059 1,787,240 1,013,741 254,192
	3,009,800 2,041,432
	2011 2010 65,450 58,800
	65,450 58,800

16 Current liabilities - Provisions

The entire amount of the employee provision is presented as current, since the group does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the group does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave that is not to be expected to be taken or paid within the next 12 months.

Leave obligations expected to be settled after 12 months 7 Non-current liabilities - Borrowings Unsecured Convertible bonds - zero coupon(a) Capitalised borrowing costs on bond drawdowns Total unsecured non-current borrowings	2011 2010 45,652 40,316 2011 2010 1,000,000 - (108,036) -
	891,964 -

17 Non-current liabilities - Borrowings

(a) Convertible bonds

Convertible Bonds have been issued at a coupon rate of 0% pa. They have a 5 year maturity from issue date, however are convertible during this period at the discretion of the holder. As a result, the effective interest rate on the bonds is also 0% and as such, their carrying value equals their fair value. At point of conversion, they are converted into a variable number of shares, and therefore they do not have any equity portion.

On the 2nd of February the parent entity issued 100 bonds totalling $1,000,000 to Fortensa Special Opportunities Fund Limited (“Fortensa”) under the Bond Facility as approved by shareholders on 17 December 2010. These funds were used to make progress payments on Opcon Powerbox orders, pay expenses of the bond facility and replenish working capital.

On the 16th of March, Fortensa converted 25 bonds into ordinary shares in the parent entity. Based on a conversion price of $0.0211, 11,870,845 ordinary shares were issued.

On the 22nd of March a further 25 bonds were issued to Fortensa resulting in proceeds of $250,000 to progress the company’s works program.

Enerji Limited

Drawdown	Bonds Issued	Bonds Issued	Bonds Converted	Shares Issued	% of Issued Capital
	#	$	#	#
1	100	1,000,000	25	11,870,845	1.85%
2	25	250,000

The above bonds are convertible into ordinary shares of the parent entity, on the option of the holder, or repayable as follows:

2 February 2016 $750,000

22 March 2016 $250,000

The conversion rate is the lesser of:

120% of the average of the closing prices per share for the 30 consecutive Trading Days immediately prior to the date the Bond is issued; or
90% of the lowest average of the closing prices per share in any 5 consecutive Trading Days during the 30 consecutive Trading Days immediately preceding the conversion date
but are subject to adjustments for reconstructions of equity.

18 Non-current liabilities – Deferred tax liabilities

The balance comprises temporary differences attributable to: Acquisition of subsidiary Total deferred tax liabilities Deferred tax liabilities expected to be settled after more than 12 months Movements At 1 January 2010 Charged/(credited) - Acquisition of subsidiary At 31 December 2010 Charged/(credited) - to profit or loss At 31 December 2011 9 Non-current liabilities - Provisions ncome tax	2011 -	2010 1,500,000
	-	1,500,000

	-	1,500,000
	2011 374,999	Total - 1,500,000 1,500,000 1,500,000 - 2010 - -
	374,999

19 Non-current liabilities - Provisions

Enerji Limited

20 Contributed equity

Notes (a) Share Capital Ordinary shares Fully paid Options $0.20 Expiry December 2016 $0.03 Expiry June 2015 Total contributed equity	2011 2010 Shares Shares	2011 2010 $ $
	760,169,575 618,440,916 Options Options 6,339,935 6,339,935 330,210,211 -	50,126,673 47,760,410 - - - -
		50,126,673 47,760,410

(b) Movements in ordinary share capital:

(b) Movements in ordinary share capital:
Date Details Notes 1 January 2010 Opening Balance 18 January 2010 Business combination 18 January 2010 Prospectus capital raising 21 January 2010 Exercise $0.20 options 12 July 2010 Settlement 12 October 2010 Placement 12 October 2010 Services rendered 31 December 2010 Balance 22 March 2011 Conversion of bonds 8 June 2011 Placement 16 June 2011 Services rendered 8 July 2011 Services rendered 10 August 2011 Services rendered 10 August 2011 Rights issue costs 13 September 2011 Services rendered 14 September 2011 Placement 18 November 2011 Placement	Number of shares Issue price 534,052,108 41,701,418 $0.20 12,679,849 $0.20 7,541 $0.20 15,000,000 $0.03 12,500,000 $0.02 2,500,000 $0.02 618,440,916 11,870,845 54,800,004 $0.018 526,500 $0.019 4,203,333 $0.018 666,667 $0.018 - 1,000,200 $0.02 21,450,000 $0.02 47,211,110 $0.018 760,169,575	$ 36,262,679 8,340,284 2,405,939 1,508 450,000 250,000 50,000
		47,760,410 207,500 914,095 10,000 75,660 12,000 (44,324) 20,004 395,822 769,506
		50,126,673

Ordinary shares

The Company does not have authorised capital or par value in respect of its issued shares. All issued shares are fully paid. The holders of ordinary shares are entitled to receive dividends as declared from time to time, and are entitled to one vote per share at meetings of the Company. All shares rank equally with regard to the Company’s residual assets.

Dividends

There were no dividends declared or paid during the reporting period.

Enerji Limited

21 Reserves and accumulated losses

Notes (a) Reserves Performance based shares Share based payments Ordinary shares Options embedded in employee share scheme $0.20 options expiry December 2016 $0.03 options expiry June 2015 (i) Movements: (i) Movements in $0.03 options expiry June 2015: Date Details Notes 1 January 2010 Opening Balance 31 December 2010 Balance 8 June 2011 Placement 8 July 2011 Services rendered 26 July 2011 Placement 4 August 2011 Rights issue 10 August 2011 Services rendered 2 September 2011 Services rendered 13 September 2011 Services rendered 14 September 2011 Placement 28 September 2011 Placement 18 November 2011 Placement Share based payments Balance 1 January Services rendered Balance 31 December Options embedded in employee share scheme Balance 1 January Interest on loan from issue of 10,000,000 ordinary shares under employee share scheme Balance 31 December $0.03 options expiry June 2015 Balance 1 January Issue of options under entitlements issue Balance 31 December	2011 $ 1,595,000 157,863 1,875,000 45,411 1,461,738 459,237 5,594,249 Number of options Issue price - - 25,900,008 1,666,667 1,500,000 229,651,217 $0.002 16,161,565 $0.002 20,000,000 $0.002 1,000,200 $0.002 10,225,000 500,000 23,605,554 330,210,211 2011 $ 83,500 74,363 157,863 - 45,411 45,411 - 459,237 459,237	2011 $ 1,595,000 157,863 1,875,000 45,411 1,461,738 459,237	2011 $ 1,595,000 157,863 1,875,000 45,411 1,461,738 459,237	2011 $ 1,595,000 157,863 1,875,000 45,411 1,461,738 459,237	2011 $ 1,595,000 157,863 1,875,000 45,411 1,461,738 459,237	2010 $ 1,595,000 83,500 1,875,000 - 1,461,738 -
						5,015,238 $ - -
						- - - 459,237 32,323 40,000 2,040 - - -
						533,600
						2010 $ - 83,500 83,500 - - - - - -
					157,863
					- 45,411
					45,411
					- 459,237
					459,237

Enerji Limited

(b) Nature and purpose of other reserves

(i) Performance based shares

Reserve holding shares subject to the achievement of performance based measures

(ii) Share based payments

Share based payments that have been settled through the payment of options (iii) Ordinary shares

Reserve holding shares subject to the achievement of performance based measures

(iv) Options embedded in employee share scheme

Interest on employee shares acquired under employee share scheme

(v) $0.20 options expiry December 2016

Options for the purchase of ordinary shares on payment of exercise price (vi) $0.03 options expiry June 2015

Options for the purchase of ordinary shares on payment of exercise price

c) Accumulated losses

Movements in accumulated losses were as follows:

Balance 1 January Net loss for the year	45,794,090 36,084,686 1,986,473 9,709,404
	47,780,563 45,794,090

22 Key management personnel disclosures

(a) Key management personnel compensation

Short-term employee benefits Post-employment benefits Share based payments Termination benefits	2011 2010 801,531 591,744 63,367 34,375 29,019 - - 430,750
	893,917 1,056,869

Detailed remuneration disclosures are provided in the remuneration report on pages 2 to 6.

(b) Equity instrument disclosures relating to key management personnel

(i) No options were provided as remuneration or shares issued on exercising options

(ii) Option holdings

The number of options over ordinary shares in the company held during the financial year by each director of Enerji Limited and other key management personnel of the group, including their personally related parties, are set out below. There we were no options granted during the reporting period as compensation.

the reporting period as compensation.	the reporting period as compensation.	the reporting period as compensation.	the reporting period as compensation.	the reporting period as compensation.	the reporting period as compensation.	the reporting period as compensation.	the reporting period as compensation.

2011
Name	Balance at start of the year	Granted as compensation	Exercised	Other changes	Balance at the end of the year	Vested and exercisable	Unvest ed
Directors of Enerji Limited
I Campbell	-	-	-	-	-	-	-
G Pennefather	1,635,935	-	-	533,5671	2,169,502	2,169,502	-
R Hasselström	4,000,000	-	-	-	4,000,000	4,000,000
Other key management personnel of the group
G Reid	-	-	-	-	-	-	-
P Wassell	-	-	-	4,833,3341	4,833,334	4,833,334	-

Enerji Limited

1 Purchase of shares through non-renounceable entitlements issue


2010
Name	Balance at start of the year	Granted as compens ation	Exercised	Other changes	Balance at the end of the year	Vested and exercisable	Unvested
Directors of Enerji Limited
I Campbell	-	-	-	-	-	-	-
G Pennefather	1,653,935	-	-	-	1,653,935	1,653,935	-
R Hasselström	4,000,000	-	-	-	4,000,000	4,000,000
Other key management personnel		of the group
G Reid	-	-	-	-	-	-	-
P Wassell	-	-	-	-	-	-	-

(iii) Share holdings

The number of shares in the company held during the financial year by each director of Enerji Limited and other key management personnel of the group, including their personally related parties, are set out below. There were no shares granted during the reporting period as compensation.


2011
Name	Balance at start of the year	Granted as compens ation	Acquired for shares	Other changes	Balance at the end of the year	Vested and exercisable	Unvested
Directors of Enerji Limited
I Campbell	-	-	-	4,000,000	4,000,000	-	4,000,0001
G Pennefather	54,201,418	-	-	46,700	54,248,118	54,248,118	-
R Hasselström	4,000,000	-	-	-	4,000,000	4,000,000
Other key management personnel		of the group
G Reid	-	-	-	-	-	-	-
P Wassell	-	-	-	2,500,000	2,500,000	-	2,500,0001


2010
Name	Balance at start of the year	Granted as compens ation	Acquired for shares	Other changes	Balance at the end of the year	Vested and exercisable	Unvested
Directors of Enerji Limited
I Campbell	-	-	-	-	-	-	-
G Pennefather	15,000,000	-	-	39,201,418	54,201,418	54,201,418	-
R Hasselström	4,000,000	-	-	-	4,000,000	4,000,000
Other key management personnel		of the group
G Reid	-	-	-	-	-	-	-
P Wassell	-	-	-	-	-	-	-

1 Shares issued under Employee Share Scheme and as such unvested until interest free loan against the shares is paid

Enerji Limited

(c) Loans to key management personnel

Details of loans made to directors of Enerji Limited and other key management personnel of the group, including their personally related parties, are set out below.

(i) Aggregates for key management personnel

	Balance at start of the year	Interest paid and payable for theyear	Interest not charged	Balance at the end of the year	Number in group at the end of theyear
2011	-	-	29,019	332,500	2
2010	-	-	-	-	-

Employee share loans exist with terms as per the employee share plan of Enerji Limited. All loans under the employee share plan are interest free for a period of three years and are nonresourse.

The amounts shown for interest not charged in the table above represent the difference between the amount paid and payable for the year and the amount of interest that would have been charged on an arm’s-length basis.

No write-downs or allowances for doubtful receivables have been recognised in relation to any loans made to key management personnel.

23 Remuneration of auditors

During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its related a practices and non-related audit firms:

(a) BDO Audit (WA) Pty Ltd (i) Audit and assurance services Audit and review of financial statements Other assurance services Total remuneration for audit and other assurance services (ii) Taxation services Total remuneration for taxation services (iii) Other services Other Total remuneration of BDO Audit (WA) Pty Ltd	2011 2010 $ $ 35,309 22,000 - -
	35,309 22,000

	- -
	- -
	35,309 22,000

(b) Non - BDO Audit (WA) Pty Ltd audit firms

(i) Audit and assurance services

Audit and review of financial statements - 110,700

Enerji Limited

Other assurance services Total remuneration for audit and other assurance services (ii) Taxation services Total remuneration for taxation services (iii) Other services Other Total remuneration of non-BDO Audit (WA) Pty Ltd audit firms Total auditors’ remuneration	- -
	- 110,700

	- -
	- -
	- 110,700

	35,309 110,700

24 Contingencies

No contingencies exist at 31 December 2011.

25 Commitments

(a) Lease commitments

(i) Non-cancellable operating leases

The group leases offices under a non-cancellable operating lease expiring in four years. The lease has an escalation clause. No renewal terms have been set out. The only restrictions imposed by the leasing arrangement is a bank guarantee for four months rent in

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within one year Later than one year but not later than five years	2011 2010 $ $ 127,680 103,719 383,040 7,959
	510,720 111,678

(ii) Cancellable operating leases

The group leases two vehicles under cancellable operating leases. No termination period applies to the leases.

Commitments in relation to cancellable operating leases contracted for at the reporting date but not recognised as liabilities payable: Within one year Later than one year but not later than five years	2011 2010 $ $ 20,940 20,940 34,025 54,965
	54,965 75,905

Enerji Limited

(b) Opcon Energy Systems AB

Pursuant to the Australian distribution agreement with Opcon Energy System AB there is no minimum commitment to purchase Opcon Powerboxes. At present there is six Opcon Powerboxes on order, with outstanding payments on these of AU$3,223,000. There is no commitment to purchase these Opcon Powerboxes but any progress payments will be fortified.

(c) Bank Guarantee

Pursuant to the lease agreement for Ground floor 10 Ord Street West Perth which requires a bank guarantee resulting in $55,000 being on deposit with Bankwest

26 Related party transactions

During the year ended 31 December 2011, a new contract was entered into with related parties. This contract was an interest free loan to purchase employee shares under the employee share plan as approved by shareholders 1 December 2009.

Mr Campbell was issued with shares worth $200,000 based on an agreed price of $0.05, which were issued under employee share plan and unvested at balance date as loan still outstanding.

Mr Hasselström’s director fees were outstanding at year-end and therefore an amount payable of $50,004 is due at 31 December 2011.

27 Subsidiaries and transactions with non-controlling interests

(a) Significant investments in subsidiaries

During the year ended 31 December 2011

			Equity holding**	Equity holding**
Name of entity	Country of incorporation	Class of shares	2011	2010
			%	%
Jamalcom Pty Ltd	Australia	Ordinary		100	100
Letharji Pty Ltd	Australia	Ordinary		100	100
Cogen Power Pty Ltd	Australia	Ordinary		100	100

28 Events occurring after the reporting period

No reportable events occurred post 31 December 2011.

29 Reconciliation of profit after income tax to net cash inflow from operating activities

	2011	2010
	$	$
Loss for the period	(1,986,473)	(9,709,404)
Finance income	(9,724)	(74,274)

Enerji Limited

Depreciation and amortisation Share-based payment transactions Change in other receivables Change in prepayments Change in trade and other payables Change in employee provision Change in provisions Proceeds for share capital received in advance R&D Tax concession offset Net cash outflow from operating activities	1,059,577 975,469 45,411 583,500 - 7,610 (124,069) (250,103) 210,098 1,723,655 (6,650) 58,800 (1,125,000) - 1,500,000 (389,318) (150,086)
	(2,326,148) (5,334,833)

30 Earnings per share

(a) Basic earnings per share From continuing operations attributable to the ordinary equity holders of the company Total basic earnings per share	2011 2010 $ $ (0.003) (0.016)
	(0.003) (0.016)

The calculation of basic earnings per share at 31 December 2011 was based on the loss attributable to ordinary shareholders of $1,986,473 (2010: $9,709,404) and a weighted average number of ordinary shares outstanding of 760,169,575 (2010: 618,440,916).

31 Share-based payments

(a) Employee share scheme

A scheme under which shares may be issued by the company to employees with an interest free loan for the purchase price of the shares was approved by shareholders at a general meeting on December 1 2009.

Under the scheme, invitations to participate in the plan are given to employees as determined by the board based on seniority, length of service, record of employment and potential contribution to the growth and profitability of the company. The market value of the shares issued under the scheme, measured as the weighted average price at which the company’s shares are traded on the ASX for the 5 days including the date of grant.

Terms of the loan for the purchase of shares under the employee share scheme shall be determined by the board on issue of the under-lying shares.

	2011	2010
Number of shares issued under the plan to participate employees on 23 February 2011	10,000,000		-

Participants were issued with shares worth $198,000 based on a weighted average price of $0.033 and a director was issued with shares worth $200,000 based on a weighted average price of $0.05 as noted in the remuneration report.

Enerji Limited

(b) Expenses arising from share-based payment transactions

Total expenses arising from share-based payment transactions recognised during the period as part of employee benefit expense were as follows:

Effective put option included in employee share scheme

2011	2010
$	$
45,411		-

32 Financial instruments

Credit risk

The carrying amount of the Group’s financial assets represents the maximum credit exposure. The credit risk will result from a decrease in interest rates reducing interest earned. The Group’s maximum exposure to credit risk at the reporting date was:

exposure to credit risk at the reporting date was:
Note Loans and receivables – current 11 Loans and receivables – non current Cash and cash equivalents 10	Carrying amount 2011 2010 165,500 47,585 - - 327,356 484,527
	492,856 532,112

Liquidity risk

The Group has limited exposure to liquidity risk as the Group’s main liabilities are trade and other payables.

All financial liabilities have contractual maturities of less than 6 months.

On 17 December 2010, shareholders approved a bond facility with amendments to this agreement approved by shareholders on 23 January 2012, totalling $6,250,000. Under this facility a remaining $5,000,000 is available to drawdown. These funds will be used to make further progress payments on Opcon Powerboxes and replace working capital previously used for making Opcon Powerbox payments. This facility underpins the Group and provide the necessary liquidity to achieve the company’s short to medium term goals.

Currency risk

The Group, has a hedging policy in place and uses Travelex to provide advice and solutions for the management of the Company’s currency exposure.

At present, the Group has no foreign currency hedges in respect of forecast sales and purchases. The Group also has no hedges in place for it’s trade receivables and trade payables denominated in a foreign currency.

Interest rate risk

The Group exposure to interest rates relate primarily to cash and cash equivalents. As at the date of these accounts the Group has no financial liabilities subject to interest rate movements. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and cash equivalents mentioned above. Sensitivity to interest rate risk is considered immaterial.

Market risk

The group operate internationally and are exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the SEK (swedish krona).

Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the entity’s functional currency. The risk is measured using sensitivity analysis and cash flow forecasting.

Enerji Limited

Management has set up a policy that all transactions in foreign currencies be transacted at spot. Management will continually review this policy based on volumes of foreign currency required.

The group’s exposure to foreign currency risk at the end of the reporting period, expressed in Australian dollar, was as follows:

	2011	2010
	$	$
Trade payables - SEK	2,044,409	1,787,240
Trade payables - EUR	113,630	-

For the year ended 31 December 2011, there were no foreign currency receivables or borrowings.

Fair values

The fair values of financial assets and liabilities as at the reporting date are considered to be the same as the carrying amounts shown in the statement of financial position. Capital management

The Board’s policy is to maintain a strong asset base so as to maintain investor, creditor and market confidence and to sustain future development of the business. There were no changes in the Group’s approach to capital management during the year. Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.

33 Parent entity financial information

3 Parent entity financial information
	2011	2010
Balance sheet	$	$
Current assets	489,239	527,927
Total assets	12,115,865	9,890,320
Current liabilities	975,244	312,993
Total liabilities	1,867,208	312,993
Shareholders’ equity
Issued Capital	50,126,671	47,760,408
Reserves	5,594,249	5,015,238
Retained earnings	(45,472,263)	(43 198,317)
Loss for the year	(2,273,946)	(7,109,072)
Total comprehensive loss	(2,273,946)	(7,109,072)

No specific commitments and contingent liabilities exist in the parent entity.

Enerji Limited

Declaration of by Directors

The directors of the company declare that:

The financial statements, comprising the statement of comprehensive income, statement of financial position, statement of cash flows, statement of changes in equity, accompanying notes, are in accordance with the Corporations Act 2001 and:
(a) comply with Accounting Standards and the Corporations Regulations 2001; and
(b) give a true and fair view of the consolidated entity’s financial position as at 31 December 2011 and of its performance for the year ended on that date.
The company has included in the notes to the financial statements an explicit and unreserved statement of compliance with International Financial Reporting Standards.
In the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.
The directors have been given the declarations by the chief executive officer and chief financial officer required by section 295A.

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by:

G D Pennefather Director

Perth 30[th] March 2012.

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

Tel: +8 6382 4600 Fax: +8 6382 4601 www.bdo.com.au

==> picture [77 x 30] intentionally omitted <==

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ENERJI LIMITED

Report on the Financial Report

We have audited the accompanying financial report of Enerji Limited, which comprises the consolidated statement of financial position as at 31 December 2011, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view 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 gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 2(a), the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements , that the financial statements comply with International Financial Reporting Standards .

Auditor’s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view 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 company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

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

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001 , which has been given to the directors of Enerji Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.

==> picture [78 x 30] intentionally omitted <==

Opinion

In our opinion:

(a) the financial report of Enerji Limited is in accordance with the Corporations Act 2001 , including:
(i) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2011 and of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001 ; and
(b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 2(a).

Emphasis of Matter

Without modifying our opinion, we draw attention to Note 2(f) in the financial statements, where in order for the consolidated entity to continue to make installments on further Powerboxes and fund working capital, the consolidated entity will be required to raise equity or secure debt funding. If the consolidated entity is unable to obtain additional funding it may indicate the existence of a material uncertainty which may cast significant doubt on the consolidated entity’s ability to continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business at the values stated in these financial statements.

Report on the Remuneration Report

We have audited the Remuneration Report included in the directors’ report for the year ended 31 December 2011. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

Opinion

In our opinion, the Remuneration Report of Enerji Limited for the year ended 31 December 2011 complies with section 300A of the Corporations Act 2001 .

BDO Audit (WA) Pty Ltd

==> picture [70 x 57] intentionally omitted <==

Brad McVeigh Director

Perth, Western Australia Dated this 30[th] day of March 2012

Enerji Limited

ASX additional information as at 30 March 2012

Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set out below.

Securities Exchange

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

Other information

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

ORDINARY SHARES

Twenty largest shareholders

Name
Hawera Pty Ltd
Boxpower AB
HSBC Custody Nominees (Australia) Limited
Gabrielsson Invest AB
Baru Resources Limited
Frollo Enterprises Limited
E C Dawson Super Pty Ltd
Gabrielsson Invest AB
Buelow Nominees Pty Ltd
Archenland Pty Ltd
J & Tw Dekker Pty Ltd
Mr Greg Pennefather
Mr Ti Jiang
Bell Potter Nominees Ltd
Mr Glenn Raymond Skender
Suburban Holdings Pty Ltd
Mr Shane Robert Mcmillan
New Horison Homes (WA) Pty Ltd
Dawesville Nominees Pty Ltd
Associated Metal Craft Pty Ltd
Miss Kylie Leslie Martin

Number of ordinary
shares held
Percentage of
capital held
64,390,147
7.33%
44,500,000
5.07%
36,948,305
4.21%
25,981,482
2.96%
20,833,334
2.37%
20,000,000
2.28%
20,000,000
2.28%
18,518,518
2.11%
14,300,000
1.63%
14,000,000
1.59%
10,000,000
1.14%
8,766,333
1.00%
8,097,699
0.92%
7,499,000
0.85%
7,350,000
0.84%
7,348,331
0.84%
7,000,000
0.80%
6,800,000
0.77%
6,500,000
0.74%
6,400,000
0.73%
6,000,000
0.68%

361,233,149
41.1%

Substantial shareholders

Nil

Distribution of equity security holders 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,000 - 100,000 100,000 and over	Holders 236 141 112 668 665
	1,822

The number of shareholders holding less than a marketable parcel of ordinary shares is nil.

Voting rights

On a show of hands every person present who is a member or a proxy, attorney or representative of a member has one vote and upon a poll every person present who is a member or a proxy, attorney or representative of a member shall have one vote for each share held.

Enerji Limited

$0.20 OPTIONS EXPIRING 31 DECEMBER 2016 Twenty largest option holders

Name
Hawera Pty Ltd
Opcon Energy AB
Gabrielsson Invest AB
Amarilo Investments Pty Ltd
Mr Noel David McEvoy & Mrs Shelley Dawn McEvoy
Equity Trustees Limited
Frollo Enterprises Limited
Dark Dragon Holdings Pty Ltd
Acru Pty Ltd
Jamalexal Pty Ltd
Westedge Investments Pty Ltd
Mr John Lagana
Australian Heritage Group Pty Ltd
Landteck Pty Ltd
Mr Gregory John Gibson
Tarney Holdings Pty Ltd
Mr Philip Alexander Karl Hoefer
Mr Goran Suleski
Mr Andrew Peter Fisher
Dawesville Nominees Pty Ltd
E C Dawson Super Pty Ltd
Mr Thomas Patrick Toohey

Number of options
held
Percentage of
total held
6,439,015
9.95%
4,450,000
6.87%
4,450,000
6.87%
3,001,000
4.64%
2,212,459
3.42%
2,017,750
3.12%
2,000,000
3.09%
1,700,000
2.63%
1,571,909
2.43%
1,500,000
2.32%
1,427,000
2.20%
1,300,000
2.01%
1,000,000
1.54%
1,000,000
1.54%
979,750
1.51%
889,505
1.37%
830,146
1.28%
756,875
1.17%
720,000
1.11%
650,000
1.00%
645,000
1.00%
590,000
0.91%

40,130,409
62.0%

Substantial option holders

Nil

Distribution of equity security holders 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,000 - 100,000 100,000 and over	Holders 526 392 188 271 82
	1,459

Voting rights

There are no voting rights attached to the options.

Enerji Limited

$0.03 OPTIONS EXPIRING 30 JUNE 2015 Twenty largest option holders

Name
Hawera Pty Ltd
Florella Holdings Pty Ltd
Belloc Pty Limited
Archenland Pty Ltd
Baru Resources Limited
Mrs Leanne Susan Vidovich
LBT Corp Pty Ltd
Bell Potter Nominees Ltd
E C Dawson Super Pty Ltd
Dawesville Nominees Pty Ltd
Gabrielsson Invest AB
Mr Peter Gebhardt & Mrs Carlene Gebhardt
Mr Andrew Peter Fisher
Mrs Loris Joyce Fisher & Mr Peter John Fisher
Super Structure Services Pty Ltd
Buelow Nominees Pty Ltd
Castle Bailey Pty Ltd
Dawesville Nominees Pty Ltd
BBY Nominees Limited
Mr Peter Wassell
Suburban Holdings Pty Ltd
The Brand Connection Pty Ltd

Number of options
held
Percentage of
total held
66,463,383
15.15%
26,955,666
6.15%
25,725,200
5.87%
23,150,000
5.28%
20,833,334
4.75%
20,000,000
4.56%
13,913,800
3.17%
9,562,500
2.18%
9,316,667
2.12%
8,666,667
1.98%
8,660,494
1.97%
7,000,000
1.60%
6,000,000
1.37%
5,877,778
1.34%
5,811,661
1.33%
5,150,000
1.17%
5,000,000
1.14%
5,000,000
1.14%
5,000,000
1.14%
4,833,334
1.10%
4,692,592
1.07%
4,069,781
0.93%

291,682,857
66.5%

Substantial shareholders

The number of shares held by substantial option holders and their associates are set out below:

Shareholder	Number
Hawera Pty Ltd	66,463,383

Distribution of equity security holders 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,000 - 100,000 100,000 and over	Holders 26 44 36 145 202
	453

Voting rights

There are no voting rights attached to the options.

AI assistant

VOLT GROUP LIMITED — Annual Report 2011

66016_rns_2012-04-01_1f3812c8-abd3-482f-a7e3-dd4e8ec47922.pdf

Table of Contents

Enerji Limited

Corporate directory

31 December 2011

Directors

Principal activities

Operating and financial review

Operating Review

Review of consolidated financial condition

Cash From Operations

Corporate Structure

Capital Structure

31 December 2011

Significant changes in the state of affairs

Dividends

Events subsequent to reporting date

Likely developments

Information on directors

The Honourable IG Campbell. Chair – Non-executive. Experience and expertise

31 December 2011

Other current directorships

Former directorships in last 3 years

Special responsibilities

Interests in shares and options

GD Pennefather. Managing Director.

Experience and expertise

Other current directorships

Former directorships in last 3 years

Special responsibilities

Interests in shares and options

R Hassleström. Non-executive director.

Experience and expertise

Other current directorships

31 December 2011

Former directorships in last 3 years

Special responsibilities

Interests in shares and options

Company Secretary

Meetings of directors

Share options

Shares issued on exercise of options

Remuneration report - Audited

31 December 2011

Details of remuneration

31 December 2011

Key management of the group and other executives of the company and the group

2010

31 December 2011

The relative proportions of remuneration that are linked to performance and those that are fixed are as follows:

Service agreements

Share-based compensation

Shares under option

Share Trading Policy

This is the end of the Audited Remuneration Report.

Indemnification and insurance of officers and auditors indemnification

Environmental regulation

Installation of Opcon Powerboxes

Proceedings on behalf of the company

Corporate governance statement

Auditors’ remuneration

Auditor’s independence declaration

DECLARATION OF INDEPENDENCE BY BRAD MCVEIGH TO THE DIRECTORS OF ENERJI LIMITED

Enerji Limited

Consolidated statement of comprehensive income

For the year ended 31 December 2011

Enerji Limited

Enerji Limited

Consolidated statement of financial position

As at 31 December 2011

Enerji Limited

Consolidated statement of changes in equity

For the year ended 31 December 2011

Enerji Limited

Consolidated statement of cash flows

For the year ended 31 December 2011

Enerji Limited

Notes to the financial statements

VOLT GROUP LIMITED Annual Report 2011