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`Annual Report
31 December 2018
E4G Investment Holdings Pty Ltd and Controlled Entities
ACN 614 735 474
Aerison Pty Ltd | www.aerison.com
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
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Contents
DIRECTORS REPORT ....................................................................................................................................... 3
INDEPENDENT AUDITORS REPORT .............................................................................................................. 5
INDEPENDENCE DECLARATION .................................................................................................................... 7
GENERAL INFORMATION ................................................................................................................................ 8
FINANCIAL REPORT ........................................................................................................................................ 9
DIRECTORS' DECLARATION ........................................................................................................................ 41
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E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
3
Directors Report
The directors present their report, together with the financial statements, on the consolidated entity (referred
to hereafter as the ‘consolidated entity’) consisting of E4G Investment Holdings Pty Ltd (referred to hereafter
as “the Company” or ‘parent entity’) and its controlled entities at the end of, or during, the financial year
ended 31 December 2018.
Directors
The names of the directors in office at any time during, or since the end of, the year are:
Giuseppe Leone
Daniel Hibbs
Michael Fennell (Appointed 7 June 2019)
Min Lu (Resigned 11 March 2020)
Qiudong Qiao (Appointed 11 March 2020)
Directors have been in office since the beginning of the year to the date of this report unless otherwise
stated.
Review of Operations
The profit for the consolidated entity after providing for income tax and non-controlling interest amounted to
$1,256,208 (2017: $913,604 loss).
Dividends
Dividends paid during the year was $521,486 (2017: $500,000).
Principal activities
The consolidated entity’s primary activity is engineering and construction and self-performs engineering,
design, fabrication, installation, maintenance and commissioning for projects in the mining & minerals, oil &
gas and infrastructure sectors.
No significant change in the nature of these activities occurred during the year.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the consolidated entity during the financial year.
Events subsequent to the end of the reporting date
On 11 March 2020 Novel Coronavirus (COVID-19) was declared a global pandemic by the World Health
Organisation. The impact of COVID-19 on the consolidated entity is likely to have a material impact on
operational revenue and expenses if either the Australian Federal Government or Western Australian State
Government were to impose a restrictive lock-down on essential services that effects the consolidated
entity’s operational sites.
As at the date of this report:
a) The consolidated entity has the ability to materially curtail its activities during the forthcoming financial
year in response to any government restrictions and social distancing requirements;
b) The impacts on operational revenue and expenses cannot yet be reliably estimated; and
c) The consolidated entity believes it has sufficient cash reserves to support its curtailed activities.
Future development, prospects and business strategies
Likely developments in the operations of the consolidated entity and the expected results of those operations
in future financial years have not been included in this report as the inclusion of such information is likely to
result in unreasonable prejudice to the consolidated entity.
Environmental issues
The consolidated entity is subject to environmental regulations under a law of the Commonwealth or of a
state or territory of Australia. The consolidated entity is not aware of any breach of any environmental
regulations.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
4
Directors' report continued
Options
No options over issued shares or interests in E4G Investment Holdings Pty Ltd were granted during or since
the end of the financial year and there were no options outstanding at the date of this report.
Indemnification of auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the
auditor of the company against a liability incurred by the auditor. During the year, the company has not paid
a premium in respect of a contract to insure the auditor of the company.
Indemnities given and insurance premiums paid to officers
During the year, the company paid a premium to insure officers of the company. The officers of the
company covered by the insurance policy include all directors.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may
be brought against the officers in their capacity as officers of the company, and any other payments arising
from liabilities incurred by the officers in connection with such proceedings, other than where such liabilities
arise out of conduct involving a 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 to cause detriment to the
company.
Details of the amount of the premium paid in respect of the insurance policies are not disclosed as such
disclosure is prohibited under the terms of the contract.
Proceedings on behalf of the company
No person has applied for leave of Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the company or 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 any part of those proceedings.
The company was not a party to any such proceedings during the year.
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act
2001 is included within the financial report.
This director’s report is signed in accordance with a resolution of the Board of Directors, pursuant to section
298(2)(a) of the Corporation Act 2001.
Giuseppe Leone
CEO and Executive Director
Dated this 9 March 2021
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E4G Investment Holdings Pty Limited ABN 77 614 735 474
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
E4G INVESTMENT HOLDINGS PTY LIMITED
Opinion
We have audited the financial report of E4G Investment Holdings Pty Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 31 December 2018, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes
in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies, and the directors' declaration.
In our opinion the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the Group's financial position as at 31 December 2018 and of its financial
performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
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THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
Other Information
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The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 31 December 2018 but does not include the financial report and
the auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors 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 preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar4.pdf. This
description forms part of our auditor's report.
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RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 9 March 2021
TUTU PHONG
Partner
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RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of E4G Investment Holdings Pty Limited for the year ended 31
December 2018, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
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RSM AUSTRALIA PARTNERS
TUTU PHONG
Partner
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Perth, WA
Dated: 9 March 2021
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THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
8
General Information
The financial statements cover E4G Investment Holdings Pty Ltd as a consolidated entity consisting of E4G
Investment Holdings Pty Ltd and the entities it controlled at the end of, or during, the year. The financial
statements are presented in Australian dollars, which is E4G Investment Holdings Pty Ltd’s functional and
presentation currency.
E4G Investment Holdings Pty Ltd is a company limited by shares, incorporated and domiciled in Australia. Its
registered office and principal place of business are:
Registered office
60 Havelock Street
West Perth WA 6005
Principal place of business
1st floor, 56 Ord Street
West Perth WA 6005
A description of the nature of the consolidated entity's operations and its principal activities are included in
the directors' report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on the ninth
day of March 2021. The directors have the power to amend and reissue the financial statements.
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E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
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Financial Report
Statement of profit or loss and other comprehensive income
For the year ended 31 December 2018
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Revenue
Cost of sales
Gross profit
Other income
Administration expenses
Depreciation and amortisation expense
Finance costs
Marketing expenses
Occupancy expenses
Other expenses
Profit before income tax
Income tax expense
Profit after income tax
Other comprehensive income
Total comprehensive income for the year
Note
Consolidated Entity
2018
$
2017
$
3
3
4
5
50,485,254
30,291,601
(44,530,494)
(27,905,689)
5,954,760
2,385,912
34,410
(522,558)
(660,325)
(853,474)
(104,078)
89,907
(427,862)
(660,165)
(282,806)
(163,938)
(1,220,664)
(1,480,889)
(591,961)
2,036,110
(779,902)
1,256,208
(666,169)
(1,206,010)
292,406
(913,604)
-
-
1,256,208
(913,604)
The accompanying notes form part of these financial statements.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
10
Statement of financial position
As at 31 December 2018
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Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Deferred tax assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Borrowings
Employee benefits
Total current liabilities
Non-current liabilities
Borrowings
Trade and other payables
Employee benefits
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained earnings
Total equity
Note
Consolidated Entity
2018
$
2017
$
7
8
9
10
11
5
12
13
14
13
12
14
5
15
15
2,255,898
1,818,998
16,995,857
10,607,323
282,020
142,218
19,533,775
12,568,539
2,928,240
3,109,130
73,710
4,029,844
7,031,794
66,709
4,703,049
7,878,888
26,565,569
20,447,427
7,812,455
6,525,468
1,045,751
5,971,245
2,991,193
878,870
15,383,674
9,841,308
88,189
983,922
67,682
129,051
311,759
983,922
80,149
51,960
1,268,844
1,427,790
16,652,518
11,269,098
9,913,051
9,178,329
3,328,647
-
6,584,404
9,913,051
3,160,005
168,642
5,849,682
9,178,329
The accompanying notes form part of these financial statements.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
11
Statement of changes in equity
For the year ended 31 December 2018
Consolidated
Balance at 1 January 2017
Profit after income tax expense for the year
Other comprehensive income for the year,
net of tax
Total comprehensive income for the year
Transactions with owners in their capacity as
owners:
Convertible notes issued, net of transaction costs
Contributions of equity, net of transaction costs
(note 15)
Dividends paid (note 16)
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Balance at 31 December 2017
Consolidated
Balance at 1 January 2018
Profit after income tax expense for the year
Other comprehensive income for the year, net of
tax
Total comprehensive income for the year
Transactions with owners in their capacity as
owners:
Convertible notes redeemed, net of transaction
costs
Contributions of equity, net of transaction costs
(note 15)
Dividends paid (note 16)
Balance at 31 December 2018
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Issued
Capital
$
Reserves
Retained
Total Equity
$
Profits
$
$
250,000
-
-
-
-
-
-
-
7,263,286
7,513,286
(913,604)
(913,604)
-
-
(913,604)
(913,604)
-
168,642
2,910,005
-
-
-
-
-
168,642
2,910,005
(500,000)
(500,000)
3,160,005
168,642
5,849,682
9,178,329
Issued
Capital
$
Reserves
Retained
Total Equity
$
Profits
$
$
3,160,005
168,642
5,849,682
9,178,329
-
-
-
-
-
-
1,256,208
1,256,208
-
-
1,256,208
1,256,208
-
(168,642)
168,642
-
3,328,647
-
-
-
-
-
(168,642)
168,642
(521,486)
(521,486)
6,584,404
9,913,051
The accompanying notes form part of these financial statements.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
12
Statement of cash flows
For the year ended 31 December 2018
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs
Income tax paid
Note
Consolidated Entity
2018
$
2017
$
47,522,444
25,240,530
(48,218,531)
(28,639,299)
22,585
(553,839)
-
15,582
(282,816)
-
Net cash generated from operating activities
25
(1,227,341)
(3,666,003)
Cash flows from investing activities
Proceeds from disposal of property, plant and
equipment
Purchase of property, plant and equipment
Purchase of intangible assets
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from short-term borrowings
Proceeds from issue of convertible notes
Dividends declared and paid
Loan repaid to related parties
Net cash provided by financing activities
15
16
Net change in cash held
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
7
34,500
22,500
(543,725)
(7,000)
(516,225)
-
771,596
2,202,940
(521,486)
(113,826)
2,339,224
595,658
1,660,240
2,255,898
(641,024)
(15,401)
(633,925)
3,000,005
2,353,670
170,027
(500,000)
(86,605)
4,937,097
637,169
1,023,071
1,660,240
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The accompanying notes form part of these financial statements.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
13
Notes to the financial statements
31 December 2018
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Statement of significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated.
New and amended accounting standards and interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting
period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been
early adopted.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
AASB 9 Financial Instruments
The consolidated entity has adopted AASB 9 from 1 January 2018. The standard introduced new
classification and measurement models for financial assets. A financial asset shall be measured at amortised
cost if it is held within a business model whose objective is to hold assets in order to collect contractual cash
flows which arise on specified dates and that are solely principal and interest. A debt investment shall be
measured at fair value through other comprehensive income if it is held within a business model whose
objective is to both hold assets in order to collect contractual cash flows which arise on specified dates that
are solely principal and interest as well as selling the asset on the basis of its fair value. All other financial
assets are classified and measured at fair value through profit or loss unless the entity makes an irrevocable
election on initial recognition to present gains and losses on equity instruments (that are not held-for-trading
or contingent consideration recognised in a business combination) in other comprehensive income ('OCI').
Despite these requirements, a financial asset may be irrevocably designated as measured at fair value
through profit or loss to reduce the effect of, or eliminate, an accounting mismatch. For financial liabilities
designated at fair value through profit or loss, the standard requires the portion of the change in fair value
that relates to the entity's own credit risk to be presented in OCI (unless it would create an accounting
mismatch). New simpler hedge accounting requirements are intended to more closely align the accounting
treatment with the risk management activities of the entity. New impairment requirements use an 'expected
credit loss' ('ECL') model to recognise an allowance. Impairment is measured using a 12-month ECL method
unless the credit risk on a financial instrument has increased significantly since initial recognition in which
case the lifetime ECL method is adopted. For receivables, a simplified approach to measuring expected
credit losses using a lifetime expected loss allowance is available.
AASB 15 Revenue from Contracts with Customers
The consolidated entity has adopted AASB 15 from 1 January 2018. The standard provides a single
comprehensive model for revenue recognition. The core principle of the standard is that an entity shall
recognise revenue to depict the transfer of promised goods or services to customers at an amount that
reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
The standard introduced a new contract-based revenue recognition model with a measurement approach
that is based on an allocation of the transaction price. This is described further in the accounting policies
below. Credit risk is presented separately as an expense rather than adjusted against revenue. Contracts
with customers are presented in an entity's statement of financial position as a contract liability, a contract
asset, or a receivable, depending on the relationship between the entity's performance and the customer's
payment. Customer acquisition costs and costs to fulfil a contract can, subject to certain criteria, be
capitalised as an asset and amortised over the contract period.
AASB 9 Financial Instruments and AASB15 Revenue from Contracts with Customers
Impact of adoption:
AASB 9 and AASB 15 (which make amendments to AASB 101) were adopted using the full retrospective
approach. The impact of adoption was not material to the comparative amounts in the statement of profit and
loss and other comprehensive income for the year ended 31 December 2017, the statement of financial
position as at 31 December 2017 and were not restated. The change to significant accounting policies and
presentation of financial statements have been reflected in this report.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
14
Notes to the financial statements
31 December 2018
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Note 1. Statement of significant accounting policies continued
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the
Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply
with International Financial Reporting Standards as issued by the International Accounting Standards Board
('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where
applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets
at fair value through other comprehensive income, investment properties, certain classes of property, plant
and equipment and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the consolidated entity's
accounting policies. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements, are disclosed in note 2.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the
consolidated entity only. Supplementary information about the parent entity is disclosed in note 20.
Principles of consolidation
The consolidated financial statements incorporate the assets, liabilities of all subsidiaries of E4G Investment
Holdings Pty Ltd (‘company’ or ‘parent entity’) as at 31 December 2018 and results of all subsidiaries for the
year then ended. E4G Investment Holdings Pty Ltd and its subsidiaries together are referred to in these
financial statements as the ‘consolidated entity’.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity
controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power to direct the activities
of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the
consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the
consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction provides
evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the policies adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in
ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference
between the consideration transferred and the book value of the share of the non-controlling interest
acquired is recognised directly in equity attributable to the parent.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of
profit or loss and other comprehensive income, statement of financial position and statement of changes in
equity of the consolidated entity. Losses incurred by the consolidated entity are attributed to the non-
controlling interest in full, even if that results in a deficit balance.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill,
liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences
recognised in equity. The consolidated entity recognises the fair value of the consideration received and the
fair value of any investment retained together with any gain or loss in profit or loss.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
15
Notes to the financial statements
31 December 2018
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Note 1. Statement of significant accounting policies continued
Revenue recognition
The consolidated entity recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is
expected to be entitled in exchange for transferring goods or services to a customer. For each contract with
a customer, the consolidated entity : identifies the contract with a customer; identifies the performance
obligations in the contract; determines the transaction price which takes into account estimates of variable
consideration and the time value of money; allocates the transaction price to the separate performance
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be
delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that
depicts the transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer
such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other
contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount'
method. The measurement of variable consideration is subject to a constraining principle whereby revenue
will only be recognised to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty
associated with the variable consideration is subsequently resolved. Amounts received that are subject to
the constraining principle are initially recognised as deferred revenue in the form of a separate refund liability
Sale of goods
Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the
goods, which is generally at the time of delivery.
Rendering of services
Revenue from a contract to provide services is recognised over time as the services are rendered based on
either a fixed price or an hourly rate.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on
the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and
liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior
periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be
applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or
substantively enacted, except for:
• When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction, affects
neither the accounting nor taxable profits; or
• When the taxable temporary difference is associated with interests in subsidiaries, associates or joint
ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference
will not reverse in the foreseeable future.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
16
Notes to the financial statements
31 December 2018
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Note 1. Statement of significant accounting policies continued
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting
date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future
taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred
tax assets are recognised to the extent that it is probable that there are future taxable profits available to
recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current
tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate
to the same taxable authority on either the same taxable entity or different taxable entities which intend to
settle simultaneously.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed
in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected
to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless
restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.
All other assets are classified as non-current. A liability is classified as current when: it is either expected to
be settled in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it
is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the
settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as
non-current.
Deferred tax assets and liabilities are always classified as non-current.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other
short-term, highly liquid investments with original maturities 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 statement of cash flows presentation purposes, cash and cash equivalents also includes bank overdrafts,
which are shown within borrowings in current liabilities on the statement of financial position.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using
the effective interest method, less any allowance for expected credit losses. Trade receivables are generally
due for settlement within 30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses
a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been
grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Contract assets
Contract assets are recognised when the consolidated entity has transferred goods or services to the
customer but where the consolidated entity is yet to establish an unconditional right to consideration.
Contract assets are treated as financial assets for impairment purposes.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
17
Notes to the financial statements
31 December 2018
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Note 1. Statement of significant accounting policies continued
Inventories
Raw materials, work in progress and finished goods are stated at the lower of cost and net realisable value
on a 'weighted average cost' basis. Cost comprises of direct materials and delivery costs, direct labour,
import duties and other taxes, an appropriate proportion of variable and fixed overhead expenditure based
on normal operating capacity, and, where applicable, transfers from cash flow hedging reserves in equity.
Costs of purchased inventory are determined after deducting rebates and discounts received or receivable.
Stock in transit is stated at the lower of cost and net realisable value. Cost comprises of purchase and
delivery costs, net of rebates and discounts received or receivable.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs
of completion and the estimated costs necessary to make the sale.
Property, plant and equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated
depreciation.
Plant and equipment
Plant and equipment are measured at cost less depreciation and impairment losses.
The cost of fixed assets constructed within the consolidated entity includes the cost of materials, direct
labour, borrowing costs and an appropriate proportion of fixed and variable overheads. Subsequent costs
are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the consolidated entity and the
cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss
during the financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets including building and capitalised leased assets, but excluding
freehold land, is depreciated on a diminishing value basis over their useful lives to the consolidated entity
commencing from the time the asset is held ready for use. Leased assets are depreciated over the shorter of
either the unexpired year of the lease or the estimated useful lives of the assets. The depreciation rates
used for each class of depreciable assets are:
Class of fixed asset
Depreciation rate
Plant & machinery, fixtures, fittings & office equip
Motor vehicles
Computer equipment and software
Leasehold improvements
5% - 25%
20%
10% - 40%
5% - 15%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting
period date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of
the lease or the estimated useful life of the assets, whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic
benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds
are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred
directly to retained profits.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
18
Notes to the financial statements
31 December 2018
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Note 1. Statement of significant accounting policies continued
Intangible assets
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at
their fair value at the date of the acquisition. Intangible assets acquired separately are initially recognised at
cost. Indefinite life intangible assets are not amortised and are subsequently measured at cost less any
impairment. Finite life intangible assets are subsequently measured at cost less amortisation and any
impairment. The gains or losses recognised in profit or loss arising from the derecognition of intangible
assets are measured as the difference between net disposal proceeds and the carrying amount of the
intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes
in the expected pattern of consumption or useful life are accounted for prospectively by changing the
amortisation method or period.
Software
Significant costs associated with software are deferred and amortised on a straight-line basis over the period
of their expected benefit, being their finite life.
Leases
The determination of whether an arrangement is or contains a lease is based on the substance of the
arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the
use of a specific asset or assets and the arrangement conveys a right to use the asset.
A distinction is made between finance leases, which effectively transfer from the lessor to the lessee
substantially all the risks and benefits incidental to the ownership of leased assets, and operating leases,
under which the lessor effectively retains substantially all such risks and benefits.
Finance leases are capitalised. A lease asset and liability are established at the fair value of the leased
assets, or if lower, the present value of minimum lease payments. Lease payments are allocated between
the principal component of the lease liability and the finance costs, so as to achieve a constant rate of
interest on the remaining balance of the liability.
Leased assets acquired under a finance lease are depreciated over the asset's useful life or over the shorter
of the asset's useful life and the lease term if there is no reasonable certainty that the consolidated entity will
obtain ownership at the end of the lease term.
Operating lease payments, net of any incentives received from the lessor, are charged to profit or loss on a
straight-line basis over the term of the lease.
Impairment of non-financial assets
Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are
tested annually for impairment, or more frequently if events or changes in circumstances indicate that they
might be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised
for the amount by which the asset's carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-
in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount
rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have
independent cash flows are grouped together to form a cash-generating unit.
Trade and other payables
Trade and other payables represent the liabilities for goods and services received by the consolidated entity
that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the
amounts normally paid within 30 days of recognition of the liability.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
19
Notes to the financial statements
31 December 2018
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Note 1. Statement of significant accounting policies continued
Contract liabilities
Contract liabilities represent the consolidated entity's obligation to transfer goods or services to a customer
and are recognised when a customer pays consideration, or when the consolidated entity recognises a
receivable to reflect its unconditional right to consideration (whichever is earlier) before the consolidated
entity has transferred the goods or services to the customer.
Refund liabilities
Refund liabilities are recognised where the consolidated entity receives consideration from a customer and
expects to refund some, or all, of that consideration to the customer. A refund liability is measured at the
amount of consideration received or receivable for which the consolidated entity does not expect to be
entitled and is updated at the end of each reporting period for changes in circumstances. Historical data is
used across product lines to estimate such returns at the time of sale based on an expected value
methodology.
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of
transaction costs. They are subsequently measured at amortised cost using the effective interest method.
The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability in
the statement of financial position, net of transaction costs.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are
expensed in the period in which they are incurred.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected
to be paid when the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the
reporting date are measured at the present value of expected future payments to be made in respect of
services provided by employees up to the reporting date using the projected unit credit method.
Consideration is given to expected future wage and salary levels, experience of employee departures and
periods of service. Expected future payments are discounted using market yields at the reporting date on
corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future
cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are
incurred.
Provisions
Provisions are recognised when the consolidated entity has a legal or constructive obligation, as a result of
past events, for which it is probable that an outflow of economic benefits will result and that outflow can be
reliably measured. Provisions are measured using the best estimate of amounts required to settle the
obligation at the end of the reporting year.
Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
20
Notes to the financial statements
31 December 2018
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Note 1. Statement of significant accounting policies continued
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date; and assumes that
the transaction will take place either: in the principal market; or in the absence of a principal market, in the
most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming they act in their economic best interests. For non-financial assets, the fair value
measurement is based on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, are used, maximising the
use of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed at
each reporting date and transfers between levels are determined based on a reassessment of the lowest
level of input that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal
expertise is either not available or when the valuation is deemed to be significant. External valuers are
selected based on market knowledge and reputation. Where there is a significant change in fair value of an
asset or liability from one period to another, an analysis is undertaken, which includes a verification of the
major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
Dividends
Dividends are recognised when declared during the financial year and no longer at the discretion of the
company.
Business combinations
The acquisition method of accounting is used to account for business combinations regardless of whether
equity instruments or other assets are acquired.
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity
instruments issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of
any non-controlling interest in the acquiree. For each business combination, the non-controlling interest in
the acquiree is measured at either fair value or at the proportionate share of the acquiree's identifiable net
assets. All acquisition costs are expensed as incurred to profit or loss.
On the acquisition of a business, the consolidated entity assesses the financial assets acquired and liabilities
assumed for appropriate classification and designation in accordance with the contractual terms, economic
conditions, the consolidated entity's operating or accounting policies and other pertinent conditions in
existence at the acquisition-date.
Where the business combination is achieved in stages, the consolidated entity remeasures its previously
held equity interest in the acquiree at the acquisition-date fair value and the difference between the fair value
and the previous carrying amount is recognised in profit or loss.
Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value.
Subsequent changes in the fair value of the contingent consideration classified as an asset or liability is
recognised in profit or loss. Contingent consideration classified as equity is not remeasured and its
subsequent settlement is accounted for within equity.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
21
Notes to the financial statements
31 December 2018
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Note 1. Statement of significant accounting policies continued
The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-
controlling interest in the acquiree and the fair value of the consideration transferred and the fair value of any
pre-existing investment in the acquiree is recognised as goodwill. If the consideration transferred and the
pre-existing fair value is less than the fair value of the identifiable net assets acquired, being a bargain
purchase to the acquirer, the difference is recognised as a gain directly in profit or loss by the acquirer on the
acquisition-date, but only after a reassessment of the identification and measurement of the net assets
acquired, the non-controlling interest in the acquiree, if any, the consideration transferred and the acquirer's
previously held equity interest in the acquirer.
Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts
the provisional amounts recognised and also recognises additional assets or liabilities during the
measurement period, based on new information obtained about the facts and circumstances that existed at
the acquisition-date. The measurement period ends on either the earlier of (i) 12 months from the date of the
acquisition or (ii) when the acquirer receives all the information possible to determine fair value.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST
incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the
acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount
of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in
the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to the tax authority, are presented as operating
cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the tax authority.
New accounting standards and interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not
yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended
31 December 2018. The consolidated entity's assessment of the impact of these new or amended
Accounting Standards and Interpretations, most relevant to the consolidated entity, are set out below.
AASB 16 Leases
This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard
replaces AASB 117 'Leases' and for lessees will eliminate the classifications of operating leases and finance
leases. Subject to exceptions, a 'right-of-use' asset will be capitalised in the statement of financial position,
measured at the present value of the unavoidable future lease payments to be made over the lease term. The
exceptions relate to short-term leases of 12 months or less and leases of low-value assets (such as personal
computers and small office furniture) where an accounting policy choice exists whereby either a 'right-of-use'
asset is recognised or lease payments are expensed to profit or loss as incurred. A liability corresponding to
the capitalised lease will also be recognised, adjusted for lease prepayments, lease incentives received, initial
direct costs incurred and an estimate of any future restoration, removal or dismantling costs. Straight-line
operating lease expense recognition will be replaced with a depreciation charge for the leased asset (included
in operating costs) and an interest expense on the recognised lease liability (included in finance costs). In the
earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when
compared to lease expenses under AASB 117. However EBITDA (Earnings Before Interest, Tax, Depreciation
and Amortisation) results will be improved as the operating expense is replaced by interest expense and
depreciation in profit or loss under AASB 16. For classification within the statement of cash flows, the lease
payments will be separated into both a principal (financing activities) and interest (either operating or financing
activities) component. For lessor accounting, the standard does not substantially change how a lessor
accounts for leases. The consolidated entity will adopt this standard from 1 January 2019. The present value
of the payments relating to lease commitments, in commitment note 24, would give rise to a right of use asset
and lease liabilities being recognised under AASB 16.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
22
Notes to the financial statements
31 December 2018
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Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually evaluates
its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses.
Management bases its judgements, estimates and assumptions on historical experience and on other
various factors, including expectations of future events, management believes to be reasonable under the
circumstances. The resulting accounting judgements and estimates will seldom equal the related actual
results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next
financial year are discussed below.
Revenue recognised over time
The consolidated entity has revenue where the performance obligation is satisfied over time. Revenue is
recognised over time by measuring the progress toward complete satisfaction of that performance obligation.
A single method is applied consistently for measuring progress for each performance obligation satisfied over
time. Judgment is required when selecting a method (output or input methods) for measuring progress toward
complete satisfaction of a performance obligation. Assessing the satisfaction of performance obligations over
time requires judgment and the consideration of many criteria that should be met to qualify. Events and
circumstances frequently do not occur as expected. Even if the events anticipated under the assumptions
occur, actual results are still likely to be different from the estimates since other anticipated events frequently
do not occur as expected and the variation may be material.
Allowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is
based on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to
allocate an overall expected credit loss rate for each group. These assumptions include recent sales
experience and historical collection rates.
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation
charges for its property, plant and equipment and finite life intangible assets. The useful lives could change
significantly as a result of technical innovations or some other event. The depreciation and amortisation
charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or
non-strategic assets that have been abandoned or sold will be written off or written down.
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite
life intangible assets at each reporting date by evaluating conditions specific to the consolidated entity and to
the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of
the asset is determined. This involves fair value less costs of disposal or value-in-use calculations, which
incorporate a number of key estimates and assumptions.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity
considers it is probable that future taxable amounts will be available to utilise those temporary differences
and losses.
Employee benefits provision
As discussed in note 1, the liability for employee benefits expected to be settled more than 12 months from
the reporting date are recognised and measured at the present value of the estimated future cash flows to be
made in respect of all employees at the reporting date. In determining the present value of the liability,
estimates of attrition rates and pay increases through promotion and inflation have been taken into account.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
23
Notes to the financial statements
31 December 2018
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
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Revenue and other income
Sales revenue:
Provision of services and sale of goods
Other income:
Interest income
Other revenue
Total other income
Sectors
Natural resources
Non-mining infrastructure
Utilities
Geographical regions
Western Australia
Queensland
Timing of revenue recognition
Goods/services transferred over time
Expenses
Consolidated Entity
2018
$
2017
$
50,485,254
30,291,601
50,485,254
30,291,601
22,585
11,825
34,410
15,582
74,325
89,907
Consolidated Entity
2018
$
2017
$
47,601,694
19,943,551
1,279,560
1,604,000
50,485,254
2,335,654
8,012,396
30,291,601
49,972,128
28,985,110
513,126
1,306,491
50,485,254
30,291,601
50,485,254
50,485,254
30,291,601
30,291,601
Consolidated Entity
2018
$
2017
$
Profit before income tax from continuing operations includes
the following specific expenses:
Cost of sales
Cost of sales
44,530,494
27,905,689
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
24
Notes to the financial statements
31 December 2018
Note 4. Expenses continued
Depreciation
Leasehold improvements
Motor vehicles
Computer equipment & software
Total depreciation
Finance costs
Plant & machinery, fixtures, fittings & office equipment
Interest and finance charges on borrowings
Interest and finance charges on lease liabilities
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Finance costs expensed
Rental expense relating to operating leases
Minimum lease payments
Superannuation expense
Superannuation expense
Income tax expense
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b)
a) The components of tax expense comprise:
Current tax expense
Current year
Deferred tax
Origination and reversal of temporary differences
Under provision in respect of prior years
Accounting profit before tax
Accounting profit before tax:
Prima facie tax payable on profit before income tax at
30% (2017: 30%):
Tax effect of:
- Non-allowable items
- Business blackhole expenditure
- Under provision in respect of prior years
Income tax expense (benefit)
Consolidated Entity
2017
$
2018
$
63,687
139,145
251,015
206,478
660,325
829,380
24,094
853,474
71,197
161,264
212,098
215,606
660,165
252,012
30,794
282,806
526,112
990,168
1,627,121
1,114,158
Consolidated Entity
2017
$
2018
$
-
-
609,949
169,953
779,902
(355,773)
63,367
(292,406)
2,036,110
(1,206,010)
610,833
(361,802)
6,518
(7,402)
169,953
779,902
6,029
-
63,367
(292,406)
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
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Notes to the financial statements
31 December 2018
Note 5. Income tax expense continued
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Non-current
Deferred tax assets and liabilities:
1 January
2018
$
Recognised
in income
$
Recognised
in equity
$
31 December
2018
$
e
s
u
Other assets
Property, plant and equipment
Employee benefits
Provisions
Other
5,363
(38,763)
338,427
12,000
(13,197)
(6,094)
(43,760)
(172,913)
38,444
(18,331)
Unused tax losses
4,347,259
(577,248)
29,606
-
-
-
-
-
28,875
(82,523)
165,514
50,444
(31,528)
3,770,011
4,651,089
(779,902)
29,606
3,900,793
l
Recognised as:
Deferred tax assets
Deferred tax liabilities
4,703,049
(51,960)
4,651,089
4,029,844
(129,051)
3,900,793
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Consolidated Entity
Non-current
Deferred tax assets and liabilities:
Other assets
Property, plant and equipment
Employee benefits
Provisions
Other
Unused tax losses
Recognised as:
Deferred tax assets
Deferred tax liabilities
1 January
2017
$
Recognised
in income
$
Recognised
in equity
$
31 December
2017
$
15,530
-
(109,922)
(149,521)
(23,162)
559,481
292,406
(10,167)
(38,763)
448,349
161,521
9,965
3,787,778
4,358,683
4,410,437
(51,754)
4,358,683
-
-
-
-
-
-
-
5,363
(38,763)
338,427
12,000
(13,197)
4,347,259
4,651,089
4,703,049
(51,960)
4,651,089
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
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Notes to the financial statements
31 December 2018
Auditors remuneration
Remuneration of the auditor for:
Auditing the financial statements
Tax compliance services
Total remuneration of the auditor
Cash and cash equivalents
Cash at banks and in hand
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Short-term bank deposits
Total cash and cash equivalents
Reconciliation of cash
Cash at the end of the financial year as shown in the
statement of cash flows is reconciled to items in the
statement of financial position as follows:
Balances as above
Funds held in trust - directors
Cash and cash equivalents
Trade and other receivables
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Consolidated Entity
2018
$
64,000
20,350
84,350
2017
$
48,000
17,475
65,475
Consolidated Entity
2018
$
858,656
1,397,242
2,255,898
2017
$
663,403
1,155,595
1,818,998
2,255,898
-
2,255,898
1,818,998
(158,758)
1,660,240
Consolidated Entity
2018
$
12,758,448
31,337
4,206,072
2017
$
8,209,697
1,450,771
946,855
Trade receivables
Other receivables – contract assets
Accrued revenue – contract assets
Total current trade and other receivables
16,995,857
10,607,323
Allowance for expected credit losses
The consolidated entity has not recognised any losses in the profit or loss in respect of the expected credit
losses for the year ended 31 December 2018.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
A fixed and floating charge over the short-term bank deposits is held as part of the guarantee facility provided.
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
27
Notes to the financial statements
31 December 2018
Note 8. Trade and other receivables continued
Other receivables – contract assets
Reconciliation of the written down values at the beginning and end of the
current and previous financial year are set out below:
Accrued revenue – contract assets
Reconciliation of the written down values at the beginning and end of the current and previous financial year
are set out below:
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Opening balance
Additions
Transfer to income statement
Closing balance
Opening balance
Additions
Transfer to trade receivables
Closing balance
Other assets
Prepayments
Inventory
Total other assets
Plant and equipment
At cost
Accumulated depreciation
Total plant and equipment
Property, plant and equipment
1,450,771
31,337
(1,450,771)
31,337
36,999
1,450,771
(36,999)
1,450,771
946,855
4,206,072
(946,855)
4,206,072
2,800,810
946,855
(2,800,810)
946,855
Consolidated Entity
2018
$
232,020
50,000
282,020
2017
$
142,218
-
142,218
Consolidated Entity
2018
$
2017
$
7,757,266
7,352,491
(4,829,026)
(4,243,361)
2,928,240
3,109,130
E4G Investment Holdings Pty Limited ABN 77 614 735 474
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Notes to the financial statements
31 December 2018
Note 10. Property, plant and equipment continued
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial
year are set out below:
Consolidated
Balance at 1 January 2017
Additions
Disposals
Depreciation expense
Balance at 31 December 2017
$
407,933
2,730
-
(71,197)
339,466
Leasehold
Improvements
Motor Vehicles Comp. Equip &
Software
$
$
705,172 1,170,016
129,428 110,021
(6,988)
(161,264) (212,098)
1,067,671
666,348
Total
Plant & Mach.
Fixt & Office
Equip
$
876,810 3,159,931
641,024
(31,660)
(660,165)
3,109,130
398,845
(268) (24,404)
(215,606)
1,035,645
$
Additions
Disposals
Depreciation expense
Balance at 31 December 2018
-
-
(63,687)
275,779
-
-
(139,145)
527,203
317,616
-
(251,015)
1,134,272
226,109
(64,290)
(206,478)
990,986
543,725
(64,290)
(660,325)
2,928,240
Intangible assets
Capitalised legal costs
Software licenses
Total intangible assets
Trade and other payables
Current
Trade payables
Sundry payables and accrued expenses
Deferred income – contract liabilities
Payable to vendors - conditional
Consolidated Entity
2018
$
62,699
11,011
73,710
2017
$
55,698
11,011
66,709
Consolidated Entity
2018
$
3,623,646
3,922,819
265,990
-
2017
$
2,288,046
3,355,612
99,482
228,105
Total current trade and other payables
7,812,455
5,971,245
All amounts are short term and the carrying values are considered to be a reasonable approximation of fair
value.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
29
Notes to the financial statements
31 December 2018
Note 12. Trade and other payables continued
Deferred income – contract liabilities
Reconciliation of the written down values at the beginning and end of the current and previous financial year
are set out below:
Opening balance
Additions
Transfer to sales revenue
Closing balance
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Non-current
Payable to vendors – conditional
Total non-current trade and other payables
Under the share purchase agreement for Aerison Holdings Pty Ltd executed in November 2016, the remaining
consideration is subject to contain conditions and the maximum amount payable is $983,922. The milestone
will be measured as at 31 December 2019. As at 31 December 2018, the contingent liability is booked to non-
current liabilities as trade and other payables.
99,482
265,990
317,307
99,482
(99,482)
(317,307)
265,990
99,482
Consolidated Entity
2018
$
983,922
983,922
2017
$
983,922
983,922
Consolidated Entity
2018
$
-
58,042
2,341,201
3,902,643
223,582
-
2017
$
37,076
25,747
-
2,591,045
260,575
76,750
6,525,468
2,991,193
Borrowings
Current
Related party loan from director
Insurance premium funding (IPF) facility
Convertible notes
Octet Finance Pty Ltd facility
Hire purchase liabilities
Unsecured loan from director
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Unsecured and related party loan represents balances owing to directors incurring no interest.
Non-current
Hire purchase liabilities
Consolidated Entity
2018
$
88,189
88,189
2017
$
311,759
311,759
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
30
Notes to the financial statements
31 December 2018
Consolidated Entity
2018
$
2,307,000
(74,309)
108,510
2,341,201
-
2,307,000
(104,060)
29,751
108,510
2,341,201
2017
$
-
-
-
-
-
-
-
-
-
-
Note 13. Borrowings continued
Convertible Notes
2,307,000 (2017: nil) convertible notes
Note issue costs
Redemption premium
At the beginning of reporting period
Notes issued
Note issue cost
Note issue cost amortised
Redemption premium
At reporting date
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During the year, convertible notes were issued on 27 February 2018, 26 May 2018 and 6 June 2018. They
are convertible into ordinary shares in the Parent entity under certain conditions and are an unsecured
obligation of the Parent entity that rank pari-passu with all other unsecured indebtedness of the Parent. The
notes bear interest and have a principal amount and an issue price of $1.00 per note.
Financing arrangements
Unrestricted access was available at the reporting date to the
Following lines of credit:
Total facilities
Octet Finance Pty Ltd
Used at the reporting date
Octet Finance Pty Ltd
Unused at the reporting date
Octet Finance Pty Ltd
Consolidated Entity
2018
$
2017
$
5,700,000
3,000,000
3,902,643
2,591,045
1,797,357
408,955
Refer to Note 17 for further information on financial instruments.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
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Notes to the financial statements
31 December 2018
Employee benefits
Annual leave provision
Long service leave provision
Other employment related payables and provisions
Non-current
Long service leave provision
Consolidated Entity
2018
$
444,082
382,468
219,201
1,045,751
2017
$
413,616
422,878
42,376
878,870
67,682
80,149
The current portion of these liabilities represents the consolidated entity’s obligations to which the employee
has a current legal entitlement. These liabilities arise mainly from accrued annual leave and long service
leave entitlements at reporting date.
A provision has been recognised for employee benefits relating to long service leave for employees. In
calculating the present value of future cash flows in respect of long service leave, the probability of long
service leave being taken is based upon historical data. The measurement and recognition criteria for
employee benefits are described note 1.
Equity - Issued capital
Ordinary shares - fully paid
Movements in ordinary share capital
Details
Consolidated Entity
2018
2017
2018
2017
Shares
Shares
$
$
1,373,014
1,343,250
3,328,647
3,160,005
Date
Shares
Issue price
$
Balance
Issue of shares
Share issue transaction costs, net of tax
1 January 2017
7 July 2017
7 July 2017
Balance
Issue of shares
Share issue transaction costs, net of tax
31 December 2017
30 March 2018
30 March 2018
1,000,000
343,250
-
1,343,250
29,764
250,000
$8.74 3,000,005
(90,000)
$0.00
$5.7125
$0.00
3,160,005
170,027
(1,385)
Balance
31 December 2018
1,373,014
3,328,647
E4G Investment Holdings Pty Limited ABN 77 614 735 474
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Notes to the financial statements
31 December 2018
Note 15. Equity - Issued capital continued
Convertible notes reserve
(2017: 170,027) convertible notes
Issue costs
a) Convertible notes
At the beginning of reporting period
Notes issued
Notes converted into shares
Share issue cost
At reporting date
Consolidated Entity
2018
$
-
-
-
168,642
-
(170,027)
1,385
-
2017
$
170,027
(1,385)
168,642
-
170,027
-
(1,385)
168,642
Convertible notes were issued on 17 February 2017. They are convertible into ordinary shares in the
Company automatically upon maturity.
The convertible note reserve represents the equity component of convertible notes issued on 17 February
2017.
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the
company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares
have no par value and the company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon
a poll each share shall have one vote.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going
concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain
an optimum capital structure to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net
debt is calculated as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of
dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce
debt.
The consolidated entity is subject to certain financing arrangements covenants and meeting these is given
priority in all capital risk management decisions. There have been no events of default on the financing
arrangements during the financial year.
The capital risk management policy remains unchanged from 31 December 2017.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
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E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
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Notes to the financial statements
31 December 2018
Equity - dividends
Dividends paid during the financial year were as follows:
$126,243 per B class share (2017: $250,000) and
$269,000 per C class share (2017: NIL)
Consolidated Entity
2018
$
2017
$
521,486
500,000
E4G Investment Holdings Pty Ltd holds 100% of the ordinary shares of Aerison Holdings Pty Ltd. As at 31
December 2018, there were also 2 fully paid B class and 1 fully paid C class shares of Aerison Holdings Pty
Ltd, held by Araosc Financial Investments Pty Ltd and S2S Investment Holdings Pty Ltd respectively. These
special class shares participate in dividends and are entitled to one vote when a poll is called at shareholders’
meetings.
Franking credits
Consolidated Entity
2018
$
2017
$
2,934,591
3,132,393
Franking credits available for subsequent financial years
based on a tax rate of 30%
Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including price risk and
interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the
financial performance of the consolidated entity. The consolidated entity uses different methods to measure
different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest
rate and other price risks and ageing analysis for credit risk.
Risk management is carried out by senior finance executives ('finance') under policies approved by the
Board of Directors ('the Board'). These policies include identification and analysis of the risk exposure of the
consolidated entity and appropriate procedures, controls and risk limits. Finance identifies, evaluates and
hedges financial risks within the consolidated entity's operating units. Finance reports to the Board on a
monthly basis.
Market risk
Price risk
The consolidated entity is not exposed to any significant price risk.
Interest rate risk
The consolidated entity's main interest rate risk arises from borrowings. Borrowings obtained at variable
rates expose the consolidated entity to interest rate risk. Borrowings obtained at fixed rates expose the
consolidated entity to fair value risk.
The Octet business transaction and debtor financing facilities are the only borrowing obtained at variable
rates. Due to the nature of the facility, wherein the drawdowns are generally fully repaid within 1-2 months,
upon receipt of payments from customers, the consolidated entity does not have material interest rate
exposure typically associated with regular variable rate bank borrowings.
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
34
Notes to the financial statements
31 December 2018
Note 17. Financial instruments continued
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency
credit information, confirming references and setting appropriate credit limits. The consolidated entity obtains
guarantees where appropriate to mitigate credit risk. The maximum exposure to credit risk at the reporting
date to recognised financial assets is the carrying amount, net of any provisions for impairment of those
assets, as disclosed in the statement of financial position and notes to the financial statements. The
consolidated entity does not hold any collateral.
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators
of this include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a
failure to make contractual payments for a period greater than 1 year.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly
cash and cash equivalents) and available borrowing facilities to be able to pay debts as and when they
become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available
borrowing facilities by continuously monitoring actual and forecast cash flows and matching the maturity
profiles of financial assets and liabilities.
Financing arrangements
Unused borrowing facilities at the reporting date:
Octet Finance Pty Ltd
Total
Consolidated Entity
2018
$
2017
$
1,797,357 408,955
1,797,357
408,955
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument
liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based
on the earliest date on which the financial liabilities are required to be paid. The tables include both interest
and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ
from their carrying amount in the statement of financial position.
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Notes to the financial statements
31 December 2018
Note 17. Financial instruments continued
Weighted
average
interest
rate
%
1 year or less Between 1 and
2 years
Between 2 and
5 years
Over 5 years
Remaining
contractual
maturities
$
$
$
$
$
Consolidated 2018
Non-derivatives
Non-interest bearing
Trade payables
Sundry payables
Payable to director
Payable to vendors -
conditional
-
-
-
-
3,623,646
3,897,819
25,000
-
-
-
-
983,922
Interest-bearing - fixed rate
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Convertible notes
22.2% 2,341,201
-
Hire purchase liability
4.41%
223,582
88,189
Insurance premium funding
1.75%
58,042
Interest-bearing – variable rate
Octet Finance Pty Ltd facility
7.85%
3,902,643
-
-
Total non-derivatives
14,071,933
1,072,111
-
-
-
-
-
-
-
-
-
Weighted
average
interest
rate
%
1 year or less Between 1 and
2 years
Between 2 and
5 years
Over 5 years
$
$
$
$
$
Consolidated 2017
Non-derivatives
Non-interest bearing
Trade payables
Sundry payables
Payable to director
Payable to vendors-
unconditional
Payable to vendors- conditional
Loan from director
Unsecured loan from director
-
-
-
-
-
-
-
2,288,046
3,330,612
37,076
228,105
-
25,000
76,750
Interest-bearing - fixed rate
Insurance premium funding
1.75%
25,747
-
-
-
-
-
-
-
-
-
-
-
-
983,922
-
-
-
Hire purchase liability
4.41%
260,575
223,570
88,189
Interest-bearing – variable rate
Octet Finance Pty Ltd facility
Total non-derivatives
7.85%
2,591,045
-
-
-
2,591,045
8,862,956
223,570
1,072,111
- 10,158,638
E4G Investment Holdings Pty Limited ABN 77 614 735 474
-
-
-
-
-
-
-
3,623,646
3,897,819
25,000
983,922
2,341,201
311,771
58,042
-
3,902,643
- 15,144,044
Remaining
contractual
maturities
-
-
-
-
-
-
-
-
-
2,288,046
3,330,612
37,076
228,105
983,922
25,000
76,750
25,747
572,334
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Notes to the financial statements
31 December 2018
Note 17. Financial instruments continued
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Key management personel disclosures
Compensation
The aggregate compensation made to directors and other members of key management personnel of the
consolidated entity is set out below:
Consolidated Entity
2018
$
633,505
59,991
-
2017
$
408,634
38,821
-
693,496
447,455
Short-term employee benefits
Post-employment benefits
Long-term benefits
Total compensation
Related party transactions
Parent entity
E4G Investment Holdings Pty Ltd is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 21.
Associates
There are no interests in associates.
Key management personnel
Disclosures relating to key management personnel are set out in note 18.
Transactions with related parties
The following transactions occurred with related parties:
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Repayment of related party loan from director (G Leone)
Partial payment of outstanding payable to director for
consultancy fees (G Leone)
Repayment of unsecured loan from director (D Hibbs)
Consolidated Entity
2018
$
37,076
-
76,750
2017
$
-
50,000
86,605
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E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
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Notes to the financial statements
31 December 2018
Note 19. Related party transactions continued
Receivable from and payable to related parties
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Consolidated Entity
Current payables:
Payables to director (G Leone, consultancy fees)
Receivables from related parties:
Receivable from Director (G Leone)
Receivable from Director (D Hibbs)
Current borrowings:
Related party loan from director (G Leone)
Unsecured loan from director (D Hibbs)
2018
$
2017
$
25,000
25,000
Consolidated Entity
2018
$
105,760
76,998
2017
$
-
-
Consolidated Entity
2018
$
-
-
2017
$
37,076
76,750
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
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Profit after income tax
Total comprehensive income
Parent Entity
2018
$
-
-
2017
$
-
-
E4G Investment Holdings Pty Limited ABN 77 614 735 474
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Total equity
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E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
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Notes to the financial statements
31 December 2018
Note 20. Parent entity information continued
Statement of financial position
Parent Entity
2018
$
2017
$
1,850
6,933,017
2,620,448
3,604,370
3,328,647
3,328,647
158,758
4,782,925
470,356
1,454,278
3,328,647
3,238,647
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity has provided guarantees for the finance lease facilities that Aerison Pty Ltd has with the
Commonwealth Bank of Australia. The amount owing under guarantee as at 31 December 2018 is $311,771
(2017: $572,334) and is included in Borrowings (refer to note 13).
Contingent liabilities
The parent entity has provided a corporate guarantee for the bank guarantee facilities of Aerison Pty Ltd to
Commonwealth Bank of Australia and Westpac Banking Corporation bank guarantee facilities totalling
$1,397,242. The facilities are secured by a fixed and floating charge over certain short-term bank deposits.
Capital commitments
The parent entity had no capital commitments for property, plant and equipment as at 31 December 2018
and 31 December 2017.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed
in note 1.
Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following wholly-
owned subsidiaries in accordance with the accounting policy described in note 1:
Principal place of business/
Country of Incorporation
2018
%
2017
%
Ownership Interest
Aerison Holdings Pty Limited
Aerison Services Pty Ltd
Aerison Pty Ltd
Aerison Mechanical and Electrical Technology
Pty Ltd (Dormant)
Australia
Australia
Australia
Australia
100
100
100
100
100
100
25
25
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
39
Notes to the financial statements
31 December 2018
Consolidated Entity
2018
$
2017
$
-
164,420
Convertible
Notes
$
IPF Facility Octet Finance Lease Liability
Total
$
$
$
$
-
-
-
-
-
-
742,178
742,178
25,747
2,591,045
(334,264)
2,282,528
-
-
164,420
164,420
25,747
2,591,045
572,334
3,189,126
2,202,940
138,261
32,295
-
1,311,598
(260,563) 3,286,270
-
- 138,261
2,341,201
58,402
3,902,643
311,771
6,613,657
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Non-cash investing and financing activities
Acquisition of plant and equipment by means of lease
Changes in liabilities arising from financing activities
Consolidated
Balance at 1 January 2017
Net cash provided by (used in) financing
activities
Acquisition of plant and equipment by
means of leases
Balance at 31 December 2017
Net cash provided by (used in) financing
activities
Non-cash redemption premium and costs
Balance at 31 December 2018
Committments
a) Finance lease commitments
Payable - minimum lease payments
- not later than 12 months
- between 12 months and five years
Less future finance charges
Present value of minimum lease payments
b) Operating lease commitments
Non-cancellable operating leases contracted for but not
capitalised in the financial statements
- not later than 12 months
- between 12 months and five years
Consolidated Entity
2018
$
2017
$
234,681
98,534
(21,444)
311,770
284,671
333,215
(45,551)
572,335
898,385
275,824
526,112
665,992
1,174,209
1,192,104
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
40
Notes to the financial statements
31 December 2018
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Cash flow information
Reconciliation of cash flow from operations with profit
after income tax
Profit after income tax
Non-cash flows adjustments:
Depreciation expense
Net on disposal of property, plant and equipment
Interest expense
Changes in operating assets and liabilities;
- trade and other receivables
- prepayments and other assets
- trade and other payables
- deferred tax assets and liabilities
- employee benefits
Net cash generated from / (used in) operating activities
Contingent assets and liabilities
Contingent assets
The Group has no contingent assets.
Consolidated Entity
2018
$
2017
$
1,256,208
(913,604)
660,325
29,789
298,374
660,165
9,164
-
(6,388,534)
(2,979,295)
(139,802)
2,662,897
779,902
(386,500)
20,775
133,769
(292,406)
(304,571)
(1,227,341)
(3,666,003)
Contingent liabilities
The Commonwealth Bank of Australia and Westpac Banking Corporation provided the Group with bank
guarantee facilities totalling $1,397,242. The facilities are secured by a fixed and floating charge over certain
short-term bank deposits.
Events after the reporting date
On 11 March 2020 Novel Coronavirus (COVID-19) was declared a global pandemic by the World Health
Organisation. The impact of COVID-19 on the company is likely to have a material impact on operational
revenue and expenses if either the Australian Federal Government or Western Australian State Government
were to impose a restrictive lock-down on essential services that effects the Company’s operational sites.
As at the date of this report:
a) The Company has the ability to materially curtail its activities during the forthcoming financial year in
response to any government restrictions and social distancing requirements;
b) The impacts on operational revenue and expenses cannot yet be reliably estimated; and
c) The Company believes it has sufficient cash reserves to support its curtailed activities.
Company details
The registered office is:
60 Havelock Street
WEST PERTH WA 6005
The principal place of business is:
1st Floor, 56 Ord Street
WEST PERTH WA 6005
E4G Investment Holdings Pty Limited ABN 77 614 735 474
E4G INVESTMENT HOLDINGS PTY LTD AND CONTROLLED SUBSIDIARIES 2018 ANNUAL REPORT
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Directors' Declaration
In the directors’ opinion:
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting
Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board as described in note 1 to the financial
statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's
financial position as at 31 December 2018 and of its performance for the financial year ended on that
date; and
there are reasonable grounds to believe that the company will be able to pay its debts as and when they
become due and payable.
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b)
c)
d)
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Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations
Act 2001.
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On behalf of the directors.
Giuseppe Leone
Director
Dated this 9 March 2021
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E4G Investment Holdings Pty Limited ABN 77 614 735 474