ABN 87 602 638 531
BAUMART HOLDINGS LIMITED
ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2019
C O N T E N T S
Corporate Directory
Directors' Report
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors' Declaration
Independent Auditor’s Report
Auditor’s Independence Declaration
Additional Information
C O R P O R A T E D I R E C T O R Y
PAGE
2
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43
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48
49
Share Registry
Advanced Share Registry Services Pty Ltd
110 Stirling Highway
Nedlands WA 6009
Telephone: +61 8 9389 8033
Facsimile: +61 8 9262 3723
Auditor
Stantons International Audit and Consulting Pty Ltd
Level 2, 1 Walker Avenue
West Perth WA 6005
Australian Securities Exchange
Australian Securities Exchange Limited
Level 40, Central Park,
152-158 St George’s Terrace
Perth Western Australia 6000
ASX Code:
BMH
Directors
Mr Berthus Budiman – Executive Director
Mr Matthew Logan – Executive Director
Mr Michael Crichton – Non-Executive Director
Mr Anson Gan – Non-Executive Director
Company Secretary
Ms Natalie Teo
Principal Place of Business
15 McCabe Street
North Fremantle WA 6159
Telephone: +61 8 6558 0814
Website: www.baumart.com.au
Registered Office
79 Broadway
Nedlands WA 6009
Telephone: +61 8 6389 2688
Facsimile: +61 8 6389 2588
2
D I R E C T O R S ’ R E P O R T
The Directors present their report together with the consolidated financial statements of BauMart Holdings
Limited (the Company or Parent Entity) and its controlled entities (together referred to hereafter as the
Consolidated Entity or Group) for the year ended 30 June 2019 and the auditor’s report thereon.
DIRECTORS
The Directors of the Company at any time during or since the end of the year are:
Mr Berthus Budiman
Executive Director – appointed 31 October 2014
Mr Budiman has more than 28 years’ experience in the manufacturing, wholesale and distribution industry across
an extensive range of products such as building and raw materials, industrial products, pharmaceutical products
and consumer goods in South East Asia.
Prior to joining BauMart Holdings, Mr Budiman has held senior management positions with global corporations
such as Young Corporation (Young Indonesia Pratama, PT), Mahakam Group of Companies and SC Johnson &
Son (Indonesia). During his time with the Young Corporation as Vice President, he oversaw the establishment of
various distribution companies and manufacturing facilities in Asia Pacific, Europe, the Middle East and North
and South America.
Mr Budiman studied at the Christian University of Indonesia’s Faculty of Mechanical Engineering from 1967 to
1970.
Mr Matthew Logan
Executive Director, B. Com. – appointed 8 August 2016
Mr Logan graduated with a Bachelor of Commerce majoring in Accounting and Business Law from Curtin
University in Western Australia and is an experienced commercial manager in the industrial supplies and
materials handling industry.
He is responsible for the Eco Pallets Pty Ltd (Eco Pallets) business and has worked closely with BauMart since
the acquisition of Eco Pallets. He has also been instrumental in developing the Australia wide infrastructure for all
product distribution divisions of BauMart.
Mr Logan was formerly an associate of a private practice for over 10 years where he provided corporate and
accounting services to various ASX clients in the mining, energy, industrial and technology industries.
Mr Michael Crichton
Non-Executive Director - appointed 19 March 2015
Mr Crichton has been involved in the logistics and construction industry for over 20 years. He spent 12 years in
senior management positions at TNT Express Worldwide and DHL Worldwide Express in South Australia and
Western Australia.
Mr Crichton went on to establish new apprenticeship programs with MPA Skills (Master Plumbers and Painters
Association WA) before taking on a consulting role in the construction industry, specialising on apprenticeships,
on behalf of the Western Australian State Government for 10 years.
Mr Anson Gan
Non-Executive Director, B.Eng (Hons) – appointed 19 March 2015
Mr Gan is a registered electrical engineer with the Institution of Engineers (Malaysia). He has held a range of
project engineering and consulting positions with various engineering companies in Australia, Malaysia and
China, as well as establishing his own business specialising in green building design and green energy
technology and the supply of green building materials.
He is experienced in electrical engineering, project management and green building consultancy in large scale
residential and commercial construction projects in Malaysia.
Mr Gan has a Bachelor of Engineering with a major in Electrical Engineering from Curtin University, Western
Australia
3
D I R E C T O R S ’ R E P O R T
COMPANY SECRETARY
Ms Natalie Teo, B. Com. - appointed 19 March 2015
Ms Teo graduated with a Masters in Accounting from Curtin University in Western Australia and completed a
Graduate Diploma in Applied Corporate Governance with the Governance Institute of Australia.
Ms Teo is a Chartered Secretary and is currently working with a firm which provides corporate and accounting
services to both listed and unlisted entities.
DIRECTORSHIPS IN OTHER LISTED ENTITIES
Directorships of other listed entities held by Directors of the Company during the last 3 years immediately before
the end of the year are as follows:
Director
Company
Mr B Budiman
Mr M Logan
Mr M Crichton
Mr A Gan
Not Applicable
Not Applicable
Not Applicable
Not Applicable
DIRECTORS’ INTERESTS
Period of directorship
From
-
-
-
-
To
-
-
-
-
The relevant interests of each director in the securities of the Company at the date of this report are as follows:
Director
Shares
Options
Mr B Budiman
Mr M Logan
Mr M Crichton
Mr A Gan
1,000,001
3,200,000
1,000,000
8,500,000
-
-
-
-
DIRECTORS’ MEETINGS
The number of Directors’ meetings held and the number of meetings attended by each of the Directors of the
Company during the year are:
Director
Held
Attended
Board
Mr B Budiman
Mr M Logan
Mr M Crichton
Mr A Gan
5
5
5
5
5
5
5
3
PRINCIPAL ACTIVITY
The principal activity of the Consolidated Entity during the year was the procurement, supply and distribution of
building products and materials, to both the residential and commercial construction industries. In addition to this,
the Consolidated Entity, through its Eco Pallets Pty Ltd division, was involved in procurement, supply and
distribution of plastic materials handling products.
4
D I R E C T O R S ’ R E P O R T
REVIEW OF OPERATIONS
Consolidated Entity results
- Net loss after tax of $555,138 (30 June 2018: $1,676,986).
Sales revenue
- Up 34% to $4,325,348 (30 June 2018: $3,223,650)
- Materials handling division up 54% to $3,492,297 (30 June 2018: $2,267,910)
Building material sales down 13% to $833,051 (30 June 2018: $955,740)
-
Business highlights
-
Top line sales revenue for FY19 continued positive increase, driven by the strong result in the materials
handling division
- Distribution centre for natural stones established in Brisbane region during the financial year
Implementation of cloud-based systems has enabled a streamlining of operational activities
-
The Consolidated Entity’s Australia-wide distribution platform is well positioned to cater for future growth
-
in a cost-efficient manner
- R&D claim of $175,247 under the Federal Government’s Research and Development (R&D) Tax
Incentive program finalised and receipted during the year
The materials handling division experienced another milestone year. The division achieved record revenues
following a consistent execution strategy to become Australia’s leading sustainable materials handling product
distribution business. Some of the highlights for the financial year include:
- Record revenue for the division of $3.49m
-
- Ongoing product development of new pallets and crates for heavy duty applications positions the
Full year profit for the division of $313K (30 June 2018: $92K).
division to generate increasing capital orders from industries requiring hygienic unit load devices
Sydney distribution centre relocated to a more logistically convenient location with minimal interruption
to operations
The division is currently evaluating expansion into new regions during FY20
-
-
The building materials supply division continued to grow its portfolio of architects, builders, designers, property
developers and pool builders presenting promising opportunities to expand the divisions’ product reach. Key
activities for the financial year include:
Sale and distribution of wood plastic composite and glass products continued during the year
- Revenue for the division of $833K, down 13% on the prior year
-
- New partnership with a leading stone distribution reseller in the Queensland region, providing a sound
platform to expand the natural stone distribution business in line with the division’s growth strategy
The sales team conducted several eastern states marketing trips to further enhance the distribution
platform for complementary product ranges
-
The Consolidated Entity continues to work closely with the operator of its glass processing equipment to ensure
that the equipment is maintained in an operationally ready status to optimise production capabilities, and remains
supportive of the operator’s ability to increase production opportunities.
The Consolidated Entity is currently evaluating new business development opportunities, complementary
acquisitions and expansion into new regions during FY20.
5
D I R E C T O R S ’ R E P O R T
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no ordinary fully paid shares issued during the year.
There were no other significant changes in the state of affairs of the Consolidated Entity during the financial year.
Total shares on issue at 30 June 2019 were 144,744,757.
LIKELY DEVELOPMENTS
The Consolidated Entity will continue to develop its principal activities of building materials and materials handling
product sourcing and supply.
DIVIDENDS
No dividend has been declared or paid by the Company to the date of this report.
ENVIRONMENTAL REGULATION
The Directors are not aware of any particular and significant environment regulation under a law of the
Commonwealth, State or Territory relevant to the Consolidated Entity.
CORPORATE GOVERNANCE
The Company’s 2019 Corporate Governance Statement can be
www.baumart.com.au.
found on
the Company’s website:
EVENTS SUBSEQUENT TO REPORTING DATE
There has not arisen in the interval between the end of the year and the date of this report any item, transaction
or event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly the
operations of the Consolidated Entity, the results of those operations, or the state of affairs of the Consolidated
Entity in future financial years.
SHARE OPTIONS
Options granted, exercised or lapsed
No options have been granted, exercised or lapsed since the end of the previous financial year and to the date of
this report.
Unissued shares under option
There were no options to subscribe for ordinary fully paid shares at the end of the year or at the date of this
report.
6
D I R E C T O R S ’ R E P O R T
INDEMNIFICATION AND INSURANCE OF OFFICERS
Indemnification
The Company has agreed to indemnify the current Directors and Company Secretary of the Company against all
liabilities to another person (other than the Company or a related body corporate) that may arise from their
position as officers of the Company, except where the liability arises out of conduct involving a lack of good faith.
The agreement stipulates that the Company will meet the full amount of any such liabilities, including costs and
expenses.
Insurance
The Company paid a premium during the year in respect of a director and officer liability insurance policy,
insuring the Directors of the Company, the Company Secretary, and all executive officers of the Company
against a liability incurred as such a director, secretary or executive officer to the extent permitted by the
Corporations Act 2001. The Directors have not included details of the nature of the liabilities covered in respect of
the directors’ and officers’ liability and legal expenses’ insurance contracts, as such disclosure is prohibited under
the terms of the contract.
The Company has not, during or since the year indemnified or agreed to indemnify the auditor of the Company or
any related entity against 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 or any related entity.
NON-AUDIT SERVICES
The Company’s auditor, Stantons International, did not provide any non-audit services during the year.
Stantons International Audit and Consulting Pty Ltd
Amounts paid for audit services provided during the year are set out below:
Audit and review of financial reports
Total remuneration for audit services
AUDITOR’S INDEPENDENCE DECLARATION
30 June
2019
$
30 June
2018
$
39,000
37,850
39,000
37,850
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is
set out on page 48.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party for
the purposes of taking responsibility on behalf of the Company for all or part of those proceedings.
7
D I R E C T O R S ’ R E P O R T
REMUNERATION REPORT - AUDITED
The remuneration report, which has been audited, outlines the key management personnel remuneration
arrangements for the Consolidated Entity, in accordance with the requirements of the Corporations Act 2001 and
its Regulations.
For the purposes of this report, key management personnel of the Consolidated Entity are defined as those
persons having authority and responsibility for planning, directing and controlling the major activities of the
Consolidated Entity, directly or indirectly, including any director (whether executive or otherwise) of the Company.
Key management personnel
The following were key management personnel of the Consolidated Entity at any time during the year and unless
otherwise indicated were key management personnel for the entire year:
Name
Position held
Mr B Budiman
Mr M Logan
Mr M Crichton
Mr A Gan
Executive Director (appointed 31 October 2014)
Executive Director (appointed 8 August 2016)
Non-executive Director (appointed 19 March 2015)
Non-executive Director (appointed 19 March 2015)
Principles of remuneration
The remuneration structures explained below are competitively set to attract, motivate and retain suitably qualified
and experienced candidates, reward the achievement of strategic objectives and achieve the broader outcome of
creation of value for shareholders.
The remuneration structures take into account:
the capability and experience of the key management personnel;
the key management personnel’s ability to control the achievement of strategic objectives;
the Consolidated Entity’s performance including:
the growth in share price; and
the amount of incentives within each key management person’s compensation.
o
o
Remuneration structure
In accordance with best practice corporate governance, the structure of non-executive directors’ remuneration is
clearly distinguished from that of executives and senior managers. Remuneration is determined by the Board as a
whole as the Company has not yet established a remuneration committee.
Non-executive director remuneration
The Constitution and the ASX Listing Rules specify that the aggregate remuneration of non-executive directors
shall be determined from time to time by shareholders in general meeting. Total remuneration for all non-
executive directors, last voted upon by shareholders at a meeting held in February 2015, is not to exceed
$300,000 per annum. Directors’ fees cover all main board activities and membership of committees if applicable.
Non-executive directors do not receive any retirement benefits, other than statutory superannuation, nor do they
receive any performance-related compensation.
Non-executive directors’ fees as at the reporting date are as follows:
Name
Mr M Crichton
Mr A Gan
Non-executive directors’ fees
excluding superannuation
$20,000 per annum
$20,000 per annum
Please note the above directors are entitled to superannuation on top of the above directors’ fees.
8
D I R E C T O R S ’ R E P O R T
REMUNERATION REPORT – AUDITED (continued)
Executive remuneration
Remuneration for executives is set out in employment agreements. Details of the employment agreement with
the Executive Director are provided below.
Executive directors may receive performance related compensation but do not receive any retirement benefits,
other than statutory superannuation.
Fixed remuneration
Fixed remuneration consists of base compensation (which is calculated on a total cost basis and includes any
FBT charges related to employee benefits including motor vehicles) as well as employer contributions to
superannuation funds.
Fixed remuneration is reviewed annually by the Board through a process that considers individual and overall
performance of the Consolidated Entity.
Long-term incentive
Long-term incentives (LTI) may be provided to key management personnel in the form of options over ordinary
shares of the Company. LTI are considered to promote continuity of employment and provide additional
incentive to recipients to increase shareholder wealth. Options may only be issued to directors subject to
approval by shareholders in general meeting.
There were no options issued as LTI during the year.
The Company has introduced a policy that prohibits employees and Directors of the Company from entering into
transactions that operate or are intended to operate to limit the economic risk or are designed or intended to
hedge exposure to unvested Company securities. This includes entering into arrangements to hedge their
exposure to LTI granted as part of their remuneration package. This policy may be enforced by requesting
employees and Directors to confirm compliance.
Consolidated Entity performance and link to remuneration
The Company was incorporated on 31 October 2014 and admitted to the Official List of ASX on 16 June 2015. It
is an owner and a lessor of glass-processing equipment and a supplier of building products and material handling
products whose operational activities commenced in the 2015 financial year. However, the overall level of key
management personnel remuneration will take into account the achievement of strategic objectives, service
criteria and growth in share price.
There were no performance related remuneration transactions during the year.
The earnings of the Consolidated Entity for the year are summarised below:
Net loss for the year attributable to owners of the
Company
Dividends paid
Change in share price
Share price at beginning of the year
Share price at end of the year
Loss per share
30 June 2019
30 June 2018
($555,138)
Nil
($1,676,986)
Nil
$0.22
$0.24
(0.38 cents)
$0.22
$0.22
(1.16 cents)
9
D I R E C T O R S ’ R E P O R T
REMUNERATION REPORT – AUDITED (continued)
Use of remuneration consultants
The Consolidated Entity did not engage the services of a remuneration consultant during the year.
Employment agreement
Executive Directors
The Company has entered into an employment agreement with its Executive Director, Mr Berthus Budiman,
effective from 1 December 2014 (Employment Agreement). The Employment Agreement outlines the
components of remuneration paid to Mr Budiman and will be reviewed on an annual basis. The Employment
Agreement specifies the duties and obligations to be fulfilled by Mr Budiman in the role of Executive Director. The
Company currently pays to Mr Budiman $80,000 per annum (exclusive of statutory superannuation) on the basis
of an approximate 28-hours work week for his services.
In addition, the company has another Executive Director, Mr Matthew Logan, effective from 8 August 2016
(Agreement). The Agreement outlines that remuneration paid to Mr Logan will be reviewed on an annual basis.
Furthermore, the Agreement states that the duties and obligations to be fulfilled by Mr Logan is in the role of
Executive Director, focusing towards the operational side of the company. The Company currently pays to Mr
Logan an annual salary of $100,000 per annum (exclusive of statutory superannuation) for his services.
Either Executive Director or BauMart Holdings may terminate the agreement at any time by giving three months’
written notice to the Company. Executive Directors have no entitlement to termination payment should they
terminate the agreement by written notice. BauMart Holdings may, by giving written notice to either Executive
Directors, immediately terminate the agreement should a number of specified occurrences happen, including a
serious breach of the agreement or serious misconduct. Executive Directors have no entitlement to termination
payment in the event of removal for misconduct.
Termination benefits are within the limits set by the Corporations Act 2001 such that they do not require
shareholder approval.
Remuneration of key management personnel
2019
Short-term
employment
benefits
Salary &
fees1
$
Other
$
Post-
employment
benefits
Superannuation
benefits
$
Share-
based
payments
Options
$
Total
$
Proportion of
remuneration
performance
related %
Executive Directors
Mr B Budiman
2019
Mr M Logan
2018
2019
2018
Non-Executive Directors
Mr M Crichton
Mr A Gan
Total
Total
2019
2018
2019
2018
2019
2018
80,000
80,000
100,000
100,000
20,000
20,000
20,000
20,000
220,000
220,000
-
-
-
-
-
-
-
-
-
-
7,600
7,600
9,500
9,500
1,900
1,900
1,900
1,900
20,900
20,900
-
-
-
-
-
-
-
-
-
-
87,600
87,600
109,500
109,500
21,900
21,900
21,900
21,900
240,900
240,900
-
-
-
-
-
-
-
-
-
-
The Company paid $13,793 as a premium during the year in respect of a director and officer liability insurance policy.
1. Salary & fees include employee benefits paid during the year.
10
D I R E C T O R S ’ R E P O R T
REMUNERATION REPORT – AUDITED (continued)
Share-based remuneration
There were no share-based remuneration transactions during the year.
Loans to key management personnel
There were no loans provided to key management personnel of the Consolidated Entity or their close family
members or entities related to them during the year.
Key management personnel equity holdings
Fully paid ordinary shares
The movement during the year in the number of ordinary shares in BauMart Holdings Limited held, directly,
indirectly or beneficially by each key management person, including their related parties, is as follows:
Key management person
Mr B Budiman
Mr M Logan
Mr M Crichton
Mr A Gan
Held at
30 June 2018
Held at date
of
appointment
1,000,001
3,200,000
1,000,000
8,500,000
N/A
N/A
N/A
N/A
Granted as
remuneration
Other
changes
Held at date
of resignation
Held at
30 June 2019
-
-
-
-
-
-
-
-
-
-
-
-
1,000,001
3,200,000
1,000,000
8,500,000
Key management person
Mr B Budiman
Mr M Logan
Mr M Crichton
Mr A Gan
Held at
30 June 2017
Held at date
of
appointment
1,000,001
3,200,000
1,000,000
8,500,000
N/A
N/A
N/A
N/A
Granted as
remuneration
Other
changes
Held at date
of resignation
Held at
30 June 2018
-
-
-
-
-
-
-
-
-
-
-
-
1,000,001
3,200,000
1,000,000
8,500,000
Share options
Directors did not hold any options at the beginning or end of the financial year.
This concludes the remuneration report, which has been audited.
This Directors’ Report is made out in accordance with a resolution of the Directors:
Dated at Perth, Western Australia this 30th day of August 2019
Matthew Logan
Executive Director
11
C O N S O L I D A T E D S T A T E M E N T O F P R O F I T O R L O S S
A N D O T H E R C O M P R E H E N S I V E I N C O M E
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
Note
2019
$
Revenue and other income
Sale of goods
Total Revenue
Cost of sales
Total cost of sales
Gross profit
Other revenue
Net finance income / (expense)
Expenses
Corporate and administrative expenses
Operational expenses
Occupancy expenses
Marketing expenses
Depreciation and amortisation expenses
Reversal of Impairment of Plant & Equipment /
(Impairment of Plant & Equipment)
Provision for doubtful debt
Total expenses
Loss before income tax
4,325,348
4,325,348
(3,602,625)
(3,602,625)
722,723
226,774
3,780
(639,185)
(186,918)
(466,748)
(192,528)
(243,277)
220,000
241
(1,508,415)
(555,138)
8 (a)
8 (b)
8 (c)
12 & 13
12
2018
$
3,223,650
3,223,650
(2,677,476)
(2,677,476)
546,174
212,742
67,112
(611,469)
(496,690)
(304,547)
(195,669)
(242,361)
(652,278)
-
(2,503,014)
(1,676,986)
Income tax benefit/(expense)
7 (a)
-
-
Net loss for the year
(555,138)
(1,676,986)
Other comprehensive income
Items that will not be reclassified to profit or loss
Items that may be reclassified subsequently to profit
or loss
Other comprehensive income for the year, net of
tax
-
-
-
-
-
-
Total comprehensive loss
(555,138)
(1,676,986)
Loss attributable to:
Owners of the Company
Total comprehensive loss attributable to:
Owners of the Company
Basic and diluted loss per share attributable to
the ordinary equity holders of the Company
(555,138)
(555,138)
(555,138)
(555,138)
(1,676,986)
(1,676,986)
(1,676,986)
(1,676,986)
Basic and diluted loss per share (cents)
24
(0.38)
(1.16)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income
is to be read in conjunction with the accompanying notes.
12
C O N S O L I D A T E D S T A T E M E N T O F F I N A N C I A L P O S I T I O N
A S A T 3 0 J U N E 2 0 1 9
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other current assets
Inventories
Total current assets
NON-CURRENT ASSETS
Property, plant & equipment
Intangibles
Other assets
Total non-current assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Employee benefits
Current tax liabilities
Total current liabilities
NON-CURRENT LIABILITIES
Employee benefits
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Accumulated losses
TOTAL EQUITY
Note
23(c)
9
10
11
12
13
18
14
15
15
16
17
2019
$
2018
$
177,592
1,315,652
21,508
396,386
1,911,138
300,189
5,117
158,710
464,016
280,819
1,065,404
54,880
984,531
2,385,634
316,953
3,628
158,710
479,291
2,375,154
2,864,925
897,760
25,520
2,943
926,223
9,290
9,290
844,090
8,364
2,943
855,397
14,749
14,749
935,513
870,146
1,439,641
1,994,779
8,251,219
(6,811,578)
1,439,641
8,251,219
(6,256,440)
1,994,779
The Consolidated Statement of Financial Position is to be read in conjunction with the accompanying notes.
13
C O N S O L I D A T E D S T A T E M E N T O F C H A N G E S I N E Q U I T Y
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
Issued
Capital
$
Accumulated
losses
$
Total
$
Total
equity
$
Balance at 30 June 2018
Loss for the year
Total comprehensive loss for the year
Transaction with equity holders, in their capacity as equity
holders
Issue of ordinary shares, net of transaction costs
8,251,219
-
-
-
(6,256,440)
(555,138)
1,994,779
(555,138)
1,994,779
(555,138)
(555,138)
(555,138)
(555,138)
-
-
-
Balance at 30 June 2019
Balance at 30 June 2017
Loss for the Year
Total comprehensive loss for the year
Transaction with equity holders, in their capacity as equity
holders
Issue of ordinary shares, net of transaction costs
8,251,219
(6,811,578)
1,439,641
1,439,641
8,251,219
-
-
-
(4,579,454)
(1,676,986)
3,671,765
(1,676,986)
3,671,765
(1,676,986)
(1,676,986)
(1,676,986)
(1,676,986)
-
-
-
Balance at 30 June 2018
8,251,219
(6,256,440)
1,994,779
1,994,779
The Consolidated Statement of Changes in Equity is to be read in conjunction with the accompanying notes.
14
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Cash flows from operating activities
Receipts in the course of operations
Government grants and tax incentives received
Payments in the course of operations
Interest received
Note
30 June 2019
$
30 June 2018
$
4,708,081
175,247
(4,982,573)
3,780
3,154,307
160,254
(5,274,679)
14,613
Net cash (outflow) from operating activities
23
(95,465)
(1,945,505)
Cash flows from investing activities
Repayment of short-term secured loan
Short term secured loan
Purchase of property, plant, and equipment and intangibles
-
-
(8,002)
2,200,000
(700,000)
(19,868)
Net inflow / (outflow) from investing activities
(8,002)
1,480,132
Net (decrease) / increase in cash and cash equivalents
(103,467)
(465,373)
Cash and cash equivalents as at beginning of year
Cash and cash equivalents as at end of year
280,819
177,352
746,192
280,819
The Consolidated Statement of Cash Flows is to be read in conjunction with the accompanying notes.
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1. REPORTING ENTITY
BauMart Holdings Limited (BauMart or Parent Entity) is a public company limited by shares, whose shares are
publicly traded on the Australian Securities Exchange. The financial statements cover BauMart Holdings Limited as
a consolidated entity consisting of BauMart and its subsidiaries (together referred to as the Consolidated Entity or
Group) for the year ended 30 June 2019.
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 30 August 2019.
The directors have the power to amend and reissue the financial statements.
The following is a summary of the material accounting policies adopted by the Consolidated Entity in the
preparation of the financial statements. The accounting policies have been consistently applied, unless otherwise
stated.
2. BASIS OF PREPARATION
Statement of compliance
These consolidated financial statements are general purpose financial statements which have been prepared in
accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting
Standards Board (AASB) and the Corporations Act 2001. These consolidated financial statements also comply with
International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB).
Basis of measurement
The financial report is prepared on the accruals basis and the historical cost basis, modified, where applicable, by
the measurement at fair value of selected financial assets and financial liabilities.
The financial statements are presented in Australian dollars and all values are rounded to the nearest dollar unless
otherwise stated.
During the year, Comparative Figures have been adjusted and/or reclassified where necessary to conform to
changes in presentation for the current year.
Significant accounting policies
Except as noted below, the same accounting policies and methods of computation have been applied by each
entity in the consolidated group and are consistent with those adopted and disclosed in the most recent annual
financial report.
New and revised Accounting Standards and Interpretations adopted 1 July 2018
The adoption of new and amended standards and interpretations has not resulted in a material change to the
financial performance or position of the Consolidated Entity.
All new and amended Australian Accounting Standards and Interpretations mandatory as at 1 July 2018 to the
Consolidated Entity have been adopted and include:
AASB 15 Revenue from Contracts with Customers
AASB 15 Revenue from Contracts with Customers (AASB 15) establishes new principles for reporting
information to users of financial statements about the nature, timing, amount and uncertainty of revenue
and cash flows arising from an entity’s contracts with customers. The core principle of AASB 15 is that an
entity recognises revenue when control of the goods or services is transferred to the customer for an
amount that reflects the consideration to which the entity expects to be entitled in exchange for those
goods or services.
The Consolidated Entity has adopted AASB 15 from 1 July 2018 using the modified retrospective
approach, which has resulted in changes in accounting policies. No material adjustment to opening
retained earnings was recognised as the amendments to the Consolidated Entity’s accounting policies did
not result in any significant changes to the timing or amount of revenue previously recognised under AASB
118 Revenue.
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2. BASIS OF PREPARATION (continued)
AASB 15 Revenue from Contracts with Customers (continued)
The Consolidated Entity generates its revenue from the following streams:
-
Sale of materials handling and building material products through the Consolidated Entity’s
distribution operations. Purchase orders are received for the sale of goods, which the
Consolidated Entity will then have a performance obligation towards the customers. Revenue is
recognised when the control of goods transfers to a customer at a point in time, either when
delivered or when the customer uses their own delivery.
- Rental of glass processing equipment through the Consolidated Entity’s rental operations. The
division receives an annual fixed fee and a variable component contingent on gross profit
performance of the operator of the glass processing equipment. Upon application of AASB 15,
the goods and services have been transferred to the operator. Revenue previously recognised on
issue is deferred and recognised as revenue across the remaining contract term. Consideration
that is variable and uncertain continues to be recognised when the activity occurs.
AASB 9 Financial Instruments and associated Amending Standards
-
The Group has adopted AASB 9: Financial Instruments with and initial application at 1 July 2018.
Please refer to Financial Instruments under Note 4.
3. USE OF JUDGEMENTS AND ESTIMATES
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 and estimates on historical experience and on other various factors it believes to be reasonable under
the circumstances, the result of which form the basis of the carrying values of assets and liabilities that are not
readily apparent from other sources. Actual results may differ from these estimates. Revisions to accounting
estimates are recognised in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying
accounting policies that have the most significant effect on the amount recognised in the financial statements are
outlined below:
Provision for impairment of receivables
The provision for impairment of receivables assessment requires a degree of estimation and judgement. The level
of provision is assessed by taking into account the recent sales experience, the ageing of receivables, historical
collection rates and specific knowledge of the individual debtors’ financial position.
Impairment of plant and equipment
The Consolidated Entity tests annually, or more frequently if events or changes in circumstances indicate
impairment, in accordance with the accounting policy stated in Note 4. The recoverable amounts of assets have
been determined based on value-in-use calculations. These calculations require the use of assumptions, including
estimated discount rates based on the current cost of capital and growth rates of the estimated future cash flows.
Details of assumptions are included in Note 12.
Estimation of useful lives of assets
The estimation of the useful lives of assets has been based on historical experience. The condition of the assets is
assessed at least once per year and considered against the remaining useful life. Depreciation charges are
included in Note 12.
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3. USE OF JUDGEMENTS AND ESTIMATES (continued)
Business combinations
Business combinations are initially accounted for on a provisional basis. The fair value of assets acquired, liabilities
and contingent liabilities assumed are initially estimated by the Consolidated Entity taking into consideration all
available information at the reporting date. Fair value adjustments on the finalisation of the business combination
accounting is retrospective, where applicable, to the period the combination occurred and may have an impact on
the assets and liabilities, depreciation and amortisation reported cash flows.
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out below. These
policies have been applied consistently by the Consolidated Entity throughout the year presented in these financial
statements.
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 22.
Basis of consolidation
The consolidated financial statements comprise the financial statements of BauMart Holdings Limited and its
subsidiaries (together referred to as the Consolidated Entity) as at 30 June each year.
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.
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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Business combinations
Business combinations are accounted for using the acquisition method. The consideration transferred in a business
combination shall be measured at fair value, which shall be calculated as the sum of the acquisition date fair values
of the assets transferred by the acquirer, the liabilities incurred by the acquirer to former owners of the acquiree, the
equity issued by the acquirer, and the amount of any non-controlling interest in the acquiree. For each business
combination, the acquirer measures the non-controlling interest in the acquiree either at fair value or at the
proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred.
When the Company acquires a business, it assesses the financial assets 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 as at the acquisition date.
If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held
equity interest in the acquiree is remeasured at fair value as at the acquisition date through profit or loss.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition
date. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or
liability will be recognised in accordance with AASB 139 either in profit or loss or in other comprehensive income. If
the contingent consideration is classified as equity, it shall not be remeasured.
The excess of the cost of the business combination over the net fair value of the Consolidated Entity’s share of the
identifiable net assets acquired is recognised as goodwill. If the cost of acquisition is less than the Consolidated
Entity’s share of the net fair value of the identifiable net assets of the subsidiary, the difference is recognised as a
gain in the Consolidated Statement of Comprehensive Income, but only after a reassessment of the identification
and measurement of the net assets acquired.
Going Concern
The financial report has been prepared on a going concern basis, which assumes continuity of normal business
activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.
Based upon the Consolidated Entity’s existing cash resources and accounts receivable (refer Note 9) the directors
consider there are reasonable grounds to believe that the Consolidated Entity will be able to pay its debts as and
when they become due and payable, and therefore the going concern basis of preparation to be appropriate for the
preparation of the Consolidated Entity’s 2019 annual financial report after consideration of the following factors:
The Consolidated Entity has net working capital of $984,915 including cash reserves of $177,592 at 30 June
2019;
The Consolidated Entity has no loans or borrowings;
The directors are confident that the trade receivables amounts of $1,315,652 referred to in Note 9 are fully
recoverable following discussions with the debtors;
The budgets and forecasts reviewed and approved by the Directors for the next 12 months anticipate the
business will continue to produce improved results; and
While it is the Consolidated Entity’s intention to be cash flow positive through operations, the Consolidated
Entity may be required to raise additional capital either through equity or debt in order to continue as a going
concern. The Directors are confident that the Consolidated Entity will be able to raise further working capital
either through debt or equity as and when required to continue to support the business.
Income tax
Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences:
(a) except where the deferred income tax liability arises from the initial recognition of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
(b)
in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, except where the timing of the reversal of the temporary differences can be
controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Income tax (continued)
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses can be
utilised:
(a) except where the deferred income tax asset relating to the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of
the transaction, affects neither the accounting profit nor taxable profit or loss; and
(b)
in respect of deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, deferred tax assets are only recognised to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against which
the temporary differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income
tax asset to be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the Consolidated
Statement of Profit or Loss and Other Comprehensive Income.
Deferred tax assets in respect of tax losses have not been brought to account as it is not considered probable that
future taxable profits will be available against which they could be utilised.
Current and non-current classification
Assets and liabilities are presented in the Consolidated Statement of Financial Position based on current and non-
current classification.
An asset is current when: it is expected to be realised or intended to be sold or consumed in normal operating
cycle; it is held primarily for the purpose of trading; it is expected to be realised within twelve 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 twelve months after the reporting period. All other assets are classified as non-current.
A liability is current when: it is expected to be settled in normal operating cycle; it is held primarily for the purpose of
trading; it is due to be settled within twelve months after the reporting period; or there is no unconditional right to
defer the settlement of the liability for at least twelve months after the reporting period. All other liabilities are
classified as non-current.
Cash and cash equivalents
Cash and cash equivalents in the Consolidated Statement of Financial Position comprise cash at bank and in hand
and short-term deposits with an original maturity of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and
cash equivalents as defined above.
Trade and other receivables
Trade receivables, which generally have 30-90 day terms, are recognised and carried at original invoice amount
less an allowance for impairment. Trade receivables are generally due for settlement no more than 90 days from
the date of recognition.
As per AASB 9, an expected loss model is applied, not an incurred credit loss as per the previous standard
applicable (AASB 139). To reflect changes in credit risk, this expected credit loss model require the Group to
account for expected credit loss since initial recognition. The Group recognises a loss allowance for expected credit
losses on trade and other receivables using simplified approach, which does not require tracking of changes in
credit risk at every reporting period, but instead requires the recognition of lifetime expected credit loss at all times.
In measuring the expected credit loss, a provision matrix for trade receivables was used taking into consideration
various data to get to an expected credit loss.
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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Provisions and employee benefits
Provisions are recognised when the Consolidated Entity has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle
the present obligation at the reporting date.
Employee leave benefits
(i) Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including annual leave expected to be settled within 12 months of the reporting
date are recognised in respect of employees' services up to the reporting date. They are measured at the amounts
expected to be paid when the liabilities are settled. Expenses for sick leave are recognised when the leave is taken
and are measured at the rates paid or payable.
(ii) Long service leave
The liability for long service leave is recognised and measured as the present value of expected future payments to
be made in respect of services provided by employees up to the reporting date. 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 national government bonds with terms to
maturity and currencies that match, as closely as possible, the estimated future cash outflows.
(iii) Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
(iv) Share-based payments
The Consolidated Entity may provide benefits to employees (including Directors) and consultants of the
Consolidated Entity in the form of share based payment transactions, whereby services are rendered in exchange
for shares or rights over shares (“equity-settled transactions”). The cost of these equity-settled transactions with
employees and consultants is measured by reference to the fair value at the date at which they are granted. The
fair value is determined by an internal valuation using Black-Scholes or Binomial option pricing models.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance conditions are fulfilled, ending on the date on which the relevant recipients become
fully entitled to the award (“vesting date”). The cumulative expense recognised for equity-settled transactions at
each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the
number of awards that, in the opinion of the Directors of the Consolidated Entity, will ultimately vest. This opinion is
formed based on the best available information at balance date. No adjustment is made for the likelihood of market
performance conditions being met as the effect of these conditions is included in the determination of fair value at
grant date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional
upon a market condition. Where an equity-settled award is cancelled, it is treated as if it had vested on the date of
cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new
award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted,
the cancelled and new award are treated as if they were a modification of the original award.
Trade and other payables
Trade and other payables are carried at amortised cost. They represent liabilities for goods and services provided
to the Consolidated Entity prior to the end of the year that are unpaid and arise when the Consolidated Entity
becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts
are unsecured and are usually paid within 30 days of recognition.
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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where
the amount of GST incurred is not recoverable from the Australian Tax Office (ATO). In these circumstances the
GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from,
or payable to, the ATO is included as a current asset or liability in the statement of financial position.
Cash flows are included in the statement of cash flows on a net basis. The GST components of cash flows arising
from investing and financing activities which are recoverable from, or payable to, the ATO are classified as
operating cash flows.
Property, plant and equipment
Items of property, plant and equipment are measured at historical cost less accumulated depreciation and
impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Plant and equipment is depreciated using the straight line and units of production methods over the estimated
useful lives.
Depreciation rates used for each class of assets vary to the estimated useful lives at the time of acquisition, and are
typically:
Class of fixed asset
Depreciation rates
Method
Plant and equipment
- Glass Processing Equipment
Plastic Injection Mould
-
Motor vehicles
Office equipment
Pooled equipment
Fixtures and fittings
10%
Variable
33%
20% - 50%
20%
20% - 25%
Straight line
Units of production
Straight line
Straight line
Straight line
Straight line
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each
reporting date.
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 earnings.
Impairment of assets
At the end of each reporting period, the Consolidated Entity assesses whether there is any indication that an asset
may be impaired. The assessment will include the consideration of external and internal sources of information. If
such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of
the asset, being the higher of the asset’s fair value lest costs of disposal and value in use, to the asset’s carrying
amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit
or loss, unless the asset is carried at a revalued amount in accordance with another Standard (eg in accordance
with the revaluation model in AASB 116: Property, Plant and Equipment). Any impairment loss of a revalued asset
is treated as a revaluation decrease in accordance with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the Consolidated Entity
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Impairment testing is performed annually for goodwill, intangible assets with indefinite lives and intangible assets
not yet available for use.
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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Goodwill
Goodwill acquired in a business combination is initially measured at cost, being the excess of the cost of the
business combination over the Consolidated Entity’s interest in the net fair value of the identifiable assets, liabilities
and contingent liabilities.
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is not
amortised. Goodwill is reviewed for impairment, annually or more frequently if events or changes in circumstances
indicate that the carrying value may be impaired.
As at the acquisition date, any goodwill acquired is allocated to each of the cash-generating units expected to
benefit from the combination’s synergies. Impairment is determined by assessing the recoverable amount of the
cash generating unit to which the goodwill relates. Where the recoverable amount of the cash-generating unit is
less than the carrying amount, an impairment loss is recognised. Impairment losses for goodwill are not
subsequently reversed.
Inventory
Finished goods are stated at the lower of cost and net realisable value. Cost in relation to finished goods comprises
delivery costs, direct labour and import duties or other taxes. Costs of purchased inventory are determined after
deducting 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.
Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not
the legal ownership, are transferred to the company are classified as finance leases. Finance leases are
capitalised by recording an asset and a liability at the lower of the amount equal to the fair value of the leased
property or the present value of the minimum lease payments, including any guaranteed residual values. Lease
payments are allocated between the reduction of the lease liability and the lease interest expense for the period.
Leased assets are depreciated on a straight-line basis over their estimated useful lives or the lease term. Lease
payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as
expenses on a straight-line basis over the lease term. Lease incentives under operating leases are recognised as a
liability and amortised on a straight-line basis over the life of the lease term.
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs
incurred. Borrowings are subsequently measured at amortised cost. Any difference between proceeds (net of
transaction costs) and the redemption amount is recognised in profit and loss over the period of borrowings using
the effective interest method. Borrowings are removed from the statement of financial position when the obligation
specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a
financial liability that has been extinguished or assumed, is recognised in profit and loss as other income or finance
costs. Where there is an unconditional right to defer settlement of the liability for at least 12 months after the
reporting date, the loans or borrowings are classified as non-current.
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.
Fair value measurement
A number of the Consolidated Entity’s accounting policies and disclosures require the determination of fair value,
for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or
disclosure purposes based on the following methods. Where applicable, further information about the assumptions
made in determining fair values is disclosed in the notes specific to that asset or liability.
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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are
shown in equity as a deduction, net of tax, from the proceeds.
Earnings per share
Basic earnings per share is calculated by dividing the net earnings attributable to members of the Company for the
reporting period by the weighted average number of ordinary shares of the Company.
Financial instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the group entity becomes a party to the contractual
provisions of the financial instrument. Financial instruments (except for trade receivables) are measured initially at
fair value adjusted by transactions costs, except for those carried “at fair value through profit or loss”, in which case
transaction costs are expensed to profit or loss. Where available, quoted prices in an active market are used to
determine the fair value. In other circumstances, valuation techniques are adopted. Subsequent measurement of
financial assets and financial liabilities are described below.
Trade receivables are initially measured at the transaction price if the receivables do not contain a significant
financing component in accordance with AASB 15.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or
when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised
when it is extinguished, discharged, cancelled or expires.
Classification and subsequent measurement
Financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at the
transaction price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for
transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective as
hedging instruments, are classified into the following categories upon initial recognition:
amortised cost;
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
The contractual cash flow characteristics of the financial assets; and
The entities business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated
as FVPL):
they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows; and
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
24
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F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is
omitted where the effect of discounting is immaterial. The group entity’s cash and cash equivalents, trade and most
other receivables fall into this category of financial instruments.
Financial assets at fair value through other comprehensive income
The group entity measures debt instruments at fair value through other comprehensive income if both of the
following conditions are met:
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding; and
The financial asset is held within a business model with the objective of both holding to collect contractual
cash flows and selling the financial asset.
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment
losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for
financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI.
Upon initial recognition, the group entity can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under AASB 132 Financial
Instruments: Presentation and are not held for trading.
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets
designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be
measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless
the group entity designated a financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for
derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or
losses recognised in profit or loss.
All interest-related charges and, if applicable, gains and losses arising on changes in fair value are recognised in
profit or loss.
Impairment
From 1 July 2018, the group entity assesses on a forward looking basis the expected credit losses associated with
its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on
whether there has been a significant increase in credit risk. For trade receivables, the group entity applies the
simplified approach permitted by AASB 9, which requires expected lifetime losses to be recognised from initial
recognition of the receivables.
25
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Comparative information
The group entity has applied AASB 9 Financial Instruments retrospectively, but has elected not to restate
comparative information. As a result, the comparative information provided continues to be accounted for in
accordance with the Group’s previous accounting policy.
Classification
Until 30 June 2018, the group classified its financial assets in the following categories:
financial assets at fair value through profit or loss;
loans and receivables;
held-to-maturity investments; and
available-for-sale financial assets.
The classification depended on the purpose for which the investments were acquired. Management determined the
classification of its investments at initial recognition and, in the case of assets classified as held-to-maturity, re-
evaluated this designation at the end of each reporting period.
Adoption of new or revised accounting standards and interpretations
The Consolidated Entity has considered the implications of new and amended Accounting Standards applicable for
annual reporting periods beginning after 1 January 2018 but determined that their application to the financial
statements is either not relevant or not material.
New accounting standards for application in future periods
Accounting Standards issued by the AASB that are not yet mandatorily applicable to the Consolidated Entity,
together with an assessment of the potential impact of such pronouncements on the Consolidated Entity when
adopted in future periods, are discussed below:
The following standard will have a material impact on the Consolidated Entity and is available for early adoption but
has not been applied by the Consolidated Entity in this financial report:
AASB 16 Leases
AASB 16 Leases (AASB 16) introduces a single lessee accounting model and requires a lessee to
recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying
asset is of low value. The Company, as a lessee, will be required to recognise a right-of-use asset
representing its right to use the underlying leased asset and a lease liability representing its obligations to
make lease payments. The Company will be required to separately recognise the interest expense (if
applicable) on the lease liability and the depreciation expense on the right-of-use asset.
The Company will also be required to remeasure the lease liability upon the occurrence of certain events
(e.g., a change in the lease term, a change in future lease payments resulting from a change in an index
or rate used to determine those payments). The Company will recognise the amount of the
remeasurement of the lease liability as an adjustment to the right-of-use asset. Lessor accounting under
AASB 16 is substantially unchanged from the accounting under AASB 117 Leases. The Company, as a
lessor, will not be impacted by the adoption of AASB 16.
26
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Transition impact assessment
The Company will be applying AASB 16 from 1 July 2019, using the modified retrospective transition
method whereby there is an option on a lease-by-lease basis to calculate the right-of-use asset as either:
-
-
Its carrying amount as if AASB 16 had been applied since the lease commencement date, but
discounted using the lessee’s incremental borrowing rate at the date of initial application; or
An amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease
payments relating to that lease recognised in the balance sheet immediately before the date of
initial application.
Under this method, there is no requirement to restate comparatives on the basis of modified approach.
When applying the modified retrospective approach to leases previously classified as operating leases
under AASB 117, the Consolidated Entity can elect, on a lease-by-lease basis, whether to apply a number
of practical expedients on transition. The company expects to apply a number of the practical expedients
including:
-
The application of a single discount rate to a portfolio of leases with reasonably similar
characteristics;
- Utilising previous assessments of onerous leases; and
The use of hindsight in determining the lease term.
-
Another practical expedient available to the Company, is to not separate non-lease components from
lease components, and instead account for each lease component and any associated non-lease
components as a single lease component. The Company will not elect to combine lease and non-lease
components for its property leases. As such, the calculated lease liability will exclude an estimate of the
stand-alone price of the non-lease component.
The Company has performed an impact assessment of AASB 16 had the standard been adopted as at 1
July 2018. In summary, the estimated impact of the adoption of AASB 16 on the Consolidated Statement
of Financial Position as at 1 July 2019, is an increase in assets (right-of-use asset) of $3,037,783 and an
increase in liabilities (lease liability) of $3,037,783. The net difference between these balances would have
been recognised as an adjustment to equity.
Assuming no changes to the lease portfolio from 1 July 2019, the estimated impact on profit from
continuing operations for the year ended 30 June 2020 up to the life of the lease would have been an
increase in depreciation expense of $3,037,783 an increase in finance costs of $231,688 up to the life of
the lease and a decrease in operating lease expenses of approximately $3,037,783. Similarly, the
estimated impact on the full year income statement will be approximately double the impact disclosed for
the year ended 30 June 2019.
A key assumption in determining this estimate is the lease term and option assessment decision. The
Company considers an option to extend a lease to be reasonably certain when the extension date is within
twelve months and no decision has been made to terminate, or when there is a clear economic incentive
for extension, such as:
-
-
-
-
Favourable contractual terms and conditions in the option period compared to market rates;
Leasehold improvements have recently been undertaken and are likely to have significant
residual value at the end of the current lease period;
Significant termination costs exist; or
The underlying asset is important to the Consolidated Entity’s operations.
Other key assumptions include discount rates (the rate applied was 5 per cent), asset retirement
obligations and non-lease components.
These estimates may be materially different to the actual impact on initial application on 1 July 2019 due to
changes in the composition of the Consolidated Entity’s lease portfolio, the application of practical
expedients and recognition exemptions and changes to material judgement areas.
27
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
5. FINANCIAL RISK MANAGEMENT
Overview
Risk management is carried out under policies approved by the Board of Directors. The Board provides written
principles for overall risk management, as well as policies covering specific areas such as foreign exchange risk,
interest rate risk, credit risk, use of derivative financial instruments and non-derivative financials instruments and
investment of excess liquidity.
Financial risk management objectives
The Board monitors and manages the financial risk relating to the operations of the Consolidated Entity. The
Consolidated Entity’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk
(interest rate risk, and currency risk). The overall risk management strategy focuses on managing these risks and
seeks to minimise potential adverse effects on the financial performance of the Consolidated Entity. Risk
management is carried out under the direction of the Board.
The Consolidated Entity holds the following financial instruments as at the reporting date:
Financial assets
Cash and cash equivalents
Restricted cash
Trade receivables1
Financial liabilities
Trade and other payables
1. Refer to Note 9
Market risk
2019
$
177,592
158,710
1,315,652
1,651,954
870,760
870,760
2018
$
280,819
158,710
1,065,404
1,504,933
819,090
819,090
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Consolidated Entity’s income or the value of its holdings of financial instruments. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.
Currency risk
The Consolidated Entity is exposed to currency risk on overseas purchases that are denominated in a currency
other than the functional currency of the Consolidated Entity, being the Australian dollar. At 30 June 2019, the
Consolidated Entity had US $6,010 (2018:US$ 10,230), AU $8,784 (2018: AU$ 13,640) in outstanding foreign
currency denominated purchases and US$0, AU$0 in outstanding receivables. A change of 10% in the USD/AUD
cross-rate will not have a material effect on either net profit, or equity of the Consolidated Entity.
The Consolidated Entity does not have any overseas borrowings. The Consolidated Entity does not currently hedge
any of its estimated foreign currency exposure in respect of forecast sales and purchases.
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N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
5. FINANCIAL RISK MANAGEMENT (continued)
Interest rate risk
The following table sets out the interest rates applicable to financial instruments that are exposed to interest rate
risk:
Consolidated
Financial assets
Cash and cash equivalents
Restricted cash
Trade receivables
Total financial assets
Financial liabilities
Trade and other payables
Total financial liabilities
Consolidated
Financial assets
Cash and cash equivalents
Restricted cash
Trade and other receivables
Total financial assets
Financial liabilities
Trade and other payables
Total financial liabilities
Weighted
average
interest
rate
2019
%
0.80%
2.50%
Weighted
average
interest
rate
2018
%
1.60%
2.35%
Fixed
interest
rate
2019
$
150,047
158,710
-
308,757
Non-
interest
bearing
2019
$
27,545
-
1,315,652
1,343,197
Total
2019
$
177,592
158,710
1,315,652
1,651,954
-
-
870,760
870,760
870,760
870,760
Fixed
interest
rate
2018
$
254,775
158,710
-
413,485
Non-
interest
bearing
2018
$
26,044
-
1,065,404
1,091,448
Total
2018
$
280,819
158,710
1,065,404
1,504,933
-
-
819,090
819,090
819,090
819,090
There is no interest rate applicable on trade receivables or trade and other payables. The Consolidated Entity has
no borrowings. Management believes a change of 5% in the interest rate will not have a material effect on the result
of operations or equity of the Consolidated Entity.
Credit risk
Credit risk is the risk of financial loss to the Consolidated Entity if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Consolidated Entity’s receivables
from customers.
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N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
5. FINANCIAL RISK MANAGEMENT (continued)
Trade and other receivables
The Consolidated Entity’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. The Consolidated Entity regularly assesses customers’ creditworthiness. The Consolidated Entity is
reliant on one customer in respect of the Equipment Investments segments.
The Consolidated Entity’s maximum exposure to credit risk at the reporting date was:
5.
Financial assets
Cash and cash equivalents
Restricted cash
Trade receivables
The credit quality is assessed and monitored as follows:
Credit quality of financial assets
At 30 June 2019
Cash and cash equivalents
Restricted cash
Trade receivables – current
At 30 June 2018
Cash and cash equivalents
Restricted cash
Trade and other receivables – current
2019
$
177,592
158,710
1,315,652
1,651,954
2018
$
280,819
158,710
1,065,404
1,504,933
Equivalent
S&P rating1
AA-
Internally
rated2
No default
177,592
158,710
-
336,302
280,819
158,710
-
439,529
-
-
1,315,652
1,315,652
-
-
1,065,404
1,065,404
Total
177,592
158,710
1,315,652
1,651,954
280,819
158,710
1,065,404
1,504,933
The Consolidated Entity receives interest on its cash management deposits based on daily balances and at
balance date was exposed to a variable interest rate of 0.80% per annum (2018: 1.65% per annum). The
Consolidated Entity’s operating accounts do not attract interest.
1. The equivalent S&P rating of the financial assets represents that rating of the counterparty with whom the financial asset is
held rather than the rating of the financial asset itself.
2. Trade and other receivables represent sale of goods and rental income receivables (Refer Note 9)
Allowance for impairment loss
A provision for impairment loss is recognised when there is objective evidence that an individual receivable is
impaired.
There were no balances within trade and other receivables containing amounts that were impaired during
30 June 2019. The Consolidated Entity considered balances within trade and other receivables as impaired after
reviewing credit terms of customers based on collection practices. All balances were received and the provisions
subsequently reversed. Refer to Note 9 for details of past due receivables.
Fair value measurement of financial instruments
Note 4 outlines the Consolidated Entity’s approach to fair value assessment of its assets and liabilities. The carrying
amounts of the Consolidated Entity’s financial instruments are assumed to approximate their fair value due to either
their short term nature or their terms and conditions.
30
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
5. FINANCIAL RISK MANAGEMENT (continued)
Liquidity risk
Liquidity risk arises from the financial liabilities of the Consolidated Entity and the Consolidated Entity’s subsequent
ability to meet their obligations to repay their financial liabilities as and when they fall due.
Ultimate responsibility for liquidity risk management rests with the Board of Directors. The Board has determined an
appropriate liquidity risk management framework for the management of the Consolidated Entity’s short, medium
and long-term funding and liquidity management requirements. The Consolidated Entity manages liquidity risk by
maintaining adequate reserves and continuously monitoring budgeted and actual cash flows and matching the
maturity profiles of financial assets, expenditure commitments and liabilities.
6. AUDITOR’S REMUNERATION
2019
$
2018
$
During the year, the following fees were paid or payable for
services provided by the auditor of the Company and its related
practices:
Audit services – Stantons International Audit and Consulting Pty
Ltd
Audit and review of financial statements
39,000
37,850
39,000
37,850
31
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
7.
INCOME TAX
(a) Income tax expense
2019
$
2018
$
-
-
(b) Numerical reconciliation between tax benefit and pre-tax net
loss
Loss before income tax benefit
(555,138)
(1,676,986)
Income tax calculated at 27.5% (30 June 2018: 27.5%)
(152,663)
(461,171)
-
-
Tax effect of:
Non-deductible expenses and temporary differences
Section 40-880 deduction
Future income tax benefit not brought to account
Income tax expense
(c) Tax losses
(104,967)
(19,237)
276,867
-
148,465
(19,237)
331,943
-
Unused tax losses for which no deferred tax asset has been
recognised (as recovery is currently not probable)
Potential at 27.5% (30 June 2018: 27.5%)
910,181
745,497
(d) Unrecognised temporary differences
Temporary differences for which deferred tax assets have not been
recognised at 27.5% (30 June 2018: 27.5%):
-
-
Provisions
Section 40-880 deduction
Unrecognised deferred tax assets relating to the above temporary
differences
(e) Tax rates
The potential tax benefit at 30 June 2019 in respect of tax losses not
brought into account has been calculated at 27.5% (30 June 2018:
27.5%)
366,653
14,495
381,148
423,272
33,732
457,004
32
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
8. REVENUE AND EXPENSES
(a) Other revenue
Rental of equipment
R&D offset
Sundry revenue
(b) Net finance income / (expense)
Interest income
(c) Occupancy expenses
Rental expense for warehouse
Rental expense for office premises
Rental income from sublease of premises
9. TRADE AND OTHER RECEIVABLES
Current
Trade receivables
2019
$
50,000
175,247
1,527
226,774
3,780
3,780
971,540
76,662
(581,454)
466,748
2018
$
50,000
160,529
2,213
212,742
67,112
67,112
862,708
75,237
(633,398)
304,547
1,315,652
1,315,652
1,065,404
1,065,404
The Consolidated Entity’s exposure to credit risk related to trade and other receivables is disclosed in Note 5.
Past due but not impaired
Customers with balances past 90 days due but without provision for impairment of receivables amount to
$627,704 as at 30 June 2019 (30 June 2018: $35,220). Although past 90 days overdue, as at 29 August 2019
the Group has received $836,038 from its major customers. As a result, management has reviewed and
assessed that no provision for impairment will be provided.
The Consolidated Entity did not consider a credit risk on the aggregate balances after reviewing credit terms of
customers based on recent collection practices.
The ageing of the past due but not impaired receivables are as follows:
31-60 days
61-90 days
90+ days
10. OTHER CURRENT ASSETS
Current
Deposits
Prepaid insurance
Prepaid inventory
Prepaid services
11. INVENTORIES
Materials handling supply
Building materials supply
33
199,110
109,217
627,704
936,031
8,784
1,213
-
11,511
21,508
245,872
150,514
396,386
280,810
107,712
35,220
423,742
29,440
6,076
2,370
16,994
54,880
300,550
683,981
984,531
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
12. PROPERTY, PLANT & EQUIPMENT
Plant &
equipment
$
Furniture &
fittings
$
Office
equipment
$
Pooled
Assets
$
At 30 June 2019
Cost
Accumulated depreciation
Impairment provision
Net book amount
2,580,636
(1,044,879)
(1,259,124)
276,633
At 30 June 2018
Cost
Accumulated depreciation
Impairment provision
Net book amount
2,580,636
(811,366)
(1,479,124)
290,146
22,706
(7,964)
-
14,742
21,617
(4,540)
-
17,077
24,415
(17,341)
-
7,074
19,794
(12,261)
-
7,533
Total
$
2,630,042
(1,070,729)
(1,259,124)
300,189
2,285
(545)
-
1,740
2,285
(88)
-
2,197
2,624,332
(828,255)
(1,479,124)
316,953
Movement in the carrying amounts for each class of plant and equipment between the beginning and the end of the
current financial year.
Year ended 30 June 2019
Opening net book amount
Additions
Depreciation charges
Impairment reversal
Disposals
Closing net book amount
Year ended 30 June 2018
Opening net book amount
Additions
Depreciation charges
Impairment charge
Disposals
Closing net book amount
290,146
-
(233,513)
220,000
-
276,633
1,175,249
-
(232,825)
(652,278)
-
290,146
Impairment Test for Plant & Equipment
17,077
1,089
(3,424)
-
-
14,742
4,356
16,459
(3,738)
-
-
17,077
7,533
4,621
(5,080)
-
-
7,074
9,222
3,409
(5,098)
-
-
7,533
2,197
-
(457)
-
-
1,740
-
2,285
(88)
-
-
2,197
316,953
5,710
(242,474)
220,000
-
300,189
1,188,827
22,153
(241,749)
(652,278)
-
316,953
At each reporting date, the Consolidated Entity assesses whether there is any indication that an asset may be
impaired. Where an indicator of impairment exists, the Consolidated Entity makes a formal estimate of the
recoverable amount.
Where the carrying value of an asset exceeds its recoverable amount, the asset is considered to be impaired and
is written down to its recoverable amount. The impairment loss is recognised in profit or loss in the reporting
period in which the write-down occurs.
The Consolidated Entity owns and leases its plant and equipment to an operator at its facility in Smithfield, New
South Wales. The glass processing equipment generates rental income from the operator’s usage of the
equipment, which has a direct effect on the carrying value of the asset. For the year ended 30 June 2019, the
Consolidated Entity has not billed the operator for the rental component pursuant to its equipment lease
agreement, which is calculated on 7.5% of gross profit of the operator (refer ASX release dated 24 April 2017).
As a result of this, the carrying value of plant and equipment was assessed by management as impaired and
recognised in profit and loss during the 30 June 2018 year. The plant and equipment is depreciated using the
straight line method. While the plant and equipment is impaired, the periodic depreciation amount is adjusted
against the asset to account for the lower carrying amount. No further impairment on the plant & equipment for
the year ended 30 June 2019. The Company remains confident of the ability of the operator to deliver profitable
results in the near future.
34
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F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
12. PROPERTY, PLANT & EQUIPMENT (continued)
The Consolidated Entity has also assessed the plant and equipment of plastic injection mould and impairment
will be considered if the present value of the expected cash flows is less than the carrying amount. Using the low
and high estimate discount factor, the recoverable amount has exceeded the carrying amount of the equipment.
Therefore, there will be no impairment of the plant and equipment of plastic injection mould for the year ended 30
June 2019.
13. INTANGIBLES
2019
$
2018
$
Trademarks
Carrying amount at the beginning of the year
Acquisition through business combination
Amortisation
Net carrying value
Computer Software
Carrying amount at the beginning of the year
Additions
Amortisation
Net carrying value
At 30 June 2019
Gross
Additions
Accumulated amortisation
Net carrying value
14. TRADE AND OTHER PAYABLES
Current
Trade payables
Other payables
3,628
-
(612)
3,016
-
2,292
(191)
2,101
6,120
2,292
(3,295)
5,117
4,240
-
(612)
3,628
-
-
-
-
6,120
-
(2,492)
3,628
844,707
53,053
897,760
740,549
103,541
844,090
The Consolidated Entity’s exposure to liquidity risk related to trade and other payables is disclosed in Note 5.
15. EMPLOYEE BENEFITS
Current
Liability for annual leave and other entitlements
25,520
8,364
Non-Current
Liability for long service leave and other entitlements
9,290
14,749
16. ISSUED CAPITAL
144,744,757 fully paid ordinary shares (30 June 2018: 144,744,757)
8,251,219
8,251,219
35
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
16. ISSUED CAPITAL (continued)
(a) Ordinary shares
The following movements in ordinary share capital occurred during the year:
2019
number
2018
number
2019
$
2018
$
Balance at beginning of the year
144,744,757
144,744,757
8,251,219
8,251,219
Share issues
Balance at the end of the year
-
144,744,757
-
144,744,757
-
8,251,219
-
8,251,219
Ordinary shares entitle the holder to participate in dividends and the proceeds from winding up of the Company in
proportion to the number and amounts paid on the shares held.
On a show of hands every holder of ordinary securities present at a shareholder meeting in person or by proxy is,
entitled to one vote, and upon a poll each share is entitled to one vote.
(b) Options
Options granted, exercised or lapsed
No options have been granted, exercised or lapsed since the end of the previous financial year and to the date of
this report.
Unissued shares under option
There were no options to subscribe for ordinary fully paid shares at the end of the year or at the date of this report.
(c) 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.
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 Board seeks to maintain a balance between the higher returns that might be possible with higher levels of
borrowings and the advantages and security afforded by a sound capital position although there is no formal policy
regarding gearing levels.
There were no changes in the Consolidated Entity’s approach to capital management during the year. The
Consolidated Entity is not subject to any externally imposed capital requirements.
17. ACCUMULATED LOSSES
Accumulated losses at the beginning of the year
Net loss for the year
Accumulated losses at the end of the year
18. OTHER ASSETS
Security Bond
2019
$
2018
$
(6,256,440)
(555,138)
(4,579,454)
(1,676,986)
(6,811,578)
(6,256,440)
158,710
158,710
The Consolidated Entity has a security bond in place amounting to $158,710 in favour of its landlord.
36
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
19. CONTINGENCIES
The Consolidated Entity does not have any contingent liabilities at balance and reporting dates.
20. KEY MANAGEMENT PERSONNEL DISCLOSURES
Compensation
The aggregate compensation made to Directors and other members of Key Management Personnel of the
Consolidated Entity during the year is set out below:
Short-term employee benefits
Post-employment benefits
21. RELATED PARTY TRANSACTIONS
(a) Parent entity
BauMart Holdings Limited is the parent entity (Company).
(b) Subsidiaries
220,000
20,900
240,900
220,000
20,900
240,900
The Company’s interests in its subsidiaries for the year are set out below. Unless otherwise stated, the subsidiaries
have share capital consisting solely of ordinary shares that are held directly by the Company, and the proportion of
ownership interest held equals the voting rights held by the Company. The country of incorporation is also its
principal place of business.
Name of entity
Country of
incorporation
Equity holding
2019
Equity holding
2018
Buildmart Services Pty Ltd
Australia
100%
BauMax Pty Ltd
Australia
Eco Pallets Pty Ltd
Australia
100%
100%
100%
100%
100%
Principal activities
Supply and installation of
building materials
IT related services
Materials handling product
supply
Loans made by the Company to its wholly-owned subsidiaries are contributed to meet required expenditure payable
on demand and are not interest bearing.
(c) Key management personnel compensation
The following were key management personnel of the Consolidated Entity at any time during the year and unless
otherwise indicated were key management personnel for the year:
Mr Berthus Budiman (Executive Director)
Mr Matthew Logan (Executive Director)
Mr Michael Crichton (Non-executive Director)
Mr Anson Gan (Non-executive Director)
Disclosures relating to key management personnel are set out in Note 20.
37
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
22. PARENT ENTITY INFORMATION
Set out below is the supplementary information about the parent entity for year ended 30 June 2019.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive loss
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Accumulated losses
Total equity
2019
$
2018
$
(869,256)
(1,678,868)
(869,256)
(1,678,868)
1,080,144
1,642,913
1,311,224
2,285,766
182,852
182,852
288,138
288,138
8,251,219
(7,122,847)
8,251,219
(6,253,591)
1,128,372
1,997,628
(a) Guarantees entered into by the parent entity
Refer to Note 18 for more information on guarantees provided by the parent entity.
(b) Contingent liabilities of the parent entity
The parent entity did not have any contingent liabilities at year end.
(c) Contractual commitments for capital expenditure
The parent entity did not have any commitment in relation to capital expenditure contracted but not
recognised as liabilities as at balance date.
38
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
23. RECONCILIATION OF CASH FLOWS USED IN OPERATING ACTIVITIES
(a) Cash flows from operating activities
(Loss) for the year
Adjustments of non-cash/non-operating items:
Depreciation and amortisation
Impairment of plant and equipment / (reversal)
Doubtful debts expense
Operating loss before changes in working capital and provisions
Change in trade and other receivables
Changes in inventories
Changes in prepayments
Change in trade and other payables
Change in employee benefits
2019
$
2018
$
(555,138)
(1,676,986)
243,277
(220,000)
(241)
(532,102)
(250,248)
588,145
33,372
53,671
11,697
242,361
652,278
-
(782,347)
(721,644)
(778,897)
42,092
290,522
4,769
Net cash used in operating activities
(95,465)
(1,945,505)
(b) Non-cash investing and financing activities
There were no non-cash investing and financing activities during the year.
(c) Cash and cash equivalents
Cash on hand
Cash in bank
Cash and cash equivalents
24. EARNINGS/(LOSS) PER SHARE
Basic and diluted earnings/(loss) per share
1,141
176,451
177,592
1,268
279,551
280,819
The calculation of basic loss per share at 30 June 2019 was based on the following:
Loss attributable to ordinary shareholders
Net loss for the year attributable to owners of the Company
(555,138)
(1,676,986)
Weighted average number of ordinary shares
Number
Number
Balance at beginning of year
Balance at end of year
144,744,757
144,744,757
144,744,757
144,744,757
Diluted earnings/(loss) per share must be calculated where potential ordinary shares on issue are dilutive. There
are no potential ordinary shares outstanding as set out in Note 16.
39
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
25. SEGMENT INFORMATION
The Consolidated Entity has identified its operating segments based on the internal reports that are reviewed and
used by the Board of Directors (chief operating decision makers) in assessing performance and determining the
allocation of resources. The Consolidated Entity is managed primarily on the basis of product category and service
offerings since the diversification of the Consolidated Entity’s operations inherently have notably different risk
profiles and performance assessment criteria. Operating segments are therefore determined on the same basis.
Reportable segments disclosed are based on aggregating operating segments where the segments are considered
to have similar economic characteristics and are also similar with respect to the products sold and/or services
provided by that segment.
Types of products and services by segment
Building Materials Supply
The Building Materials Supply is focused on the supply and installation of building products and materials procured
from local and offshore suppliers to both the residential and commercial property construction markets.
Materials Handling Supply
The Materials Handling Supply division is focused on the Australia wide supply of plastic materials handling unit
load devices, such as plastic pallets and plastic crates.
Equipment Investments
The Equipment Investments division is focused on acquiring specialised equipment. The business model
contemplates the acquisition of specialised equipment with the intention of leasing the equipment to specialised
operators, providing the Consolidated Entity with lease income.
Basis of accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision maker with respect to
operating segments are determined in accordance with accounting policies that are consistent to those adopted in
the annual financial statements of the Consolidated Entity.
40
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
25. SEGMENT INFORMATION (continued)
Accounting policies adopted
All inter-segment loans payable and receivable are eliminated on consolidation for the Consolidated Entity’s financial statements.
Segment Assets
Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of economic value from the asset. In the majority of instances
segment assets are clearly identifiable on the basis of their nature and physical location.
Segment Liabilities
Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability and the operations of the segment. Borrowings and tax liabilities are
generally considered to relate to the Consolidated Entity as a whole and are not allocated. Segment liabilities include trade and other payables and certain borrowings.
Unallocated items
Items of revenue, expenses, assets and liabilities which are not considered part of the core operations of any segment are allocated to Corporate and Administrative:
Building Materials Supply
Materials Handling Supply
Equipment Investments
Corporate & Administrative
Consolidated Entity (Total)
2019
$
2018
$
2019
$
2018
$
2019
$
2018
$
2019
$
2018
$
2019
$
2018
$
Segment revenue
Segment result
Segment assets
Segment liabilities
833,051
(75,630)
328,631
183,451
955,740
3,492,297
2,267,910
50,000
50,000
762,008
863,253
5,137,356
4,136,903
38,360
203,755
92,104
30,000
(1,086,690)
(713,263)
(720,760)
(555,138)
(1,676,986)
733,472
1,047,955
1,092,695
68,937
79,827
929,631
958,931
2,375,154
2,864,925
288,434
749,121
578,771
-
-
2,941
2,941
935,513
870,146
41
N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 9
26. EVENTS SUBSEQUENT TO REPORTING DATE
There has not arisen in the interval between the end of the year and the date of this report any item, transaction or
event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly the operations of
the Consolidated Entity, the results of those operations, or the state of affairs of the Consolidated Entity in future
financial years.
42
D I R E C T O R S ’ D E C L A R A T I O N
In the opinion of the directors of BauMart Holdings Limited:
(a)
the financial statements and notes, set out on pages 12 to 42, are in accordance with the Corporations Act
2001, including:
(i)
(ii)
giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2019 and its
performance for the financial year ended on that date; and
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
(b)
(c)
the financial report also complies with International Financial Reporting Standards as issued by the
International Accounting Standards Board; 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.
This declaration has been made after receiving the declarations from the Executive Director required by section 295A
of the Corporations Act 2001 for the year ended 30 June 2019. In accordance with section 295A, those declarations
were that:
(a)
(b)
(c)
the financial records of the Consolidated Entity have been properly maintained in accordance with section 286
of the Corporations Act 2001;
the financial statements and notes comply with the Australian Accounting Standards (including the Australian
Accounting Interpretations) and the Corporations Regulations 2001 in all material respects; and
the financial statements and notes give a true and fair view, in all material respects, of the financial position
and performance of the Consolidated Entity.
Signed in accordance with a resolution of directors made pursuant to section 295 (5) (a) of the Corporations Act 2001
(Cth).
Dated at Perth, Western Australia this 30th day of August 2019
Matthew Logan
Executive Director
43
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
BAUMART HOLDINGS LIMITED
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Baumart Holdings Limited, the Company and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2019, the consolidated
statement of comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the year then ended, 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 30 June 2019 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Emphasis of Matter
Material Uncertainty Regarding Going Concern
Without qualification to the opinion expressed above, attention is drawn to the following matter:
As referred to in Note 4 to the consolidated financial statements, the consolidated financial statements have
been prepared on a going concern basis. At 30 June 2019 the Group had cash and cash equivalents totalling
$177,592, working capital of $984,915 and had incurred a loss before tax for the year of $555,138. The ability
of the Company and Group to continue as going concerns is subject to the Group returning to future
profitability, the recoverability of trade receivables of the Group with respect to the rental income from leased
assets and sale of glass, and future capital raisings. In the event that the Group is not successful in returning to
profitability, recovering trade receivables or raising additional funds as required, the Company and its
subsidiaries may not be able to continue as going concerns and to meet their liabilities as and when they fall
due, and the realisable value of the Company’s and its subsidiaries’ assets may be significantly less than book
values.
Liability limited by a scheme approved
under Professional Standards Legislation
44
Key Audit Matters
We have defined the matters described below to be key audit matters to be communicated in our report. Key
audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key Audit Matters
How the matter was addressed in the audit
Inter alia, our audit procedures
following:
included
the
i. Examining the Group’s impairment assessment
of the two plant and equipment items, including
forecast revenue, gross margins and discount
assumptions.
ii. We performed appropriate procedures on the
Group’s Discounted Cash Flow (DCF) model for
the two assets to help ensure the assumptions
used are reasonable and in line with historical
information available. (Refer to Note 12).
iii. We reviewed Board minutes to help identify any
potential issues and compared to assumptions
used in the DCF model.
iv. Discussions with management and the Board
regarding their expectation of future operations
to help identify any potentially large expenditure
relating to the plant and equipment assets.
v. Reviewed post-balance events for evidence of
any issues that would significantly affect the
further
DCF models, and
impact impairment.
therefore, would
Inter alia, our audit procedures
following:
included
the
i. Reviewed subsequent receipts from debtor.
ii. Discussions with management regarding the
timing of
repayment and
possibility of
repayments.
iii. Reviewed post-balance events for evidence of
any possible impairment triggers.
Impairment of Plant and Equipment
The Group has two plant and equipment assets which
were subject to impairment assessment due to
impairment triggers identified during the year. One
item is the Lisec machine which is under Baumart
Holdings Limited, and the other is a mould held by
Eco Pallets Pty Ltd.
We identified that the most significant assumption in
assessing whether the plant and equipment items are
impaired or not is their ability to generate income. In
the prior year a provision for impairment of $652,278
was raised in relation to the Lisec machine. The Lisec
machine continues to have lower than expected
revenue generation and/or is not being used on a
frequent basis. The Company has therefore retained
the impairment provision raised last year less an
amount of $220,000 which was reversed in the
current year, and represents an amount equivalent to
the depreciation charged on the Lisec machine in the
current year. The amount involved was material and
required the application of judgement and estimation
to determine the adequacy of the impairment amount
provided.
Recoverability of Trade Receivable
At 30 June 2019, as per Note 9 the Group had trade
receivables of $1,315,652, out which $936,031 is past
overdue but not impaired. Out of the trade and other
receivable balance of $1,315,652, $918,106 related
from one party. This
to an amount receivable
receivable is unsecured. Subsequently to the year
end, $836,038 has been recovered, leaving a balance
of $82,068 still outstanding in respect of the one
party.
The key elements of the judgement associated with
assessing the recoverability of the trade receivable
balance was the fact that the debtor is generally a
slow payer.
45
Other Information
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 30 June 2019, but does not include the financial
report and our 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 has 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.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and
fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial
report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Group to cease to continue as a going concern.
46
We evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that achieves
fair presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in Internal control that we identify during our
audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements. We also provide the Directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the consolidated financial report of the current period and are therefore key audit matters. We
describe these matters in our auditor's report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 8 to 11 of the directors’ report for the year ended
30 June 2019.
In our opinion the Remuneration Report of Baumart Holdings Limited for the year ended 30 June 2019
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on
the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Samir Tirodkar
Director
West Perth, Western Australia
30 August 2019
47
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
30 August 2019
The Directors
Baumart Holdings Limited
15 McCabe St
North Fremantle WA 6159
Dear Sirs
RE: BAUMART HOLDINGS LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the
following declaration of independence to the directors of Baumart Holdings Limited.
As Audit Director for the audit of the financial statements of Baumart Holdings Limited for the year
ended 30 June 2019, 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.
Yours faithfully,
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LIMITED
(Trading as Stantons International)
(An Authorised Audit Company)
Samir R Tirodkar
Director
Liability limited by a scheme approved
under Professional Standards Legislation
48
A D D I T I O N A L I N F O R M A T I O N
Top holders
The 20 largest registered holders of each class of quoted equity security as at 28 August 2019 were:
Fully paid ordinary shares – quoted
Name
No. of Shares
%
Jojo Krisnawan
Isak Gievan Eljapa Jap
Wonder Holdings Pty Ltd
Benny Lau
Anson Gan
Robert Ang
QP & Co Pty Ltd
Anrinza Future Pty Ltd
Kuswandi Aman
1.
2.
3.
4.
5.
6.
7.
8.
9.
10. Leonard Hartana
11. Serng Yee Liew
12. Willy Masturi
13. Matthew Logan
14. Clearwin Investments Pty Ltd
15. Evan Retallack
16. Sanny Nanang
17. Sok Kiang Teoh
18. Berthus Budiman
19. Roeland Daun
20. Michael Crichton
28,333,334 19.575
23,050,000 15.925
20,807,256 14.375
5.872
5.596
5.182
4.102
3.213
3.040
2.528
2.487
2.384
2.211
2.211
1.720
0.760
0.698
0.691
0.691
0.691
8,500,000
8,100,000
7,500,000
5,937,500
4,650,000
4,400,000
3,658,453
3,600,000
3,450,000
3,200,000
3,200,000
2,490,227
1,100,000
1,010,000
1,000,001
1,000,000
1,000,000
135,986,771
93.95
Distribution schedules
A distribution schedule of each class of equity security as at 28 August 2019:
Ordinary fully paid shares
Range
Holders
Units
%
-
-
-
-
-
1,000
5,000
10,000
100,000
Over
2
1
137
25
39
51
2,727
1,370,000
930,816
142,441,163
0.00
0.00
0.95
0.64
98.41
204
144,744,757
100.00
1
1,001
5,001
10,001
100,001
Total
Substantial shareholders
The names of substantial shareholders in the Company as at 28 August 2019, and the number of shares to which each
substantial shareholder and their associates have a relevant interest, as disclosed in substantial shareholding notices
given to the Company, are set out below:
Substantial shareholder
Number of Shares
Wonder Holdings Pty Ltd
Jojo Krisnawan
Benny Lau
Anson Gan
Robert Ang
QP & Co Pty Ltd
28,333,334
23,050,000
20,807,256
8,500,000
8,100,000
7,500,000
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A D D I T I O N A L I N F O R M A T I O N
Restricted securities or securities subject to voluntary escrow
As at 28 August 2019, the Company had no restricted securities on issue.
As at 28 August 2019, the Company had no securities subject to voluntary escrow.
Unmarketable parcels
Holdings less than a marketable parcel of ordinary shares (being 2,173 shares as at 28 August 2019):
Holders
2
Units
51
Voting Rights
The voting rights attaching to ordinary shares are:
On a show of hands, every member present in person or by proxy shall have one vote, and upon a poll, each share
shall have one vote.
Options do not carry any voting rights.
On-Market Buy Back
There is no current on-market buy-back.
Corporate Governance
The Board has adopted and approved the Company’s Corporate Governance Statement, which can be found on the
Company’s website at www.baumart.com.au.
50