18 Resolution Drive
PO Box 1246
Unanderra NSW 2526 Australia
P: +61 2 4272 0444
E: companysecretary@bisalloy.com.au
ABN: 22 098 674 545
www.bisalloy.com.au
1 of 1
The Manager - Listings
Australian Securities Exchange Limited
Exchange Centre
20 Bridge Street
SYDNEY NSW 2000
29 August 2024
Re: Compliance with Listing Rule 4.3A for the twelve months ended 30 June 2024
Dear Madam/Sir,
As approved by the Board of Bisalloy Steel Group Limited (ASX: BIS) and in accordance with Listing Rule 4.3A,
please find the following documents relating to Bisalloy Steel Group Limited’s results for the twelve months ended
30 June 2024:
•
Appendix 4E Results for Announcement to the Market.
•
Bisalloy’s FY2024 Annual Report including its Directors’ Report and audited Financial Statements
containing all other Appendix 4E requirements.
Yours faithfully
Carl Bowdler
Company Secretary
Bisalloy Steel Group Limited
Appendix 4E – Preliminary Report for the
Year ended 30 June 2024
1
BISALLOY STEEL GROUP LIMITED
A.C.N. 098 674 545
Appendix 4E – Preliminary Final Report
Financial year ended 30 June 2024
Results for announcement to the market
Absolute
FY24
FY23
Change
$’000
$’000
Revenue
Down
0.2%
to
152,858
153,139
Profit before tax
Up
22.8%
to
23,051
18,769
Profit after tax
Up
19.9%
to
16,217
13,527
Profit attributable to members
Up
23.0%
to
15,741
12,796
Dividends
Amount per share
Franked amount per
share
Financial year ended 30 June 2024
Final dividend
Interim dividend
11.5 cps
8 cps
100%
100%
Financial year ended 30 June 2023
Special dividend
Final dividend
Interim dividend
10.5 cps
9.5 cps
4.0 cps
100%
100%
100%
Record date for determining entitlements
to the final dividend of financial year 30
June 2024 1
24 September 2024
1.
The dividend reinvestment plan remains suspended until further notice and will not be in operation for the
2024 final dividend.
Other
FY24
FY23
Net tangible asset backing per share
151.8cps
142.0 cps
Overview
1. Bisalloy Steel Group Ltd (“the Group”) delivered a FY24 Profit after tax attributable to members
of $15.7m, representing a 23% increase on the prior year. Strong pricing discipline and a
favourable mix meant our sales revenue was flat with growth in Australia largely offsetting
declines in Indonesia. Lower input costs in H2 (greenfeed, power and shipping) along with an
improved product mix meant the business has again delivered a strong financial result.
2. The Group’s distribution subsidiaries in Indonesia and Thailand continued to operate profitably over
FY24 and made a positive contribution to the Group result.
3. The Group’s 50% share in the cooperative joint venture (CJV) for the manufacture and sale of quench
& tempered steel into China and other North Asian markets generated a profit after tax contribution of
$2.4m for FY24.
Appendix 4E – Preliminary Report for the
Year ended 30 June 2024
2
Controlled entities acquired or disposed.
No material control over any entities was gained or disposed of during the financial year ended 30 June
2024.
Other information required by Listing Rule 4.3A
The remainder of the information requiring disclosure to comply with Listing Rule 4.3A is contained in the
attached Additional Information, Directors’ Report and Financial Report.
Audit
This report is based on financial statements that have been audited and an unqualified opinion has been
issued.
Rowan Melrose
Managing Director & CEO
Sydney
29 August 2024
Annual Report
2024
i
2024 highlights
ii
Chairman’s Report
iv Managing Director and Chief Executive
Officer’s Report
01 Financial Report
75 Directors’ Declaration
76 Independent Auditor’s Report
79 Additional Information
81 Corporate Directory
Contents
FY20
30
24
18
12
6
0
FY21
FY22
FY23
FY24
FY20
15
12
9
6
3
0
FY21
FY22
FY23
FY24
FY20
30
24
18
12
6
0
FY21
FY22
FY23
FY24
EBITDA $m
Debt $m
Gearing %
We are a proudly Australian company producing
the BISALLOY® range of quenched and tempered
performance steels across three main product areas of
high wear, structural and armour grade specialty steels.
$26.7m
EBITDA
11.5ɋ
Final Dividend
2024 highlights
$0.0m
Net Debt
0.0%
Gearing
2024 Annual Report Bisalloy Steel Group Limited | i
2022 Annual Report Bisalloy Steel Group Limited | i
Mr David Balkin AM,
Chairman
Chairman’s Report
Your company is a more profitable and
more capable company than it was
12 months ago.
Our safety record over the past 3 years continues to be exceptional in absolute
terms. Our balance sheet has no net debt at year end, and our profit after tax
attributable to members is 22.7% higher which enables us to declare a final
dividend of 11.5 cents, for a total year dividend of 19.5c.
Our strong financial performance has been underpinned by two factors. First,
strong underlying demand for Bisalloy’s wear plate on the back of continued
solid iron ore and gold demand in international markets. Second, improved gross
margins achieved by Bisalloy’s supply and service proposition delivered at prices
which reflect the value of our offer to customers, a greater contribution of Armour
& Protection Steel and reduced shipping costs.
This customer value proposition will be enhanced in the coming year when the
benefits of our IT investment to better schedule and track our production are fully
realized. Although this project, commissioned in late-2021, has taken longer to get
to the current stage of development than was originally planned, the good news
is that the company now has a more modern and sustainable IT platform to
improve the efficiency of and reduce the working capital invested in the business
going forward.
The Board and management are particularly pleased with the support we
have received from the Australian Government in two critical areas. The first,
is supporting Bisalloy’s qualification to supply the steel plate for the AUKUS
submarines when they are eventually built. This development has also opened
up potential market opportunities in the US. This achievement is further
vindication of Bisalloy’s technical excellence and performance in a tough and
competitive international market. This positive development is an outstanding
example of how Bisalloy has been able to work with the the Commonwealth
Department of Defence and Australian Submarine Agency to support Australian
manufacturing. The second, is the manner and professionalism of the
Anti‑Dumping Commission’s review into whether protection against Q&T wear
plate supplied out of Finland, Sweden and Japan should be continued. The
Commission’s current assessment is that protection should be continued but
their final determination will only be made later this year.
ii | Bisalloy Steel Group Limited 2024 Annual Report
The Chinese Joint Venture (CJV) relationship is
going from strength to strength. As trust and
confidence grows, we expect to find and develop
more opportunities to supply targeted international
customers who are familiar with our Bisalloy plate
manufactured by our JV partner.
We are also investigating growth opportunities that
are firmly related to our core business of producing
Q&T plate, growing our armour business and related
products for use in extreme environments. We are
confident that wear sensors currently being trialed
will be technically and commercially successful in the
medium term.
Despite all these positives, our electricity, gas
and labour costs are significantly higher than our
primary international Q&T plate competitors. We
remain concerned that this situation will continue to
deteriorate given Federal and State governments’
current energy transition plans minimize new gas
development and production. The early indications
of the Federal Government’s new industrial relations
legislation, based on our successful, but difficult,
three-year EBA negotiation concluded last year, are
that productivity improvements will be more difficult to
achieve in future.
Your company has a committed and enthusiastic
team of employees lead by a great Executive and
Board who work exceptionally well together.
Finally, we would like to thank our stable group of
shareholders for their loyalty and support. Our
employees and the Board hope that we exceed your
expectations as we continue to strive for a better
performing and more profitable company.
Mr David Balkin AM,
Chairman
2024 Annual Report Bisalloy Steel Group Limited | iii
Rowan Melrose
Managing Director and
Chief Executive Officer
Managing Director and Chief
Executive Officer’s Report
Each year I have talked about the
importance of providing a safe work
environment for all our employees,
contractors & stakeholders, and for the
prior two years we have demonstrated
enviable performance and statistics in
this area.
Safety
Our safety performance is based on both lagging and leading indicators.
From a leading indicator perspective our hazard reporting, our proactives and
interactions all improved over the past twelve months, however our lagging
indicators were slightly higher than previous years. There is a strong safety
culture across all business units including our joint ventures, and as we develop
this culture through ongoing training, we will continue to improve our efforts to
achieve a zero-harm operating environment.
Environment
Environmental stewardship is essential in maintaining trust within the
communities in which we operate, and we incorporate environmental
management in our operations to manage both risk and improve performance
in this area. The company is continually driving to improve our environmental
performance and our most recent independent testing in June this year
indicated that our exhaust emissions were only 10-40% of our assigned
limitations. We remain committed to achieving carbon neutrality by 2030 and we
are regularly monitoring more metrics than is statutorily required. We continue to
investigate options to reduce our impact on the environment.
Australian Operations
From an operational perspective, we had a year of two halves. The first half was
dominated by onerous energy prices and reduced production due to protracted
EBA negotiations, while the second half was guided by ameliorated energy costs
and a significant improvement in shipping costs and availability. These factors
combined with a measured and disciplined approach by the sales teams has
seen improved bottom line performance this year. Overall, a very solid year for
the core business.
iv | Bisalloy Steel Group Limited 2024 Annual Report
This year also saw the Anti-Dumping Commission
initiate another review of Case 638 Q&T Steel Plate.
The anti-dumping measures were initiated in 2014 and
were continued in 2019. The latest inquiry and report,
the “Statement of Essential Facts No. 638”, was released
on 5th July 2024 and the proposed recommendations
of the report, are the “continuation of the anti‑dumping
measures in relation to exports from Finland,
Japan and Sweden.” The Commissioner’s final
recommendations will be submitted to the Minister
on 5th September 2024. We view this initial report as a
positive outcome.
Joint Ventures
Our Joint Ventures delivered mixed results over the last
12 months.
All JV operations have now achieved over 10 years Lost
Time Injury Free and demonstrate a very impressive
commitment to safety.
Sales tonnes for all JV’s were lower than last year
primarily due to softer domestic Asian markets, with
our Indonesian Joint Venture particularly impacted
by import restrictions in place for much of the fiscal
year. All businesses remained profitable, and we
continue to work closely with each region to help them
grow their markets. Recent developments include
the establishment of a processing business facility in
Indonesia, and the recruitment of a Sales Manager
based in Singapore to develop the broader Asian
markets and assist in global sales development for
our China Joint Venture manufactured products. The
Joint Ventures remain an integral component of the
Bisalloy Group.
As a result, and on a year-on-year basis, the group
revenue was in line with last year, but the operating
profit and net profit after tax were improved by 22.6%
and 19.9% respectively.
Going Forward
Our core business and the purpose of our business is
to provide products for extreme environments.
Whether that is steel for a large mining truck, the
bucket of a mining shovel or excavator, or to offer
protection in the form of armour, we provide a ‘fit for
purpose’ solution. I spoke at last year’s AGM about
“identifying new markets, products and services and
their potential development”. In line with the above, we
have been working on a product that adds more value
for the business and the customer, but remains in line
with our core products and purpose.
2024 Annual Report Bisalloy Steel Group Limited | v
Managing Director and Chief Executive’s Officer’s Report
continued
Over the last 18 months (and in association with XJTL
University) we have developed and patented two
wear monitoring sensors. These sensors are presently
being trialled in mining operations. To date, we have
completed 21 trials with positive results and no sensor
failures. These sensors provide real time monitoring
of wear in critical operational environments enabling
improved safety, maximised operability, optimised
productivity. and minimised waste and downtime.
The product is in the trial phase with patents pending.
As we are presently in trials, we do not anticipate any
significant revenue over the next twelve months.
This year we also plan to place a greater focus and
discipline around our protection/armour business.
The emphasis will be on our ability to process this
product through our operations at an accelerated
rate, ensuring it does not inhibit our wear & structural
processing. We believe this will enable us to better
service a significant and growing global demand.
We continue to improve our technology with a greater
focus on R&D, we have made significant improvements
in our culture, and we continue to modify our structure
to capitalize on our opportunities.
The business has well-functioning and
well‑established core operations that we will continue
to improve and refine, but we also now have a much
clearer vision of our future.
I once again would like to thank all the Bisalloy
family for their contribution to our strong results and
success. I would also like to thank our customers and
shareholders for their continued trust and support of
the Bisalloy Group.
Our commitment, focus and strong brand position the
company well for the future as we continue to develop
and capitalize on market opportunities.
Thank you
Mr Rowan Melrose
Managing Director and CEO
vi | Bisalloy Steel Group Limited 2024 Annual Report
Financial Report
2024
2024 Annual Report Bisalloy Steel Group Limited | 1
Directors’ Report
For the year ended 30 June 2024
The directors present their report, together with the financial statements, on the consolidated entity (referred
to hereafter as the ‘consolidated entity’) consisting of Bisalloy Steel Group Limited (referred to hereafter as the
‘company’ or ‘parent entity’) and the entities it controlled at the end of, or during, the year ended 30 June 2024.
Directors
The names and details of the Company’s Directors in office during the financial year and until the date of this report
are as follows. Directors were in office for this entire period unless otherwise stated.
Mr David Balkin, AM
BSc, Civil Engineering (WTS),
MBA (Harvard)
Particulars: Appointed as Director and Chairman on 27 November 2020.
Last re‑elected in October 2022 and subject to re-election by rotation in
November 2024. Mr Balkin brings extensive knowledge and understanding
of global basic materials industries through 25 years as a consultant, senior
partner and leader of McKinsey & Company’s global basic materials practice.
He is also an experienced director and chairman of a number of private
companies where he actively advises and supports management to improve
shareholder returns and build more sustainable businesses.
Mr Balkin is a member of the Audit and Risk Committee and Chairman of the
Nominations and Remuneration Committee.
Mr Rowan Melrose
B.E (Hons), M.App.Sc, MBA
Particulars: Appointed as CEO and Managing Director 01 March 2022. As the
Managing Director he is not subject to re-election by rotation. Mr Melrose is an
experienced executive with an extensive background in mining services, mining
consumables, operations and manufacturing. Mr Melrose has successfully worked
and managed businesses in Australia, SE Asia, China, India, and New Zealand,
including most recently as Executive General Manager of Bradken Limited’s Mineral
Processing and Fixed Plant division. Mr Melrose holds a Bachelor of Engineering
and a Master of Applied Science from the University of NSW as well as a Master of
Business Administration from Wollongong University.
Mr Melrose is a Director of Bisalloy Shangang (Shandong) Steel Plate Co. Limited,
Bisalloy (Thailand) Co Ltd and President Commissioner of PT Bima Bisalloy.
Mr Ian Greenyer
BSc (Hons)
Particulars: Appointed as Director on 27 November 2020. Last re-elected in
October 2023. Mr Greenyer brings significant financial and business analysis
and improvement skills, through 27 years as an independent consultant, actively
identifying and effecting change in small and medium sized companies operating
in a broad range of business sectors based in Australia. These activities flowed from
a background as an actuary, investment analyst and stockbroker.
Mr Greenyer is Chairman of the Audit and Risk Committee and a member of the
Nominations and Remuneration Committee.
Mr Michael Gundy
MBA, B Bus, Assoc Dip
Metallurgy
Particulars: Appointed as Director on 27 November 2020. Last re-elected in
October 2022 and subject to re-election by rotation in November 2024. Mr Gundy is
an experienced executive with 34 years of steel industry experience spread across
Australia, SE Asia, New Zealand, and the United States. In his career Mr Gundy has
been involved in profitably growing businesses, opening new markets, developing
distribution channels and business restructuring.
Mr Gundy is a member of the Audit and Risk Committee, the Nominations and
Remuneration Committee and a Commissioner of PT Bima Bisalloy.
2 | Bisalloy Steel Group Limited 2024 Annual Report
Mr Bernard Landy
Dip Eng (Mech), FAICD
Particulars: Appointed as Director on 01 March 2022 and last re-elected in
October 2022. Mr Landy has more than 40 years of experience working as a steel
industry executive in Australia, SE Asia and China; including almost seven years
based in Shanghai where he successfully led BlueScope China’s steel and building
products manufacturing businesses. At board level, highlights include chair and
director of the Australian Steel Institute, chair and director of the Bureau of Steel
Manufacturers of Australia and director of several BHP and BlueScope international
subsidiaries. Mr Landy is also currently an advisory board member of Swinburne
University’s Centre for Smart Infrastructure and Digital Construction.
Mr Landy is a member of the Audit and Risk Committee, the Nominations and
Remuneration Committee and is a Member of the Supervisory Board of Bisalloy
Shangang (Shandong) Steel Plate Co. Ltd.
Directorships of other listed companies
No Director has held a Directorship with a listed company in the 3 years immediately before the end of the
financial year.
Directors Shareholdings
As at the date of this report, the interests of the Directors in the shares of Bisalloy Steel Group Limited were:
Number of
Ordinary Shares
Number of
Share Rights
D Balkin
7,781,095
–
I Greenyer
100,000
–
M Gundy
67,054
–
B Landy
32,500
–
R Melrose
10,000
173,038
Company Secretary
Mr Carl Bowdler
B Bus, FCPA, GAICD, FGIA
Particulars: Appointed as CFO and Company Secretary in November 2021.
Mr Bowdler is a Fellow of CPA Australia with over 25 years’ experience in senior
roles with strategic, financial, and operational responsibilities. Those roles
include the CFO roles at Tribe Breweries, Kollaras & Co and Hagemeyer Brands
Australia. Mr Bowdler is a Director of Bisalloy Steel Groups majority owned
businesses – PT Bima Bisalloy and Bisalloy (Thailand) Co. Ltd.
2024 Annual Report Bisalloy Steel Group Limited | 3
Directors’ Report (continued)
For the year ended 30 June 2024
Remuneration of key management personnel
Information about the remuneration of key management personnel is set out in the remuneration report section
of this directors’ report starting on page 10. The term ‘key management personnel’ refers to those persons having
authority and responsibility for planning, directing and controlling the activities of the consolidated entity , directly
or indirectly, including any director of the consolidated entity.
Dividends
Cents
$’000
Final Dividend for FY24 recommended on ordinary shares (fully franked)
11.5
5,484
FY24 Interim Dividend paid in the year
8.0
3,815
FY23 Final Dividend paid in the year
9.5
4,530
FY23 Special Dividend paid in the year
10.5
5,007
Total Dividends paid in the year
28.0
13,352
Principal activities
The principal activity of the Group during the financial
year was the manufacture and sale of quenched and
tempered, high-tensile, and abrasion resistant steel
plates (“Q&T plate”).
Operating and financial Review
Operations
Group
Bisalloy Steel Group comprises Bisalloy Steels Pty Ltd in
Australia, the majority owned distribution businesses
in Indonesia (PT Bima Bisalloy) and Thailand (Bisalloy
(Thailand) Co Limited) and the investment in the
Chinese Joint Venture (CJV) – Bisalloy Shangang
(Shandong) Steel Plate Co, Ltd.
Bisalloy delivered another strong set of results in the
2023-24 financial year. From a safe work perspective,
our leading indicators all improved over the past
twelve months, however our lagging indicators were
slightly higher than previous years. There is a strong
safety culture across all business units including our
joint ventures, and as we develop this culture through
ongoing training, we will continue to improve our
efforts to achieve a zero-harm operating environment.
In relation to environmental stewardship, we satisfied
all quality and environmental audits.
Our sales tonnes were impacted in FY24 in Australia
by protracted EBA negotiations in H1 and in Indonesia
by import restrictions in place for much of the year,
which have now been lifted. Despite this, strong
pricing discipline and a favourable mix meant our
sales revenue was flat with growth in Australia largely
offsetting declines in Indonesia. Improved input costs
in H2 (greenfeed, power and shipping) along with an
improved product mix meant the business has again
delivered strong financial results, with gross profit up
18.5% compared to FY23.
Bisalloy Steels is Australia’s only processor of quenched
and tempered high strength, abrasion resistant and
armour grade alloyed steel plates. Bisalloy distributes
wear and structural grade plates through both
distributors and directly to select manufacturers and
end users in Australia and internationally. For armour
grade steels, global exports are performed in strict
compliance with Defence Export Controls, a set of laws
and regulations administered by the Commonwealth
Department of Defence.
Bisalloy’s unique stand-alone heat treatment facility
at Unanderra, near Wollongong, is a highly automated
and efficient operation providing a relatively low‑cost
base, allowing it to compete with a variety of imported
products. During the twelve months ended 30 June
2024 Bisalloy utilised greenfeed steel supply mainly
from neighbouring BlueScope Steel in Wollongong,
complemented with selected supply from international
greenfeed suppliers, including the CJV.
Financial review
Operating results
Our businesses continued to perform well with strong
operational execution delivering growth in margin
through customer focus and disciplined execution
in a very competitive environment. Gross Margin
percentages increased in FY24, where higher average
sales prices were driven by a favourable product
mix with higher Armour and Protection Steel along
with improved input costs in H2 (greenfeed, power
and shipping).
The Group’s net profit for the year after income tax was
higher at $16,217,000 (2023: $13,527,000).
Operating expenses increased compared to FY23,
reflecting additional investment in marketing, business
development, R&D and higher long term incentive
expense as a result of the increased share price.
4 | Bisalloy Steel Group Limited 2024 Annual Report
Operating results are summarised as follows:
2024
Revenue
$’000
Profit after tax
$’000
Operating Segments
Australia
133,250
15,956
Overseas
21,629
2,929
154,879
18,885
Consolidated entity adjustments
(2,021)
(2,668)
Consolidated entity revenue and profit after tax for the year
152,858
16,217
Delivering for Shareholders
We seek to deliver sustainable dividends for our shareholders. We know that many shareholders rely on the
dividends and related franking credits that they receive to support their income. By focusing on our operating
performance and capital generation through different economic environments, we can achieve sustainable
dividends over the long-term.
The Board has decided to pay a final dividend of 11.5 cents per share for the Year ended 30 June 2024, in addition to
the 8.0 cent interim dividend paid in March. The Dividend Re-investment Scheme remains suspended.
Dividend per share (cents)
FY23
FY24
25
20
15
10
5
0
FY22
FY21
FY20
FY19
FY18
FY17
Interim Dividend (cents)
Final Dividend (cents)
Special Dividend (cents)
2024 Annual Report Bisalloy Steel Group Limited | 5
Directors’ Report (continued)
For the year ended 30 June 2024
FY24
FY23
FY22
FY21
FY20
FY19
FY18
FY17
Basic earnings per share
(cents)
33
27
32.2
19.3
14.9
8.3
8.2
3.4
Net profit attributable to
members ($’000)
15,741
12,796
14,991
8,810
6,736
3,682
3,636
1,509
Return on equity (reported
PAT/equity) (%)
21.00%
18.60%
24.00%
18.50%
16.00%
12.60%
12.60%
6.60%
Gearing (net debt / net debt
+ equity) (%)
0%
3%
12%
13%
27%
21%
16%
15%
Interim Dividend (cents)
8
4
4.5
Final Dividend (cents)
11.5
9.5
9
9
5
4
4
2.5
Special Dividend (cents)
10.5
Dividend franking
100%
100%
100%
100%
100%
100%
100%
100%
Dividend Payout Ratio
59%
89%
42%
47%
34%
48%
49%
74%
Balance Sheet Strength
Balance Sheet Strength is critical to our ability to serve our customers, drive core business outcomes and deliver
sustainable returns for our shareholders. Our liquidity and funding metrics remained strong. The strength of our
balance sheet means we are positioned to continue supporting our customers while delivering sustainable returns
to our shareholders.
In FY24, we received advance payments from Customers of $4.2m, which is represented in our closing cash
balance. This will unwind in FY25 as the related sales are fulfilled and recorded.
Liquidity and Funding
Gearing (net debt/net debt + equity) (%)
FY23
FY24
15%
20%
25%
30%
10%
5%
0%
FY22
FY21
FY20
FY19
FY18
FY17
6 | Bisalloy Steel Group Limited 2024 Annual Report
The Group has funded the cash paid in dividends from
Operating Activities.
The consolidated statement of cash flows details
an increase in cash and cash equivalents before
exchange rate differences for the year ended
30 June 2024 of $4,312,000 (2023: increase of $170,000).
Operating Activities resulted in a net cash inflow of
$22,038,000 (2023: inflow of $11,138,000).
Investing activities resulting in a net cash inflow of
$187,000 (2023: inflow of $922,000). This included cash
outflows of $1,848,000 (2023: outflows of $915,000) for
investment in operating plant and equipment, outflows
of $138,000 (2023: outflows of $112,000) for intangibles
and dividends received of $2,173,000 (2023: $1,949,000).
Financing activities resulted in a net cash outflow
of $17,913,000 (2023: outflow of $11,890,000), including
a decrease of $3,642,000 in borrowings (2023:
decrease in borrowings of $6,081,000) and the dividend
paid in cash to shareholders in September and
November 2023 and March 2024 totalling $13,352,000
(2023: $5,416,000).
The Group’s net cash position of $5.6m at 30 June 2024,
is up from net debt of ($2.3m) at 30 June 2023. As
noted above, the favourable net cash position at
30 June 2024 predominately reflects customer
advance payments.
Bisalloy Steel Group Limited and Bisalloy Steels Pty
Limited have the following facilities in place with
Westpac Banking Corporation: a trade finance
facility of $2.0 million, and a bank bill business facility
of $30.0 million. The total limit of these facilities is
$32.0 million.
The Group has IDR 44.5b revolver facilities as well as
a USD $0.5m Letter of Credit facility available to its
Indonesian based subsidiary.
Business strategy and outlook
Domestic Australian Sales and Margins
The last few years has seen the business focus very
much on its core business ensuring that we deliver
consistent results for shareholders.
We are now exploring related opportunities outside of
our standard products in terms of thin wide plate, TMCP
plate (thin and narrow plate) and also developing
specific grades for specific applications (eg 500XT for
the truck body market). These products are in various
stages of trial in the market, and are seen as a natural
extension of our existing products that will also allow us
to ‘bundle’ and capture more sales.
Our products are primarily used in very difficult or
extreme environments. Through discussions with
our customers, we realised that there was not a
simple, safe, and robust system to measure the wear
of our products in order to provide indications for
maintenance and ultimately replacement. This has
provided another potential opportunity for Bisalloy that
satisfies our core business but also adds real customer
value. We have presently trialled several applications
of our sensors in the mining industry and have plans
for another series of trials to begin before the end
of the year. These trials will determine the potential
of this development, how best to commercialise the
various applications for our sensors in different parts
of the mining supply chain, and how these different
applications can leverage the Bisalloy brand.
Joint Venture in China (CJV)
With the Chinese Steel Market under significant
pressure, we continue to invest further in product
development. Additionally, we are supporting further
efforts to strengthen the Bisalloy Bisplate brand
in the Chinese Domestic Market along with an
investment in a Regional Sales Manager based in
Singapore to allow a greater focus on opportunities in
international markets.
Overseas Distribution
The Group’s overseas distribution operations in
Indonesia and Thailand continue to be profitable. There
have been significant headwinds in the Indonesian
market due to import restrictions in place for most of
the year. Despite this, the team has developed new
strategies to continue to support our local customers
while waiting for the Indonesian Government to enact
new legislation and regulation, with a new import
licence issued recently. We are focussed on further
expanding the higher margin processed product
capability in Indonesia and expect to invest further in
FY25 to support this opportunity.
Armour & Protection steel
Our Armour & Protection steel business continues to be
of importance both domestically and internationally.
Current market development activities continue the
examination of the feasibility of a greater presence
in the North American defence supply chain, while
continuing to service our export opportunity with
global defence primes such as Hanwha, Rheinmetall,
and Thales.
As released to the ASX on 11 December 2023, the
Australian Submarine Agency entered into a contract
with Bisalloy Steels for the qualification of Australian
steel for use on Australia’s SSN-AUKUS conventionally
armed nuclear-powered submarines. The contract is
valued up to a maximum of $15 million for a term of
approximately 16 months.
The comprehensive qualification process, involving
more than 4,500 discrete tests, is expected to be
completed in the first half of 2025 which will ensure that
Australian steel is available to use in the construction
of Australia’s SSN-AUKUS submarines.
2024 Annual Report Bisalloy Steel Group Limited | 7
Directors’ Report (continued)
For the year ended 30 June 2024
FY25 Outlook
The Australian economy has been resilient with high
commodity prices and low unemployment. Increasing
signs of downside risks are building. Significant
geo‑political risks and a further slowdown driven by
Chinese domestic demand poses a significant threat
to global steel prices and therefore margins. We of
course also await the final determination in relation
to the Anti-Dumping Commission’s review of Case
638. Despite these headwinds and increasing risks, we
remain optimistic to deliver another strong year.
We will continue to invest domestically and
internationally in our business and execute on our
purpose to provide innovative steel solutions for
extreme environments.
Business risk management
The Group’s operating environment is complex and
dynamic. This introduces new risks and opportunities
and affects our current risk priorities. The Group Risk
Management Framework enables the Board, Executive
Leadership Team (ELT) and our people to make
informed risk decisions to support the delivery of our
strategy. The Board takes a proactive approach to
risk management and is responsible for ensuring that
risks, and also opportunities, are identified on a timely
basis and that the Group’s objectives and activities are
aligned with the risks and opportunities identified by
the Board.
The Board has established an Audit and Risk
Committee comprising non-executive Directors,
whose meetings are also attended by the executive
Director. In addition, sub-committees are convened as
appropriate in response to issues and risks identified
by the Board, and the sub-committee further examines
the issue and reports back to the Board.
The Board has a number of mechanisms in place to
ensure that management’s objectives and activities
are aligned with the risks identified by the Board. These
include the following:
●
Board approval of a strategic plan, which
encompasses the Group’s purpose, vision, mission
and strategy statements, designed to meet
stakeholder’s needs and manage business risk.
●
Implementation of Board approved operating plans
and budgets and Board monitoring of progress
against these budgets, including the establishment
and monitoring of KPIs of both a financial and
non‑financial nature.
●
Establishment of committees to report on specific
business risks, including for example, such matters
as environmental and governance issues along
with work, health and safety.
●
Board review of financial risks such as the Group’s
liquidity, currency, interest rate and credit policies,
exposures and monitors management’s actions to
ensure they are in line with Group policy.
The Board and management are placing extra focus
on mitigating a number of our material strategic,
financial and non-financial risk types, due to their
potential to have a material impact to the Group, our
customers, shareholders and the community, now or in
the future.
The material business risks with the greatest potential
to impact on the financial outlook for the Group is
further escalation in global conflicts impacting freight
routes and a material decline in steel prices driven by
a further slowdown in Chinese domestic demand and
resulting increase in exports from China.
Significant changes in the state
of affairs
Total equity increased from $72,562,000 to $77,265,000,
an increase of $4,703,000 that was driven by the
increase in net profit for the year offset by FY24
interim and FY23 final and special dividends totalling
$13,352,000 which were paid to shareholders in
September and November 2023 and March 2024
respectively.
Significant events after the
balance date
There have been no significant events after the
balance date.
Indemnification and insurance of
directors and officers
The Group must, subject to certain exceptions set out
in the constitution, indemnify each of its officers on a
full indemnity basis and to the full extent permitted
by law against all losses, liabilities, costs, charges
and expenses incurred by the officer, as an officer of
the Group (including all liabilities incurred where the
officer acts as an officer of any other body corporate
at the request of the Group) including any liability for
negligence and for reasonable legal costs.
During the year or since the end of the year, the Group
has paid premiums in respect of a directors and
officers liability insurance policy. Details of the nature
of the liabilities covered or the amount of the premium
paid in respect of the policy have not been disclosed,
as such disclosure is prohibited under the terms of
the contract.
8 | Bisalloy Steel Group Limited 2024 Annual Report
Proceedings on behalf of
the company
No person has applied to the Court under section
237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the company, or to intervene
in any proceedings to which the company is a party
for the purpose of taking responsibility on behalf of the
company for all or part of those proceedings.
Environmental regulation
The Group’s activities are governed by a range of
environmental legislation and regulations. The Group
utilises both internal and external environmental
assessments to verify its compliance with applicable
environmental legislation and regulations.
The Group is registered under National Greenhouse
and Energy Reporting Act 2007 under which it
is required to report energy consumption and
greenhouse gas emissions for its Australian facilities.
The Group has implemented systems and processes
for the collection and calculation of the data to meet
its reporting requirements.
The Board believes that the consolidated entity has
adequate systems in place for the management of its
environmental requirements and is not aware of any
breach of those environmental requirements as they
apply to the consolidated entity.
Rounding
The amounts contained in this report and in the
financial report have been rounded to the nearest
$1,000 (where rounding is applicable) under the option
available to the company under ASIC Corporations
Instrument 2016/191. The company is an entity to which
the Class Order applies.
Auditor independence
The Directors received the declaration on page 18 from
the auditor of Bisalloy Steel Group Limited which forms
part of this report.
Indemnification of auditors
To the extent permitted by law, the Company has
agreed to indemnify its auditors, RSM Australia
Partners, as part of the terms of its audit engagement
agreement against claims by third parties arising from
the audit (for an unspecified amount). No payment has
been made to indemnify RSM Australia Partners during
or since the financial year.
Non-audit services
During the year the Company’s auditor, RSM Australia
Partners, has performed other services other than the
audit and review of the financial statements.
Details of the amounts paid to the Company’s auditor
for audit and non-audit services provided during the
year are set out below.
2024
Assistance in Private Tax Ruling
application
17,000
Audit and review of financial
statements
196,000
Total paid to RSM Partners
213,000
The directors are satisfied that the provision of
non-audit services, during the year, by the auditor
(or by another person or firm on the auditor’s
behalf) is compatible with the general standard
of independence for auditors imposed by the
Corporations Act. The directors’ statement is in
accordance with the advice received from the Audit &
Risk Committee.
Likely developments and
expected results
In FY25 Bisalloy is continuing with its growth strategy
of focusing on the premium grades of QT steels from
its Unanderra plant, including armour and defence
grades while developing the volume growth of other
products including those sourced from Bisalloy’s
CJV operation.
Our Board in Action
Board Planning and Agenda Setting
The primary purpose of the Board is to ensure sound
and prudent management of the Group, providing
leadership and strategic guidance, and overseeing
the effective delivery of our purpose. Board meetings
are core to fulfilling these duties. In the 2024 financial
year, the Board held 21 meetings. In addition, the Board
and Executive Leadership Team (ELT) held a multi-day
strategy workshop.
To ensure the Board’s time is used efficiently and
discussions reflect the Group’s priorities, Board annual
plans and agendas are reviewed by respective Board
and Committee Chairs, in consultation with the
Company Secretary and CEO. Importantly, the Board
also retains flexibility for ad hoc matters to be raised
and discussed where appropriate.
2024 Annual Report Bisalloy Steel Group Limited | 9
Directors’ Report (continued)
For the year ended 30 June 2024
Remuneration report (audited)
The remuneration report for the Year ended
30 June 2024 outlines the remuneration arrangements
of the Company and the Group in accordance with
the requirements of the Corporations Act 2001 (the Act)
and its regulations. This information has been audited
as required by section 308(3C) of the Act.
The remuneration report details the remuneration
arrangements for key management personnel
(KMP) who are defined as those persons having
authority and responsibility for planning, directing
and controlling the major activities of the Company
and the Group, directly or indirectly, including any
Director (whether executive or otherwise) of the parent
company, and includes the six executives in the Group
receiving the highest remuneration.
Remuneration Policy
The Remuneration Policy is set in recognition that
the performance of the Group depends upon the
quality of its directors and executives. In order to
perform, the Group must be successful in attracting,
motivating and retaining directors and executives of
the highest quality.
To assist in achieving this objective, the Remuneration
Policy embodies the following principles:
1.
Provide competitive remuneration to attract high
calibre directors and executives.
2. Align executive rewards with creation of
shareholder value.
3. Ensure a significant component of executive
remuneration is ‘at risk’ dependent upon meeting
pre-determined performance hurdles.
4. Establish appropriately demanding performance
hurdles in relation to variable executive
remuneration.
Nominations and Remuneration
Committee
The Nominations and Remuneration Committee
is responsible for determining and reviewing
compensation arrangements for the Directors,
the Managing Director, other senior executives,
and the review and recommendation of general
remuneration principles.
The Nominations and Remuneration Committee may
seek independent advice as appropriate in setting
the structure and levels of remuneration based on
the principle that the elements of remuneration
should be set at an appropriate level having regard
to market practice for roles of similar scope and skill.
Godfrey Remuneration Group Pty Ltd, independent
remuneration consultants were engaged in February
2024 to provide guidance regarding the structure and
level of remuneration of Non-Executive Directors and
charged a fee of $13,500 (excl GST).
Remuneration Structure
The structure of non-executive Director and executive
remuneration is separate and distinct, in accordance
with good corporate governance principles.
Non-executive director remuneration
Objective
The Board sets aggregate remuneration at a level
which is intended to provide the Company with the
ability to attract and retain non-executive Directors
of the highest calibre, whilst incurring a cost which is
acceptable to shareholders.
Structure
Remuneration of non-executive directors is allocated
out of the pool of funds, the limit of which is approved
by shareholders in general meeting; the fee pool limit
Board Activities
The number of Directors’ meetings and number of meetings attended by each of the Directors of the Company
during the financial year are:
Committee Meetings
Directors’
Meetings
Audit and Risk
Nominations and
Remuneration
Number of Meetings Held
11
4
6
Number of Meetings Attended
D Balkin
11
4
6
I Greenyer
11
4
6
M Gundy
11
4
6
R Melrose
11
B Landy
11
4
6
10 | Bisalloy Steel Group Limited 2024 Annual Report
is currently $700,000 per annum. Each non-executive
director is entitled to the payment of an annual fee
in cash and superannuation contributions for their
services. Additional fees are not paid for sitting on
Board committees; however, the extra responsibility
of the Chairman of the Board is recognised by the
payment of a higher fee.
The fees for the non-executive directors were reviewed
by Godfrey Remuneration Group Pty Limited as
detailed above and adjusted during FY24 to be in
line to those paid at comparable listed companies.
The Board is satisfied that the remuneration
recommendation was made free from undue influence
by the members of the key management personnel
to whom the recommendation relates. Non‑executive
Director compensation was last reviewed in 2018.
Non-executive directors do not receive any
shares, options or other securities as part of their
remuneration. There are no schemes for retirement
benefits (other than statutory superannuation
payments). The remuneration of non-executive
Directors must not include a commission on, or
a percentage of, profits or operating revenue but
non‑executive Directors are entitled to be reimbursed
for travelling and other expenses incurred in attending
to the Company’s affairs.
Non-executive Directors are encouraged by the Board
to hold shares in the Company.
The remuneration of non-executive Directors for the
period ended 30 June 2024 is detailed in the table on
page 14 of this report.
Executive director and executive
manager remuneration
Objective
The Group aims to reward executives with a level and
mix of remuneration commensurate with their duties
and responsibilities within the Group and to:
●
Reward executives for Group, business unit and
individual performance measured against targets
set by reference to appropriate benchmarks.
●
Link reward with the achievement of the Group’s
strategic goals.
●
Align the interests of executives with those
of shareholders.
●
Ensure total remuneration is competitive.
Structure
Executive Director and executive manager
remuneration consists of the following
key components:
1.
Fixed Remuneration
2. Variable Remuneration made up of:
– Short Term Incentive (STI); and
– Long Term Incentive (LTI)
The proportion of total remuneration that is fixed or
variable (either short term or long-term incentives)
is determined for each individual executive by the
Nominations and Remuneration Committee.
The remuneration of members of management who
have the authority and responsibility for planning,
directing and controlling the activities of the Group for
the Year ended 30 June 2024 is detailed in the table on
page 14 of this report.
Fixed remuneration
Objective
The level of fixed remuneration is set so as to
provide a base level of remuneration which is both
commensurate with the individual’s duties and
responsibilities within the Group and competitive in
the market.
Fixed remuneration is reviewed annually by the
Nominations and Remuneration Committee utilising
a process of reviewing group-wide, business unit
and individual performance, relevant comparative
remuneration in the market and internal and external
advice on policies and practice.
Structure
Executive Directors and executive managers are
provided with the opportunity to receive their fixed
remuneration in a variety of forms, including cash,
additional superannuation contributions and fringe
benefits such as motor vehicles. The aim is to provide
payments in a form that is both optimal for the
recipient and cost efficient for the Group.
The fixed remuneration component of executive
Directors and members of management who have
the authority and responsibility for planning, directing
and controlling the activities of the Group for the Year
ended 30 June 2024 is detailed in the table on page 14
of this report.
Variable remuneration – short term
incentives (STI)
Objective
The STI program has been designed to align the
remuneration received by executive Directors and
executive managers with the achievement of the
Group’s operational and financial targets. The total
potential STI available for payment is determined so
as to provide sufficient incentive to executive Directors
and executive managers to achieve the targets
and so that the cost to the Group is reasonable in
the circumstances.
Structure
The actual STI payments granted to each executive
Director and executive manager depends upon the
extent to which specific operational and financial
targets set at the beginning of the financial year are
2024 Annual Report Bisalloy Steel Group Limited | 11
Directors’ Report (continued)
For the year ended 30 June 2024
met. The targets consist of a number of both financial
and non-financial Key Performance Indicators (KPIs).
After the end of each financial year, consideration
is given to performance against each of these
KPIs to determine the extent of any payment to an
individual executive Director or executive manager.
The aggregate of STI payments and STI payments
to individuals is subject to the approval of the
Nominations and Remuneration Committee. The
individual needs to be employed at the time of
payment to be eligible for the payment.
Payments made are normally paid as cash but the
recipient is also able to elect to receive payment in
alternative forms.
Variable remuneration – long term
incentives (LTI)
Objective
The LTI program has been designed to align the
remuneration received by executive Directors
and executive managers with the creation of
shareholder wealth.
Consequently, LTI grants are only made to executives
who are in a position to influence shareholder wealth
and thus have the opportunity to influence the
company’s performance against the relevant long
term performance hurdles.
Structure
At the 2022 Annual General Meeting, the LTI plan was
renewed for LTI grants to executives in the form of
share rights.
For grants prior to 2022, these rights are granted in
two equal parts. The first part is based on retention
and requires the holder remain an employee for three
years from grant date. The second part is based
on delivering superior long-term performance as
measured by Return on Equity (“ROE”), with each grant
of rights divided into three equal tranches. For each
tranche, actual ROE is measured against a budget
ROE and a stretch ROE as determined annually by
the Board in respect of the forthcoming year. The
proportion of the rights which vest depend on where
within this range the Group performs, with 100% vesting
on achieving the stretch ROE and no rights vesting if
actual ROE is less than 90% of the budgeted ROE. For
the rights granted prior to the 2022 year, the stretch
ROE was set at 115% of the budget ROE. Any rights
to which the employee may become entitled on
achieving the performance criteria, are still subject to
the three year retention criteria before they can vest.
For grants since 2022, these rights are granted based
on delivering superior long-term performance as
measured by Return on Invested Capital (“ROIC”) over
a three-year performance period, determined by
the Board in respect of each forthcoming three year
period. The rights which vest depend on achieving
this target ROIC, with 100% vesting on achieving the
ROIC and no rights vesting if actual ROIC is less than
the target ROIC. Any rights to which the employee
may become entitled on achieving the performance
criteria, are still subject to being employed by Bisalloy
for the whole performance period.
Any share rights which do not vest, as a result of the
relevant performance condition not being satisfied,
lapse. If the holder leaves the business, the unvested
rights lapse on the leaving date unless the Board
determines otherwise. In the event of a change in
control of the Group, the vesting date will generally be
brought forward to the date of change of control and
share rights will vest subject to performance over this
shortened period, subject to ultimate Board discretion.
Once vested a holder may exercise their share rights
and be allocated a fully paid ordinary share of Bisalloy
at no cost to the employee or the equivalent in cash at
the Board’s discretion. Precedence suggests all plans
will be settled 50/50 between cash and shares.
A total of 269,590 share rights (2023: 274,824) were
granted under this scheme during the year.
At the 2023 AGM, 98.83% of the votes received
supported the adoption of the remuneration report
for the Year ended 30 June 2023. The company did not
receive any specific feedback at the AGM regarding its
remuneration practices
Group performance
The Board has determined that 100% of the 2022-24
share rights have vested based on an ROIC achieved
that was above target ROIC over the three-year
performance period.
12 | Bisalloy Steel Group Limited 2024 Annual Report
Details of key management personnel of the company and group
(i) Directors
D Balkin
Non-executive Chairman (from 27 November 2020)
I Greenyer
Non-executive Director (from 27 November 2020)
M Gundy
Non-executive Director (from 27 November 2020)
R Melrose
Managing Director and Chief Executive Officer (from 1 March 2022)
B Landy
Non-executive Director (from 1 March 2022)
(ii) Executives
M Enbom
Chief Operating Officer (from November 2019)
C Bowdler
Chief Financial Officer and Company Secretary (from 29 November 2021)
Executive contracts
Remuneration arrangements for the key management personnel are formalised in employment contracts.
Details of these contracts are provided below.
R Melrose – Managing Director and Chief Executive Officer (from 1 March 2022)
●
Regular employment contract without fixed term
●
Participation in STI and LTI schemes
●
6 months notice required for termination of employment
C Bowdler – Chief Financial Officer and Company Secretary (from 29 November 2021)
●
Regular employment contract without fixed term
●
Participation in STI and LTI schemes
●
3 months notice required for termination of employment
M Enbom – Chief Operating Officer (from 1 November 2019)
●
Regular employment contract without fixed term
●
Participation in STI and LTI schemes
●
3 months notice required for termination of employment
2024 Annual Report Bisalloy Steel Group Limited | 13
Directors’ Report (continued)
For the year ended 30 June 2024
Remuneration of key management personnel of the company and group
Year ended 30 June 2024
Short-term
Long-term
Post employment
Share-
based
payments
Total
Salary
and fees
$
Cash
bonus
$
Long
service
and
Annual
leave
$
Super-
annuation
$
Retirement
benefits
$
Term-
ination
benefits
$
Other
$
Share
Rights
$
$
Perf-
ormance
Related
%
Non-Executive Directors
B Landy
104,279
–
–
11,471
–
–
–
–
115,750
–
D Balkin
156,419
–
–
17,206
–
–
–
–
173,625
–
I Greenyer
104,279
–
–
11,471
–
–
–
–
115,750
–
M Gundy
104,279
–
–
11,471
–
–
–
–
115,750
–
Sub-total
Non-Executive Directors
469,256
–
–
51,619
–
–
–
–
520,875
–
Executive Directors
R Melrose
480,840
183,002
23,354
27,500
–
–
–
418,537
1,133,233
53%
Sub-total Executive Directors
480,840
183,002
23,354
27,500
–
–
–
418,537
1,133,233
–
Other key management personnel
M Enbom
358,484
104,216
20,175
27,500
–
–
–
265,109
775,484
48%
C Bowdler
353,416
102,847
19,190
27,500
–
–
–
279,408
782,361
49%
Sub-total Executive KMP
711,900
207,063
39,365
55,000
–
–
–
544,517
1,557,845
48%
Totals
1,661,996
390,065
62,719
134,119
–
–
–
963,054
3,211,953
42%
14 | Bisalloy Steel Group Limited 2024 Annual Report
Year ended 30 June 2023
Short-term
Long-term
Post employment
Share-
based
payments
Total
Salary
and fees
$
Cash
bonus
$
Long
service
and
Annual
leave
$
Super-
annuation
$
Retirement
benefits
$
Term-
ination
benefits
$
Other
$
Share
Rights
$
$
Perf-
ormance
Related
%
Non-Executive Directors
B Landy
100,000
–
–
10,500
–
–
–
–
110,500
–
D Balkin
150,000
–
–
15,750
–
–
–
–
165,750
–
I Greenyer
100,000
–
–
10,500
–
–
–
–
110,500
–
M Gundy
100,000
–
–
10,500
–
–
–
–
110,500
–
Sub-total
Non-Executive Directors
450,000
–
–
47,250
–
–
–
–
497,250
–
Executive Directors
R Melrose
449,786
198,472
34,383
27,500
–
–
–
109,548
819,689
38%
Sub-total Executive Directors
449,786
198,472
34,383
27,500
–
–
–
109,548
819,689
–
Other key management personnel
M Enbom
341,863
113,006
19,121
27,500
–
–
–
233,280
734,770
47%
C Bowdler
332,162
108,142
11,537
27,500
–
–
–
84,352
563,693
34%
Sub-total Executive KMP
674,025
221,148
30,658
55,000
–
–
–
317,632
1,298,463
41%
Totals
1,573,811
419,620
65,041
129,750
–
–
–
427,180
2,615,402
32%
2024 Annual Report Bisalloy Steel Group Limited | 15
Directors’ Report (continued)
For the year ended 30 June 2024
Share rights
Share rights holders do not have any entitlement, by virtue of the rights, to participate in any share issue of the Company or any related body corporate or in
the interest issue of any other registered scheme.
Performance rights holdings of key management personnel of the company and group
Balance at
1 July 2023
Granted
during the
year
Rights
exercised
during the
year
Forfeited or
Lapsed
Balance at
30 June 2024
Vested and
exercisable
Unvested
Executives
M Enbom
416,629
76,801
235,640
–
257,790
–
257,790
C Bowdler
138,702
74,784
–
–
213,486
–
213,486
R Melrose
173,038
118,005
–
–
291,043
–
291,043
728,369
269,590
(235,640)
–
762,319
–
762,319
M Enbom
#2
M Enbom
#3
C Bowdler
R Melrose1
M Enbom
#4
C Bowdler
#2
R Melrose2
#2
M Enbom
#5
C Bowdler
#3
R Melrose3
#3
Total
Grant date
6-Jul-20
27-Apr-22
27-Apr-22
27-Apr-22
21-Sep-22
21-Sep-22
21-Sep-22
21-Sep-23
21-Sep-23
21-Sep-23
Vesting date
5-Jul-23
1-Sep-24
1-Sep-24
1-Sep-24
1-Sep-25
1-Sep-25
1-Sep-25
1-Sep-26
1-Sep-26
1-Sep-26
Fair value at grant date
$0.82
$1.430
$1.430
$1.890
$1.800
$1.800
$1.740
$1.590
$1.590
$1.590
Balance at 1 July 2023
235,640
102,697
62,466
52,742
78,292
76,236
120,296
–
–
–
728,369
New grants in the year
–
–
–
–
–
–
–
76,801
74,784
118,005
269,590
Exercised in the year
235,640
–
–
–
–
–
–
–
–
–
(235,640)
Lapsed during the year
–
–
–
–
–
–
–
–
–
–
–
Balance at 30 June 2024
–
102,697
62,466
52,742
78,292
76,236
120,296
76,801
74,784
118,005
762,319
Vested and exercisable
at 30 June 2024
–
–
–
–
–
–
–
–
–
–
–
Notes:
1. Mr Melrose’s share rights awarded on 27 April 2022 were approved at the AGM on 19 October 2022. The Fair Value at the initial award was $1.43. The fair value on the date of
approval was $1.89.
2. Mr Melrose’s grant date is shown the date of the initial award. The Fair Value at the initial award was $1.80. The fair value on the date of approval was $1.74.
3. Mr Melrose’s grant date is shown the date of the initial award. The Fair Value at this time was $1.59. This grant remains subject to shareholder approval at the upcoming AGM
and the fair value as at 30 June 2024 was $3.84.
16 | Bisalloy Steel Group Limited 2024 Annual Report
Shareholdings of key management personnel
Shareholdings include shares held personally and through related parties.
Balance at
30 Jun 23
Performance
Rights
Exercised
Other
Balance at
30 Jun 24
Directors
D Balkin
7,781,095
–
–
7,781,095
I Greenyer
100,000
–
–
100,000
M Gundy
67,054
–
–
67,054
B Landy
32,500
–
–
32,500
R Melrose
–
–
10,000
10,000
Executives
M Enbom
77,589
235,640
–
313,229
C Bowdler
–
–
–
–
8,058,238
235,640
10,000
8,303,878
Audit
The information contained in the Remuneration Report has been audited.
Signed in accordance with a resolution of the Directors.
The Directors have received the Auditors independence declaration which is included on page 18.
Mr Rowan Melrose
CEO and Managing Director
28 August 2024
2024 Annual Report Bisalloy Steel Group Limited | 17
Auditor’s Independence Declaration
For the year ended 30 June 2024
18 | Bisalloy Steel Group Limited 2024 Annual Report
Consolidated Statement of Profit or Loss and other
Comprehensive Income
For the year ended 30 June 2024
Consolidated
In thousands of dollars
Notes
Year ended
30 June 2024
Year ended
30 June 2023
Continuing operations
Revenue from contracts with customers
2
152,858
153,139
Cost of goods sold
4(c)
(114,207)
(120,521)
Gross profit
38,651
32,618
Other income/(expense)
4(a)
46
(35)
Distribution expenses
(2,436)
(2,385)
Marketing expenses
(4,684)
(4,017)
Occupancy expenses
(986)
(841)
Administrative expenses
(9,242)
(7,925)
Operating profit
21,349
17,415
Finance costs
4(b)
(729)
(1,306)
Finance income
4(b)
7
227
Share of profit of joint venture, net of tax
5
2,424
2,433
Profit before income tax
23,051
18,769
Income tax expense
6(a)
(6,834)
(5,242)
Profit after income tax
16,217
13,527
Attributable to:
Non-controlling interests
22(c)
476
731
Owners of the parent
15,741
12,796
Profit for the year
16,217
13,527
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Fair value revaluation of land and buildings
3,666
–
Foreign currency translation
(935)
218
Net loss on cash flow hedge reserve
31
(42)
Actuarial gains
156
43
Income tax effect on items in other comprehensive income
(1,103)
(52)
Other comprehensive income for the period, net of tax
1,815
167
Total comprehensive income for the period, net of tax
18,032
13,694
Attributable to:
Non-controlling interests
(298)
856
Owners of the parent
18,330
12,838
18,032
13,694
Earnings per share for profit attributable to ordinary equity holders of
the parent
- Basic earnings per share (cents)
7
33.0
27.0
- Diluted earnings per share (cents)
7
32.5
26.7
2024 Annual Report Bisalloy Steel Group Limited | 19
Consolidated Statement of Financial Position
As at 30 June 2024
Consolidated
In thousands of dollars
Notes
Year ended
30 June 2024
Year ended
30 June 2023
ASSETS
Current assets
Cash and cash equivalents
9(a)
6,300
2,052
Trade and other receivables
10
21,122
23,421
Inventories
11
48,836
47,106
Other current assets
12
2,151
2,427
Contract assets
2.2
15
247
Derivative assets
21
17
33
Income tax receivable
6(e)
68
485
Total current assets
78,509
75,771
Non-current assets
Investment in joint venture
5
9,840
9,583
Other non-current assets
12
138
123
Property, plant and equipment
13
29,567
26,090
Intangible assets
14
444
580
Income tax receivable
6(e)
–
53
Deferred tax assets
6(d)
77
59
Total non-current assets
40,066
36,488
Total assets
118,575
112,259
LIABILITIES
Current liabilities
Trade and other payables
17
24,766
25,838
Loans and borrowings
18.2
736
1,020
Income tax payable
6(e)
1,631
360
Employee benefit liabilities
19
2,392
1,971
Lease liabilities
20
236
373
Dividend payable
22(c)
–
183
Contract liabilities
2.2
4,517
376
Derivative liabilities
21
–
108
Total current liabilities
34,278
30,229
Non-current liabilities
Loans and borrowings
18.2
–
3,358
Employee benefit liabilities
19
1,591
1,342
Lease liabilities
20
107
288
Deferred tax liabilities
6(d)
5,334
4,480
Total non-current liabilities
7,032
9,468
Total liabilities
41,310
39,697
NET ASSETS
77,265
72,562
EQUITY
Equity attributable to equity holders of the parent
Contributed equity
22(a)
15,227
15,227
Accumulated profits
22(d)
43,197
40,674
Other reserves
22(e)
14,417
12,066
Parent interests
72,841
67,967
Non-controlling interests
22(c)
4,424
4,595
TOTAL EQUITY
77,265
72,562
20 | Bisalloy Steel Group Limited 2024 Annual Report
Consolidated Statement of Cash Flows
For the year ended 30 June 2024
Consolidated
In thousands of dollars
Notes
Year ended
30 June 2024
Year ended
30 June 2023
Cash flows from operating activities
Receipts from customers (inclusive of GST)
168,711
165,766
Payments to suppliers and employees (inclusive of GST)
(140,594)
(145,949)
Interest received
7
39
Borrowing costs
(729)
(1,205)
Income tax paid
(5,357)
(7,513)
Net cash received from operating activities
9(b)
22,038
11,138
Cash flows from investing activities
Payments for property, plant and equipment
(1,848)
(915)
Payments for intangible assets
(138)
(112)
Dividends received from investments
2,173
1,949
Net cash received from investing activities
187
922
Cash flows from financing activities
Repayments from borrowings
(3,642)
(6,081)
Dividends paid to non-controlling interests
(532)
–
Dividends paid to shareholders of the parent
(13,352)
(5,416)
Principal lease payments
(387)
(393)
Net cash used in financing activities
(17,913)
(11,890)
Net increase in cash held
4,312
170
Net foreign exchange differences
(64)
48
Cash at the beginning of the financial year
2,052
1,834
Cash at the end of the financial year
9(a)
6,300
2,052
2024 Annual Report Bisalloy Steel Group Limited | 21
Consolidated Statement of Changes in Equity
For the year ended 30 June 2024
In thousands of dollars
Issued
capital
Empl-
oyee
equity
Benefits
reserve
Cash
flow
hedge
reserve
Foreign
currency
trans-
lation
reserve
Asset
reval-
uation
reserve
Equity
Settle-
ment
Reserve
Other
Reserves
Retained
earnings
Total
Non-
control-
ling
interest
Total
equity
1 July 2022
14,507
87
–
814
10,542
550
(43)
33,907
60,364
3,922
64,286
Profit for the period
–
–
–
–
–
–
–
12,796
12,796
731
13,527
Other comprehensive income/(loss)
–
–
(30)
66
–
–
34
–
70
125
195
Depreciation transfer for
building revaluation
–
–
–
–
(135)
–
–
107
(28)
–
(28)
Total comprehensive income
–
–
(30)
66
(135)
–
34
12,903
12,838
856
13,694
Transactions with owners in their capacity as owners:
Ordinary dividends paid to
shareholders(Note 8)
–
–
–
–
–
–
–
(6,136)
(6,136)
–
(6,136)
Dividend Reinvestment Plan (Note 22 (b))
720
–
–
–
–
–
–
–
720
–
720
Dividends paid to non-controlling interests
–
–
–
–
–
–
–
–
–
(183)
(183)
Share based payments (Note 15)
–
181
–
–
–
–
–
–
181
–
181
At 30 June 2023
15,227
268
(30)
880
10,407
550
(9)
40,674
67,967
4,595
72,562
1 July 2023
15,227
268
(30)
880
10,407
550
(9)
40,674
67,967
4,595
72,562
Profit for the period
–
–
–
–
–
–
–
15,741
15,741
476
16,217
Other comprehensive income/(loss)
–
–
31
(590)
2,594
–
78
–
2,113
(298)
1,815
Depreciation transfer for building
revaluation
–
–
–
–
(134)
–
–
134
–
–
–
Total comprehensive income
–
–
31
(590)
2,460
–
78
15,875
17,854
178
18,032
Transactions with owners in their capacity as owners:
Ordinary dividends paid to
shareholders(Note 8)
–
–
–
–
–
–
–
(13,352)
(13,352)
–
(13,352)
Dividends paid to non-controlling interests
–
–
–
–
–
–
–
–
–
(349)
(349)
Settlement of performance rights
–
372
–
–
–
–
–
–
372
–
372
Share based payments (Note 15)
–
(194)
–
–
–
194
–
–
–
–
–
At 30 June 2024
15,227
446
1
290
12,867
744
69
43,197
72,841
4,424
77,265
22 | Bisalloy Steel Group Limited 2024 Annual Report
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
1.
Corporate information
The financial report of Bisalloy Steel Group Limited and its subsidiaries (“the Group”) for the Year ended 30 June 2024
was authorised for issue in accordance with a resolution of the directors on 28 August 2024.
Bisalloy Steel Group Limited is a for profit company limited by shares incorporated and domiciled in Australia whose
shares are publicly traded on the Australian Stock Exchange.
The nature of the operations and principal activities of the Group are described in the Directors’ Report.
2.
Revenue from contracts with customers
2.1
Disaggregated revenue information
Set out below is the disaggregation of the Group’s revenue from contracts with customers:
For the Year ended 30 June 2024
In thousands of dollars
Australia
Overseas
Total
Performance obligation
Sales of steel plates
121,278
21,308
142,586
Shipping and handling
9,951
321
10,272
Total revenue from contracts with customers
131,229
21,629
152,858
Timing of revenue recognition
Goods transferred at a point in time
121,278
21,308
142,586
Services transferred over time
9,951
321
10,272
Total revenue from contracts with customers
131,229
21,629
152,858
For the Year ended 30 June 2023
In thousands of dollars
Australia
Overseas
Total
Performance obligation
Sales of steel plates
117,924
23,957
141,881
Shipping and handling
10,880
378
11,258
Total revenue from contracts with customers
128,804
24,335
153,139
Timing of revenue recognition
Goods transferred at a point in time
117,924
23,957
141,881
Services transferred over time
10,880
378
11,258
Total revenue from contracts with customers
128,804
24,335
153,139
2.2
Contract balances
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Trade receivables (refer to note 10)
20,768
23,113
Contract assets
15
247
Contract liabilities
(4,517)
(376)
Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days end of month.
2024 Annual Report Bisalloy Steel Group Limited | 23
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
Contract assets are initially recognised for revenue earned from shipping and handling services as receipt
of consideration is conditional on delivery of the steel plates. Upon delivery of the steel plates, the amounts
recognised as contract assets are reclassified to trade receivables.
Contract liabilities are recognised for shipping and handling services yet to be provided with respect to the steel
plates invoiced and for any settlement discounts expected to be obtained by customers.
2.3 Performance Obligations
The Group’s contracts with customers are for the sale of steel plates. In completing the sale of the steel plates, there
are two performance obligations identified, being the provision of steel plates and the provision of shipping and
handling. The Group has concluded that revenue from the provision of steel plates is recognised at the point in time
when control of the asset is transferred to the customer and revenue from the services of shipping and handling are
recognised over time as the service is performed.
As at 30 June 2024, the unsatisfied performance obligations per each segment is presented below.
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Provision of steel plates
4,236
–
Shipping and handling
281
376
Total Revenue from contracts with customers
4,517
376
The remaining performance obligations are expected to be recognised within the next 12 months.
2.
Revenue from contracts with customers (continued)
2.2
Contract balances (continued)
3.
Operating Segments
Identification of reportable segments
The Group has identified its operating segments based
on the internal reports that are reviewed and used by
the executive management team (the chief operating
decision makers) in assessing performance and in
determining the allocation of resources.
The operating segments are identified by
management based on country of origin. Discrete
financial information about each of these operating
businesses is reported to the executive management
team on at least a monthly basis.
The reportable segments are based on aggregated
operating segments determined by the similarity of
economic characteristics.
Geographical areas
Australian operations
The Australian operations are comprised of Bisalloy
Steels Pty Limited and Bisalloy Steel Group Limited.
Bisalloy Steels Pty Limited manufactures and sells
wear-grade and high tensile plate through distributors
and directly to original equipment manufacturers in
both Australia and Overseas. Bisalloy Steels is located
in Unanderra, near Wollongong, NSW.
Bisalloy Steel Group Limited is the corporate entity,
also located in Unanderra, NSW, which incurs expenses
such as head office costs and interest. Corporate
charges are allocated across the Australian and
Overseas segments.
Overseas operations
The Overseas operations comprise of PT Bima
Bisalloy and Bisalloy (Thailand) Co Limited located
in Indonesia and Thailand respectively. These
businesses distribute Bisalloy Q&T plate as well as
other steel plate products. The Overseas operations
also includes the co‑operative joint venture Bisalloy
Shangang (Shandong) Steel Plate Co. Limited in the
People’s Republic of China for the marketing, sale and
distribution of quench & tempered steel plate.
Accounting policies and inter-segment
transactions
The accounting policies used by the Group in reporting
segments internally are the same as those contained
in note 28 to the accounts and in the prior period
except as detailed below:
24 | Bisalloy Steel Group Limited 2024 Annual Report
Inter-entity sales
Inter-entity sales are recognised based on an internally set transfer price. This price is set periodically and aims to
reflect what the business operation could achieve if they sold their output to external parties at arm’s length.
Major customers
The group has a number of customers to which it provides products. There are three customers who account for
35% (2023: 29%), 12% (2023: 10%) and 5% (2023: 6%) of total external revenue. All these customers are in the Australian
operating segment.
For the Year ended 30 June 2024
In thousands of dollars
Australia
Overseas
Total
Revenue:
Sales to external customers
131,229
21,629
152,858
Inter-segment sales
2,021
–
2,021
Total segment revenue
133,250
21,629
154,879
Inter-segment elimination
–
–
(2,021)
Total consolidated revenue
–
–
152,858
Segment net operating profit after tax
15,956
2,929
18,885
Interest income
–
7
7
Interest expense
567
162
729
Depreciation
1,891
297
2,188
Share of profit of joint venture
–
2,424
2,424
Income tax expense
6,531
303
6,834
Segment assets
101,023
18,605
119,628
Capital expenditure
5,616
133
5,749
Segment liabilities
27,757
4,357
32,114
For the Year ended 30 June 2023
In thousands of dollars
Australia
Overseas
Total
Revenue:
Sales to external customers
128,804
24,335
153,139
Inter-segment sales
2,394
–
2,394
Total segment revenue
131,198
24,335
155,533
Inter-segment elimination
–
–
(2,394)
Total consolidated revenue
–
–
153,139
Segment net operating profit after tax
11,864
3,596
15,460
Interest income
210
17
227
Interest expense
1,072
234
1,306
Depreciation
1,836
325
2,161
Share of profit of joint venture
–
2,433
2,433
Income tax expense
4,542
575
5,117
Segment assets
93,333
19,323
112,656
3.
Operating Segments (continued)
2024 Annual Report Bisalloy Steel Group Limited | 25
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
For the Year ended 30 June 2023
In thousands of dollars
Australia
Overseas
Total
Capital expenditure
957
421
1,378
Segment liabilities
28,670
4,009
32,679
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
i)
Segment revenue reconciliation to the statement of
comprehensive income
Total segment revenue
154,879
155,533
Inter-segment sales elimination
(2,021)
(2,394)
Total revenue
152,858
153,139
Revenue from external customers by geographical location is detailed below. Revenue is attributed to geographic
location based on the location of the customers.
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Australia
111,841
106,779
Indonesia
24,405
33,565
Thailand
5,680
3,917
Other foreign countries
10,932
8,878
Total revenue
152,858
153,139
ii)
Segment net operating profit after tax reconciliation to the statement of comprehensive income
The executive management committee meets on a monthly basis to assess the performance of each segment by
analysing the segment’s net operating profit after tax.
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Reconciliation of segment net operating profit after tax to net profit
before tax
Segment net operating profit after tax
18,885
15,460
Intercompany eliminations (net of tax)
(2,668)
(1,933)
Income tax expense
6,834
5,242
Total net profit before tax per the statement of profit or loss
23,051
18,769
3.
Operating Segments (continued)
26 | Bisalloy Steel Group Limited 2024 Annual Report
iii) Segment assets reconciliation to the statement of financial position
In assessing the segment performance on a monthly basis, the executive management committee analyses the
segment result as described above and its relation to segment assets. Segment assets are those operating assets
of the entity that the management committee views as directly attributing to the performance of the segment.
These assets include plant and equipment, receivables, inventory and intangibles and exclude derivative assets,
deferred tax assets, and pension assets.
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Reconciliation of segment operating assets to total assets
Segment operating assets
119,628
112,656
Inter-segment eliminations
(1,215)
(1,027)
Deferred tax assets
77
59
Income tax receivable
68
538
Derivative assets
17
33
Total assets per the statement of financial position
118,575
112,259
The analysis of the location of non-current assets other than financial instruments, deferred tax assets and pension
assets is as follows:
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Australia
37,430
33,433
Overseas
2,559
2,996
Total non-current assets
39,989
36,429
iv) Segment liabilities reconciliation to the statement of financial position
Segment liabilities include trade and other payables and debt. The executive management committee reviews the
level of debt for each segment in the monthly meetings.
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Reconciliation of segment operating liabilities to total liabilities
Segment operating liabilities
32,114
32,679
Inter-segment eliminations
(1,752)
(1,243)
Income tax payable
1,631
360
Employee benefit liabilities
3,983
3,313
Derivative liability
–
108
Deferred tax liabilities
5,334
4,480
Total liabilities per the statement of financial position
41,310
39,697
3.
Operating Segments (continued)
2024 Annual Report Bisalloy Steel Group Limited | 27
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
4.
Other income and expenses
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
(a) Other expenses / (income)
Foreign exchange loss / (gain)
(30)
55
Other Income
(16)
(20)
(46)
35
(b) Finance (income) and costs
Bank interest and borrowing costs
729
1,306
Total finance costs
729
1,306
Bank interest
(7)
(227)
Total finance income
(7)
(227)
(c) Depreciation and costs of inventories included in statement of
comprehensive income
Depreciation and amortisation*
2,188
2,161
Cost of inventories
103,616
108,508
Provision for inventory
18
31
Cost of inventories recognised as an expense
103,634
108,539
Freight
10,573
11,982
Cost of goods sold
114,207
120,521
(d) Employee benefits expense*
Wages and salaries
13,941
14,547
Superannuation costs
1,132
1,062
Expense of share-based payments
963
427
16,036
16,036
*These costs are apportioned over several functions of the Group.
28 | Bisalloy Steel Group Limited 2024 Annual Report
5.
Investment in joint venture
Interests in the joint venture (JV) are accounted for using the equity method. They are initially recognised at cost,
which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include
the Group’s share of the profit or loss and other comprehensive income of equity-accounted investees, until the
date on which significant influence or joint control ceases.
The financial statements of the joint venture are prepared on a December balance date, however, as the Group
equity accounts for this, the necessary adjustments are made to align these to the Group’s reporting period. When
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
A dividend of $2,173,996 (2023: $1,949,365) was received from the JV during the year.
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Joint venture’s statement of financial position:
Current assets, including cash of $1,323,556 (2023: $2,374,064)
28,107
27,340
Non-current assets
419
26
Current liabilities
(8,586)
(8,200)
Non-current liabilities
(259)
–
Equity
19,681
19,166
Joint ventures revenue and profit:
Revenue
67,972
76,895
Expenses
(61,621)
(70,275)
Finance (expense) / income
2
(151)
Profit before income tax
6,353
6,469
Income tax
(1,505)
(1,603)
Profit for the year
4,848
4,866
Group’s share of profit
2,424
2,433
Carrying amount of the investment
9,840
9,583
Movement in carrying amount of the investment
Balance at 1 July
9,583
9,299
Share of profit
2,424
2,433
Dividend received
(2,174)
(1,949)
Currency translation differences
7
(200)
Balance at 30 June
9,840
9,583
The joint venture has no capital commitments or contingent liabilities at 30 June 2024 (2023: None).
2024 Annual Report Bisalloy Steel Group Limited | 29
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
6.
Income tax
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
(a) Income Tax Expense
The major components of income tax expense are:
Income Statement
Current income tax
Current income tax charge
7,048
4,861
7,048
4,861
Deferred income tax
Relating to origination and reversal of temporary differences
(214)
381
(214)
381
Income tax expense
6,834
5,242
The income tax expense for the period is disclosed as follows:
Income tax expense attributable to continuing operations
6,834
5,242
6,834
5,242
(b) Amounts charged or credited directly to equity
Deferred income tax related to items charged or credited directly to equity
Actuarial losses and gains
43
41
Net gain on revaluation of land and buildings and derivative assets
1,060
(13)
Income tax expense reported in equity
1,103
28
(c)
Numerical reconciliation between aggregate tax expense recognised in the income statement and
tax expense calculated per the statutory income tax rate
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Accounting profit before tax
23,051
18,769
At the Group's statutory income tax rate of 30% (2023: 30%)
6,915
5,631
Income assessable for tax purposes
56
209
Expenditure not allowable for tax purposes
459
232
De-recognition of foreign income tax credits
228
218
Foreign tax credits allowed
27
(95)
Share of profit of equity-accounted investees reported net of tax
(727)
(730)
Effect of tax rates in foreign jurisdictions
(153)
(223)
Adjustment in respect of current income tax of previous years
29
–
Income tax expense on pre-tax net profit
6,834
5,242
30 | Bisalloy Steel Group Limited 2024 Annual Report
Consolidated
Net DTA
Net DTL
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Year ended
30 June 2024
Year ended
30 June 2023
(d) Deferred tax assets (DTA) and
liabilities (DTL)
The balance comprises of temporary differences
attributable to:
Property, plant and equipment
–
–
(6,510)
(5,532)
Employee entitlement provisions
48
44
773
724
Other provisions and accruals
32
22
525
554
Inventory
–
–
127
137
Other
–
–
(248)
(395)
Derivatives
(3)
(7)
(1)
32
Deferred tax assets and liabilities reflected in the
balance sheet
77
59
(5,334)
(4,480)
Movements
Opening balance at 1 July
59
69
(4,480)
(4,056)
Credited/(charged) to profit or loss
18
(10)
196
(396)
Charged to other comprehensive income
–
–
(1,050)
(28)
Closing balance at 30 June
77
59
(5,334)
(4,480)
Of the DTA and DTL’s recognised for the Group the following amounts are attributed to the Thailand and Indonesian
tax jurisdiction at 30 June 2024, the balance relates to the Australian tax jurisdiction:
Net DTA/(DTL)
In thousands of dollars
Thailand
2024
Indonesia
2024
Thailand
2023
Indonesia
2023
The balance comprises of temporary differences
attributable to:
Property, plant and equipment
–
(423)
–
(463)
Employee entitlement provisions
48
112
44
116
Other provisions and accruals
32
137
22
171
Derivatives
(3)
–
(7)
–
Deferred tax assets and liabilities reflected in the
balance sheet
77
(174)
59
(176)
(e)
Current income tax at 30 June 2024 relates to the following:
The current tax payable for the Group of $1,562,588 (2023: $360,154) represents the amount of income tax payable in
respect of the current and prior periods. The current tax payable of the Group is made up of $1,562,588 payable in
the Australian jurisdiction.
The current tax receivable of $67,984 (2023: $484,956) and the non-current tax receivable of $0 (2023: $53,247) for
the Group represents the amount of income tax receivable in respect of the current and prior periods. The amount
of current tax receivable is attributed to the Thailand and Indonesian tax jurisdiction.
The Group liability includes both the income tax payable by all members of the tax consolidated group and those
members outside the tax consolidated group and outside the Australian tax jurisdiction.
6.
Income tax (continued)
2024 Annual Report Bisalloy Steel Group Limited | 31
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
(f)
Unrecognised temporary differences
At 30 June 2024, there are no unrecognised temporary differences associated with the Group’s investments in
subsidiaries, as the Group has no liability for additional taxation should unremitted earnings be remitted (2023: Nil).
(g) Tax consolidation
(i)
Members of the tax consolidation group and the tax sharing arrangement
Effective 1 July 2003, for the purposes of income taxation, the Company and its 100% owned Australian
subsidiaries formed a tax consolidated group. Members of the group have entered into a tax sharing
arrangement. This arrangement provides for the allocation of income tax liabilities between the entities should
the head entity default on its tax payment obligations. At the balance date, the possibility of a default is
remote. The head entity of the group is Bisalloy Steel Group Limited.
(ii)
Tax effect accounting by members of the tax consolidated group
Members of the tax consolidated group have entered into a tax funding agreement. The allocation of taxes
under the tax funding agreement is recognised under the separate tax payer within a group approach.
Allocations under the tax funding agreement are made on a semi-annual basis.
The amount that is allocated under the tax funding agreement is done so in accordance with a method
permitted by Urgent Issues Group Interpretation 1052 and is recognised by way of an increase or decrease in
the subsidiaries intercompany accounts.
7.
Earnings per share (EPS)
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
The following reflects the income and share data used in the basic and diluted
earnings per share computations:
Net profit for the period
16,217
13,527
Net profit attributable to non-controlling interest holders
(476)
(731)
Net profit attributable to equity holders of the parent (used in calculating basic
and diluted EPS)
15,741
12,796
Thousands
Thousands
Weighted average number of ordinary shares for basic earnings per share
47,637
47,345
Effects of dilution:
Performance rights
755
671
Adjusted weighted average number of ordinary shares for diluted earnings
per share
48,392
48,016
6.
Income tax (continued)
32 | Bisalloy Steel Group Limited 2024 Annual Report
8.
Dividends paid or proposed
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
(a) Dividends paid during the year
Interim: 8.0 cents per share (2023: 4.0 cents per share)
3,815
1,898
Final: 9.5 cents per share (2023: 9.0 cents per share)
4,530
4,238
Special 10.5 cents per share (2023:Nil)
5,007
–
13,352
6,136
(b) Proposed dividend (not recognised as a liability as at 30 June)
Final dividend for 2024: 11.5 cents per share (2023: 9.5 cents per share)
5,484
4,508
(c)
Franking credit balance
The amount of franking credits available for the subsequent financial year are:
Franking account balance as at the end of the financial year at 30%
12,220
13,633
Franking (debits) / credits that will arise from the receipt of tax as at the end of the
financial year
1,631
(485)
Franking debits that will arise from the payment of dividends as at the end of the
financial year
(2,350)
(1,932)
11,501
11,216
2024 Annual Report Bisalloy Steel Group Limited | 33
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
9.
Cash and cash equivalents
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
(a) Reconciliation of cash
For the purpose of the cash flow statement, cash and cash equivalents comprise
the following at 30 June:
Cash at bank
6,299
2,051
Cash at hand
1
1
Total
6,300
2,052
(b) Reconciliation of net profit after income tax to net cash provided
by operations
Net profit after tax
16,217
13,527
Non-cash items
Depreciation and amortisation
2,188
2,161
Share-based payments expense
963
427
Provision for stock obsolescence
18
31
Provision for doubtful debts
46
(103)
Share of profit of a joint venture
(2,424)
(2,433)
Net fair value change on derivatives
(122)
10
(Increase) / Decrease in foreign currency translation
(661)
73
Change in operating assets and liabilities
Decrease in receivables and other assets
6,625
2,813
Increase in inventories
(1,746)
(7,290)
Increase / (Decrease) in tax assets and liabilities
1,477
(2,361)
Decrease / (Increase) in prepayments
261
(921)
(Decrease) / Increase in trade creditors
(1,036)
5,122
Increase in employee benefit liabilities
232
82
Net cash from operating activities
22,038
11,138
(c) Disclosure of financing facilities
Refer note 18.2
34 | Bisalloy Steel Group Limited 2024 Annual Report
10. Trade and other receivables
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Current
Trade receivables
21,023
23,321
Less: Allowance for expected credit losses
(255)
(208)
20,768
23,113
Other
4
236
Goods and services tax
350
72
354
308
21,122
23,421
Trade receivables are non-interest bearing and are generally on 30-90 day terms. Refer to note 18.3 for more
information of the allowance for expected credit losses.
Other balances within trade and other receivables do not contain impaired assets and are not past due. It is
expected that these other balances will be received when due.
The Group has a credit insurance policy in place that covers 90% of the sales value to Australian and Indonesian
eligible customers. The Indonesian credit insurance will expire on 31 August 2024, a renewal will be obtained starting
from 1 September 2024.
Fair value and credit risk
Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair value.
The maximum exposure to credit risk is the fair value of receivables. Collateral is not held as security, nor is it the
Group’s policy to transfer (on-sell) receivables to special purpose entities.
Foreign exchange and interest rate risk
Detail regarding foreign exchange and interest rate risk exposure is disclosed in note 18.3.
11.
Inventories
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Current
Raw materials
7,754
6,965
Finished goods
41,082
40,141
48,836
47,106
2024 Annual Report Bisalloy Steel Group Limited | 35
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
12. Other current assets
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Current
Prepayments
2,151
2,427
2,151
2,427
Non-current
Prepayments
138
123
138
123
13. Property, plant and equipment
a)
Reconciliation of carrying amounts at the beginning and end of the period
In thousands of dollars
Freehold land
and buildings
Leasehold
improvements
Plant and
equipment
Total
Consolidated
Year ended 30 June 2024
At 1 July 2023, net of accumulated
depreciation and impairment
20,210
–
5,880
26,090
Additions
464
–
1,481
1,945
Revaluation increments
3,666
–
–
3,666
Depreciation and amortisation charge for
the year
(523)
–
(1,391)
(1,914)
Exchange adjustment
(202)
–
(18)
(220)
At 30 June 2024, net of accumulated
depreciation and impairment
23,615
–
5,952
29,567
At 1 July 2023
Cost or fair value
20,657
34
23,423
44,114
Accumulated depreciation and impairment
(447)
(34)
(17,543)
(18,024)
Net carrying value
20,210
–
5,880
26,090
At 30 June 2024
Cost or fair value
24,538
34
24,388
48,960
Accumulated depreciation and impairment
(923)
(34)
(18,436)
(19,393)
Net carrying value
23,615
–
5,952
29,567
b)
Revaluation of freehold land and freehold buildings
Freehold land and freehold buildings are required by the Group to be externally revalued every three years at
minimum. In addition to this, land and freehold buildings are occasionally required to be externally revalued in order
to meet lending requirements stipulated by finance providers.
Fair value is the amount for which the assets could be exchanged between a knowledgeable willing buyer and a
knowledgeable willing seller in an arm’s length transaction as at the valuation date. Fair value is determined by
direct reference to recent market transactions on arm’s length terms for land and buildings comparable in size and
location to those held by the Group, and to market based yields for comparable properties.
In 2022, the Group engaged KJPP Jimmy Prasetyo & Rekan, accredited independent valuers to determine the fair
value of its Indonesian land and buildings. The effective date of the valuation was 30 October 2021 and fair value
was determined as $2,347,391.
36 | Bisalloy Steel Group Limited 2024 Annual Report
In 2023, the Group engaged Herron Todd White, accredited independent valuers to determine the fair value of its
Australian land and buildings respectively. The effective date of the valuation was 31 December 2023 and fair value
was determined as $21,000,000.
For financial year 2024, it was determined by the finance provider and supported by the directors that there was no
significant change in fair value for its Indonesian land and buildings. The directors also determined that there was
no significant change in fair value for its Australian land and buildings.
There has been no change in the valuation technique in current or prior period.
c)
Carrying amounts if land and buildings were measured at cost less accumulated depreciation
and impairment
If land and buildings were measured using the cost model the carrying amounts would be as follows:
Consolidated
In thousands of dollars
2024
Freehold land
and buildings
2023
Freehold land
and buildings
Cost
7,578
7,632
Accumulated depreciation and impairment
(2,895)
(2,967)
Net carrying amount
4,683
4,665
d)
Leased assets
‘Property, plant and equipment’ comprise of owned and leased assets that do not meet the definition of
investment property.
Consolidated
In thousands of dollars
Note
2024
2023
Property, plant and equipment owned
29,235
25,431
Right-of-use assets
332
659
13(a)
29,567
26,090
Right-of-use assets in each category is shown below:
In thousands of dollars
Freehold land
and buildings
Plant and
equipment
Total
Balance at 1 July 2023
294
365
659
Additions
98
–
98
Depreciation charge for the year
(167)
(259)
(426)
Exchange adjustment
1
–
1
Balance at 30 June 2024
226
106
332
In thousands of dollars
Freehold land
and buildings
Plant and
equipment
Total
Balance at 1 July 2022
70
622
692
Additions
393
1
394
Depreciation charge for the year
(166)
(258)
(424)
Exchange adjustment
(3)
–
(3)
Balance at 30 June 2023
294
365
659
13. Property, plant and equipment (continued)
b)
Revaluation of freehold land and freehold buildings (continued)
2024 Annual Report Bisalloy Steel Group Limited | 37
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
14. Intangible Assets
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Cost – IT Software
884
746
Accumulated amortisation and impairment
(440)
(166)
Net carrying amount
444
580
15. Share-based payment plans
Long Term Incentives (LTI) Plan
The LTI program has been designed to align the
remuneration received by executive directors
and senior managers with the creation of
shareholder wealth.
Consequently LTI grants are only made to executives
who are in a position to influence shareholder wealth
and thus have the opportunity to influence the
company’s performance against the relevant long
term performance hurdles.
Structure
At the 2022 Annual General Meeting, an LTI plan was
renewed for LTI grants to executives in the form of
share rights.
For grants prior to 2022, those rights were granted in
two equal parts. The first part is based on retention
and requires the holder remain an employee for three
years from grant date. The second part is based
on delivering superior long-term performance as
measured by Return on Equity (“ROE”), with each grant
of rights divided into three equal tranches. For each
tranche, actual ROE is measured against a budget
ROE and a stretch ROE as determined annually by
the Board in respect of the forthcoming year. The
proportion of the rights which vest depend on where
within this range the Group performs, with 100% vesting
on achieving the stretch ROE and no rights vesting
if actual ROE is less than 90% of the budgeted ROE.
For the 2023 year the stretch ROE was set at 115% of
the budget ROE. Any rights to which the employee
may become entitled on achieving the performance
criteria, are still subject to the three year retention
criteria before they can vest.
Any share rights which do not vest, as a result of the
relevant performance condition not being satisfied,
lapse. If the holder leaves the business, the unvested
rights lapse on the leaving date unless the Board
determines otherwise. In the event of a change in
control of the Group, the vesting date will generally be
brought forward to the date of change of control and
share rights will vest subject to performance over this
shortened period, subject to ultimate Board discretion.
For grants in 2022, 2023 and 2024, these rights are
granted are based on delivering superior long-term
performance as measured by Return on Invested
Capital (“ROIC”) over a three year performance
period, determined by the Board in respect of each
forthcoming three year period. The rights which
vest depend on achieving this target ROIC, with
100% vesting on achieving the ROIC and no rights
vesting if actual ROIC is less than the target ROIC. Any
rights to which the employee may become entitled
on achieving the performance criteria, are still
subject to being employed by Bisalloy for the whole
performance period.
Once vested a holder may exercise their share rights
and be allocated a fully paid ordinary share of Bisalloy
at no cost to the employee or the equivalent in cash at
the Board’s discretion.
During the 30 June 2024 financial year, 269,590 share
rights were awarded to executives under this scheme.
A fair value expressed as a value per share right has
been determined as at the grant date for each grant
of rights. The rights have been valued according to a
discounted cash flow (DCF) methodology. The share
price at valuation date and a 5.0% dividend yield for
Grants 21 and 22, 6.8% dividend yield for Grant 20, and
7.38% dividend yield for Grants 23, 24 and 25 (based on
historic and future estimates at the time) formed the
basis of the valuation. Refer to note 28(n) for further
details on the valuation methodology.
38 | Bisalloy Steel Group Limited 2024 Annual Report
The following table lists the valuation outputs for outstanding grants as at 30 June 2024:
Expiry term of three years
Value of
one right
Proportion of
rights that are
outstanding
Grant 15
$0.82
0%
Grant 17
$1.89
100.00%
Grant 18
$1.43
100.00%
Grant 19
$1.43
100.00%
Grant 20
$1.74
100.00%
Grant 21
$1.80
100.00%
Grant 22
$1.80
100.00%
Grant 23
$1.59
100.00%
Grant 24
$1.59
100.00%
Grant 25
$1.59
100.00%
The fair value of the performance rights granted is brought to account as an expense in the profit and loss over
the three year vesting period. The following table shows the number of rights outstanding during the year and in
the previous year. The expense recognised in the statement of comprehensive income in relation to share based
payments is disclosed in note 4(d).
15. Share-based payment plans (continued)
2024 Annual Report Bisalloy Steel Group Limited | 39
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
Exercised
in year
Unvested
Unvested
Unvested
Unvested
Unvested
Unvested
Unvested
Unvested
Unvested
Total
Grant date
06/07/2020 27/04/2022 27/04/2022 27/04/2022 21/09/2022 21/09/2022 21/09/2022 21/09/2023 21/09/2023 21/09/2023
–
Expiry date
05/07/2023 01/09/2024 01/09/2024 01/09/2024 01/09/2025 01/09/2025 01/09/2025 01/09/2026 01/09/2026 01/09/2026
–
Exercise price
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
–
Balance at 30 June 2022
235,640
52,742
62,466
102,697
–
–
–
–
–
–
453,545
New grants in the year
–
–
–
–
120,296
76,236
78,292
–
–
–
274,824
Exercised in the year
–
–
–
–
–
–
–
–
–
–
–
Lapsed during the year
–
–
–
–
–
–
–
–
–
–
–
Balance at 30 June 2023
235,640
52,742
62,466
102,697
120,296
76,236
78,292
0
0
0
728,369
Exercisable at
30 June 2023
–
–
–
–
–
–
–
–
–
–
–
New grants in the year
–
–
–
–
–
–
–
76,801
74,784
118,005
269,590
Exercised in the year
(235,640)
–
–
–
–
–
–
–
–
–
(235,640)
Lapsed during the year
–
–
–
–
–
–
–
–
–
–
–
Balance at 30 June 2024
–
52,742
62,466
102,697
120,296
76,236
78,292
76,801
74,784
118,005
762,319
Exercisable at
30 June 2024
–
–
–
–
–
–
–
–
–
–
–
The weighted average remaining contractual life for the share rights outstanding as at 30 June 2024 is 1.24 years (2023: 1.177 years).
Share Rights Plan
The net amount entered in the Profit or Loss in relation to the above for the current year was a debit of $963,054 (2023: debit $427,180).
16. Pensions and other post-employment benefit plans
Superannuation commitments
The Group contributes to externally managed defined contribution superannuation plans, as well as an unfunded defined benefit plan in Indonesia and a
defined benefit plan in Thailand. The contributions are defined by the terms of each individual employee’s employment.
15. Share-based payment plans (continued)
40 | Bisalloy Steel Group Limited 2024 Annual Report
17. Trade and other payables
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Current
Trade payables
20,576
20,975
Other payables and accruals
4,190
4,863
24,766
25,838
Trade payables are non-interest bearing and are normally settled on 30 to 60 day terms.
Other payables and accruals are non-interest bearing and have an average term of three months.
Fair value
Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value.
Interest rate, foreign exchange and liquidity risk
Information regarding interest rate, foreign exchange and liquidity risk exposure is set out in note 18.3.
18. Financial assets and financial liabilities
18.1 Financial assets
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Financial assets at amortised cost
Trade receivables (note 10)
20,768
23,113
Total financial assets
20,768
23,113
Total current
20,768
23,113
Total non–current
–
–
18.2 Financial liabilities
Interest-bearing loans and borrowings
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Current
Borrowings secured by fixed and floating charges
736
1,020
Non-current
Borrowings secured by fixed and floating charges
–
3,358
Fair values
Unless disclosed below, the carrying amount of the Group’s current and non-current borrowings approximate their
fair value.
Interest rate, foreign exchange and liquidity risk
Details regarding interest rate, foreign exchange and liquidity risk is disclosed in note 18.3.
2024 Annual Report Bisalloy Steel Group Limited | 41
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
Assets pledged as security
The fixed and floating charge covers all current and future assets of the Bisalloy Closed Group (note 24).
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
At reporting date, the following financing facilities had been negotiated and
were available:
Total facilities
– invoice finance facility (incl. bank guarantees) (i)
–
12,000
– bank bill facility (i)
30,000
5,486
– trade finance facility (i)
2,000
9,000
– premium finance facility (i)
–
416
– Bisalloy Thailand facility (ii)
127
127
– PT Bima facility (iii)
4,851
4,477
36,978
31,506
Facilities used at reporting date
Current
– premium finance facility
–
416
– PT Bima facility
736
604
736
1,020
Non–current
–
bank bill facility
–
3,358
–
3,358
Total facilities used at reporting date
736
4,378
Facilities unused at reporting date
– invoice finance facility (incl. bank guarantees)
–
12,000
– bank bill facility
30,000
2,128
– trade finance facility
2,000
9,000
– Bisalloy Thailand facility
127
127
– PT Bima facility
4,115
3,873
Total facilities unused at reporting date
36,242
27,128
(i) Bisalloy Steel Group Limited’s facility with Westpac Banking Corporation is secured by a fixed and floating charge over all assets
of the Closed Group. The facility is subject to usual provisions such as negative covenants and various undertakings, including
compliance with an equity ratio covenant, a leverage ratio covenant and an interest coverage ratio. The bank bill facility has a
one-year term. The facility is linked to a variable interest rate plus a fixed margin. The average variable interest rate for the year
is 5.96% (2023: 5.34%).
ii) The bank overdraft facility available to its Thailand based subsidiary is secured by a guarantee from Bisalloy Steel
Group Limited.
iii) The revolver facility and Letter of Credit facility available to its Indonesian based subsidiary are secured by a charge over the
assets of the Indonesian subsidiary and mature on 24 September 2024.
18. Financial assets and financial liabilities (continued)
18.2 Financial liabilities (continued)
42 | Bisalloy Steel Group Limited 2024 Annual Report
Other financial liabilities
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Other financial liabilities at amortised cost, other than interest-bearing
loans and borrowings
Trade and other payables (note 17)
24,766
25,838
Total financial liabilities
24,766
25,838
Total current
24,766
25,838
Total non-current
–
–
18. Financial assets and financial liabilities (continued)
18.2 Financial liabilities (continued)
18.3 Financial risk management
Overview
The Group has exposure to the following risks from their
use of financial instruments:
●
Credit risk
●
Liquidity risk
●
Market risk
The Board is responsible for ensuring that risks, and
also opportunities, are identified on a timely basis and
that the Group’s objectives and activities are aligned
with the risks and opportunities identified by the Board.
The Board has established an Audit and Risk
Committee comprising non-executive directors,
whose meetings are also attended by the executive
directors. In addition sub-committees are convened as
appropriate in response to issues and risks identified
by the Board, and the sub-committee further examines
the issue and reports back to the Board.
The Board has a number of mechanisms in place to
ensure that management’s objectives and activities
are aligned with the risks identified by the Board. These
include the following:
– Board approval of a strategic plan, which
encompasses the Group’s vision, mission
and strategy statements, designed to meet
stakeholders’ needs and manage business risk.
– Implementation of Board approved operating plans
and budgets and Board monitoring of progress
against these budgets, including the establishment
and monitoring of KPIs of both a financial and
non‑financial nature.
– The establishment of committees to report on
specific business risks, including for example,
matters such as environmental issues and
concerns and occupational health and safety.
– The Board reviews financial risks such as the
Group’s liquidity, currency, interest rate and
credit policies and exposures and monitors
management’s actions to ensure they are in line
with Group policy.
Credit risk
Credit risk is the risk of financial loss to the Group if
a customer fails to meet its contractual obligations,
and arises principally from the Group’s receivables
from customers.
Trade and other receivables
The Group’s exposure to credit risk is influenced
mainly by the individual characteristics of each
customer. The Group has a narrow customer base
and has the potential to be exposed to credit risk on a
specific customer.
A credit policy is in place, the objective of which is:
– To ensure all credit worthiness checks are carried
out prior to opening new credit accounts and
appropriate authorisations obtained;
– To ensure the approved credit limit is appropriate
to the inherent risk of trading with any
particular customer;
– To ensure all orders are converted into cash within
trading terms;
– To minimise late payments and any potential
bad debts through the constant application of
sound commercial debtor management on a
continuing basis;
Goods are sold subject to retention of title clauses that
permit the Group to reclaim stock from a customer up
to the value of monies owed in the event:
●
Official Manager
●
Receiver and Manager
2024 Annual Report Bisalloy Steel Group Limited | 43
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
●
Administrator
●
Liquidator
or similar business administration is appointed to the customer’s business.
The Group performs an impairment analysis at each reporting date using a provision matrix to measure expected
credit losses. The provision rates are based on days past due for groupings of various customer segments
with similar loss patterns (i.e. geographical region and coverage by insurance). The calculation reflects the
probability‑weighted outcome, the time value of money and reasonable and supportable information that is
available at the reporting date about past events, current conditions and forecasts of future economic conditions.
The maximum exposure to credit risk for these financial assets is limited to their carrying amounts as disclosed in
note 10. The Group does not hold collateral as security.
The Group evaluates the concentration of risk with respect to trade receivables as low, as its customers are located
in several jurisdictions and industries and operate in largely independent markets.
The Group has for a number of years had credit insurance in place for Australian, selected export sales, and
Indonesian local sales.
Set out below is the information about the credit risk exposure on the Group’s trade receivables and contract assets
using a provision matrix:
30 June 2024
Trade Receivables
In thousands of dollars
Current <=30 days
30-60
days
61-90
days
>91 days
>91 days*
Total
Expected credit loss rate
0.04%
0.12%
0.47%
3.49%
37.25%
65.49%
1.22%
Estimated total gross carrying
amount at default
18,820
1,306
344
91
218
244
21,023
Expected Credit Loss
7
2
2
3
81
160
255
30 June 2023
Trade Receivables
In thousands of dollars
Current <=30 days
30-60
days
61-90
days
>91 days
>91 days*
Total
Expected credit loss rate
0.04%
0.35%
0.36%
0.00%
0.00%
56.30%
0.89%
Estimated total gross carrying
amount at default
20,892
1,132
834
67
55
341
23,321
Expected Credit Loss
9
4
3
–
–
192
208
* Indonesian and Thai receivables with no insurance coverage
18. Financial assets and financial liabilities (continued)
18.3 Financial risk management (continued)
44 | Bisalloy Steel Group Limited 2024 Annual Report
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to
meet its liabilities as and when they fall due without incurring unacceptable losses or risking damaging the
Group’s reputation.
On 11 December 2023 the Group entered into a new facility agreement with Westpac Banking Corporation. The
facility comprises a $30m bank bill facility (increased from $5.5m), and a $2m trade finance facility (decreased
from $9m) and no invoice finance facility (decrease from $12m). Eligible trade receivables, eligible inventory, plant
and equipment and real property constitute available collateral. At reporting date, the carrying amount of assets
pledged as collateral was $96.9m (2023: $90.0m).
The Group also has a IDR 44.5 billion revolver facility with BCA in Indonesia. This facility is renewed annually with land
and buildings pledged as collateral.
In addition to the eligible collateral, the Group has several general and financial undertakings which it must comply
with including an Equity Ratio covenant, a Leverage Ratio covenant and an Interest Cover Ratio covenant.
Due to the nature of the facility, cashflow is managed on a daily basis, comparing actual against forecast collateral,
receipts and payments. Each month a complete review is undertaken of the projected daily cashflow.
Contractual maturity of financial liabilities
The table below reflects all contractually fixed payments for settlement, repayments and interest resulting from
recognised financial liabilities, including derivative financial instruments as at 30 June 2024.
For derivative financial instruments the market value is presented, whereas for the other obligations the respective
undiscounted cash flows for the respective upcoming fiscal years are presented. Cash flows for financial assets and
liabilities without fixed amount or timing are based on the conditions existing at 30 June 2024.
Consolidated
In thousands of dollars
2024
2023
6 months or less
30,171
27,637
6-12 months
112
342
1-5 years
109
3,657
Over 5 years
–
–
30,392
31,636
Management analysis of financial assets and liabilities
The table below is based on management expectations of the timing of cash inflows and outflows from its financial
assets and liabilities which reflect a balanced view of cash inflows and outflows. Net settled derivatives comprise
forward exchange contracts that are used to hedge future sales and purchase commitments.
Leasing obligations, trade payables and other financial liabilities mainly originate from the financing of assets used
in our ongoing operations such as property, plant, equipment and investments in working capital (e.g., inventories
and trade receivables). These assets are considered in the Group’s overall liquidity risk.
To monitor existing financial assets and liabilities as well as to enable an effective controlling of future risks,
the Group has established comprehensive risk reporting covering its operation that reflects expectations of
management of expected settlement of financial assets and liabilities.
18. Financial assets and financial liabilities (continued)
18.3 Financial risk management (continued)
2024 Annual Report Bisalloy Steel Group Limited | 45
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
In thousands of dollars
<=6 months
6-12 months
1-5 years
>5 years
Total
Year ended 30 June 2024
Consolidated
Financial assets
Cash and cash equivalents
6,300
–
–
–
6,300
Trade and other receivables
21,122
–
–
–
21,122
Contract assets
15
–
–
–
15
Derivatives – gross settled
Inflows
17
–
–
–
17
Outflows
–
–
–
–
–
27,454
–
–
–
27,454
Financial liabilities
Trade and other payables
24,766
–
–
–
24,766
Interest bearing loans and
borrowings
753
–
–
–
753
Contract liabilities
4,517
–
–
–
4,517
Lease liabilities
135
112
109
–
356
Derivatives – gross settled
Inflows
–
–
–
–
–
Outflows
–
–
–
–
–
30,171
112
109
–
30,392
Net outflow
(2,717)
(112)
(109)
–
(2,938)
18. Financial assets and financial liabilities (continued)
18.3 Financial risk management (continued)
46 | Bisalloy Steel Group Limited 2024 Annual Report
In thousands of dollars
<=6 months
6-12 months
1-5 years
>5 years
Total
Year ended 30 June 2023
Consolidated
Financial assets
Cash and cash equivalents
2,052
–
–
–
2,052
Trade and other receivables
23,421
–
–
–
23,421
Contract assets
247
–
–
–
247
Derivatives – gross settled
Inflows
–
–
–
–
–
Outflows
33
–
–
–
33
25,753
–
–
–
25,753
Financial liabilities
Trade and other payables
25,838
–
–
–
25,838
Interest bearing loans and
borrowings
1,153
107
3,358
–
4,618
Contract liabilities
376
–
–
–
376
Lease liabilities
162
235
299
–
696
Derivatives – gross settled
Inflows
108
–
–
–
108
Outflows
–
–
–
–
–
27,637
342
3,657
–
31,636
Net outflow
(1,884)
(342)
(3,657)
–
(5,883)
18. Financial assets and financial liabilities (continued)
18.3 Financial risk management (continued)
Market risk
Market risk is the risk that changes in market prices,
such as foreign exchange rates, interest rates and
commodity prices will affect the Group’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 return.
Foreign exchange risk
Foreign currency risk is the risk that the fair value
or future cash flows of a financial instrument will
fluctuate because of changes in foreign exchange
rates. The Group’s exposure to the risk of changes in
foreign exchange rates relates primarily to the Group’s
operating activities (when revenue or expense is
denominated in different currency from the Group’s
functional currency) and the Group’s net investment in
foreign subsidiaries.
The Group manages its foreign currency risk by
hedging transactions that are expected to occur within
a maximum twelve-month period. The Group generally
adopts a policy of covering exchange exposures
related to purchases and sales of product at the time
they are incurred or committed.
Throughout the year the foreign exchange risk
has been actively managed through periodic risk
assessments. The objective of these assessments is to
stratify foreign exchange exposure into risk categories
and enable available hedge facilities to be applied to
those assessed as higher risk.
Risk assessments take into account macroeconomic
lead indicators such as interest rate differentials,
inflation rate differentials and externally published
market analytical data to determine the likelihood of
movement in exchange rates. The likelihood is applied
to the Group’s foreign currency exposure to determine
financial impact on a sensitivity basis.
2024 Annual Report Bisalloy Steel Group Limited | 47
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
Sensitivity analysis
The following table summarises the sensitivity of financial instruments held at balance date to possible
movements in the exchange rate of the Australian dollar to foreign currencies, with all other variables held constant.
The +10%/-10% sensitivity is based on reasonably possible changes, over a financial year, using the observed range
of actual historical rates for the preceding 5 year period, along with consideration for current market trends.
Post tax profit
Higher/(Lower)
Effect on equity
Higher/(Lower)
In thousands of dollars
2024
2023
2024
2023
Sensitivity to USD
Consolidated
AUD/USD +10%
(47)
(88)
(1)
(608)
AUD/USD -10%
58
107
1
743
Interest rate risk
The Group’s borrowing facility has a variable interest rate attached to it. The Group monitors the underlying interest
rate outlook and considers the use of interest rate derivatives (principally swaps) to manage the exposure to
interest rate fluctuations.
The Group’s exposure to market interest rates relates primarily to the Group’s interest bearing borrowings. At
30 June 2024, the Group had the following mix of financial assets and liabilities exposed to variable interest rates
that are not designated in cash flow hedges.
Consolidated
In thousands of dollars
2024
2023
Financial Assets
Cash and cash equivalents less cash on hand
6,300
2,052
Financial Liabilities
Bank loans
(776)
(4,378)
Net exposure
5,524
(2,326)
Interest rate sensitivity analysis
The following table summarises the sensitivity of the fair value of financial instruments held at the balance date
following a movement in interest rates, with all other variables held constant. The +100/-100 basis points sensitivity is
based on reasonably possible changes over a financial year, using the observed range of actual historical rates for
the preceding 5 year period.
Post tax profit
Higher/(Lower)
Other Comprehensive
Income
Higher/(Lower)
In thousands of dollars
2024
2023
2024
2023
Consolidated
+1% (100 basis points)
39
(16)
–
–
- 1% (100 basis points)
(39)
(16)
–
–
18. Financial assets and financial liabilities (continued)
18.3 Financial risk management (continued)
48 | Bisalloy Steel Group Limited 2024 Annual Report
Commodity risk
The Group does not hedge for movements in the underlying price of product but manages commodity risk within the parameters of the markets within which
it trades.
Assets/Liabilities Measured at Fair value
The Group uses various methods in estimating the fair value of assets and liabilities. The methods comprise:
Level 1 – the fair value is calculated using quoted prices in active markets.
Level 2 – the fair value is calculated using inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices).
Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable market data.
The fair value of the assets and liabilities as well as the methods used to estimate the fair value are summarised in the table below. For assets and
liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the
hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.
At 30 June 2024 the fair values of land, buildings and improvements were determined by reference to valuations performed in December 2024 (Note 13 (b)).
For properties not subject to independent valuations, fair value was determined by Directors’ valuation.
Year ended 30 June 2024
Year ended 30 June 2023
In thousands of dollars
Quoted
market
price
(Level 1)
Valuation
technique-
market
observable
inputs
(Level 2)
Valuation
technique-
non market
observable
inputs
(Level 3)
Total
Quoted
market
price
(Level 1)
Valuation
technique-
market
observable
inputs
(Level 2)
Valuation
technique-
non market
observable
inputs
(Level 3)
Total
Consolidated
Assets
Land & Buildings
–
23,347
–
23,347
–
20,147
–
20,147
Foreign exchange contracts
–
17
–
17
–
33
–
33
–
23,364
–
23,364
–
20,180
–
20,180
Liabilities
Foreign exchange contracts
–
–
–
–
–
108
–
108
–
–
–
–
–
108
–
108
18. Financial assets and financial liabilities (continued)
18.3 Financial risk management (continued)
2024 Annual Report Bisalloy Steel Group Limited | 49
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
The fair value of forward currency contracts is calculated by reference to the current exchange rate at
balance date.
Transfer between categories
There were no transfers between levels during the year. The fair value of loans and borrowings approximates the
carrying value.
19. Employee benefit liabilities
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Current
Employee entitlements
1,940
1,767
Share based payment
436
191
Defined benefit plan
16
13
2,392
1,971
Non-current
Employee entitlements
332
258
Share based payment
547
201
Defined benefit plan
712
883
1,591
1,342
The Group has an unfunded defined benefit plan in Indonesia and a defined benefit plan in Thailand. The
Indonesian plan provides severance and service benefits pursuant to Indonesian Labor Law No. 13/2003 and
Company Regulation.
The principal assumptions used in determining the obligation under the defined benefit plan are shown below:
2024
2023
In percentages
Indonesia
Thailand
Indonesia
Thailand
Discount Rate
7.05
2.09
6.29
2.58
Future Salary Increases
5.00
3.00
8.00
3.00
18. Financial assets and financial liabilities (continued)
18.3 Financial risk management (continued)
50 | Bisalloy Steel Group Limited 2024 Annual Report
20. Lease liabilities
a)
Maturity analysis of contractual cash flows
Consolidated
For the Year ended 30 June 2024
In thousands of dollars
Future
minimum lease
payments
Interest
Present value of
minimum lease
payments
Less than one year
247
(11)
236
Between one and five years
109
(2)
107
More than five years
–
–
–
356
(13)
343
Consolidated
For the Year ended 30 June 2023
In thousands of dollars
Future
minimum lease
payments
Interest
Present value of
minimum lease
payments
Less than one year
397
(24)
373
Between one and five years
299
(11)
288
More than five years
–
–
–
696
(35)
661
b)
Amounts recognised in profit or loss
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Interest on lease liabilities
37
43
Expenses relating to short-term leases or low-value assets
673
46
710
89
2024 Annual Report Bisalloy Steel Group Limited | 51
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
21. Derivative financial instruments
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Current Assets
Forward currency contracts – Fair value hedges
16
33
Forward currency contracts – Cash flow hedges
1
0
17
33
Current Liabilities
Forward currency contracts – Fair value hedges
–
65
Forward currency contracts – Cash flow hedges
–
43
–
108
Instruments used by the Group
Derivative financial instruments are used by the Group in the normal course of business in order to hedge exposure
to fluctuations in foreign exchange rates.
Forward currency contracts
Payables
During the Year ended 30 June 2024, in order to protect against exchange rate movements and to manage foreign
currency payables, the Group had entered into forward exchange contracts to purchase $EUR 0.349m (2023: $EUR
1.39m), $AUD 2.03m (2023: $AUD 2.47m), $USD 4.16m (2023: $USD 6.55m), $SGD $0.076m (2023: $SGD Nil) and $GBP
$0.046m (2023: Nil). These contracts hedged highly probable forecasted expenses and they were timed to mature
when payments are scheduled to be made.
Fair value hedges
As at balance date, the details of outstanding contracts in respect of fair value hedges were:
Average exchange rate
In thousands of dollars
30 June 2024
30 June 2023
30 June 2024
30 June 2023
Buy USD $ Sell AUD $
–
(1)
–
0.6666
Buy AUD $ Sell IDR $
–
–
–
–
Buy USD $ Sell THB $
–
(4)
36.92
34.5700
Buy AUD $ Sell THB $
(13)
(30)
24.3054
23.1257
Cash flow hedges
As at balance date, the details of outstanding contracts in respect of cash flow hedges were:
Average exchange rate
In thousands of dollars
30 June 2024
30 June 2023
30 June 2024
30 June 2023
Buy USD $ Sell AUD $
–
(19)
–
0.6684
Receivables
During the Year ended 30 June 2024, in order to protect against exchange rate movements and to manage the
receivables process, the Group had entered into forward exchange contracts to sell $USD 5.6m (2023: $USD 5.3m).
These contracts hedged highly probable forecasted receipts and they were timed to mature when payments are
scheduled to be received.
52 | Bisalloy Steel Group Limited 2024 Annual Report
Fair value hedges
As at balance date, the details of outstanding contracts in respect of fair value hedges were:
Average exchange rate
In thousands of dollars
30 June 2024
30 June 2023
30 June 2024
30 June 2023
Buy AUD $ Sell USD $
2
66
0.6575
0.6887
Cash flow hedges
As at balance date, the details of outstanding contracts in respect of fair value hedges were:
Average exchange rate
In thousands of dollars
30 June 2024
30 June 2023
30 June 2024
30 June 2023
Buy AUD $ Sell USD $
1
62
0.6583
0.6908
22. Contributed equity and reserves
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
(a) Ordinary shares, issued and fully paid
15,227
15,227
Fully paid ordinary shares carry one vote per share and carry the right to dividends. Shares have no par value.
In thousands of dollars
Number
of shares
2024
$’000
Number
of shares
2023
$’000
(b) Movements in shares on issue
Balance at 1 July
47,450,056
15,227
47,088,677
14,507
New shares issued under Dividend
Reinvestment Plan
–
–
361,379
720
Exercise of performance rights
235,640
–
–
–
Balance at 30 June
47,685,696
15,227
47,450,056
15,227
21. Derivative financial instruments (continued)
2024 Annual Report Bisalloy Steel Group Limited | 53
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
Capital management
When managing capital, the Group’s objective is to maintain optimal returns to shareholders and benefits for other
stakeholders. The Group also aims to maintain a capital structure that delivers the lowest cost of capital available
to its operations.
The Group adjusts the capital structure to take advantage of favourable costs of capital or high returns on assets.
As the economic conditions change, the Group may change the amount of dividends to be paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
No changes were made in the objectives, policies or processes for managing capital during the years ended
30 June 2024 and 2023.
The Group monitors capital through the gearing ratio (net debt/ total equity plus net debt) and currently targets a
gearing ratio of between 0% and 35%. The Group includes within net debt interest bearing loans and borrowings less
cash and cash equivalents. At 30 June 2024, advance payments from customers of $4.2m were held in the closing
cash balance. This will unwind in FY25 as the related sales are fulfilled.
The gearing ratios based on continuing operations at 30 June 2024 and 2023 were as follows:
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Total borrowings
736
4,378
Less cash and cash equivalents
(6,300)
(2,052)
Net (cash)/debt
(5,564)
2,326
Total equity
77,264
72,562
Total capital
71,700
74,888
Gearing ratio
(0%)
3%
The Group is not subject to any externally imposed capital requirements.
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
(c) Non-controlling interests
Balance at 1 July
4,595
3,922
(Loss)/gain on translation of overseas controlled entities
(349)
134
Other reserves
49
(9)
Share of net profit for the year
476
731
Dividends paid
(347)
(183)
Balance at 30 June
4,424
4,595
22. Contributed equity and reserves (continued)
54 | Bisalloy Steel Group Limited 2024 Annual Report
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
(d) Retained earnings
Balance at 1 July
40,674
33,907
Net profit for the year
15,741
12,796
Depreciation transfer for revaluation of buildings
134
107
Dividends paid
(13,352)
(6,136)
Balance at 30 June
43,197
40,674
Consolidated
In thousands of dollars
Employee
equity
benefits
reserve
Foreign
currency
translation
reserve
Cash flow
hedge
reserve
Asset
reval-
uation
reserve
Equity
settlement
reserve
Other
reserves
Total
(e) Reserves
At 30 June 2022
87
814
–
10,542
550
(43)
11,950
Currency translation
differences
–
66
–
–
–
–
66
Share-based payments
181
–
–
–
–
–
181
Depreciation transfer for
revaluation of buildings
–
–
–
(135)
–
–
(135)
Net loss on cash
flow hedge
–
–
(30)
–
–
–
(30)
Actuarial gains / (losses)
–
–
–
–
–
34
34
At 30 June 2023
268
880
(30)
10,407
550
(9)
12,066
Currency translation
differences
–
(590)
–
–
–
–
(590)
Share-based payments
372
–
–
–
–
–
372
Net loss on cash
flow hedge
–
–
31
–
–
–
31
Actuary gain
–
–
–
–
–
78
78
Depreciation transfer
on revaluation of land &
buildings
–
–
–
(134)
–
–
(134)
Equity settlement
(194)
–
–
–
194
–
–
Revaluation of land and
buildings
–
–
–
2,594
–
–
2,594
At 30 June 2024
446
290
1
12,867
744
69
14,417
22. Contributed equity and reserves (continued)
2024 Annual Report Bisalloy Steel Group Limited | 55
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
Nature and purpose of reserves
Employee equity benefits reserve
This reserve is used to record the value of share-based payments provided to employees and directors as part of
their remuneration. Refer to note 15 for further details of these plans.
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the
financial statements of foreign subsidiaries.
Cash flow hedge reserve
This reserve records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined
to be an effective hedge.
Asset Revaluation Reserve
The asset revaluation reserve is used to record increases and decreases in the fair value of land and buildings
(net of tax) to the extent that they offset one another. The reserve can only be used to pay dividends in
limited circumstances.
Equity Settlement Reserve
The equity settlement reserve records the net difference between payment for shares upon the exercise of
performance rights under the LTIP and the amount expensed in the profit and loss and recorded in the employee
equity benefits reserve over the three year vesting period.
Other Reserve
Relates to actuarial losses from defined benefit pensions.
23. Commitments and contingencies
Consolidated
In thousands of dollars
30 June 2024
30 June 2023
(a) Capital expenditure commitments
Estimated capital expenditure contracted for at balance date, but not provided
for payable:
Not later than one year
235
192
Later than one year, but not later than five years
–
–
235
192
These capital expenditure commitments relate to office refurbishment and plant upgrade works.
(b) Contingent liabilities
The directors draw the following contingent liabilities to the attention of users of the financial statements:
Note 24 regarding the class order between certain subsidiaries and the Company.
22. Contributed equity and reserves (continued)
56 | Bisalloy Steel Group Limited 2024 Annual Report
24. Related parties
The terms and conditions of any transactions with Directors and their Director related entities are no more
favourable than those available, or which might reasonably be expected to be available, on similar transactions to
non Director related entities on arm’s length basis.
There were no transactions during the year with Director related entities.
Investments
Country of
Incorporation
Percentage of equity
interest held by the
Consolidated entity
30 June 2024
%
Percentage of equity
interest held by the
Consolidated entity
30 June 2023
%
Name of parent
Bisalloy Steel Group Limited
Australia
Controlled entities
Bisalloy Steels Pty Limited
Australia
100.00
100.00
PT Bima Bisalloy
Indonesia
60.00
60.00
Bisalloy Holdings (Thailand) Co Ltd
Thailand
85.00
85.00
Bisalloy (Thailand) Co Limited
Thailand
85.00
85.00
Bisalloy North America LLC^
United States of
America
100.00
100.00
Joint venture
Bisalloy Shangang (Shandong) Steel Plate
Co.,Limited*
People’s Republic
of China
50.00
50.00
* Refer Note 5 for details regarding equity interest, share of interest and joint control.
^ This entity continues to be dormant.
Entities subject to class order relief
Pursuant to Class Order 2016/785, relief has been granted to Bisalloy Steels Pty Limited from the Corporations Act
2001 requirements for preparation, audit and lodgement of their financial reports. As a condition of the Class
Order, Bisalloy Steel Group Limited and Bisalloy Steels Pty Limited (the “closed” Group) entered into a Deed of Cross
Guarantee on the 18th April 2002. The effect of the deed is that Bisalloy Steel Group Limited has guaranteed to pay
any deficiency in the event of winding up of the controlled entity. The controlled entity has also given a similar
guarantee in the event that Bisalloy Steel Group Limited is wound up.
2024 Annual Report Bisalloy Steel Group Limited | 57
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
The consolidated statement of profit or loss and statement of financial position of the entities which are members
of the “Closed Group” are as follows:
In thousands of dollars
Closed Group
30 June 2024
Closed Group
30 June 2023
i.
Consolidated Income Statement
Profit from continuing operations before income tax
21,731
15,503
Income tax expense
(6,531)
(4,542)
Profit after income tax
15,200
10,961
Accumulated profits at the beginning of the year
30,787
25,889
Depreciation transfer for revaluation of buildings
119
73
Dividends provided for or paid
(13,352)
(6,136)
Accumulated profits at the end of the year
32,754
30,787
ii.
Consolidated Balance Sheet
Current assets
Cash and cash equivalents
5,624
606
Trade and other receivables
18,246
19,946
Inventories
38,722
37,443
Income tax receivable
–
530
Contract assets
15
247
Derivative Asset
4
–
Other current assets
1,866
2,210
Total current assets
64,477
60,982
Non-current assets
Investments
5,125
5,125
Property, plant and equipment
27,008
23,147
Intangible assets
444
580
Other non-current assets
138
123
Total non-current assets
32,715
28,975
Total assets
97,192
89,957
Current liabilities
Trade and other payables
23,028
23,904
Income tax payable
1,631
–
Loans and borrowings
–
416
Employee benefit liabilities
2,308
1,955
Lease liabilities
113
252
Derivative Liability
–
108
Contract liabilities
4,517
376
Total current liabilities
31,597
27,011
24. Related parties (continued)
58 | Bisalloy Steel Group Limited 2024 Annual Report
In thousands of dollars
Closed Group
30 June 2024
Closed Group
30 June 2023
Non-current liabilities
Loans and borrowings
–
3,358
Lease liabilities
23
121
Employee benefit liabilities
878
460
Deferred tax liability
5,287
4,442
Total non-current liabilities
6,188
8,381
Total liabilities
37,785
35,392
NET ASSETS
59,407
54,565
Shareholders’ equity
Contributed equity
15,228
15,228
Reserves
11,425
8,550
Accumulated profits
32,754
30,787
TOTAL SHAREHOLDERS’ EQUITY
59,407
54,565
The following table provides the total amount of transactions, other than amounts disclosed above, that have been
entered into between the Group and related parties for the relevant financial year:
Sales to &
purchases from
Amounts owed by
related parties
Amounts owed to
related parties
Related Party
Bisalloy Shangang (Shandong) Steel Plate
Co.,Limited
2024
294
–
–
2023
2,017
–
–
Terms and conditions of transactions with related parties
Sales to and purchase from related parties are made in arm’s length transactions both at normal market price and
on normal commercial terms. Sale and purchases with related parties during 2024 were $294,111 (2023: $2,016,827).
Outstanding balances at year-end are unsecured.
Compensation of key management personnel of the Group
Consolidated
Year ended
30 June 2024
Year ended
30 June 2023
Short-term employee benefits
2,052,061
1,993,431
Post employment benefits
134,119
129,750
Other long-term benefits
62,719
65,041
Share-based payments
963,054
427,180
Total compensation paid to key management personnel
3,211,953
2,615,402
24. Related parties (continued)
2024 Annual Report Bisalloy Steel Group Limited | 59
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
25. Events after the balance date
No significant events after the balance sheet date.
26. Auditors’ remuneration
The auditor of Bisalloy Steel Group Limited is RSM Australia Partners.
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Amounts received or due and receivable by RSM for:
– an audit or review of the financial report of the entity and any other entity in the
consolidated Group
147
140
– Private tax Ruling Assistance
17
–
Amounts received or due and receivable by related practices of RSM for:
– an audit or review of the financial report of any other entity in the
consolidated Group
49
50
213
190
27. Parent entity information
Consolidated
In thousands of dollars
Year ended
30 June 2024
Year ended
30 June 2023
Information relating to Bisalloy Steel Group Limited:
Current assets
–
530
Total assets
8,682
1,922
Current liabilities
1,631
–
Total liabilities
6,634
–
Issued capital
15,227
15,227
Accumulated losses
(13,215)
(13,341)
Reserves
36
36
Total shareholder’s equity
2,048
1,922
Profit of the parent entity
13,478
6,775
Total comprehensive income of the parent entity
13,478
6,775
Guarantees have been entered into by the Parent entity on behalf of Bisalloy Steels Pty Limited and Bisalloy
(Thailand) Co Limited. The guarantees in place cover Bisalloy Steels Pty Limited’s $32M Westpac facility and 85% of
Bisalloy Thailand’s THB 3M bank overdraft facility.
There are no contingent liabilities or contractual commitments as at the reporting date.
60 | Bisalloy Steel Group Limited 2024 Annual Report
28. Summary of material
accounting policies
Table of Contents
a)
Basis of preparation
b)
Basis of consolidation and investments in
joint venture
c)
Significant accounting judgements, estimates
and assumptions
d)
Operating segments
e)
Taxation
f)
Cash and cash equivalents
g)
Trade and other receivables
h)
Inventories
i)
Property, plant and equipment
j)
Intangible assets
k)
Trade and other payables
l)
Contributed equity
m)
Employee benefits
n)
Share-based payment transactions
o)
Provisions
p)
Financial Instruments
q)
Goods and services tax
r)
Revenue from contracts with customers
s)
Other income
t)
Borrowing costs
u)
Leases
v)
Foreign currency translation
w)
Earnings per share (EPS)
x)
Derivative financial instruments and hedging
y)
Fair value measurement
z)
Changes in accounting standards
aa) Standards issued but not yet effective
a)
Basis of preparation
The financial report is a general purpose financial
report, which has been prepared in accordance with
the Australian Accounting Standards (AASBs) adopted
by the Australian Accounting Standards Board (AASB)
and the Corporations Act 2001. The financial report
complies with International Financial Reporting
Standards (IFRS) adopted by the International
Accounting Standards Board (IASB). The financial
report has also been prepared on a historical cost
basis, except for land and buildings classified as
property, plant and equipment and derivative financial
instruments, which are measured at fair value.
The Company is of a kind referred to in ASIC
Corporations (Rounding in Financial/Directors’ Reports)
Instrument 2016/191 and in accordance with that
Instrument, all financial information presented in
Australian Dollars has been rounded to the nearest
thousand unless otherwise stated.
The consolidated financial statements provide
comparative information in respect of the
previous period.
Comparative information
Comparative information is consistent with the current
years presentation.
b)
Basis of consolidation and
investments in joint venture
The consolidated financial statements comprise the
financial statements of the Company, being Bisalloy
Steel Group Limited, and its subsidiaries (“the Group”)
as at the reporting date.
Control is achieved when the Group is exposed, or has
rights, to variable returns from its involvement with
the investee and has the ability to affect those returns
through its power over the investee.
The Group re-assesses whether or not it controls an
investee if facts and circumstances indicate that there
are changes to one or more of the three elements of
control. Consolidation of a subsidiary begins when the
Group obtains control over the subsidiary and ceases
when the Group loses control of the subsidiary.
The financial statements of the subsidiaries are
prepared for the same reporting period as the parent
company, using consistent accounting policies.
Adjustments are made to bring into line any dissimilar
accounting policies that may exist. All intercompany
balances and transactions, including unrealised profits
arising from intra-group transactions, have been
eliminated in full. Unrealised losses are eliminated
unless costs cannot be recovered.
Non-controlling interests represent the portion of
profit or loss and net assets in subsidiaries not held
by the Group, and are presented separately in the
consolidated statement of comprehensive income
and within equity in the consolidated statement of
financial position, separately from the equity of the
owners of the parent.
The Group has an interest in a joint venture, which is
a jointly controlled entity, whereby the venturers have
a contractual arrangement that establishes joint
control over the economic activities of the entity. The
Group’s investment in the joint venture is accounted
for using the equity method and is not part of the
consolidated Group.
2024 Annual Report Bisalloy Steel Group Limited | 61
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
Under the equity method, the investment in the joint
venture is initially recognised at cost. The carrying
amount of the investment is adjusted to recognise
changes in the Group’s share of net assets of the
joint venture since the acquisition date. Goodwill
relating to the joint venture is included in the carrying
amount of the investment and is neither amortised nor
individually tested for impairment.
The statement of profit or loss and other
comprehensive income reflects the Group’s share of
the results of operations of the joint venture. When
there has been a change recognised directly in the
equity of the joint venture, the Group recognises
its share of any changes, when applicable, in the
statement of changes in equity. Unrealised gains and
losses resulting from transactions between the Group
and the joint venture are eliminated to the extent of the
interest in the joint venture.
The Group’s share of profit of the joint venture is shown
on the face of the statement of profit or loss and other
comprehensive income.
In the application of the Group’s accounting policies
as described below, management is required to
make judgements, estimates and assumptions about
carrying values of assets and liabilities that are not
readily apparent from other sources. The estimates
and associated assumptions are based on historical
experience and various other factors that are believed
to be reasonable under the circumstances. These
estimates and underlying assumptions are reviewed
on an ongoing basis.
c)
Significant accounting judgements,
estimates and assumptions
In applying the Group’s accounting policies,
management have not made any significant
accounting judgements which affect the amounts
recognised in the financial statements.
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities
are often determined based on estimates and
assumptions of future events. The key estimates and
assumptions that have a significant risk of causing
material adjustment to the carrying amounts of
certain assets and liabilities within the next annual
reporting period are:
Property, plant and equipment
The Group measures the fair value of land buildings by
reference to valuations performed at reporting date.
The fair value is determined by an external valuer every
three years, unless determined by Directors’ valuation
that the fair value has moved significantly or at the
request of a finance provider. The valuation method is
detailed in note 18.3.
d)
Operating segments
An operating segment is a component of an entity
that engages in business activities from which it
may earn revenues and incur expenses (including
revenues and expenses relating to transactions
with other components of the same entity), whose
operating results are regularly reviewed by the entity’s
chief operating decision maker to make decisions
about resources to be allocated to the segment
and assess its performance and for which discrete
financial information is available. This includes
start-up operations which are yet to earn revenues.
Management will also consider other factors in
determining operating segments such as the
existence of a line manager and the level of segment
information presented to the Board of directors.
Operating segments have been identified and
based on the information provided to the chief
operating decision makers – being the executive
management team.
The Group aggregates two or more operating
segments when they have similar economic
characteristics, and the segments are similar in each
of the following respects:
-
nature of the products and services,
-
nature of production processes,
-
type or class of customer for their products
and services,
-
methods use to distribute their products or provide
their services, and if applicable
-
nature of the regulatory environment.
Operating segments that meet the quantitative criteria
as prescribed by AASB 8 are reported separately.
However, an operating segment that does not meet
the quantitative criteria is still reported separately
where information about the segment would be useful
to users of the financial statements.
e)
Taxation
Current income tax
Current income tax assets and liabilities are measured
at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax
laws used to compute the amount are those that are
enacted or substantively enacted by the reporting
date in the countries where the Group operates and
generates taxable income.
28. Summary of material accounting policies (continued)
b)
Basis of consolidation and investments in joint venture (continued)
62 | Bisalloy Steel Group Limited 2024 Annual Report
Current income tax relating to items recognised
directly in equity is recognised in equity and not in the
statement of profit or loss. Management periodically
evaluates positions taken in the tax returns with respect
to situations in which applicable tax regulations are
subject to interpretation and establishes provisions
where appropriate.
Deferred tax
Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial
reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable
temporary differences except:
-
when the deferred income tax liability arises from
the initial recognition of goodwill or 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; or
-
in respect of taxable temporary differences
associated with investments in subsidiaries,
associates or interests in joint ventures, when the
timing of the reversal of the temporary difference
can be controlled and it is probable that the
temporary difference will not reverse in the
foreseeable future.
Deferred tax assets are recognised for all deductible
temporary differences, the carry-forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognised 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 credits and unused tax
losses can be utilised, except:
-
when the deferred 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; or
-
in respect of deductible temporary differences
associated with investments in subsidiaries,
associates or interests in joint ventures, deferred tax
assets are recognised only to the extent that it is
probable that the temporary difference will reverse
in the foreseeable future and taxable profit will be
available against which the temporary difference
can be utilised.
The carrying amount of deferred 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
tax asset to be utilised. Unrecognised deferred tax
assets are reassessed at each reporting date and are
recognised to the extent that it has become probable
that future taxable profit will allow the deferred tax
asset to be recovered.
Deferred 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.
Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss. Deferred tax
items are recognised in correlation to the underlying
transaction either in other comprehensive income or
directly in equity.
Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the
deferred tax assets and liabilities relate to the same
taxable entity and the same taxation authority.
Bisalloy Steel Group Limited and its wholly-owned
Australian controlled entities implemented the tax
consolidation legislation as of 1 July 2003.
The head entity, Bisalloy Steel Group Limited and
the controlled entities in the tax consolidated group
continue to account for their own current and deferred
tax amounts. The Group has applied the Group
allocation approach in determining the appropriate
amount of current taxes and deferred taxes to allocate
to members of the tax consolidated group.
In addition to its own current and deferred tax
amounts, Bisalloy Steel Group Limited also recognises
the current tax liabilities (or assets) and the deferred
tax assets arising from unused losses.
Assets or liabilities under tax funding arrangements
with the tax consolidation entities are recognised as
amounts receivable from or payable to other entities
in the Group. Any difference between the amounts
assumed and amounts receivable or payable under
the tax funding agreement are recognised as a
contribution to (or distribution from) wholly-owned tax
consolidated entities.
f)
Cash and cash equivalents
Cash and short term deposits in the statement
of financial position and the cash flow statement
is comprised of cash at bank and on hand and
short‑term deposits with a maturity of three months
or less, which are subject to an insignificant risk of
changes in value.
28. Summary of material accounting policies (continued)
e)
Taxation (continued)
2024 Annual Report Bisalloy Steel Group Limited | 63
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
g)
Trade and other receivables
A receivable represents the Group’s right to an amount
of consideration that is unconditional (i.e., only the
passage of time is required before payment of the
consideration is due). Refer to accounting policies of
financial assets in note 28(p) Financial instruments.
h)
Inventories
Raw materials, work in progress and finished goods are
valued at the lower of cost and net realisable value.
Costs incurred in bringing each product to its present
location and condition are accounted for as follows:
Raw materials – Purchase cost is on a weighted
average cost basis.
Work in progress and finished goods – Cost of direct
materials, labour and an appropriate proportion
of manufacturing overheads is based on normal
operating capacity, but excluding borrowing costs.
Net realisable value is the estimated selling price in
the ordinary course of business, less estimated costs
of completion and the estimated costs necessary to
make the sale.
i)
Property, plant and equipment
Plant and equipment is stated at historical cost, net
of accumulated depreciation and accumulated
impairment losses, if any. Such cost includes the cost
of replacing parts that are eligible for capitalisation
when the cost of replacing the parts is incurred.
Similarly, when each major inspection is performed,
its cost is recognised in the carrying amount of the
plant and equipment as a replacement only if the
recognition criteria are satisfied. All other repairs
and maintenance are recognised in the profit or loss
as incurred.
Land and buildings are measured at fair value using
the revaluation model, less accumulated depreciation
on buildings and any impairment losses recognised
after the date of the revaluation. Valuations are
performed every three years, or sooner should there
be a significant change in market conditions or are
as a result of lending requirements, to ensure that the
fair value of a revalued asset does not differ materially
from its carrying amount.
Depreciation is calculated on a straight-line basis
over the estimated useful life of the specific assets
as follows:
-
Land
not depreciated
-
Buildings
50 years
-
Plant and equipment
1 – 20 years
-
Leasehold improvements 5 – 10 years or lease life
if shorter
The assets’ residual values, useful lives and
amortisation methods are reviewed, and adjusted
prospectively if appropriate, at each financial year end.
Revaluations of land and buildings
Any revaluation increment is credited to the asset
revaluation reserve in equity, except to the extent that
it reverses a revaluation decrement for the same asset
previously recognised in profit or loss, in which case
the increment is recognised in profit or loss.
Any revaluation decrement is recognised in profit
or loss, except to the extent that it offsets a previous
revaluation increment for the same asset, in which
case the decrement is debited directly to the asset
revaluation reserve to the extent of the credit balance
existing in the revaluation reserve for that asset.
Any accumulated depreciation as at the revaluation
date is eliminated against the gross carrying amounts
of the assets and the net amounts are restated to the
revalued amounts of the assets.
Gains and losses on disposals are determined by
comparing proceeds with the carrying amount. These
are included in the profit or loss.
Upon disposal or derecognition, any revaluation
reserve relating to the particular asset being sold is
transferred to retained earnings.
Derecognition
An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition of
the asset (calculated as the difference between the
net disposal proceeds and the carrying amount of the
asset) is included in the profit and loss in the period the
item is derecognised.
j)
Intangible assets
Recognition and measurement
Expenditure on research activities is recognised in
profit or loss as incurred.
Development expenditure is capitalized only if the
expenditure can be measured reliably, the product
or process is technically and commercially feasible,
future economic benefits are probable and the Group
28. Summary of material accounting policies (continued)
64 | Bisalloy Steel Group Limited 2024 Annual Report
intends to and has sufficient resources to complete
development and to use or sell the asset. Otherwise, it
is recognised in profit or loss as incurred. Subsequent
to initial recognition, development expenditure is
measured at cost less accumulated amortization and
any accumulated impairment losses.
Subsequent expenditure
Subsequent expenditure is capitalized only when it
increases the future economic benefits embodied
in the specific asset to which it relates. All other
expenditure is recognised in profit or loss as incurred.
Amortisation
Amortisation is calculated to write off the cost of
intangible assets less their estimated residual values
using the straight-line method over their estimated
useful lives and is generally recognised in profit or loss.
The estimated useful life for current periods for
development costs is 3 years.
Amortisation methods, useful lives and residual
values are reviewed at each reporting date and
adjusted if appropriate.
k)
Trade and other payables
Trade and other payables are carried at amortised
cost and represent liabilities for goods and services
provided to the Group prior to the end of the financial
year that are unpaid and arise when the Group
becomes obliged to make future payments in respect
of the purchase of these goods and services.
l)
Contributed equity
Ordinary share capital is recognised at the fair value
of the consideration received by the Company. Any
transaction costs arising on the issue of ordinary
shares are recognised directly in equity, net of tax, as a
reduction of the share proceeds received.
m)
Employee benefits
Liabilities arising in respect of short-term employee
benefits such as annual leave and sick leave represent
the amount which the entity has a present obligation
to pay resulting from employees’ services provided
up to the balance date. Liabilities in respect of
short‑term employee benefits are measured at their
nominal amounts.
Long-term employee benefit liabilities such as long
service leave represent the present value of the
estimated future cash outflows to be made by the
employer resulting from employees’ services provided
up to the balance date. Long-term employee benefit
liabilities are measured at their present values using
corporate bond rates which most closely match the
terms of maturity of the related liabilities.
In determining the employee benefit liabilities,
consideration has been given to future increases in
wage and salary rates, and the Group’s experience
with staff departures. Related on-costs have also been
included in the liability.
The Group contributes to defined contribution
superannuation plans, as well as an unfunded defined
benefit plan in Indonesia and a defined benefit plan
in Thailand.
n)
Share-based payment transactions
Employees (including directors and other senior
executives) of the Group receive remuneration in the
form of a grant of Rights, whereby employees render
services as consideration for equity instruments
(‘equity-settled transactions’). There is currently a
Share Rights Plan in place to provide these benefits.
If the issue of shares in the Board’s opinion does not
achieve the desired outcome, then the Board may
determine to satisfy the entitlement to Shares under a
Vested Right in the form of cash rather than Shares. In
recent years, there have been a number of instances in
which settlement has taken the form of 50% equity and
50% cash (‘cash-settled transactions’).
Equity-settled transactions
The cost of equity-settled transactions with employees
is measured by reference to the fair value at the date
on which they are granted. The fair value is determined
using a discounted cash flow methodology. In valuing
equity-settled transactions, no account is taken of
any performance conditions, other than conditions
linked to the price of the shares of the issuer (‘market
conditions’), if applicable.
The cost of equity-settled transactions is recognised,
together with a corresponding increase in equity, over
the period in which the performance and/or service
conditions are fulfilled, ending on the date on which
the relevant employees become fully entitled to the
award (‘vesting date’).
Cash-settled transactions
The cost of cash-settled transactions with employees
is measured by reference to the fair value at the
reporting date and ultimately at settlement. The fair
value is determined by reference to the price of the
shares of the issuer (‘market conditions’).
The cost of cash-settled transactions is recognised,
together with a corresponding increase in liability, over
the period in which the performance and/or service
conditions are fulfilled, ending on the date on which
28. Summary of material accounting policies (continued)
j)
Intangible assets (continued)
2024 Annual Report Bisalloy Steel Group Limited | 65
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
the relevant employees become fully entitled to the
award (‘vesting date’).
The cumulative expense recognised for both
equity‑settled and cash-settled transactions at each
reporting date until vesting date reflects the extent to
which the vesting period has expired and the Group’s
best estimate of the number of equity instruments that
will ultimately vest. This estimate is formed based on
the best available information at balance date. The
statement of profit or loss and other comprehensive
income charge or credit for a period represents the
movement in cumulative expense recognised as at the
beginning and end of that period.
No expense is recognised for Rights that do not
ultimately vest. Any Rights that do not become vested
Rights, lapse.
The dilutive effect, if any, of outstanding Rights
is reflected as additional share dilution in the
computation of diluted earnings per share.
o)
Provisions
Provisions are recognised when the Group 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. Where
the Group expects some or all of a provision to be
reimbursed, for example under an insurance contract,
the reimbursement is recognised as a separate asset
but only when the reimbursement is virtually certain.
The expense related to any provision is presented in
the statement of comprehensive income net of any
reimbursement. If the effect of the time value of money
is material, provisions are discounted using a current
pre-tax rate that reflects, where appropriate, the risks
specific to the liability. Where discounting is used, the
increase in the provision due to the passage of time is
recognised as a borrowing cost.
p)
Financial instruments
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, as
subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair
value through profit or loss.
The classification of financial assets at initial
recognition depends on the financial asset’s
contractual cash flow characteristics and the
Group’s business model for managing them. With the
exception of trade receivables that do not contain a
significant financing component, the Group initially
measures a financial asset at its fair value plus, in the
case of a financial asset not at fair value through profit
or loss, transaction costs. Trade receivables that do not
contain a significant financing component or for which
the Group has applied the practical expedient are
measured at the transaction price determined under
IFRS 15. Refer to the accounting policies in note 28(r)
Revenue from contracts with customers.
In order for a financial asset to be classified and
measured at amortised cost or fair value through
OCI, it needs to give rise to cash flows that are ‘solely
payments of principal and interest (SPPI)’ on the
principal amount outstanding. This assessment is
referred to as the SPPI test and is performed at an
instrument level.
The Group’s business model for managing financial
assets refers to how it manages its financial assets
in order to generate cash flows. The business model
determines whether cash flows will result from
collecting contractual cash flows, selling the financial
assets, or both.
Purchases or sales of financial assets that require
delivery of assets within a time frame established by
regulation or convention in the market place (regular
way trades) are recognised on the trade date, i.e.,
the date that the Group commits to purchase or sell
the asset.
Subsequent measurement
For purposes of subsequent measurement, financial
assets are classified in four categories:
-
Financial assets at amortised cost
(debt instruments)
-
Financial assets at fair value through OCI with
recycling of cumulative gains and losses (debt
instruments)
-
Financial assets designated at fair value through
OCI with no recycling of cumulative gains and
losses upon derecognition (equity instruments)
-
Financial assets at fair value through profit or loss
Financial assets at amortised cost (debt
instruments)
This category is the most relevant to the Group. The
Group measures financial assets at amortised cost if
both of the following conditions are met:
-
The financial asset is held within a business model
with the objective to hold financial assets in order to
collect contractual cash flows; and
28. Summary of material accounting policies (continued)
n)
Share-based payment transactions (continued)
66 | Bisalloy Steel Group Limited 2024 Annual Report
-
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.
Financial assets at amortised cost are subsequently
measured using the effective interest rate (EIR) method
and are subject to impairment. Gains and losses
are recognised in profit or loss when the asset is
derecognised, modified or impaired.
The Group’s financial assets at amortised cost include
trade receivables.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss
include derivative assets which are mandatorily
required to be measured at fair value. Derivatives
are classified as held for trading unless they are
designated as effective hedging instruments.
Financial assets at fair value through profit or loss are
carried in the statement of financial position at fair
value with net changes in fair value recognised in the
statement of profit or loss.
Derecognition
A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e., removed from
the Group’s consolidated statement of financial
position) when the rights to receive cash flows from the
asset have expired.
Impairment
Further disclosures relating to impairment of financial
assets are also provided in the following notes:
-
Significant accounting judgements,
estimates and assumptions
Note 28(c)
-
Trade and other receivables
Note 28(g)
The Group recognises an allowance for expected
credit losses (ECLs) for all debt instruments not held at
fair value through profit or loss. ECLs are based on the
difference between the contractual cash flows due in
accordance with the contract and all the cash flows
that the Group expects to receive, discounted at an
approximation of the original effective interest rate. The
expected cash flows will include cash flows from the
sale of collateral held or other credit enhancements
that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures
for which there has not been a significant increase in
credit risk since initial recognition, ECLs are provided
for credit losses that result from default events that
are possible within the next 12-months (a 12-month
ECL). For those credit exposures for which there has
been a significant increase in credit risk since initial
recognition, a loss allowance is required for credit
losses expected over the remaining life of the exposure,
irrespective of the timing of the default (a lifetime ECL).
For trade receivables and contract assets, the Group
applies a simplified approach in calculating ECLs.
Therefore, the Group does not track changes in credit
risk, but instead recognises a loss allowance based
on lifetime ECLs at each reporting date. The Group
has established a provision matrix that is based
on its historical credit loss experience, adjusted for
forward-looking factors specific to the debtors and the
economic environment.
The Group considers a financial asset in default when
internal or external information indicates that the
Group is unlikely to receive the outstanding contractual
amounts in. A financial asset is written off when
there is no reasonable expectation of recovering the
contractual cash flows.
Financial liabilities
Initial recognition and measurement
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.
All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Group’s financial liabilities include trade and
other payables, loans and borrowings including bank
overdrafts, and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on
their classification, as described below:
Financial liabilities at fair value through profit
or loss
Financial liabilities at fair value through profit or
loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition
as at fair value through profit or loss.
Financial liabilities are classified as held for trading if
they are incurred for the purpose of repurchasing in
the near term. This category also includes derivative
financial instruments entered into by the Group
that are not designated as hedging instruments in
hedge relationships as defined by IFRS 9. Separated
embedded derivatives are also classified as held
for trading unless they are designated as effective
hedging instruments.
Gains or losses on liabilities held for trading are
recognised in the statement of profit or loss.
28. Summary of material accounting policies (continued)
p)
Financial instruments (continued)
2024 Annual Report Bisalloy Steel Group Limited | 67
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
Financial liabilities designated upon initial recognition
at fair value through profit or loss are designated at
the initial date of recognition, and only if the criteria in
IFRS 9 are satisfied. The Group has not designated any
financial liability as at fair value through profit or loss.
Financial liabilities at amortised cost
This is the category most relevant to the Group.
After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through the EIR
amortisation process.
Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the
statement of profit or loss.
All loans and borrowings are classified as current
liabilities unless the Group has an unconditional right
to defer settlement of the liability for at least 12 months
after the reporting date.
This category generally applies to interest-bearing
loans and borrowings. For more information, refer to
Note 18.
Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced
by another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as the derecognition of the
original liability and the recognition of a new liability.
The difference in the respective carrying amounts is
recognised in the statement of profit or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset
and the net amount is reported in the consolidated
statement of financial position if there is a currently
enforceable legal right to offset the recognised
amounts and there is an intention to settle on
a net basis, to realise the assets and settle the
liabilities simultaneously.
q)
Goods and services tax
Revenues, expenses and assets are recognised net
of the amount of goods and services tax (GST), or GST
equivalents, such as Value Added Tax, except:
-
where the amount of GST incurred is not
recoverable from the Australian Tax Office (ATO),
or equivalent foreign organisations. 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 expenses;
-
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 part of receivables or payables
in the statement of financial position.
Cash flows are included in the statement of cash
flows on a gross basis. The GST components of cash
flows arising from investing and financing activities
which are recoverable from, or payable to, the ATO are
classified as operating cash flows.
Commitments and contingencies are disclosed net of
the amount of GST recoverable from, or payable to, the
taxation authority.
r)
Revenue from contracts
with customers
The Group is in the business of manufacturing and
selling quench and tempered steel plates. Revenue
from contracts with customers is recognised when
control of the goods or services are transferred to the
customer at an amount that reflects the consideration
to which the Group expects to be entitled in exchange
for those goods or services. The Group has concluded
that it is the principal in its revenue arrangements, as it
controls the goods or services before transferring them
to the customer.
Sale of goods
Revenue from the sale of steel plates is recognised
at the point in time when control of the asset is
transferred to the customer, which is on delivery
of the goods for domestic sales, on invoice for Bill
and Hold sales and on bill of lading for export sales.
Revenue from the services of shipping and handling
is recognised over time as the service is performed.
The normal credit terms are 30 to 90 days upon end of
month invoiced.
The Group considers whether there are other promises
in the contract that are separate performance
obligations to which a portion of the transaction price
needs to be allocated (e.g., shipping). In determining
the transaction price for the sale of goods, the Group
considers the effects of variable consideration,
the existence of significant financing components,
non‑cash consideration, and consideration payable to
the customer (if any).
(i) Variable consideration
If the consideration in a contract includes a variable
amount, the Group estimates the amount of
consideration to which it will be entitled in exchange
28. Summary of material accounting policies (continued)
p)
Financial instruments (continued)
68 | Bisalloy Steel Group Limited 2024 Annual Report
for transferring the goods to the customer. The
variable consideration is estimated at contract
inception and constrained until it is highly probable
that a significant revenue reversal in the amount of
cumulative revenue recognised will not occur when the
associated uncertainty with the variable consideration
is subsequently resolved. Some contracts for the
sale of steel plates provide customers with a right
of return and early settlement discounts. The rights
of return and early settlement discounts give rise to
variable consideration.
Early Settlement Discounts
The Group provides early settlement discounts to
certain customers if the payment for the sale of goods
is made within a specified period of time. The discounts
are offset against amounts payable by the customer.
To estimate the variable consideration to which it will
be entitled, the Group applies the ‘expected value
method’ to estimate the settlement discounts that
will be issued. This method best predicts the amount
of variable consideration to which the Group will be
entitled. The Group then applies the requirements on
constraining estimates of variable consideration that
can be included in the transaction price.
(ii)
Significant financing component
Generally, the Group receives payment for the sale
of goods between 30 to 90 days after the goods
have been delivered. Should a significant financing
component exist, the Group will apply the practical
expedient in AASB 15. Using this, the Group does not
adjust the promised amount of consideration for
the effects of a significant financing component if it
expects, at contract inception, that the period between
the transfer of the promised good or service to the
customer and when the customer pays for that good
or service will be one year or less.
(iii) Non-cash consideration
The Group does not receive non-cash consideration
for the sale of goods.
Contract balances
Contract Assets
A contract asset is the right to consideration in
exchange for goods or services transferred to the
customer. If the Group performs by transferring goods
or services to a customer before the customer pays
consideration or before payment is due, a contract
asset is recognised for the earned consideration that
is conditional.
Trade Receivables
A receivable represents the Group’s right to an amount
of consideration that is unconditional (i.e., only the
passage of time is required before payment of the
consideration is due). Refer to accounting policies of
financial assets in section p) Financial instruments –
initial recognition and subsequent measurement.
Contract Liabilities
A contract liability is the obligation to transfer
goods or services to a customer for which the
Group has received consideration (or an amount
of consideration is due) from the customer. If a
customer pays consideration before the Group
transfers goods or services to the customer, a contract
liability is recognised when the payment is made or
the payment is due (whichever is earlier). Contract
liabilities are recognised as revenue when the Group
performs under the contract.
s)
Other Income
Interest income
Interest income is recognised as it accrues using the
effective interest rate (EIR) method. The EIR is the rate
that exactly discounts estimated future cash receipts
over the expected life of the financial asset to the net
carrying amount of the financial asset. Interest income
is included in finance income in the statement of profit
or loss and other comprehensive income.
Dividend income
Dividend income is recognised when the Group’s right
to receive the payment is established.
t)
Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily
takes a substantial period of time to get ready for its
intended use or sale are capitalised as part of the cost
of that asset. All other borrowing costs are expensed
in the period in which they occur. Borrowing costs
consist of interest and other costs that an entity incurs
in connection with the borrowing of funds. Bisalloy Steel
Group Limited does not currently hold qualifying assets
but, if it did, the borrowing costs directly associated
with this asset would be capitalised (including any
other associated costs directly attributable to the
borrowing and temporary investment income earned
on the borrowing).
u)
Leases
At inception of a contract, the Group assesses whether
a contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of
time in exchange for consideration. To assess whether
a contract conveys the right to control the use of an
identified asset, the Group uses the definition of a lease
in AASB 16.
28. Summary of material accounting policies (continued)
r)
Revenue from contracts with customers (continued)
2024 Annual Report Bisalloy Steel Group Limited | 69
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
This policy is applied to contracts entered into, on or
after 1 July 2020.
Group as a lessee
At inception or on reassessment of a contract that
contains a lease component, the Group allocates
the consideration in the contract to each lease and
non-lease component on the basis of their relative
stand-alone prices. However, the Group has elected
for all leases in which it is a lessee, not to separate
non-lease components and will instead account for
the lease and non-lease components as a single
lease component.
The Group recognises a right-of-use asset and a
lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or before
the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less
any lease incentives received.
The right-of-use asset is subsequently depreciated
using the straight-line method from the
commencement date to the end of the lease term,
unless the lease transfers ownership of the underlying
asset to the Group by the end of the lease term or
the cost of the right-of-use asset reflects that the
Group will exercise a purchase option. In that case the
right‑of-use asset will be depreciated over the useful
life of the underlying asset, which is determined on the
same basis as those of property and equipment. In
addition, the right-of-use asset is periodically reduced
by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if the that rate cannot be
readily determined, the Group’s incremental borrowing
rate. Generally, the Group uses its incremental
borrowing rate as the discount rate.
The Group determines its incremental borrowing
rate by obtaining interest rates from various external
financing sources and makes certain adjustments to
reflect the terms of the lease and type of asset leased.
Lease payments included in the measurement of the
lease liability comprise of the following:
-
Fixed payments, included in-substance
fixed payments;
-
Variable lease payments that depend on an index
or a rate, initially measured using the index or rate
as at the commencement date;
-
Amounts expected to be payable under a residual
value guarantee; and
-
The exercise price under a purchase option
that the Group is reasonably certain to exercise,
lease payments in an optional renewal period
if the Group is reasonably certain to exercise
an extension option, and penalties for early
termination of a lease unless the Group is
reasonably certain not to terminate early.
The lease liability is measured at amortised cost using
the effective interest method. It is remeasured when
there is a change in future lease payments arising
from a change in an index or rate, if there is a change
in the Group’s estimate of the amount expected to
be payable under a residual value guarantee, if the
Group changes it assessment of where it will exercise a
purchase, extension or termination option or if there is
a revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying
amount of the right-of-use asset, or recorded in profit
or loss if the carrying amount of the right-of-use asset
has been reduced to zero.
The Group presents right-of-use assets in ‘property,
plant and equipment’, the same line item as it presents
underlying assets of the same nature that it owns and
lease liabilities in ‘lease liabilities’ in the statement of
financial position.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use
assets and lease liabilities for leases of low-value
assets and short-term leases, including IT equipment.
The Group recognises the lease payments associated
with these leases as an expense on a straight-line
basis over the lease term.
v)
Foreign currency translation
The Group’s consolidated financial statements
are presented in Australian dollars (AUD$), which
is the Company’s functional and presentation
currency. Each entity in the Group determines its
own functional currency and items included in the
financial statements of each entity are measured
using that functional currency. Transactions in foreign
currencies are initially recorded in the functional
currency rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign
currencies are retranslated at the functional currency
28. Summary of material accounting policies (continued)
u)
Leases (continued)
70 | Bisalloy Steel Group Limited 2024 Annual Report
rate of exchange ruling at the statement of financial
position date.
All differences are taken to profit or loss. Non-monetary
items that are measured in terms of historical cost in
a foreign currency are translated using the exchange
rates as at the dates of the initial transactions.
The functional currency of the foreign operations is
the currency in circulation in the country they each
reside in. As at the reporting date, the assets and
liabilities of these subsidiaries are translated into
the Company’s presentation currency (AUD$) at the
rate of exchange ruling at balance date, and their
income statements are translated at the weighted
average exchange rates for the year. The exchange
differences arising on the translation are recognised in
the foreign currency translation reserve within equity.
On disposal of a foreign entity, the deferred cumulative
amount recognised in equity relating to that particular
foreign operation is recognised in the statement of
comprehensive income.
w)
Earnings per share (EPS)
Basic EPS is calculated as net profit attributable to
members, adjusted to exclude costs of servicing
equity (other than dividends), divided by the weighted
average number of ordinary shares, adjusted for any
bonus element.
Diluted EPS is calculated as net profit attributable to
members, adjusted for:
-
costs of servicing equity (other than dividends);
-
the after tax effect of dividends and interest
associated with dilutive potential ordinary shares
that have been recognised as expenses; and
-
other non-discretionary changes in revenues or
expenses during the period that would result from
the dilution of potential ordinary shares divided by
the weighted average number of ordinary shares
and dilutive potential ordinary shares, adjusted for
any bonus element.
x)
Derivative financial instruments
and hedging
The Group uses derivative financial instruments
such as forward currency contracts to hedge its risks
associated with foreign currency risks. Such derivative
financial instruments are initially recognised at fair
value on the date on which a derivative contract is
entered into and are subsequently remeasured at fair
value. Derivatives are carried as financial assets when
the fair value is positive and as financial liabilities when
the fair value is negative.
Any gains or losses arising from changes in fair value
on derivatives that do not qualify for hedge accounting
are taken directly to net profit or loss for the year.
The fair value of forward currency contracts is
calculated by reference to current forward exchange
rates for contracts with similar maturity profiles. The
fair value of interest rate swap contracts is determined
by reference to market values for similar instruments.
For the purpose of hedge accounting, hedges are
classified as:
-
fair value hedges: when hedging the exposure to
changes in the fair value of a recognised asset or
liability; or
-
cash flow hedges: when hedging exposure to
variability in cash flows that is either attributable
to a particular risk associated with a recognised
asset or liability or a highly forecast transaction
or the foreign currency risk in an unrecognised
firm commitment.
At the inception of a hedge relationship, the Group
formally designates and documents the hedge
relationship to which the Group wishes to apply hedge
accounting and the risk management objective and
strategy for undertaking the hedge.
The documentation includes identification of the
hedging instrument, the hedged item, the nature of
the risk being hedged and how the Group will assess
whether the hedging relationship meets the hedge
effectiveness requirements (including the analysis of
sources of hedge ineffectiveness and how the hedge
ratio is determined). A hedging relationship qualifies
for hedge accounting if it meets all of the following
effectiveness requirements:
-
There is ‘an economic relationship’ between the
hedged item and the hedging instrument.
-
The effect of credit risk does not ‘dominate the
value changes’ that result from that economic
relationship.
-
The hedge ratio of the hedging relationship is
the same as that resulting from the quantity of
the hedged item that the Group actually hedges
and the quantity of the hedging instrument that
the Group actually uses to hedge that quantity of
hedged item.
Hedges that meet all the qualifying criteria for hedge
accounting are accounted for as described below:
Cash Flow Hedges
The effective portion of the gain or loss on the hedging
instrument is recognised directly in equity, while the
ineffective portion is recognised in profit or loss.
28. Summary of material accounting policies (continued)
v)
Foreign currency translation (continued)
2024 Annual Report Bisalloy Steel Group Limited | 71
Notes to the Consolidated Financial Statements (continued)
For the year ended 30 June 2024
Amounts taken to equity are transferred to the
statement of profit or loss and other comprehensive
income when the hedged transaction affects profit
or loss, such as when hedged financial income or
financial expense is recognised or when a forecast
sale or purchase occurs. Where the hedged item is the
cost of a non-financial asset or liability, the amounts
taken to equity are transferred to the initial carrying
amount of the non-financial asset or liability.
If the forecast transaction is no longer expected to
occur, amounts previously recognised in equity are
transferred to profit or loss. If the hedging instrument
expires or is sold, terminated or exercised without
replacement or rollover, or if its designation as a hedge
is revoked, amounts previously recognised in equity
remain in equity until the forecast transaction occurs.
If the related transaction is not expected to occur, the
amount is taken to profit or loss.
Fair Value Hedges
The change in the fair value of the hedged item
attributable to the risk hedged is recorded as part
of the carrying value of the hedged item and is also
recognised in the statement of profit or loss and other
comprehensive income as a finance cost.
When an unrecognised firm commitment is
designated as a hedged item, the subsequent
cumulative change in the fair value of the firm
commitment attributable to the hedged risk is
recognised as an asset or liability with a corresponding
gain or loss recognised in profit or loss.
The Group discontinues fair value hedge accounting if
the hedging instrument expires or is sold, terminated
or exercised, the hedge no longer meets criteria
for hedge accounting or the Group revokes the
designation. Any adjustment to the carrying amount
of a hedge financial instrument for which the
effective interest method is used is amortised to the
profit or loss. Amortisation may begin as soon as an
adjustment exists and shall begin no later than when
the hedged item ceases to be adjusted for changes in
its fair value attributable to the risk being hedged.
y)
Fair Value Measurement
The Group measure financial instruments such as
derivatives at fair value at each reporting date.
Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:
-
in the principal market for the asset or liability, or
-
in the absence of a principal market, in the most
advantageous market for the asset or liability.
The principal or the most advantageous market must
be accessible by the Group.
The fair value of an asset or a liability is measured
using the assumptions that market participants would
use when pricing the asset or liability, assuming that
market participants act in their economic best interest.
The Group uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.
All assets and liabilities for which fair value is
measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described
as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
-
Level 1 – Quoted (unadjusted) market prices in
active markets for identical assets or liabilities
-
Level 2 – Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable
-
Level 3 – Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable.
For assets and liabilities that are recognised in the
financial statements on a recurring basis, the Group
determines whether transfers have occurred between
Levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to
the fair value measurement as a whole) at the end of
the reporting period.
z)
Changes in accounting standards
The accounting policies adopted in the preparation of
the condensed consolidated financial statements are
consistent with those followed in the preparation of
the Group’s annual consolidated financial statements
for the Year ended 30 June 2023, except for the
adoption of new standards effective as of 1 July 2023.
The Group has not early adopted any other standard,
interpretation or amendment that has been issued but
is not yet effective.
28. Summary of material accounting policies (continued)
x)
Derivative financial instruments and hedging (continued)
72 | Bisalloy Steel Group Limited 2024 Annual Report
aa) Standards issued but not yet effective
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not
yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended
30 June 2024. The consolidated entity has not yet assessed the impact of these new or amended Accounting
Standards and Interpretations.
28. Summary of material accounting policies (continued)
2024 Annual Report Bisalloy Steel Group Limited | 73
Consolidated Entity Disclosure Statement
For the year ended 30 June 2024
Entity Name
Entity Type
Country of Incorporation
Ownership Interest
%
Australian resident
or foreign resident
(for tax purposes)
Foreign tax
jurisdiction of
foreign residents
Bisalloy Steels Pty Limited
Body Corporate
Australia
100.00
Australian
Australia
PT Bima Bisalloy
Body Corporate
Indonesia
60.00
Foreign
Indonesia
Bisalloy Holdings (Thailand) Co Ltd
Body Corporate
Thailand
85.00
Foreign
Thailand
Bisalloy (Thailand) Co Limited
Body Corporate
Thailand
85.00
Foreign
Thailand
Bisalloy North America LLC^
Body Corporate
United States of America
100.00
Foreign
Disregarded Entity
^ This entity continues to be dormant and is a Disregarded entity for US Federal income tax purposes.
Bisalloy Steel Group (the ‘head entity’) and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under the tax
consolidation regime.
74 | Bisalloy Steel Group Limited 2024 Annual Report
Directors’ Declaration
For the year ended 30 June 2024
In accordance with a resolution of the directors of Bisalloy Steel Group Limited, I state that:
In the opinion of the directors:
a. the financial statements and notes of the consolidated entity are in accordance with the Corporations Act
2001, including:
(i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2024 and of its
performance for the Year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and
the Corporations Regulations 2001;
b. the financial statements and notes also comply with International Financial Reporting Standards (AASB) as
disclosed in note 28.
c. there are reasonable grounds to believe that the company will be able to pay its debts as and when they
become due and payable.
d. at the date of this declaration, there are reasonable grounds to believe that the members of the Closed Group
identified in Note 24 will be able to meet any obligations or liabilities to which they are, or may become, subject
by virtue of the Deed of Cross Guarantee.
e. the information disclosed in the attached consolidated entity disclosure statement is true and correct.
f.
this declaration has been made after receiving the declarations required to be made to the Directors in
accordance with section 295A of the Corporations Act 2001 for the financial Year ended 30 June 2024.
On behalf of the Board
Mr Rowan Melrose
CEO and Managing Director
28 August 2024
2024 Annual Report Bisalloy Steel Group Limited | 75
Independent Auditor’s Report
For the year ended 30 June 2024
76 | Bisalloy Steel Group Limited 2024 Annual Report
2024 Annual Report Bisalloy Steel Group Limited | 77
Independent Auditor’s Report (continued)
For the year ended 30 June 2024
78 | Bisalloy Steel Group Limited 2024 Annual Report
ASX Additional Information
For the year ended 30 June 2024
Additional information required by the Australian Stock Exchange Ltd and not shown elsewhere in this report is
as follows.
The information is current as at 31 July 2024.
Ordinary Shares
Number of
Holders
Number of
Shares
a.
Distribution of equity securities
The number of shareholders, by size of holding in each class of share are:
1 – 1,000
1,433
754,030
1,001 – 5,000
1,520
3,950,651
5,001 – 10,000
536
4,104,609
10,001 – 100,000
505
13,156,235
100,001 and over
33
25,720,171
Total
4,027
47,685,696
The number of shareholders holding less than a marketable parcel of shares
based on a share price of $4.890.
72
1,392
There are performance rights issued. Performance rights do not carry a right to vote.
Listed Ordinary Shares
Number of
Shares
% of Ordinary
Shares
b.
Twenty largest shareholders
The names of the twenty largest holders of quoted shares are:
1
BALRON NOMINEES PTY LIMITED
7,409,505
15.54
2
J P MORGAN NOMINEES PTY LIMITED
5,447,304
11.42
3
BNP PARIBAS NOMINEES PTY LTD
1,760,615
3.69
4
CITICORP NOMINEES PTY LIMITED
1,756,975
3.68
5
EVELIN INVESTMENTS PTY LIMITED
1,349,330
2.83
6
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
714,758
1.50
7
HORRIE PTY LTD
700,000
1.47
8
SOUTHERN STEEL INVESTMENTS PTY LIMITED
658,295
1.38
9
MR MANFRED REIS + MRS EVELYN JEANETTE REIS
650,000
1.36
10
RATHVALE PTY LIMITED
592,740
1.24
11
KILCONQUHAR SUPERANNUATION FUND PTY LTD
460,000
0.96
12
MR NIGEL BURGESS + MRS YUKARI BURGESS
447,317
0.94
13
BALKIN PTY LTD
371,590
0.78
14
MATTHEW ENBOM
313,229
0.66
15
ALLOY STEELS AUSTRALIA PTY LTD
256,935
0.54
16
G CHAN PENSION PTY LTD
239,990
0.50
17
BNP PARIBAS NOMS PTY LTD
213,630
0.45
18
HILLMORTON CUSTODIANS PTY LTD
210,000
0.44
18
KAMGA PTY LTD
210,000
0.44
20
MARTRE PROPERTIES PTY LIMITED
200,000
0.42
2024 Annual Report Bisalloy Steel Group Limited | 79
ASX Additional Information (continued)
For the year ended 30 June 2024
Date of last
notice
Number of
Shares
Fully Paid
%
c.
Substantial Shareholders:
The names of substantial shareholders who have notified the
Company in accordance with section 671B of the Corporations Act
2001 are:
SOUTHERN STEEL INVESTMENTS Pty Limited
31 August 2020
8,664,611
18.17
SAMUEL TERRY ASSET MANAGEMENT PTY LTD
29 July 2022
5,769,463
12.10
Voting Rights:
All ordinary shares carry one vote per share without restriction.
80 | Bisalloy Steel Group Limited 2024 Annual Report
Corporate Directory
For the year ended 30 June 2024
Registered Office
18 Resolution Drive
Unanderra NSW 2526
Telephone: +61 (0)2 4272 0444
Facsimile: +61 (0)2 4272 0445
www.bisalloy.com.au
companysecretary@bisalloy.com.au
Auditors
RSM Australia Partners
Level 13, 60 Castlereagh Street
Sydney NSW 2000
Telephone: +61 (0)2 8226 4500
Facsimile: +61 (0)2 8226 4501
www.rsm.global/australia
Bankers
Westpac Banking Corporation
Share Registry
Computershare Yarra Falls
452 Johnston Street
Abbotsford VIC 3067
GPO Box 2975
Melbourne VIC 3001
Telephone (within Australia): 1300 738 768
Telephone: +61 (0)3 9415 4377
Facsimile: +61 (0)3 9473 2500
www.computershare.com
Legal Advisors
Holding Redlich
Level 8, 555 Bourke Street
Melbourne VIC 3000
Telephone: +61 (0)3 9321 9999
www.holdingredlich.com
Annual General Meeting
The Group will hold its 2024 Annual General Meeting
at 11:00am on Friday, 08 November 2024. Copies of the
annual report or further information can be obtained
by emailing companysecretary@bisalloy.com.au or
writing to the Company Secretary at the registered
office. An electronic copy of this report is available on
the Company’s website.
2024 Annual Report Bisalloy Steel Group Limited | 81