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Chairman’s report ..................................................................................................................... 2
Contents .................................................................................................................................... 4
Corporate directory .................................................................................................................. 5
Directors’ report ........................................................................................................................ 6
Remuneration report (audited) .............................................................................................. 10
Corporate governance statement .......................................................................................... 17
Auditor’s independence declaration ..................................................................................... 32
Consolidated statement of profit or loss .............................................................................. 33
Consolidated statement of comprehensive income ............................................................. 34
Consolidated statement of financial position ....................................................................... 35
Consolidated statement of changes in equity ...................................................................... 36
Consolidated statement of cash flows .................................................................................. 37
Notes to the consolidated financial statements ................................................................... 38
Directors’ declaration ............................................................................................................. 80
Independent auditors’ report ................................................................................................. 81
Additional shareholder information ...................................................................................... 85
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Grant Thornton Audit Pty Ltd
Level 22 Tower 5
Collins Square
727 Collins Street
Melbourne VIC 3008
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
Auditor’s Independence Declaration
To the Directors of EVZ Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit
of EVZ Limited for the year ended 30 June 2022, I declare that, to the best of my knowledge and belief, there
have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
M J Climpson
Partner – Audit & Assurance
Melbourne, 26 August 2022
www.grantthornton.com.au
ACN-130 913 594
Page 32
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
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Grant Thornton Audit Pty Ltd
Level 22 Tower 5
Collins Square
727 Collins Street
Melbourne VIC 3008
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
Independent Auditor’s Report
To the Members of EVZ Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of EVZ Limited (the Company) and its subsidiaries (the Group), which
comprises the consolidated statement of financial position as at 30 June 2022, the consolidated statement of
profit or loss and other comprehensive income, consolidated statement of changes in equity and
consolidated statement of cash flows for the year then ended, and notes to the consolidated financial
statements, including a summary of significant accounting policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
a
b
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance
for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
Page 81
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Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Key audit matter
How our audit addressed the key audit matter
Revenue from contracts with customers (Notes 5 and 21)
For the year ended 30 June 2022, the Group recognised
revenue from construction contracts of $67,506,919. Revenue
from these contracts is recognised over time and calculated
using the input method.
In accordance with AASB 15 Revenue from Contracts with
Customer, revenues from goods and services are recognised
based on the completion of performance obligations under
each contract.
Determining the appropriate timing of revenue recognition
requires estimating the inputs (costs) remaining in the contract
and the expected margins earned on the contracts, which
requires significant management judgement and estimation.
This area is a key audit matter due to the high level of
estimation uncertainty and management judgement required
to determine the revenue recognised from each contract.
Goodwill impairment (Note 9)
As at 30 June 2022, the Group has goodwill of $12,072,010
across two cash-generating units (“CGUs”). The Group is
required to perform an annual impairment test of goodwill in
accordance with AASB 136 Impairment of Assets.
The Group estimates the recoverable of its CGUs by
employing a value in use model and, in doing so, must
determine the following key inputs and assumptions:
•
forecast cash flows from operations;
• working capital adjustments;
•
capital expenditure estimates;
• discount and growth rates; and
• a terminal value
Our procedures included, amongst others:
• Obtaining an understanding of the nature of revenue
transactions and the processes and internal controls at
each subsidiary;
• Testing a sample of revenue transactions and obtaining
the contract or agreements to evaluate whether the
revenue has been calculated and recognised
appropriately;
• Testing debtors at 30 June 2022 to assess the validity of
balances and whether amounts have been recovered
subsequent to the period end;
• Performing analytical analysis of revenue and gross
margin across the Group;
• Reviewing material work-in-progress at 30 June 2022 to
assess the appropriateness of the calculations and the
reasonableness of related inputs;
• Reviewing project margins within the 30 June 2022 work-
in-progress accounts and comparing to actual margins
achieved by the business throughout the financial year;
• Discussing material projects performance with General
Managers and obtaining signed confirmations from Project
Managers ensuring respective project status agrees with
the Work-in-progress ledger; and
• Assessing the adequacy of financial report disclosures.
Our procedures included, amongst others:
• Assessing management's determination of the Group’s
CGUs based on our understanding of the nature of the
Group’s business;
• Obtaining management’s value in use model and
evaluating the key assumptions for reasonableness by
obtaining corroborating evidence, including consideration
of the reasonableness of the revenue and cost forecasts
against historical actuals;
• Performing sensitivity analysis on the key assumptions;
• Testing the mathematical accuracy of the model;
This area is a key audit matter due to management estimation
and judgement in the assessment.
• Considering internal valuation expert advice to assess the
reasonableness of the model and discount rates utilised;
and
• Assessing the adequacy of financial report disclosures.
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Grant Thornton Australia Limited 2
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included
in the Group’s annual report for the year ended 30 June 2022, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors’ for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the Directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf.This
description forms part of our auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 10 to 15 of the Directors’ report for the year
ended 30 June 2022.
In our opinion, the Remuneration Report of EVZ Limited , for the year ended 30 June 2022 complies with
section 300A of the Corporations Act 2001.
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Grant Thornton Australia Limited 3
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
Grant Thornton Audit Pty Ltd
Chartered Accountants
M J Climpson
Partner – Audit & Assurance
Melbourne, 26 August 2022
Page 84
Grant Thornton Australia Limited 4