Chairman’s report ..................................................................................................................... 2 Contents .................................................................................................................................... 4 Corporate directory .................................................................................................................. 5 Directors’ report ........................................................................................................................ 6 Remuneration report (audited) .............................................................................................. 10 Corporate governance statement .......................................................................................... 17 Auditor’s independence declaration ..................................................................................... 26 Consolidated statement of profit or loss .............................................................................. 27 Consolidated statement of comprehensive income ............................................................. 28 Consolidated statement of financial position ....................................................................... 29 Consolidated statement of changes in equity ...................................................................... 30 Consolidated statement of cash flows .................................................................................. 31 Notes to the consolidated financial statements ................................................................... 32 Directors’ declaration ............................................................................................................. 75 Independent auditors’ report ................................................................................................. 76 Additional shareholder information ...................................................................................... 80 • • • • • • • • • • • • Performance rights granted as remuneration in FY2023: • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 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 2023, 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, 28 August 2023 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. 26 w • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 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 2023, the consolidated statement of profit or loss, consolidated statement of 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 giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance for the year ended on that date; and b 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. w 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 (Note 5 and 21) For the year ended 30 June 2023, the Group recognised revenue from contracts with customers of $111,200,389. Revenue for these contracts is recognised over time with reference to the input method to determine revenue to be recognised. 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. The determination of the appropriate timing of revenue recognition requires estimation of the inputs (costs) remaining in the contract and the expected margins earned on the contracts which require management judgement. This area is a key audit matter due to the high level of estimation and management judgement required to determine the revenue recognised from each contract. (cid:3) Our procedures included, amongst others: (cid:120) Obtaining an understanding of the nature of revenue transactions and the process and internal controls at each subsidiary; (cid:120) Performing a detailed analytical review of revenue and gross margin across the Group; (cid:120) Selecting a sample of revenue transactions and obtaining the contract or agreements and testing whether the revenue is calculated and recognised appropriately; (cid:120) Reviewing material work-in-progress at 30 June 2023 to ensure the calculation utilised and the inputs in the calculation are reasonable and reflect the expected profit margin; (cid:120) Reviewing project margins in the 30 June 2023 work-in-progress compared to actual margins achieved by the business throughout FY23; (cid:120) Obtaining signed confirmations from project managers to ensure that the status of their individual projects aligns with the Work-in-progress ledger and discussing the performance of material projects with General Managers.; and (cid:120) Assessing the adequacy of financial report disclosures. Grant Thornton Audit Pty Ltd(cid:3) Goodwill impairment (Note 9) As at 30 June 2023, 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 amount of its CGUs by employing a discounted cash flow model and, in doing so, must determine the following key inputs and assumptions: (cid:120) forecast cash flows from operations (cid:120) working capital adjustments; (cid:120) capital expenditure estimates (cid:120) discount and growth rates (cid:120) a terminal value This area is a key audit matter due to high degree of estimation uncertainty by management. Our procedures included, amongst others: (cid:120) Assessing management's determination of the Group’s CGUs based on our understanding of the nature of the Group’s business; (cid:120) Obtaining management’s discounted cash flow model; (cid:16) Testing the mathematical accuracy of the inputs in managements discounted cash flow model; (cid:16) E valuating the key assumptions in the model for reasonableness by obtaining corroborating evidence, including consideration of the reasonableness of the revenue and cost forecasts against historical actuals; (cid:16) Performing a sensitivity analysis on the key assumptions; (cid:16) Considering internal valuation expert advice to assess reasonableness of the model and discount rates utilised; and (cid:120) Assessing the adequacy of financial report disclosures. 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 2023, 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 Group 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. (cid:3) Grant Thornton Audit Pty Ltd(cid:3) 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 16 of the Directors’ report for the year ended 30 June 2023. In our opinion, the Remuneration Report of EVZ Limited, for the year ended 30 June 2023 complies with section 300A of the Corporations Act 2001. Responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Grant Thornton Audit Pty Ltd Chartered Accountants M J Climpson Partner – Audit & Assurance Melbourne, 28 August 2023 Grant Thornton Audit Pty Ltd
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