Annual
2017
Report
www.global-health.com/about-us/investor
TAB LE O F CO NTE NT S
1.
REVIEW OF OPERA TIONS
Yo u r D i r e c to r s s u b m i t t h e i r r e p o r t fo r t h e f i n a n c i a l ye a r e n d e d 3 0 J u n e 2 017.
1.1. CHAIR MAN’S LET TER
D e a r S h a r e h o l d e r s
I t i s a p l e a s u r e to b e a b l e to r e p o r t a n ot h e r p r o f i ta b l e ye a r fo r t h e C o m p a ny w i t h a n et p r o f i t
b e fo r e ta x o f $1,9 3 2 , 019, w h i c h i s a s u b s ta n t i a l i n c r e a s e f r o m t h e p r ev i o u s ye a r ( i n c r e a s e a f te r
r e s ta te m e nt o f $1, 8 2 4 , 074).
A s r e p o r te d l a s t ye a r, i n A u g u s t 2 016 w e w e r e a b l e to r e s o l ve t h e o n g o i n g u s e o f t h e C h i r o n
H o s p i ta l M a n a g e m e nt Sy s te m w i t h S A H e a l t h .
A n ot h e r h i g h l i g ht fo r t h e ye a r w a s o u r a n n o u n c e m e nt i n A p r i l o f t h e c o m m e rc i a l i s a t i o n
o f t h e L i fe ca r d Pe r s o n a l H e a l t h Re c o r d fo r co n s u m e r s , to g et h e r w i t h t h e H ot H e a l t h d i g i ta l
e n g a g e m e nt p l a t fo r m fo r p r ov i d e r s .
T h e m a j o r c o n n e c t i v i t y r o l l o u t a c r o s s Pe n i n s u l a H e a l t h w h i c h w a s a n n o u n c e d i n M a y w a s a l s o
a m a j o r m i l e s to n e fo r t h e C o m p a ny.
W h i l e t h e e c o n o m y i n A u s t r a l i a co nt i n u e s to b e c h a l l e n g i n g , w e s t i l l e x p e c t to m a ke m a j o r
s a l e s i nto o u r h o m e co u nt r y, a s w e l l a s g r o w i n g o u r s a l e s i nto t h e fa s t e x p a n d i n g h e a l t h ca r e
m a r ket i n t h e A S E A N Re g i o n . T h i s b o d e s w e l l fo r a n ot h e r s u cc e s s f u l ye a r.
I w o u l d to t h a n k o u r C E O, M a t h e w C h e r i a n , fo r h i s t i r e l e s s w o r k i n e n s u r i n g t h e c o nt i n u e d
s u cc e s s o f t h e C o m p a ny, a s w e l l a s o u r ve r y h a r d w o r k i n g a n d l oya l e m p l oye e s , a n d m y fe l l o w
B o a r d m e m b e r s .
O u r g o a l i s to c o nt i n u e to i n c r e a s e o u r p r o f i ta b i l i t y, a n d i n t u r n ca p i ta l va l u e, fo r o u r ve r y
s u p p o r t i ve s h a r e h o l d e r s . Pa y i n g t w o s p e c i a l d i v i d e n d s d u r i n g t h e ye a r w a s a p a r t i c u l a r l y
s a t i s f y i n g w a y o f r e w a r d i n g o u r s h a r e h o l d e r s fo r t h e i r p a t i e n c e.
Yo u r s s i n c e r e l y
Yo u r s fa i t h f u l l y,
S t eve n L e i g h P y n t
N o n - E xe c u t i ve C h a i r m a n
3
1.2. CHIEF EXECUTI VE OF FI CER ’S O PE R ATIONS
SO L U T I O N S
REPO RT
1.3. FIN ANCI AL SUM MA RY
Yo u r D i r e c to r s s u b m i t t h e i r r e p o r t fo r f i n a n c i a l ye a r e n d e d 3 0 J u n e
2 017. T h e P r ev i o u s C o r r e s p o n d i n g Pe r i o d ( P C P) fo r t h i s r e p o r t i s t h e
t w e l ve m o nt h s to 3 0 J u n e 2 016 .
Dashboard
80
60
50
40
30
20
10
MON
TUES WED THURS FRI SAT SUN
MY MEASURES
Sleep
F I N A N C I A L H I G H L I G H T S
• Reve n u e - $10 . 3 M U p 9 8 % ( i n c l u d i n g $ 5 m f r o m t h e s et t l e m e nt o f
t h e C h i r o n S o f t w a r e l i t i g a t i o n)
• N et P r o f i t B e fo r e Ta x - $1,9 3 2 , 019 - u p 169 0 %
•
• D i v i d e n d s p a i d o f 2 c e nt s p e r s h a r e
E a r n i n g s Pe r S h a r e ( E P S) b e fo r e ta x u p 2 0 8 4 % to 5 . 81 c e n t s p e r s h a r e
R E V I E W O F T H E F I N A N C I A L YE AR TO J U N E 2 017
T h r o u g h o u t F Y17, w e a c h i eve d a l ot a s a b u s i n e s s . T h e r e s o l u t i o n o f
t h e o n g o i n g u s e o f t h e C H I R O N H o s p i ta l M a n a g e m e nt Sy s te m w i t h S A
H e a l t h i n A u g u s t w a s a g o o d s ta r t to t h e f i n a n c i a l ye a r. I nve s t m e nt
i n n e w p r o d u c t d eve l o p m e nt i n c r e a s e d by n e a r l y 10 % to $1. 4 8 m
a n d e n a b l e d a n a cce l e r a te d i n n ova t i o n p r o g r a m ta r g et i n g g r e a te r
c o n s u m e r e n g a g e m e n t a n d c o n n e c t i v i t y fo r c o n s u m e r s a n d t h e i r
h e a l t h ca r e p r ov i d e r s .
T h e u n d e r l y i n g d e s i g n p h i l o s o p hy i s a “ m o b i l e - f i r s t ” a rc h i te c t u r e to
o pt i m i s e t h e u s e r e x p e r i e n c e o n m o b i l e s m a r t p h o n e s a n d ta b l et s
i n a d d i t i o n to t h e t r a d i t i o n a l w i d e r s c r e e n s o f p e r s o n a l c o m p u te r s .
T h e “ m o b i l e - f i r s t ” d e s i g n p h i l o s o p hy i s a m a r ket - l e a d i n g r e s p o n s e
to g l o b a l u s a g e t r e n d s . I n A p r i l , t h e C o m p a ny a n n o u n c e d t h e
c o m m e r c i a l r e l e a s e o f t h e L i fe c a r d Pe r s o n a l H e a l t h Re c o r d fo r
c o n s u m e r s a l o n g w i t h t h e H ot H e a l t h d i g i ta l e n g a g e m e nt p l a t fo r m fo r
p r ov i d e r s . L i fe c a r d a n d H ot H e a l t h a r e t h e e m b o d i m e nt o f o u r l o n g -
s ta n d i n g v i s i o n to c o n n e c t c l i n i c i a n s a n d c o n s u m e r s a n d s t r e a m l i n e
t h e p a t i e nt j o u r n ey.
O u r c u r r e nt a n d g r o w i n g m a r ket p r e s e n c e a c r o s s h e a l t h ca r e
p r ov i d e r s c o m b i n e s w i t h t h i s n e w te c h n o l o g y to e n h a n c e t h e e n d -
u s e r e x p e r i e n c e fo r b ot h c o n s u m e r s a n d p r ov i d e r s a n d a c h i eve
m e a n i n g f u l s ca l e i n t h e c o n s u m e r m a r ket.
T h e i n i t i a l d e p l oy m e nt o f t h e L i fe ca r d p a t i e nt p o r ta l w a s a c r o s s t h r e e
e a r l y a d o pte r s i te s i n t h e a c u te ( h o s p i ta l) s e c to r a n d t h r e e co m m u n i t y
h e a l t h c a r e p r ov i d e r s fo r o n - g o i n g c o n s u m e r e n g a g e m e nt. E a r l y
fe e d b a c k f r o m c u s to m e r s h a s b e e n ve r y e n c o u r a g i n g w i t h u p to 5 0 %
o f p r e - a d m i s s i o n s fo r m s s u b m i t te d o n l i n e w i t h i n 6 m o n t h s o f l a u n c h .
L i fe c a r d Pa t i e nt Po r ta l i s n o w i n g e n e r a l r e l e a s e fo r t h e C o m p a ny’s
w i d e r b a s e o f c u s to m e r s .
We h a ve s e c u r e d a g r e e m e n t s w i t h t w o h e a l t h c a r e p r o fe s s i o n a l
o r g a n i s a t i o n s c ove r i n g a p p r o x i m a te l y 15 , 0 0 0 i n d i v i d u a l p r ov i d e r s fo r
t h e co m m e rc i a l r e l e a s e o f t h e m o r e c o m p r e h e n s i ve H ot H e a l t h d i g i ta l
e n g a g e m e nt p l a t fo r m fo r p r ov i d e r s .
Dashboard
Search measurement
First Last Name
37 c
Today
7
Hours
Today
8
Hours
Yesterday
BODY TEMP
SLEEP
MY MEASURES
Sleep
Blood Pressure
Dashboard
Temperature
Search measurement
Heart Rate
7
6
5
4
3
2
1
Health Record
Measurements
Allergies
Medications
Medical History
Attachments
Notifications
Reminders
Settings
Learn More
Feedback
MON
TUES
WED
THURS
FRI
SAT
SUN
First Last Name
Blood Glucose
37 c
Today
7
Hours
Today
8
Hours
Yesterday
BODY TEMP
SLEEP
66 bpm
Today
68 bpm
Yesterday
HEART RATE
BLOOD PRESSURE
120
Health Record
Systolic mmHg
Measurements
60
Allergies
Diastolic mmHg
Medications
Medical History
Attachments
Notifications
Reminders
Settings
Learn More
Feedback
BODY TEMP
37 c
Today
HEART RATE
66 BPM
Yesterday
Blood Pressure
LIFECARD
120
Systolic mmHg
Temperature
BLOOD
PRESSURE
SLEEP
7 Hrs
Yesterday
60
Diastolic mmHg
7
6
5
4
3
2
1
MON
TUES
WED
THURS FRI SAT SUN
66 bpm
Today
68 bpm
Yesterday
120
Systolic mmHg
60
Diastolic mmHg
HEART RATE
BLOOD PRESSURE
Heart Rate
Blood Glucose
Load More
7
6
5
4
3
2
1
MON
TUES WED THURS FRI SAT SUN
L I F E C A R D
A p e r s o n a l h e a l t h r e c o r d f o r
c o n s u m e r s to s e c u r e l y s t o r e
a n d a c c e s s h e a l t h i n fo r m a t i o n
a n y w h e r e, a n y t i m e a n d o n a n y
d ev i c e.
I m p o r ta n t p e r s o n a l h e a l t h
i n fo r m a t i o n , key o b s e r va t i o n s a n d
m e a s u r e m e n t s c a n b e m o n i t o r e d
a n d t r a c ke d to e n c o u r a g e
p o s i t i ve b e h a v i o r c h a n g e.
T h e L i fe c a r d p l a t fo r m e m p o w e r s
i n d i v i d u a l s t o p r o - a c t i ve l y
m a i n ta i n t h e i r w e l l n e s s a n d
m a n a g e t h e i r h e a l t h o u tc o m e s .
H OT H E A LT H
A p a t i e n t e n g a g e m e n t p l a t fo r m
fo r h e a l t h c a r e p r a c t i t i o n e r s t o
e n g a g e w i t h p a t i e n t s a n d c l i e n t s
o n l i n e.
E a s i l y c r e a t e a n d m a i n ta i n a
b u s i n e s s o n l i n e w i t h a w e b s i t e
a n d m o b i l e a p p t h a t s t r e a m l i n e s
t h e p a t i e n t j o u r n ey a n d b u i l d s
c o m m u n i t i e s a r o u n d t h e i r
p r a c t i c e.
4
Review of the financial year to June 2017 (continued).
SO L U T I O N S
H ot H e a l t h w i l l r e c o r d p a t i e nt c o n s e n t, p r ov i d e fo r o n l i n e
a p p o i nt m e nt s a n d te l e - co n s u l t i n g i n a d d i t i o n to t h e L i fe ca r d p a t i e nt
p o r ta l fo r fo r m s a n d a s s e s s m e nt s . I n M a y, t h e C o m p a ny a n n o u n ce d
a m a j o r c o n n e c t i v i t y r o l l o u t a c r o s s Pe n i n s u l a H e a l t h - t h e m a j o r
h e a l t h ca r e p r ov i d e r s e r v i n g t h e m et r o p o l i ta n a n d r e g i o n a l a r e a s o n
V i c to r i a’s M o r n i n g to n Pe n i n s u l a .
Pe n i n s u l a H e a l t h i s a m et r o p o l i ta n p u b l i c h e a l t h s e r v i ce w i t h ove r 9 0 0
R E F E R R A L N E T
b e d s , d e l i ve r i n g h e a l t h c a r e s e r v i c e s to a p o p u l a t i o n o f ove r 3 0 0 , 0 0 0
a c r o s s a r e g i o n o f a p p r o x i m a te l y 9 0 0 s q u a r e k i l o m et r e s .
A p a r t f r o m i m p r ove m e nt s i n w o r k f l o w p r o d u c t i v i t y a n d p a t i e nt s a fet y,
a key d r i ve r fo r t h e C o n n e c t i v i t y p r o j e c t i s to m e et t h e V i c to r i a n
G ove r n m e nt ’s e Re fe r r a l a n d Acc e s s Po l i c i e s fo r m a n a g i n g r e fe r r a l s .
T h i s c ove r s t h e p r o c e s s i n g a n d l i ve t r a c k i n g o f Re fe r r a l s a n d t h e
r e p o r t i n g o f K P I s r e l a t i n g to i n b o u n d r e fe r r a l s .
T h e i n i t i a l p h a s e o f t h e Re fe r r a l M a n a g e m e nt p r o j e c t h a s b e e n
p r o g r e s s i ve l y r o l l e d o u t s i n c e D e c e m b e r 2 016 w i t h d i s c h a r g e
s u m m a r i e s s e nt e l e c t r o n i c a l l y f r o m F r a n k s to n H o s p i ta l’s C e r n e r
E l e c t r o n i c M e d i c a l Re c o r d s y s te m t h r o u g h G l o b a l H e a l t h’s Re fe r r a l N et
s e c u r e m e s s a g i n g p l a t fo r m , to G e n e r a l P r a c t i t i o n e r s (G P s) a n d
S p e c i a l i s t s i n t h e r e g i o n .
O ve r 6 5 % o f d i s c h a r g e s u m m a r i e s f r o m Pe n i n s u l a H e a l t h a r e n o w s e nt
v i a t h e Re fe r r a l N et p l a t fo r m . I nte g r a t i o n to t h e h o s p i ta l’s i PM Pa t i e nt
Ad m i n i s t r a t i o n Sy s te m h a s b e e n c o m p l ete d w i t h a l i m i te d r o l l o u t o f
i n - b o u n d r e fe r r a l s to 2 o f 4 0 o u t p a t i e n t c l i n i c s a t t h e h o s p i ta l n o w i n
p r o g r e s s .
T h e C o m p a ny h a s a l s o a c h i eve d i n te r o p e r a b i l i t y w i t h Te l s t r a H e a l t h’s
A r g u s M e s s a g i n g p l a t fo r m w i t h Re fe r r a l N et s u b s c r i b e r s a b l e to s e n d
to A r g u s s u b s c r i b e r s . Vo l u m e s o f Re fe r r a l N et to A r g u s m e s s a g e s m o r e
t h a n t r i p l e d ove r t h e 6 m o n t h s to J u n e i n t h e l i m i te d t r i a l s .
Tw o - w a y m e s s a g i n g f r o m A r g u s to Re fe r r a l N et i s i n a d va n c e d s ta g e s
o f f i e l d te s t i n g fo l l o w i n g w h i c h Re fe r r a l N et a n d A r g u s i nte r o p e r a b i l i t y
w i l l b e a va i l a b l e fo r g e n e r a l m a r ket r e l e a s e.
O ve r t h e 12 m o nt h s to 3 0 -J u n e, Re fe r r a l N et s u b s c r i b e r s g r e w by 8 %
w h i l e t r a n s a c t i o n vo l u m e s g r e w by 2 0 % .
T h e l eve l o f e x p e n d i t u r e i n i n n ova t i o n i s r ev i e w e d eve r y 6 m o n t h s to
e n s u r e r et u r n o n i nve s t m e nt s a r e p e r fo r m i n g i n l i n e w i t h fo r e c a s t s .
I m p a i r m e nt c h a r g e s o f $ 917 k w e r e a p p l i e d a g a i n s t i nta n g i b l e a s s et s
fo l l o w i n g a r ev i e w by t h e B o a r d .
T h e n et r e s u l t i s a r e p o r te d r e c o r d n et p r o f i t b e fo r e ta x o f $1.9 3 m
r e p r e s e nt i n g E a r n i n g s Pe r S h a r e b e fo r e ta x o f 5 . 8 c e nt s .
A s e c u r e m e s s a g i n g p l a t fo r m
fo r h e a l t h ca r e p r ov i d e r s to
s e c u r e l y s e n d a n d r e c e i ve
p a t i e nt - r e l a te d d o c u m e nt s
s u c h a s r e fe r r a l s , l et te r s ,
r e s u l t s a n d d i s c h a r g e
s u m m a r i e s .
S e c u r e m e s s a g i n g i m p r ove s
b u s i n e s s p r o d u c t i v i t y a n d
p a t i e nt o u tco m e s by r e d u c i n g
t h e n e e d fo r r e - key i n g o f d a ta
a n d m i n i m i s i n g t r a n s c r i pt i o n
e r r o r s .
MASTERCARE +
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First Name
Frank
Gender
Male
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+61 2 400 000 000
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Billy
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0 1
1 9 5 6
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Scheduled Referrals
7
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3
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2
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6
3
within
limit
3
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Sort
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A w e b - b a s e d p l a t fo r m
a n d m a r ket p l a c e w i t h a n
e x te n s i b l e a n d m o d u l a r
d e s i g n , e n a b l i n g u s e r s to
c o n f i g u r e t h e fe a t u r e s t h ey
n e e d fo r t h e i r h e a l t h ca r e
b u s i n e s s .
M a s te r C a r e + i s o f fe r e d
a s a s u b s c r i pt i o n s o f t w a r e
s e r v i c e a cc e s s i b l e a ny w h e r e,
a ny t i m e a n d o n a ny d ev i c e.
5
Review of the financial year to June 2017 (continued)
SO L U T I O N S
I n t h e 5 ye a r s to 3 0 -J u n -2 017, t h e s h a r e p r i c e o f G L H h a s p r ov i d e d
a r et u r n i n e x c e s s o f 4 9 % C AG R (C o m p o u n d A n n u a l G r o w t h Ra te)
i n c l u s i ve o f d i v i d e n d s .
M A S T E R C A R E E M R
A n i n t u i t i ve t e a m - b a s e d
a p p r o a c h to c l i e n t m a n a g e m e n t
w h i c h h a s p r ove n to b e t h e
p e r f e c t f i t fo r g ove r n m e n t a n d
N G O s e r v i c e p r ov i d e r s i n t h e
c o m m u n i t y.
W i t h a s t r o n g r e p o r t i n g p e d i g r e e
a n d s c a l a b l e a r c h i t e c t u r e
M a s t e r C a r e E M R h e l p s p r ov i d e r s
w o r k w i t h t h e i r c l i e n t s t o i m p r ove
h e a l t h o u tc o m e s .
M a s t e r C a r e E M R i s d e p l oy e d i n
m u l t i p l e s ta t e - w i d e r o l l - o u t s ,
a c r o s s m u l t i p l e s p e c i a l t i e s i n
eve r y h e a l t h c a r e s et t i n g .
M A S T E R C A R E DATA
WA R E H O U S E
A d a ta w a r e h o u s e t h a t c o l l a t e s
t h e l a r g e vo l u m e o f b u s i n e s s
a n d c l i n i c a l d a ta to e n a b l e
h e a l t h c a r e e x e c u t i ve s t o
g a i n t i m e l y i n s i g h t s i n t o t h e i r
h e a l t h c a r e o p e r a t i o n s .
M a s t e r C a r e D a ta Wa r e h o u s e
p r ov i d e s “ s l i c e - a n d - d i c e”
f u n c t i o n a l i t y a c r o s s a r a n g e
o f f i n a n c i a l a n d c l i n i c a l Key
Pe r fo r m a n c e I n d i c a to r s ( K P I s) t o
e n a b l e i n fo r m e d d e c i s i o n s a n d
e n c o u r a g e c o n t i n u o u s q u a l i t y
i m p r ove m e n t.
6
CO R E O PE R AT I O N S R E V I E W
T h e C o m p a ny’s c o r e o p e r a t i o n a l r eve n u e i s d e r i ve d f r o m t h e s a l e
o f s o f t w a r e a n n u a l s u b s c r i pt i o n s a n d p r o d u c t - r e l a te d p r o fe s s i o n a l
s e r v i c e s to:
S p e c i a l i s t s , G e n e r a l P r a c t i t i o n e r s , C o m m u n i t y H e a l t h a n d A l l i e d
H e a l t h P r ov i d e r s (t h e n o n - a c u te o r C o m m u n i t y s e c to r ) a n d ,
O ve r n i g ht a n d D a y H o s p i ta l s (t h e a c u te o r H o s p i ta l s e c to r ).
S o f t w a r e fo r co n n e c t i v i t y i s s o l d u n d e r t h e Re fe r r a l N et b r a n d ( w w w.
r e fe r r a l n et. c o m . a u) w h i l e s o f t w a r e fo r h e a l t h c a r e p r ov i d e r s a r e s o l d
u n d e r t h e M a s te r C a r e ( w w w. m a s te r C a r e. n et. a u/ ) a n d P r i m a r y C l i n i c
( w w w. p r i m a r yc l i n i c . c o m . a u/ ) b r a n d s . T h e s e a r e d e p l oye d i n b ot h
t h e co m m u n i t y a n d h o s p i ta l m a r ket s e c to r s . Reve n u e f r o m s a l e s
to t h e C o m m u n i t y S e c to r w a s u p 9 % to $ 3 . 74 m l a r g e l y d r i ve n by
t h e co nt i n u i n g a p p e a l o f M a s te r C a r e E M R fo r p r ov i d e r s o f M e n ta l
H e a l t h s e r v i c e s w i t h 19 n e w c u s to m e r o r g a n i s a t i o n s a n d ove r 5 0 0
n e w h e a l t h ca r e p r o fe s s i o n a l s . P r o j e c t s p e c i f i c p r o fe s s i o n a l s e r v i c e
e x p e n s e s o f a p p r o x i m a te l y $ 3 5 0 k w e r e i n c u r r e d ove r t h e ye a r fo r
p r o j e c t s e x p e c te d to g o - l i ve p r i o r to 3 0 -J u n e h o w eve r t h e a s s o c i a te d
p r o j e c t s h a ve b e e n d e l a ye d b eyo n d t h e r e p o r t i n g p e r i o d a n d a r e
n o w s c h e d u l e d fo r g o - l i ve i n t h e S e pte m b e r q u a r te r.
Review of the financial year to June 2017 (continued)
I n a cc o r d a n ce w i t h t h e C o m p a ny’s p o l i c y, w o r k- i n - p r o g r e s s i s n ot
r e c o g n i s e d a s r eve n u e i n t h e p e r i o d i n c u r r e d . P r o j e c t s e r v i c e s a n d
l i ce n s e r eve n u e f r o m t h e s e w i l l o n l y r e c o g n i s e d o n i nvo i c i n g w h i c h i n
t h e s e p r o j e c t s a r e o n l y d u e o n g o - l i ve. T h e e f fe c t o f t h e s e i s a g r e a te r
e x p e n s e r e f l e c te d i n t h e 2 017 F i n a n c i a l Ye a r w i t h t h e c o r r e s p o n d i n g
p r o j e c t r eve n u e d e l a ye d to t h e 2 018 F i n a n c i a l Ye a r. T h e C o m p a ny
h a s i n c r e a s e d i nve s t m e nt i n s a l e s a n d m a r ket i n g a c t i v i t y fo c u s e d o n
M e nta l H e a l t h S e r v i c e s , C o n n e c t i v i t y a n d C o n s u m e r e n g a g e m e nt.
G i ve n t h e r e l a t i ve l y l o n g s a l e s - c yc l e i n h e a l t h ca r e, i t w a s a n
i m p o r ta nt i nve s t m e nt to m a x i m i s e t h e l i ke l i h o o d o f s u s ta i n a b l e
r eve n u e g r o w t h i n t h e m e d i u m - te r m fo r t h i s g r o w t h a r e a .
Reve n u e a n d m a r g i n s f r o m c u s to m e r s d e l i ve r i n g s e r v i c e s w i t h i n
h o s p i ta l s h a s b e e n f l a t ove r t h e r e p o r t i n g p e r i o d . T h e r e d u c t i o n i n
r eve n u e i s d u e to t h e c l o s u r e o f t w o h o s p i ta l s w i t h i n t h e c u s to m e r
b a s e a n d a d e l a ye d g o - l i ve o f a f u r t h e r t w o n e w h o s p i ta l c u s to m e r s .
C o r e s u b s c r i pt i o n s i n t h i s s e c to r a r e fo r t h e u s e t h e C o m p a ny’s
M a s te r C a r e PA S ( Pa t i e nt Ad m i n i s t r a t i o n Sy s te m) to m a n a g e p a t i e nt
w o r k f l o w f r o m p r e - a d m i s s i o n t h r o u g h to d i s c h a r g e i n c l u d i n g t h e
m a n a g e m e nt o f b e d s , t h e a t r e s , m e d i ca l r e c o r d s , b i l l i n g a n d
r e c e i pt i n g .
T h e C o m p a ny h a s ta ke n s te p s to r e d u c e t h e c o s t b a s e fo r t h e H o s p i ta l
b u s i n e s s u n i t i n t h e c u r r e nt p e r i o d a n d a c c e l e r a te t h e u p g r a d e
o f M a s te r C a r e PA S to t h e n e w M a s te r C a r e + p l a t fo r m w h i c h w i l l
r e - v i ta l i s e t h e co m p et i t i ve p o s i t i o n i n g o f o u r o f fe r i n g to h o s p i ta l
o p e r a to r s . M a s te r C a r e + i s a m u l t i - te n a nte d , “ m o b i l e - f i r s t ”, w e b b a s e d
p l a t fo r m & m a r ket p l a c e w h i c h i s t h e s u cc e s s o r to o u r h e a l t h ca r e
p r ov i d e r p r o d u c t s i n c l u d i n g M a s te r C a r e E M R a n d PA S .
M a s te r C a r e + fe a t u r e s a n e x te n s i b l e a n d m o d u l a r d e s i g n s o c u s to m e r s
o n l y s u b s c r i b e to fe a t u r e s t h ey n e e d . T h e f i r s t r e l e a s e a d d r e s s e s
t h e Re fe r r a l M a n a g e m e nt n e e d s o f h e a l t h ca r e p r ov i d e r s . D u r i n g
t h e t r a n s i t i o n a r y p e r i o d , r eve n u e g r o w t h fo r t h e a c u te s e c to r w i l l
b e d e r i ve d f r o m a d d - o n s s u c h a s t h e L i fe ca r d Pa t i e nt Po r ta l a n d
M a s te r C a r e + fo r Re fe r r a l M a n a g e m e nt to e x i s t i n g c u s to m e r s .
SO L U T I O N S
P A S
M A S T E RCA R E PA S
A p a t i e nt a d m i n i s t r a t i o n
s y s te m fo r h o s p i ta l
a d m i n i s t r a to r s s e e k i n g to
s t r e a m l i n e t h e p a t i e nt j o u r n ey
w i t h i n t h e i r fa c i l i t y.
M a s te r C a r e PA S m a n a g e s
t h e r eve n u e c yc l e f r o m
p r e - a d m i s s i o n t h r o u g h to
b e d m a n a g e m e nt, t h e a t r e
m a n a g e m e nt, m e d i ca l
r e co r d s m a n a g e m e nt a n d
d i s c h a r g e p l a n n i n g .
PR I M A RYC L I N I C
A f u l l y fe a t u r e d p r a c t i c e
a n d c l i n i ca l m a n a g e m e nt
s y s te m to s u p p o r t g e n e r a l
p r a c t i t i o n e r s , s p e c i a l i s t s a n d
a l l i e d h e a l t h p r ov i d e r s i n
p r i va te p r a c t i c e.
7
Review of the financial year to June 2017 (continued)
I n t h e c u r r e nt f i n a n c i a l ye a r, t h e fo c u s i s o n d eve l o p i n g d i g i ta l h e a l t h c o m m u n i t i e s t h r o u g h
t h e n e w l y r e l e a s e d H ot H e a l t h p l a t fo r m ( w w w. h ot h e a l t h . c o m), to e n c o u r a g e d i g i ta l
e n g a g e m e nt b et w e e n h e a l t h ca r e p r ov i d e r s a n d t h e i r h e a l t h ca r e c o n s u m e r s . C o n s u m e r s
w i l l b e p r ov i d e d w i t h to o l s to m a n a g e t h e i r o n - g o i n g h e a l t h co n d i t i o n s t h r o u g h d i g i ta l
i nte r a c t i o n s w i t h t h e i r h e a l t h c a r e p r ov i d e r s , a n d e n c o u r a g e d to p r o - a c t i ve l y m a n a g e t h e i r
h e a l t h a n d w e l l n e s s t h r o u g h t h e L i fe ca r d Pe r s o n a l H e a l t h Re c o r d ( w w w. l i fe ca r d . c o m).
O ve r 3 0 0 0 h e a l t h c a r e o r g a n i s a t i o n s u s e G l o b a l H e a l t h a p p l i ca t i o n s i n h o s p i ta l s , co m m u n i t y
a n d c h r o n i c d i s e a s e h e a l t h c e nt r e s , s p e c i a l i s t s , g e n e r a l p r a c t i ce a n d a l l i e d h e a l t h . O u r
c ove r a g e a c r o s s t h e A u s t r a l i a n h e a l t h ca r e i n d u s t r y i s e s t i m a te d a t 12 , 0 0 0 i n d i v i d u a l
h e a l t h ca r e p r ov i d e r s a n d i s e x p e c te d to g r o w a t r o u n d 1, 0 0 0 p r ov i d e r s p e r a n n u m i n t h e n e a r
f u t u r e, h o w eve r, o n l y o n e t h i r d o f t h e s e a r e p a y i n g s u b s c r i b e r s w h e n t h ey co m e o n b o a r d .
O n e o f t h e key d r i ve r s fo r r eve n u e g r o w t h i n t h e i m m e d i a te f u t u r e r e l i e s o n t h e s u cc e s s f u l
m o n et i s a t i o n o f t h e s e f r e e m i u m s u b s c r i b e r s .
B y p r ov i d i n g i m p r ove d b u s i n e s s p r o d u c t i v i t y a n d i m p r ove d p a t i e nt o u tc o m e s , t h e g o a l
i s to i n c r e a s e t h e a ve r a g e r eve n u e p e r c u s to m e r s . T h i s w i l l b e a c h i eve d t h r o u g h a d d - o n
a p p l i ca t i o n s a n d m o n et i s a t i o n o f i n te r a c t i o n s b et w e e n p r ov i d e r s a n d t h e i r c l i e n t s . I n t h e
f i r s t q u a r te r, o u r n e w M a s te r C a r e + S o f t w a r e a s a S e r v i c e p l a t fo r m w i l l b e l i ve w i t h t h e i n i t i a l
r e l e a s e. T h i s e x te n d s t h e C o m p a ny’s s a l e s r e a c h to t h e g l o b a l m a r ket p l a ce w i t h p r ov i d e r,
c o n n e c t i v i t y, c o n s u m e r a n d d i g i ta l e n g a g e m e n t p l a t fo r m s a c c e s s i b l e a ny w h e r e, a ny t i m e a n d
o n a ny d ev i c e.
A d e d i ca te d G e n e r a l M a n a g e r fo r b u s i n e s s d eve l o p m e nt a c r o s s t h e A S E A N Re g i o n h a s
c o m m e n c e d to d eve l o p n e w ove r s e a s o p p o r t u n i t i e s fo r t h i s s u i te o f “ m o b i l e - f i r s t ”, c l o u d
a p p l i ca t i o n s to “ C o n n e c t C l i n i c i a n s a n d C o n s u m e r s ”.
W i t h ove r 62 5 m i l l i o n p e o p l e i n t h e A S E A N Re g i o n a n d a r a p i d l y g r o w i n g m i d d l e c l a s s t h e
C o m p a ny b e l i eve s t h a t o u r p r ove n p r o d u c t s ca n h e l p i m p r ove t h e h e a l t h ca r e m a r ket s i n
t h e s e e c o n o m i e s .
T h e l a s t 12 m o nt h s h a s s e e n m a r ket d e m a n d fo r a d d r e s s i n g t h e s p i r a l l i n g co s t s o f h e a l t h ca r e
i n c r e a s e s u b s ta nt i a l l y. A f te r 5 ye a r s o f p r o f i ta b l e o p e r a t i o n s , t h e s t r e n g t h e n e d b a l a n ce s h e et
h a s b e e n t i m e l y, e n a b l i n g t h e C o m p a ny to i n c r e a s e o u r i nve s t m e nt ove r t h e l a s t 9 m o nt h s i n:
Key s a l e s , m a r ket i n g a n d d eve l o p m e nt p e r s o n n e l t h a t h a ve c o m e o n b o a r d;
N e w m o b i l e a p p l i c a t i o n s a n d m a r ket p l a c e p l a t fo r m s , a n d ,
E x p a n d i n g o u r r e a c h to t h e fa s t d eve l o p i n g h e a l t h ca r e m a r ket i n t h e A S E A N Re g i o n .
T h e s e i nve s t m e nt s w i l l m a x i m i s e t h e o p p o r t u n i t y to b u i l d a g e n u i n e g l o b a l b u s i n e s s o f s ca l e.
E n q u i r i e s ca n b e d i r e c te d to M a t h e w C h e r i a n , C h i e f E x e c u t i ve O f f i c e r, o n + 61 3 9675 0 6 8 8 o r
a l te r n a t i ve l y by e m a i l to m a t h e w. c h e r i a n @ g l o b a l - h e a l t h . c o m .
F o r a n d o n b e h a l f o f G l o b a l H e a l t h L i m i te d
M a t h e w C h e r i a n
C h i e f E xe c u t i ve O f f i ce r a n d M a n a g i n g D i r e c t o r
8
C ONN E CTI N G CLINICIANS AND C ONSU MER S
HEALTHCARE
PROFESSIONALS
CONSUMER
PATIENT ENGAGEMENT PL ATFORM
e-switch
INTEGRATION SOLUTION
SECURE MESSAGE EXCHANGE
MASTERCARE +
Clients
Messaging
Patient Dashboard
Edit
First Name
Frank
Gender
Male
Primary Phone
+61 2 400 000 000
Last Name
Billy
Date of Birth
0 1
1 9 5 6
More
Dashboard
Search measurement
First Last Name
37 c
Today
7
Hours
Today
8
Hours
Yesterday
BODY TEMP
SLEEP
New Referrals
Processed Referrals
Scheduled Referrals
7
within
limit
2
due
soon
1
1
late
4
within
limit
3
due
soon
2
2
late
6
3
within
limit
3
due
soon
2
3
late
Workload
Sort
Group
Filter
Assigned to Global Heath Limited
MasterCare Plus brings an innovative and
customisable solution for the Health Industry.
Sheduled
Health Record
Measurements
Allergies
Medications
Medical History
Attachments
Notifications
Reminders
Settings
Learn More
Feedback
7
6
5
4
3
2
1
MY MEASURES
Sleep
Blood Pressure
Dashboard
Temperature
Search measurement
Heart Rate
Dashboard
80
60
50
40
30
20
10
MON
TUES WED THURS FRI SAT SUN
MY MEASURES
Sleep
BODY TEMP
37 c
Today
HEART RATE
66 BPM
Yesterday
Blood Pressure
LIFECARD
120
Systolic mmHg
Temperature
BLOOD
PRESSURE
SLEEP
7 Hrs
Yesterday
60
Diastolic mmHg
MON
TUES
WED
THURS
FRI
SAT
SUN
First Last Name
Blood Glucose
37 c
Today
7
Hours
Today
8
Hours
Yesterday
BODY TEMP
SLEEP
66 bpm
Today
68 bpm
Yesterday
HEART RATE
BLOOD PRESSURE
120
Health Record
Systolic mmHg
Measurements
60
Allergies
Diastolic mmHg
Medications
Medical History
Attachments
Notifications
Reminders
Settings
Learn More
Feedback
7
6
5
4
3
2
1
MON
TUES
WED
THURS FRI SAT SUN
66 bpm
Today
68 bpm
Yesterday
120
Systolic mmHg
60
Diastolic mmHg
HEART RATE
BLOOD PRESSURE
Heart Rate
Blood Glucose
Load More
7
6
5
4
3
2
1
MON
TUES WED THURS FRI SAT SUN
PMS | CLINICAL SOFTWARE
EMR | PAS | CONNECT
WEB BASED PLATFORM
PHR| PATIENT PORTAL
ANALYTICS
9
2. DIRE CTORS’ R EPORT
Yo u r D i r e c to r s p r e s e nt t h e i r r e p o r t o n G l o b a l H e a l t h L i m i te d a n d co nt r o l l e d e nt i t i e s (‘G r o u p’)
fo r t h e f i n a n c i a l ye a r e n d e d 3 0 J u n e 2 017.
2.1. DIRECTORS
T h e n a m e s o f t h e D i r e c to r s i n o f f i c e a t a ny t i m e d u r i n g , o r s i n c e t h e e n d o f, t h e ye a r a r e:
Names
Steven L. Pynt
Mathew Cherian
Grant Smith
Robert Knowles
Pattie Beerens
Position
Non-executive Chairman
Executive director
Non-executive director
Non-executive director
Non-executive director
(Appointed 1 December 2016)
D i r e c to r s h a ve b e e n i n o f f i c e s i n c e t h e s ta r t o f t h e f i n a n c i a l ye a r to t h e d a te o f t h i s r e p o r t
u n l e s s ot h e r w i s e s ta te d .
I N F O R M AT I O N O N D I R E C TO R S
T h e s k i l l s , e x p e r i e n c e a n d e x p e r t i s e o f e a c h p e r s o n w h o i s a D i r e c to r o f t h e C o m p a ny a t t h e
e n d o f t h e f i n a n c i a l ye a r i s p r ov i d e d b e l o w.
1. S T E V E N L . PYN T
Q u a l i f i ca t i o n s
L L B , B B u s , M B A , MTa x
I n d e p e n d e n t N o n - E xe c u t i ve C h a i r m a n
M r P y nt h a s b e e n a n i n d e p e n d e nt n o n - e x e c u t i ve d i r e c to r s i n c e 2 0 0 0 a n d C h a i r m a n s i n ce
2 0 0 5 .
M r P y nt i s L e g a l D i r e c to r o f M u z z B u z z F r a n c h i s i n g P t y Ltd , a d r i ve t h r o u g h c o f fe e s to r e
f r a n c h i s o r.
M r P y nt i s a l s o a D i r e c to r o f t h e Pe r t h l e g a l f i r m , T h o m p s o n P y nt, a n d h i s m a i n a r e a o f p r a c t i c e
i s i n c o m m e r c i a l l a w i n c l u d i n g c o r p o r a t i o n s’ l a w, f r a n c h i s i n g a n d co nt r a c t s . H e i s a m e m b e r
o f t h e A u s t r a l i a n I n s t i t u te o f C o m p a ny D i r e c to r s a n d w a s fo r m e r l y a m e m b e r o f t h e Ra c i n g
Pe n a l t i e s A p p e a l s Tr i b u n a l a n d C h a i r m a n o f t h e C o m m e r c i a l Tr i b u n a l o f WA .
O t h e r L i s t e d C o m p a n y C u r r e n t D i r e c t o r s h i p s
E p h r a i m Re s o u r c e s L i m i te d
G o n d w a n a Re s o u r ce s L i m i te d
F o r m e r D i r e c t o r s h i p s i n t h e l a s t 3 ye a r s p r i o r t o t h e c u r r e n t ye a r
R i c h f i e l d I nte r n a t i o n a l L i m i te d
S p e c i a l R e s p o n s i b i l i t i e s
C h a i r m a n o f t h e B o a r d
M e m b e r o f A u d i t C o m m i t te e
10
2 . M AT H E W C H E R I A N
Q u a l i f i ca t i o n s
B B u s ( I S/ I T ), M AC S , M A I C D
C h i e f E xe c u t i ve O f f i ce r
M r C h e r i a n h a s b e e n i n t h e i n fo r m a t i o n te c h n o l o g y i n d u s t r y s i n ce 19 81. I n 19 8 5 h e e s ta b l i s h e d
Wo r k i n g Sy s te m s P t y Ltd i n Pe r t h , We s te r n A u s t r a l i a .
M r C h e r i a n w a s a p p o i nte d C E O o f Wo r k i n g Sy s te m s S o l u t i o n s L i m i te d i n J a n u a r y 2 0 0 2 , to r e -
fo c u s t h e G r o u p a s a s o f t w a r e p r o d u c t d eve l o p e r fo r t h e H e a l t h ca r e s e c to r. T h e i n i t i a l p h a s e
c u l m i n a te d w i t h t h e r e - b r a n d i n g o f t h e C o m p a ny a s G l o b a l H e a l t h L i m i te d i n D e c e m b e r 2 0 07.
M r C h e r i a n p l a y s a n a c t i ve r o l e i n p r o d u c t s t r a te g y a n d t h e d eve l o p m e nt o f ove r s e a s m a r ket s
fo r t h e C o m p a ny.
O t h e r C u r r e n t D i r e c t o r s h i p s
N o n e
F o r m e r D i r e c t o r s h i p s i n t h e l a s t 3 ye a r s p r i o r t o t h e c u r r e n t ye a r
N o n e
S p e c i a l R e s p o n s i b i l i t i e s
M a n a g i n g D i r e c to r
3 . G R A N T S M I T H
Q u a l i f i ca t i o n s
B C o m m , A A I M , A S I A
I n d e p e n d e n t N o n - E xe c u t i ve D i r e c t o r
M r S m i t h h a s w o r ke d i n i n s u r a n ce, s u p e r a n n u a t i o n , i nve s t m e nt a n d f u n d s m a n a g e m e nt fo r
ove r 4 0 ye a r s . H e s ta r te d w i t h N a t i o n a l M u t u a l (n o w A M P) i n t h e i nve s t m e nt s d i v i s i o n a n d w a s
r e s p o n s i b l e fo r t h e e s ta b l i s h m e nt o f t h e f u n d s m a n a g e m e nt b u s i n e s s fo r N a t i o n a l M u t u a l .
I n 19 8 4 h e e s ta b l i s h e d a n i n d e p e n d e nt f u n d s m a n a g e m e n t g r o u p a n d f l o a te d H o s p i ta l s o f
A u s t r a l i a - t h e f i r s t h e a l t h c a r e i nve s t m e n t f u n d i n A u s t r a l i a . H o s p i ta l s o f A u s t r a l i a o w n e d a n d
o p e r a te d a n u m b e r o f h o s p i ta l s t h r o u g h o u t A u s t r a l i a .
M r S m i t h w a s i nt i m a te l y i nvo l ve d i n t h e b u i l d i n g o f a n u m b e r o f h o s p i ta l s i n c l u d i n g St r a t h f i e l d
p r i va te, S o u t h e r n H i g h l a n d s P r i va te H o s p i ta l , Po r t M a cq u a r i e H o s p i ta l a n d t h e r e f u r b i s h m e nt
o f a n u m b e r o f ot h e r h e a l t h c a r e fa c i l i t i e s . H o s p i ta l s o f A u s t r a l i a w a s u l t i m a te l y a cq u i r e d by
M a y n e N i c k l e s s L i m i te d .
I n t h e p a s t 15 ye a r s M r S m i t h d eve l o p e d a n d b u i l t t h e M e d i ca C e nt r e a n d o p e n e d t h e f i r s t
d i g i ta l (p a p e r l e s s) p r i va te s u r g i ca l h o s p i ta l i n A u s t r a l i a . H e i s c u r r e nt l y i nvo l ve d i n d eve l o p i n g
n e w h o s p i ta l s i n M e l b o u r n e. M r S m i t h i s a l s o i nvo l ve d i n u t i l i s i n g d i g i ta l te c h n o l o g y to
g e n e r a te i n c r e a s e d p r o d u c t i v i t y a n d e f f i c i e n c i e s fo r t h e h e a l t h ca r e s e c to r.
O t h e r L i s t e d C o m p a n y C u r r e n t D i r e c t o r s h i p s
N o n e
11
F o r m e r D i r e c t o r s h i p s i n t h e l a s t 3 ye a r s p r i o r t o t h e c u r r e n t ye a r
N o n e
S p e c i a l R e s p o n s i b i l i t i e s
M e m b e r o f A u d i t C o m m i t te e
4 . R O B E R T K N OW L E S
Q u a l i f i ca t i o n s
M A I C D AO
I n d e p e n d e n t N o n - E xe c u t i ve D i r e c t o r
M r K n o w l e s i s a fa r m e r a n d c o m p a ny d i r e c to r. H e i s a d i r e c to r o f t h e S i l ve r C h a i n G r o u p o f
C o m p a n i e s , I P G P t y Ltd , D r i n k w i s e A u s t r a l i a Ltd a n d St J o h n o f G o d H e a l t h ca r e Ltd .
H e i s a l s o a C o m m i s s i o n e r w i t h t h e N a t i o n a l M e nta l H e a l t h C o m m i s s i o n a n d C h a i r o f t h e
Roya l C h i l d r e n’s H o s p i ta l . M r K n o w l e s w a s V i c to r i a n M i n i s te r fo r H e a l t h f r o m 19 96 u nt i l 19 9 9
a n d a m e m b e r o f t h e V i c to r i a n L e g i s l a t i ve C o u n c i l f r o m 1976 -19 9 9. H e h a s a l s o s e r ve d a s
C h a i r m a n o f F o o d Sta n d a r d s A u s t r a l i a a n d N e w Ze a l a n d a n d a s a n Ag e d C a r e C o m p l a i n t s
C o m m i s s i o n e r.
O t h e r L i s t e d C o m p a n y C u r r e n t D i r e c t o r s h i p s
N o n e
F o r m e r D i r e c t o r s h i p s i n t h e l a s t 3 ye a r s p r i o r t o t h e c u r r e n t ye a r
N o n e
S p e c i a l R e s p o n s i b i l i t i e s
N o n e
5 . PAT T I E B E E R E N S
Q u a l i f i ca t i o n s
L L B c o m , GA I C D
I n d e p e n d e n t N o n - E xe c u t i ve D i r e c t o r
M s B e e r e n s h a s w o r ke d i n t h e h e a l t h c a r e s e c to r fo r ove r 2 0 ye a r s a n d a s t h e C E O o f t w o
n a t i o n a l h e a l t h s e c to r i n d u s t r y a s s o c i a t i o n s fo r ove r 12 ye a r s . H e r e a r l y ca r e e r w a s a s a
c o m m e rc i a l s o l i c i to r a n d l a te r o n a s C o m p a ny S e c r eta r y a n d G e n e r a l M a n a g e r L e g a l fo r
M c E w a n s L i m i te d i n 19 91.
M s B e e r e n s e s ta b l i s h e d a n d l a u n c h e d A u s t r a l i a’s f i r s t h e a l t h o n l y p h a r m a c y f r a n c h i s e i n
19 9 8 fo r F a u l d i n g L i m i te d a n d , a s G e n e r a l M a n a g e r fo r M a y n e G r o u p L i m i te d fo l l o w i n g t h e
a cq u i s i t i o n , m a n a g e d p h a r m a c y s y s te m s o p e r a t i o n s a n d g ove r n m e nt r e l a t i o n s . I n 2 0 0 5 , a s
E x e c u t i ve D i r e c to r o f t h e N a t i o n a l P h a r m a c e u t i ca l S e r v i c e s A s s o c i a t i o n , M s B e e r e n s l e d t h e
e s ta b l i s h m e nt o f t h e C o m m u n i t y S e r v i c e O b l i g a t i o n (a F e d e r a l G ove r n m e nt i n i t i a t i ve) w h i c h
r e co g n i s e d t h e i m p o r ta n ce o f t i m e l y p a t i e nt a cc e s s , to m e d i c i n e s a c r o s s A u s t r a l i a . T h e C S O
c o m m e n c e d i n 2 0 0 5 a n d c o n t i n u e s to d a y to s u p p o r t a cc e s s to m e d i c i n e s i n r u r a l A u s t r a l i a .
12
M s B e e r e n s h a s a n o n g o i n g r o l e a s C E O o f t h e A u s t r a l i a n D i a g n o s t i c I m a g i n g A s s o c i a t i o n a n d
n e g ot i a te d t h e r e c e nt l y a n n o u n c e d a g r e e m e nt w i t h t h e F e d e r a l G ove r n m e nt o n t h e p l a n fo r
a cce s s to a f fo r d a b l e d i a g n o s t i c i m a g i n g fo r a l l A u s t r a l i a n s .
O t h e r L i s t e d C o m p a n y C u r r e n t D i r e c t o r s h i p s
N o n e
F o r m e r D i r e c t o r s h i p s i n t h e l a s t 3 ye a r s p r i o r t o t h e c u r r e n t ye a r
N o n e
S p e c i a l R e s p o n s i b i l i t i e s
N o n e
2.2. COMPAN Y SECRETARY
Pete r C u r i g l i a n o h e l d t h e p o s i t i o n o f C o m p a ny S e c r eta r y f r o m O c to b e r 2 0 0 5 u nt i l
h i s r e s i g n a t i o n a n d d e p a r t u r e f r o m G l o b a l H e a l t h i n D e ce m b e r 2 016 . M r Steve n P y nt
( I n d e p e n d e nt D i r e c to r a n d C h a i r m a n) w a s a p p o i nte d a s co m p a ny s e c r eta r y o n a n i nte r i m
b a s i s e f fe c t i ve f r o m 11 J a n u a r y 2 017 fo l l o w i n g Pete r ’s d e p a r t u r e.
M r G l e n n F o w l e s [ B B u s (Ac c o u nt i n g)] w a s a p p o i nte d a s c o m p a ny s e c r eta r y e f fe c t i ve o n
21 F e b r u a r y 2 017. M r F o w l e s w a s p r ev i o u s l y C o m p a ny S e c r eta r y o f A SX l i s te d c o m p a n i e s ,
C o nta n g o M i c r o C a p L i m i te d a n d C o n ta n g o I n c o m e G e n e r a to r L i m i te d . T h e c o m p a ny
s e c r eta r y i s r e s p o n s i b l e fo r t h e C o m p a ny’s co nt i n u o u s d i s c l o s u r e r e q u i r e m e nt s , p r e p a r a t i o n o f
t h e A n n u a l Re p o r t, A n n u a l G e n e r a l M e et i n g s a n d a n n o u n c e m e nt s to t h e s h a r e m a r ket.
2.3. MEETI NG OF DIRECTO RS AND CO M M I TT EE S
Th e n u m b e r o f m e et i n g s o f t h e C o m p a ny’s B o a r d o f D i r e c to r s a n d o f e a c h A u d i t c o m m i t te e
h e l d , w h e r e by m e m b e r s c o u l d a t te n d i n t h e i r ca p a c i t y d u r i n g t h e ye a r e n d e d 3 0 J u n e 2 017,
a n d t h e n u m b e r o f m e et i n g s a t te n d e d by e a c h D i r e c to r w e r e:
Direc tors Mee t in gs
Au dit Co mm itt e e Mee t ing s
Number of
Meet ings
Attended
Nu m be r of
Me et in gs e ligible
t o at t en d
Nu mb er of
Me et in gs
At te n de d
Mr M Cherian
Mr S L Pynt
Mr G Smith
Mr R Knowles
Ms P Beerens
6
6
6
6
2
6
6
6
6
2
-
1
1
-
-
Nu m be r of
Me et ing s
e lig ible to
at t en d
-
1
1
-
-
13
2.4. DIRECTORS’ I NTEREST S
Re l eva nt i nte r e s t s o f t h e D i r e c to r s a n d t h e i r c l o s e l y r e l a te d p a r t i e s i n t h e s h a r e s o f t h e
C o m p a ny a t t h e d a te o f t h i s r e p o r t a r e:
Mr M Cherian
Mr S L Pynt
Mr G Smith
Mr R Knowles
Ms P Beerens
O rd in ar y Sh ar e s
18,619,370
257,408
300,000
20,000
22,000
Total
19, 218, 778
1 Options through a related party, Kye Cherian
2 400,000 options were approved for issue to directors at the 2016 AGM
Op tio n s
150,0001
200,0002
100,0002
100,0002
-
550, 000
2.5. PRINCIPAL ACTI VI T IES
D u r i n g t h e ye a r t h e p r i n c i p a l a c t i v i t i e s o f t h e G r o u p c o n s i s te d o f :
1.
t h e d eve l o p m e nt, s a l e s a n d s u p p o r t o f a p p l i ca t i o n s o f t w a r e fo r t h e h e a l t h c a r e s e c to r ;
a n d
2 .
t h e d eve l o p m e nt o f s y s te m s i n te g r a t i o n s o f t w a r e t h a t e n a b l e s d a ta to b e s e c u r e l y
e x c h a n g e d b et w e e n m u l t i p l e, d i s p a r a te a p p l i ca t i o n s w i t h i n a n e nte r p r i s e a n d a c r o s s t h e
h e a l t h ca r e va l u e c h a i n .
2.6. RESUL TS AND DI VI D EN DS
2.6.1. O PE RA TI N G RESU LTS
T h e p r o f i t o f t h e G r o u p fo r t h e f i n a n c i a l ye a r a f te r p r ov i d i n g fo r i n co m e ta x a n d e l i m i n a t i n g
n o n - c o nt r o l l i n g e q u i t y i nte r e s t s a m o u n te d to $1, 7 2 8 , 0 4 5 (2 016 r e s ta te d: $107,94 5).
2.6.2. DI VI D EN DS
D u r i n g t h e f i n a n c i a l ye a r e n d e d 3 0 J u n e 2 017, t h e C o m p a ny d e c l a r e d a n d p a i d t w o s p e c i a l
d i v i d e n d s o f 1 c e nt p e r s h a r e e a c h . D eta i l s o f d i v i d e n d s p a i d a r e d i s c l o s e d i n n ote 2 9 o f t h e
f i n a n c i a l s ta te m e nt s .
2.7. REVI EW OF OPERA TI ONS
I n fo r m a t i o n o n t h e o p e r a t i o n s a n d f i n a n c i a l p o s i t i o n o f t h e G r o u p a n d i t s b u s i n e s s s t r a te g i e s
a n d p r o s p e c t s i s s et o u t i n t h e ‘C h i e f E x e c u t i ve O f f i ce r ’s O p e r a t i o n s Re p o r t ’ s e c t i o n o f t h i s
A n n u a l Re p o r t.
2.8. SIGNI FICANT CHANGES I N TH E S T ATE O F AFFAI R S
T h e r e a r e n o s i g n i f i ca nt c h a n g e s i n t h e s ta te o f a f fa i r s o f t h e G r o u p d u r i n g t h e f i n a n c i a l ye a r
e n d e d 3 0 J u n e 2 017 a n d u p to t h e d a te o f t h i s r e p o r t.
2.9. SIGNIFI CANT EVENTS A FT ER R E PO R TI NG D AT E
T h e r e h a ve b e e n n o s i g n i f i c a nt eve nt s a f te r r e p o r t i n g d a te.
14
2.10. LIKE LY DEVELOPMENT S
T h e G r o u p w i l l c o nt i n u e to p u r s u e i t s p o l i c y o f i n c r e a s i n g t h e p r o f i ta b i l i t y a n d m a r ket s h a r e o f
i t s m a j o r b u s i n e s s s e c to r s d u r i n g t h e n e x t f i n a n c i a l ye a r.
2.11. SHA RE OPTION S
At t h e d a te o f t h i s r e p o r t, t h e u n l i s te d o r d i n a r y s h a r e s o f G l o b a l H e a l t h L i m i te d u n d e r o pt i o n
a r e:
Date of Issue
Date of E xpir y
Exe rc is e
Pr ice p er
o pt ion
Nu mb er Un de r
Op tio n *
19 December 2013
19 December 2017
26 May 2014
10 June 2016
26 May 2019
10 June 2020
19 December 2016
30 November 2019
19 December 2016
30 November 2021
$0.65
$0.75
$0.65
$0.75
$0.75
530,000
300,000
310,000
400,000
600,000
2, 140, 000
*Option holders do not have any rights to participate in any issues of shares or other interests of the company or any other entity. All options were issued by
Global Health Limited and entitled the holder to one ordinary share in Global Health Limited for each option exercised.
4 0 0 , 0 0 0 o pt i o n s w i t h a n e x e rc i s e p r i c e o f $ 0 . 75 e x p i r i n g o n 3 0 N ove m b e r 2 019 w e r e i s s u e d
D u r i n g t h e ye a r e n d e d 3 0 J u n e 2 017, t h e fo l l o w i n g eve nt s o cc u r r e d:
•
•
•
•
6 0 0 , 0 0 0 o pt i o n s w i t h a n e x e rc i s e p r i c e o f $ 0 . 75 e x p i r i n g o n 3 0 N ove m b e r 2 0 21 w e r e i s s u e d
3 0 0 , 0 0 0 o pt i o n s w i t h a n e x e rc i s e p r i c e o f $ 0 .15 e x p i r i n g o n 5 J u l y 2 018 w e r e e x e rc i s e d
8 0 , 0 0 0 o pt i o n s w i t h a n e x e r c i s e p r i ce o f $ 0 . 6 5 e x p i r i n g o n t h e10 J u n e 2 0 2 0 w e r e fo r fe i te d
F o r d eta i l s o f o pt i o n s i s s u e d to d i r e c to r s a n d e x e c u t i ve s a s r e m u n e r a t i o n , r e fe r to t h e
r e m u n e r a t i o n r e p o r t.
2.12. REM UNER ATI ON REP OR T ( AUD I TE D )
2.12. 1. PRI NC I P LE S USE D TO DETERM INE TH E NAT U RE AND AMOU NT O F
REM UNE RA TION
Re m u n e r a t i o n o f D i r e c to r s a n d key m a n a g e m e nt p e r s o n n e l o f t h e C o m p a ny i s e s ta b l i s h e d
by t h e B o a r d . Re m u n e r a t i o n i s d ete r m i n e d a s p a r t o f a n a n n u a l p e r fo r m a n c e r ev i e w, h a v i n g
r e g a r d to m a r ket fa c to r s a n d a p e r fo r m a n ce eva l u a t i o n p r o c e s s . T h e r e m u n e r a t i o n f r a m e w o r k
i s d e s i g n e d to a l i g n e x e c u t i ve r e w a r d w i t h a c h i eve m e nt o f s t r a te g i c o b j e c t i ve s a n d t h e
c r e a t i o n o f va l u e fo r s h a r e h o l d e r s , a n d c o n fo r m s to m a r ket b e s t p r a c t i c e fo r d e l i ve r y o f
r e w a r d . F o r D i r e c to r s a n d e x e c u t i ve s , r e m u n e r a t i o n p a c ka g e s g e n e r a l l y c o m p r i s e s a l a r y
a n d s u p e r a n n u a t i o n . E x e c u t i ve s a r e a l s o p r ov i d e d w i t h l o n g e r- te r m i n c e nt i ve s t h r o u g h t h e
e m p l oye e s h a r e a n d s h a r e o pt i o n s c h e m e s , w h i c h a c t to a l i g n t h e e x e c u t i ve’s a c t i o n s w i t h
t h e i nte r e s t s o f t h e s h a r e h o l d e r s . N o n - E x e c u t i ve D i r e c to r s a r e n ot e nt i t l e d to p e r fo r m a n c e -
b a s e d b o n u s e s .
T h e B o a r d m e et s a n n u a l l y to r ev i e w i t s o w n p e r fo r m a n c e. T h e C h a i r m a n a l s o h o l d s i n d i v i d u a l
d i s c u s s i o n s w i t h e a c h D i r e c to r to d i s c u s s t h e i r p e r fo r m a n c e. T h e N o n - e x e c u t i ve D i r e c to r s
a r e r e s p o n s i b l e fo r eva l u a t i n g t h e p e r fo r m a n c e o f t h e C h i e f E x e c u t i ve O f f i c e r, w h o i n t u r n
eva l u a te s t h e p e r fo r m a n c e o f a l l ot h e r s e n i o r e x e c u t i ve s .
15
P ER F ORMANCE BASED RE MU NERATIO N
Pe r fo r m a n c e b a s e d r e m u n e r a t i o n i s eva l u a te d b a s e d o n s p e c i f i c c r i te r i a , i n c l u d i n g t h e
G r o u p’s b u s i n e s s p e r fo r m a n c e a n d a c h i eve m e nt o f t u r n ove r a n d N PAT ( N et P r o f i t A f te r Ta x )
ta r g et s , w h et h e r l o n g - te r m s t r a te g i c o b j e c t i ve s a r e b e i n g a c h i eve d a n d t h e a c h i eve m e n t o f
i n d i v i d u a l p e r fo r m a n c e o b j e c t i ve s .
R ELATI ONSHIP BETWEEN REMUNE RATION AND C OMPANY PE RFO RMA NC E
T h e r e m u n e r a t i o n p r i n c i p l e s a r e ta i l o r e d to i n c r e a s e g o a l c o n g r u e n c e b et w e e n s h a r e h o l d e r s ,
d i r e c to r s a n d e x e c u t i ve s . Tw o m et h o d s h a ve b e e n a p p l i e d to a c h i eve t h i s a i m , t h e f i r s t b e i n g
a p e r fo r m a n c e b o n u s b a s e d o n K P I s , a n d t h e s e co n d b e i n g t h e i s s u e o f o pt i o n s to d i r e c to r s
a n d e x e c u t i ve s to e n c o u r a g e t h e a l i g n m e nt o f p e r s o n a l a n d s h a r e h o l d e r i nte r e s t s . T h e r e i s n o
fo r m a l p o l i c y l i n k i n g r e m u n e r a t i o n a n d t h e co m p a ny’s p e r fo r m a n c e.
NO N-EXECUTI VE DIRECTORS’ R EMUNE RATION
F e e s a n d p a y m e nt s to N o n - E x e c u t i ve D i r e c to r s r e f l e c t t h e d e m a n d s w h i c h a r e m a d e o n ,
a n d t h e r e s p o n s i b i l i t i e s o f, t h e D i r e c to r s . N o n - e x e c u t i ve D i r e c to r s’ fe e s a n d p a y m e nt s a r e
r ev i e w e d a n n u a l l y by t h e B o a r d to e n s u r e a l l p a y m e nt s a r e a p p r o p r i a te a n d i n l i n e w i t h
t h e m a r ket. T h e m a x i m u m a m o u nt o f r e m u n e r a t i o n a s d ete r m i n e d by s h a r e h o l d e r s a t t h e
C o m p a ny’s A n n u a l G e n e r a l M e et i n g o n 2 4 N ove m b e r 2 0 0 9 i s $ 3 5 0 , 0 0 0 p e r a n n u m w h i c h m a y
b e d i v i d e d a m o n g N o n - E x e c u t i ve D i r e c to r s i n t h e m a n n e r d ete r m i n e d by t h e B o a r d f r o m t i m e
to t i m e. T h e C h a i r m a n’s fe e s a r e d ete r m i n e d i n d e p e n d e nt l y to t h e fe e s o f N o n - E x e c u t i ve
D i r e c to r s b a s e d o n co m p a r a t i ve r o l e s i n s i m i l a r s i z e d c o m p a n i e s a n d s e c to r s i n t h e e x te r n a l
m a r ket. T h e C h a i r m a n i s n ot p r e s e nt a t a ny d i s c u s s i o n s r e l a t i n g to d ete r m i n a t i o n o f h i s o w n
r e m u n e r a t i o n . T h e r e w e r e n o r e m u n e r a t i o n c o n s u l ta nt s u s e d d u r i n g t h e ye a r.
EXECUTIVE DI RECTORS’ REMUNE RATION
T h e E x e c u t i ve D i r e c to r s’ s a l a r y a n d c o n d i t i o n s a r e d ete r m i n e d by t h e B o a r d o f D i r e c to r s a n d
r ev i e w e d a t t h e e x p i r y o f e a c h c o nt r a c t p e r i o d .
EXECUTIVE REMUNERATI ON
E x e c u t i ve s a r e o f fe r e d a c o m p et i t i ve b a s e p a y t h a t co m p r i s e s t h e f i x e d c o m p o n e nt o f p a y
a n d r e w a r d s . B a s e p a y fo r s e n i o r e x e c u t i ve s i s r ev i e w e d a n n u a l l y to e n s u r e t h e e x e c u t i ve’s
p a y i s c o m p et i t i ve w i t h t h e m a r ket. T h e r e a r e n o g u a r a nte e d b a s e p a y i n c r e a s e s i n c l u d e d i n
a ny s e n i o r e x e c u t i ve’s c o nt r a c t.
2.12.2. DE TA I LS OF R E MUNE RAT ION
D eta i l s o f t h e r e m u n e r a t i o n o f t h e D i r e c to r s a n d t h e key m a n a g e m e nt p e r s o n n e l o f G l o b a l
H e a l t h L i m i te d a r e s et o u t i n t h e fo l l o w i n g ta b l e:
16
2017
Sh ort-Term
benefits
Performance
related
Post -
Employment
Benefits
Ot her
long term
benefits
Share-
ba sed
Pa yment
Bonus
S u pe rann uation
Shares
$
Tot al
$
Propo rt i on of
Remu n er at i on
th a t i s
perfo rm a nc e
b as ed
Accrued
Long
Service
Leave
$
-
4,189
-
-
-
-
$
3,922
33,381
3,043
3,043
1,771
20,820
9,432
54,638
-
4,716
4,716
-
-
306,604
39,796
39,796
20,416
160,864
%
-
-
-
-
-
-
-
-
35,370
2,435
16,002
174,387
101, 350
6, 624
34, 866
796, 501
1 appointed 1 December 2016
2 resigned 28 December 2016
T h e r e h a ve b e e n n o c h a n g e s i n D i r e c to r s a n d E x e c u t i ve s s u b s e q u e nt to ye a r e n d .
2 0 16
Sh ort-Term
benefits
Performance
related
Post -
Employment
Benefits
Ot her
long term
benefits
Share-
ba sed
Pa yment
Bonus
S u pe rann uation
Accrued
Long
Service
Leave
$
-
4,199
-
-
$
Directors:
3,922
24,799
3,043
3,043
16,292
2,758
13,064
-
64 ,16 3
6, 957
Shares
$
-
-
-
-
-
-
-
Tot al
$
45,206
319,337
35,080
35,080
175,378
150,577
760, 658
Propo r ti o n of
Remun er a ti on
tha t i s
perfo r ma n ce
ba se d
%
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
Nam e
Sa lary and
or Fees
$
Di re c tors :
Mr S L Pynt
41,284
Mr M Cherian
269,034
Mr G Smith
32,037
Mr R Knowles
32,037
MS P
Beerens1
18,645
Key Management Personnel:
Mr P
Curigliano 2
Mr K
Jayesuria
140,044
120,580
TOTAL
653,661
Nam e
Sa lary and
or Fees
$
Mr S L Pynt
41,284
Mr M Cherian
290,339
Mr G Smith
Mr R Knowles
32,037
32,037
Key Management Personnel:
Mr P
Curigliano
Mr K
Jayesuria
156,328
137,513
TOTAL
689,538
17
2.12.3. SERV I C E AGREEM EN TS
Re m u n e r a t i o n a n d ot h e r te r m s o f e m p l oy m e nt fo r key m a n a g e m e n t p e r s o n n e l a r e fo r m a l i s e d
i n s e r v i c e a g r e e m e nt s . I t i s C o m p a ny p o l i c y t h a t e m p l oy m e nt co n t r a c t s co nta i n p r ov i s i o n s
fo r te r m i n a t i o n w i t h n ot i c e o r p a y m e nt i n l i e u t h e r e o f a n d fo r te r m i n a t i o n by t h e C o m p a ny
w i t h o u t n ot i c e fo r s e r i o u s m i s co n d u c t a n d b r e a c h o f c o nt r a c t. T h e M a n a g i n g D i r e c to r
i s e nt i t l e d to r e c e i ve a te r m i n a t i o n p a y m e n t i n a d d i t i o n to n ot i c e w h e r e t h e C o m p a ny
te r m i n a te s e m p l oy m e nt o n g r o u n d s o f i l l n e s s o r i n ca p a c i t y.
T h e n ot i c e p e r i o d r e q u i r e d to b e g i ve n by t h e e m p l oye e o r t h e C o m p a ny a l o n g w i t h a ny
te r m i n a t i o n p a y m e nt s a r e s et o u t i n t h e ta b l e b e l o w.
Notic e perio d by
Co mpan y
No tic e pe rio d by
Em p lo yee
T er m in ati on
Pa ym e nts
Managing Direc to r
Mr M Cherian
6 months
6 months
6 months*
Technology Delivery Manager
Mr K Jayesuria
1 month
1 month
None
* if termination is by reason of the employee’s illness or incapacity.
2.12.4. INT ER E ST S IN SH ARES AND OP T I ONS
SHARES
T h e i nte r e s t o f D i r e c to r s a n d t h e i r r e l a te d e nt i t i e s i n s h a r e s o f t h e C o m p a ny a s a t 3 0 J u n e 2 017
a r e:
Total
number of
shares
Nu mb er of sh ar es
s old
Nu m be r of s h ar es
ac q uir ed
2017
20 16
2017
2016
Mr M Cherian
18,619,370
18,619,370
Mr S L Pynt
Mr G Smith
Mr R Knowles
Ms P Beerens
257,408
300,000
20,000
22,000
232,408
300,000
20,000
-
19,218,778
19,171, 778
-
-
-
-
-
-
-
-
-
-
-
-
2017
-
25,000
-
-
22,000
2016
-
-
20,000
-
-
47, 000
20, 000
D i r e c to r s r e ce i ve d d i v i d e n d s f r o m t h e i r s h a r e h o l d i n g s i n t h e n o r m a l c o u r s e o f d i v i d e n d
p a y m e nt s by t h e C o m p a ny – r e fe r to n ote 2 9 fo r d eta i l s o f d i v i d e n d s p a i d .
18
O P TI ONS
T h e i nte r e s t s o f D i r e c to r s a n d t h e i r r e l a te d e n t i t i e s i n o pt i o n s o f t h e C o m p a ny a s a t 3 0 J u n e
2 017 a r e:
Total number of
options
Number of option
granted during the
year
Number
of options
exercised
during
the year
Number
of Options
vested/
exercisable
at report
date
Number
of
Options
unvested
at report
date
Option
type
(Listed /
Unlisted)
Exercise
price per
Option
($)
2017
2016
2017
2016
2017
2017
2017
150,000
150,000
-
Mr M
Cherian1
Mr S L Pynt
Mr G Smith
200,000
100,000
Mr R Knowles
100,000
Ms P Beerens
-
-
-
-
-
200,000
100,000
100,000
-
550,000 150,000 400,000
1 Options through a related party, Kye Cherian
-
-
-
-
-
-
-
-
-
-
-
-
150,000
-
Unlisted
$0.65
66,667
33,337
33,337
-
133,333
Unlisted
66,663
66,663
-
Unlisted
Unlisted
Unlisted
283, 341
266, 659
$0.75
$0.75
$0.75
$0.75
-
2.12.5. LOA N S TO KE Y MA NAGE MENT PE R SO NNE L
T h e r e w e r e n o l o a n s a d va n c e d to key m a n a g e m e n t p e r s o n n e l d u r i n g t h e ye a r.
2.12.6. OTH ER TRA N SA CTIONS WIT H K EY MANAGE ME NT PE RSO NNE L
T h e r e w e r e n o ot h e r t r a n s a c t i o n s c o n d u c te d b et w e e n t h e G r o u p a n d K M P o r t h e i r r e l a te d
p a r t i e s , a p a r t f r o m t h o s e d i s c l o s e d a b ove r e l a t i n g to e q u i t y, c o m p e n s a t i o n a n d l o a n s , t h a t
w e r e co n d u c te d ot h e r t h a n i n a cc o r d a n c e w i t h n o r m a l e m p l oye e, c u s to m e r o r s u p p l i e r
r e l a t i o n s h i p s o n te r m s n o m o r e fa vo u r a b l e t h a n t h o s e r e a s o n a b l y e x p e c te d u n d e r a r m’s
l e n g t h d e a l i n g s w i t h u n r e l a te d p e r s o n s .
-- End of audited remuneration report –
19
2.13. INDEMNIF ICATI ON O F D IR ECTO R S AND E X E CU TI V E S OR
AUDITORS
D u r i n g o r s i n ce t h e e n d o f t h e f i n a n c i a l ye a r, t h e G r o u p h a s n ot, i n a ny r e s p e c t fo r a ny p e r s o n
w h o i s o r h a s b e e n a n o f f i c e r o r d i r e c to r o f t h e p a r e nt e nt i t y o r a r e l a te d b o d y c o r p o r a te,
i n d e m n i f i e d o r m a d e a ny r e l eva nt a g r e e m e nt fo r i n d e m n i f y i n g a g a i n s t a l i a b i l i t y, i n c l u d i n g
c o s t s a n d e x p e n s e s i n s u cc e s s f u l l y d e fe n d i n g l e g a l p r o c e e d i n g s .
D u r i n g o r s i n ce t h e e n d o f t h e f i n a n c i a l ye a r t h e G r o u p h a s p a i d p r e m i u m s i n r e s p e c t o f a
c o nt r a c t i n s u r i n g t h e D i r e c to r s a n d o f f i c e r s o f a l l c o m p a n i e s i n t h e G r o u p a g a i n s t a l i a b i l i t y
i n c u r r e d i n t h e i r r o l e a s D i r e c to r s a n d o f f i c e r s o f a l l co m p a n i e s w i t h i n t h e G r o u p e x c e pt
w h e r e:
i .
i i .
T h e l i a b i l i t y a r i s e s o u t o f c o n d u c t i nvo l v i n g a w i l f u l b r e a c h o f d u t y ; o r
T h e r e h a s b e e n a co nt r a ve n t i o n o f S e c t i o n s 2 3 2(5) o r (6) o f t h e C o r p o r a t i o n s Ac t 2 0 01.
T h e tota l a m o u nt o f p r e m i u m s p a i d by t h e G r o u p fo r D i r e c to r s a n d O f f i ce r s L i a b i l i t y I n s u r a n c e
w a s $13 , 610 (2 016: $13 , 6 0 8 ).
2.14. PROCEEDINGS ON BEHAL F O F TH E CO M P ANY
O n 2 A u g u s t 2 016 t h e C o m p a ny, i t s s u b s i d i a r y Wo r k i n g Sy s te m s S o f t w a r e P t y Ltd a n d S A H e a l t h
r e a c h e d s et t l e m e nt r e g a r d i n g S A H e a l t h’s co nt i n u i n g u s e o f C H I R O N s o f t w a r e. D eta i l s o f t h e
s et t l e m e nt w e r e r e l e a s e d to A SX o n 4 A u g u s t 2 016 .
F u r t h e r t r e a t m e nt o f t h i s i te m i s d eta i l e d i n N ote 1(v) “ Re s ta te m e nt o f P r i o r Pe r i o d i te m” o f
t h e s e f i n a n c i a l s ta te m e nt s .
2.15. NON -AUDIT SE RVIC ES
T h e C o m p a ny’s a u d i to r, S h i n eW i n g A u s t r a l i a , h a s n ot p r ov i d e d a ny n o n - a u d i t o r a s s u r a n c e
s e r v i c e s to t h e C o m p a ny. D eta i l s o f a m o u nt s p a i d fo r t h e i r s ta t u to r y a u d i t d u t i e s a r e d eta i l e d
i n N ote 2 3 .
2.16. ENVI RONMENTAL I S SUES
A s t h e o p e r a t i o n s o f t h e G r o u p a r e l i m i te d to c o m p u te r s o f t w a r e d eve l o p m e nt a n d s u p p o r t
a n d p r o fe s s i o n a l c o n s u l t i n g s e r v i ce s , t h e G r o u p h a s m i n i m a l i nvo l ve m e nt i n a n d e x p o s u r e to
e nv i r o n m e nta l r i s k s a n d i s s u e s . T h e G r o u p i s n ot r e q u i r e d to c o m p l y w i t h a ny s p e c i f i c Ac t.
2.17. CORPORA TE GOVER NANC E
I n r e c o g n i s i n g t h e n e e d fo r t h e h i g h e s t s ta n d a r d s o f c o r p o r a te b e h a v i o u r a n d a cc o u n ta b i l i t y,
t h e D i r e c to r s o f t h e C o m p a ny s u p p o r t a n d h a ve a d h e r e d to t h e p r i n c i p l e s to t h e e x te nt
o u t l i n e d i n t h e C o r p o r a te G ove r n a n c e Sta te m e nt. T h e C o m p a ny’s C o r p o r a te G ove r n a n c e
Sta te m e nt i s c o nta i n e d i n a s e p a r a te s e c t i o n o f t h i s A n n u a l Re p o r t.
20
2.18. AUDITORS’ I NDEPEND ENCE D E CL AR AT IO N
A c o py o f t h e A u d i to r s’ I n d e p e n d e n c e D e c l a r a t i o n a s r e q u i r e d u n d e r s e c t i o n 3 07C o f t h e
C o r p o r a t i o n s Ac t 2 0 01 a c c o m p a n i e s a n d fo r m s p a r t o f t h i s r e p o r t.
S i g n e d i n a cco r d a n c e w i t h a r e s o l u t i o n o f t h e D i r e c to r s .
S t eve n L e i g h P y n t
N o n - E xe c u t i ve C h a i r m a n
M e l b o u r n e, 2 7 S e p t e m b e r 2 017
21
3.
Auditor’s Independence Declaration under Section 307C of the Corporations Act
2001 to the directors of Global Health Ltd and Controlled Entities
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2017 there have been:
(i)
No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation
to the audit, and
(ii)
No contraventions of any applicable code of professional conduct in relation to the audit.
ShineWing Australia
Chartered Accountants
Nick Michael
Partner
Melbourne, 28 September 2017
ShineWing Australia ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards Legislation. ShineWing Australia is an independent member of ShineWing
International Limited – members in principal cities throughout the world.
4.
CORP ORATE GOVERNA NCE S T AT EMEN T
G l o b a l H e a l t h L i m i te d (t h e C o m p a ny) a n d t h e B o a r d a r e c o m m i t te d to a c h i ev i n g a n d
d e m o n s t r a t i n g t h e h i g h e s t s ta n d a r d s o f c o r p o r a te g ove r n a n c e. Acco r d i n g l y, u n l e s s s ta te d
ot h e r w i s e i n t h i s d o c u m e nt, t h e B o a r d’s co r p o r a te g ove r n a n ce a r r a n g e m e nt s c o m p l y w i t h
t h e r e c o m m e n d a t i o n s o f t h e A SX C o r p o r a te G ove r n a n c e C o u n c i l (2 014 – Ve r s i o n 3 ) a s w e l l a s
c u r r e nt s ta n d a r d s o f b e s t p r a c t i c e fo r t h e e nt i r e f i n a n c i a l ye a r e n d e d 3 0 J u n e 2 017.
T h e C o m p a ny a n d i t s c o nt r o l l e d e nt i t i e s to g et h e r a r e r e fe r r e d to a s t h e G r o u p i n t h i s
s ta te m e n t.
T h e B o a r d o f D i r e c to r s o f t h e C o m p a ny i s r e s p o n s i b l e fo r t h e co r p o r a te g ove r n a n ce o f t h e
G r o u p. T h e D i r e c to r s a r e r e s p o n s i b l e to t h e s h a r e h o l d e r s fo r t h e p e r fo r m a n c e o f t h e G r o u p
i n b ot h t h e s h o r t a n d t h e l o n g e r te r m a n d s e e k to b a l a n c e s o m et i m e s c o m p et i n g o b j e c t i ve s
i n t h e b e s t i nte r e s t s o f t h e G r o u p a s a w h o l e. T h e B o a r d i s a l s o r e s p o n s i b l e fo r s et t i n g t h e
s t r a te g i c d i r e c t i o n a n d e s ta b l i s h i n g t h e p o l i c i e s o f t h e G r o u p. T h e fo c u s i s to e n h a n ce t h e
i nte r e s t s o f s h a r e h o l d e r s a n d ot h e r key s ta ke h o l d e r s a n d to e n s u r e t h e G r o u p i s p r o p e r l y
m a n a g e d .
D a y to d a y m a n a g e m e nt o f t h e G r o u p’s a f fa i r s a n d t h e i m p l e m e nta t i o n o f t h e c o r p o r a te
s t r a te g y a n d p o l i c y i n i t i a t i ve s a r e fo r m a l l y d e l e g a te d by t h e B o a r d to t h e C h i e f E x e c u t i ve
O f f i c e r a n d s e n i o r e x e c u t i ve s .
A d e s c r i pt i o n o f t h e C o m p a ny’s m a i n c o r p o r a te g ove r n a n c e p r a c t i c e s i s s et o u t b e l o w. A l l
t h e s e p r a c t i c e s , u n l e s s ot h e r w i s e s ta te d , w e r e i n p l a c e fo r t h e e nt i r e ye a r.
ETHICAL STANDARDS
T h e B o a r d i s c o m m i t te d to i t s c o r e g ove r n a n ce va l u e s o f i nte g r i t y, r e s p e c t, t r u s t a n d o p e n n e s s
a m o n g a n d b et w e e n b o a r d m e m b e r s , m a n a g e m e nt, e m p l oye e s , c u s to m e r s a n d s u p p l i e r s .
T h e s e va l u e s a r e e n s h r i n e d i n t h e B o a r d’s C o d e o f C o n d u c t p o l i c y.
T h e C o d e o f C o n d u c t Po l i c y, r e q u i r e s a l l d i r e c to r s , m a n a g e m e nt a n d e m p l oye e s a t a l l t i m e s
to:
a c t h o n e s t l y a n d i n g o o d fa i t h;
- e x e rc i s e d u e ca r e a n d d i l i g e n c e i n f u l f i l l i n g t h e f u n c t i o n s o f o f f i ce;
- a vo i d c o n f l i c t s a n d m a ke f u l l d i s c l o s u r e o f a ny p o s s i b l e co n f l i c t o f i nte r e s t ;
- c o m p l y w i t h b ot h t h e l et te r a n d s p i r i t o f t h e l a w ;
- e n co u r a g e t h e r e p o r t i n g a n d i nve s t i g a t i o n o f u n l a w f u l a n d u n et h i ca l b e h a v i o u r ; a n d
- c o m p l y w i t h t h e s h a r e t r a d i n g p o l i c y o u t l i n e d i n t h e C o d e o f C o n d u c t.
D i r e c to r s a r e o b l i g e d to b e i n d e p e n d e nt i n j u d g m e n t a n d e n s u r e a l l r e a s o n a b l e s te p s
a r e ta ke n to e n s u r e t h a t t h e B o a r d’s c o r e g ove r n a n c e va l u e s a r e n ot c o m p r o m i s e d i n a ny
d e c i s i o n s t h e B o a r d m a ke s .
DIVERSITY POL ICY
D i ve r s i t y i n c l u d e s , b u t i s n ot l i m i te d to, g e n d e r, a g e, et h n i c i t y a n d c u l t u r a l b a c kg r o u n d . T h e
C o m p a ny i s c o m m i t te d to d i ve r s i t y a n d r e c o g n i s e s t h e b e n e f i t s a r i s i n g f r o m e m p l oye e a n d
B o a r d d i ve r s i t y a n d t h e i m p o r ta n c e o f b e n e f i t i n g f r o m a l l a va i l a b l e ta l e nt.
23
T h e p o l i c y o u t l i n e s r e q u i r e m e nt s fo r t h e B o a r d to d eve l o p m e a s u r a b l e o b j e c t i ve s fo r a c h i ev i n g
d i ve r s i t y, a n d a n n u a l l y a s s e s s b ot h o b j e c t i ve s a n d t h e p r o g r e s s i n a c h i ev i n g t h o s e o b j e c t i ve s .
A s D i r e c to r a n d s e n i o r e x e c u t i ve p o s i t i o n s b e c o m e va ca nt a n d a p p r o p r i a te l y q u a l i f i e d
ca n d i d a te s b e c o m e a va i l a b l e, t h e B o a r d h a s d eve l o p e d t h e fo l l o w i n g o b j e c t i ve s :
a c h i eve a d i ve r s e a n d s k i l l e d w o r k fo rc e l e a d i n g to c o nt i n u o u s i m p r ove m e nt ;
- t h e d eve l o p m e nt o f c l e a r c r i te r i a fo r b e h a v i o u r a l e x p e c ta t i o n s i n r e l a t i o n to p r o m ot i n g
d i ve r s i t y i n t h e w o r k e nv i r o n m e nt ;
- e n s u r e t h a t p e r s o n n e l r e s p o n s i b l e fo r r e c r u i t m e nt ta ke d i ve r s i t y i s s u e s i nto a c co u nt w h e n
c o n s i d e r i n g va ca n c i e s ;
- c r e a te a w o r k e nv i r o n m e nt t h a t va l u e s a n d u t i l i s e s t h e co nt r i b u t i o n s o f e m p l oye e s w i t h
d i ve r s e b a c kg r o u n d s , e x p e r i e n c e s a n d p e r s p e c t i ve s ; a n d
- c r e a te a w a r e n e s s i n a l l e m p l oye e s o f t h e i r r i g ht s a n d r e s p o n s i b i l i t i e s w i t h r e g a r d s to
fa i r n e s s , e q u i t y a n d r e s p e c t fo r a l l a s p e c t s o f d i ve r s i t y.
T h e B o a r d b e l i eve s i t h a s i m p l e m e nte d t h e s e o b j e c t i ve s t h r o u g h o u t t h e C o m p a ny’s w o r k fo r c e
a n d co nt i n u e s to m o n i to r a n d a s s e s s t h e C o m p a ny’s e f fo r t s i n t h i s r e g a r d .
T h e n u m b e r o f w o m e n e m p l oye d by t h e C o m p a ny a n d t h e i r e m p l oy m e nt c l a s s i f i ca t i o n s a r e a s
fo l l o w s :
2017
2016
Nu m be r
Pe rc en t age
Nu m be r
Pe rc en t ag e
Women on the Board
Women in Senior Management
Women employees in the Company
1
-
14
20%
0%
35%
-
-
13
0%
0%
40%
4.1. COMPOSITION OF THE BO AR D
T h e r e w e r e f i ve d i r e c to r s o n t h e B o a r d a t a ny o n e t i m e t h r o u g h o u t t h e ye a r. O f t h e s e, fo u r
w e r e n o n - e x e c u t i ve d i r e c to r s a n d o n e w a s a n e x e c u t i ve d i r e c to r – t h e l a t te r b e i n g t h e
M a n a g i n g D i r e c to r/C h i e f E x e c u t i ve O f f i c e r. E a c h ye a r o n e - t h i r d o f d i r e c to r s a n d a ny d i r e c to r
(e x c l u d i n g t h e M a n a g i n g D i r e c to r ) w h o h a s h e l d o f f i c e fo r t h r e e ye a r s o r t h r e e a n n u a l
g e n e r a l m e et i n g s ( w h i c h eve r i s l o n g e r ) m u s t r et i r e f r o m o f f i c e. A r et i r i n g d i r e c to r i s e l i g i b l e
to s e e k r e - e l e c t i o n i f s o m i n d e d . T h e s k i l l s , e x p e r i e n c e a n d e x p e r t i s e r e l eva nt to t h e p o s i t i o n
o f e a c h d i r e c to r w h o i s i n o f f i c e a t t h e d a te o f t h e A n n u a l Re p o r t a n d t h e i r te r m o f o f f i c e a r e
d eta i l e d i n t h e D i r e c to r s’ Re p o r t. T h e B o a r d s t r i ve s to a c h i eve a m i x o f c o m m e rc i a l , f i n a n c i a l ,
l e g a l , m a n a g e m e nt, h e a l t h i n d u s t r y a n d I T s k i l l s a n d e x p e r i e n c e a m o n g i t s m e m b e r s .
T h e co m p o s i t i o n o f t h e B o a r d i s d ete r m i n e d i n a cc o r d a n ce w i t h t h e fo l l o w i n g p r i n c i p l e s a n d
g u i d e l i n e s :
•
t h e B o a r d s h o u l d c o m p r i s e a t l e a s t t h r e e D i r e c to r s a n d s h o u l d m a i nta i n a m a j o r i t y o f
•
•
•
•
i n d e p e n d e n t a n d N o n - E x e c u t i ve D i r e c to r s ;
t h e C h a i r m a n m u s t b e a n i n d e p e n d e nt a n d N o n - E x e c u t i ve D i r e c to r ;
t h e r o l e s o f C h i e f E x e c u t i ve O f f i c e r a n d C h a i r m a n m u s t n ot b e p e r fo r m e d by t h e s a m e
i n d i v i d u a l;
t h e B o a r d s h o u l d c o m p r i s e D i r e c to r s w i t h a n a p p r o p r i a te r a n g e o f q u a l i f i ca t i o n s a n d
e x p e r t i s e; a n d
t h e B o a r d s h a l l m e et r e g u l a r l y a n d h a ve a va i l a b l e a l l n e c e s s a r y i n fo r m a t i o n to
p a r t i c i p a te i n a n i n fo r m e d d i s c u s s i o n o f a l l a g e n d a i te m s .
24
W h e n c o n s i d e r i n g p ote nt i a l ca n d i d a te s fo r d i r e c to r s h i p, t h e B o a r d a s s e s s e s q u a l i f i e d
p r o fe s s i o n a l s a n d e x p e r i e n ce d b u s i n e s s p e o p l e i n i n d u s t r y. T h e C o m p a ny d o e s n ot e n g a g e
a ny c o n s u l ta nt s to s o u rc e p ote nt i a l B o a r d m e m b e r s , b u t r e l i e s o n t h e D i r e c to r s’ i n d u s t r y
c o nta c t s to i d e nt i f y p ote nt i a l ca n d i d a te s b a s e d o n a n i n d i v i d u a l’s p r o fe s s i o n a l a n d b u s i n e s s
r e p u ta t i o n , h e a l t h c a r e s e r v i c e s i n d u s t r y e x p e r i e n c e a n d ot h e r a r e a s o f e x p e r t i s e. T h e
C o m p a ny s e e k s to m a i nta i n a d i ve r s e r a n g e o f m e m b e r s o f t h e B o a r d by h a v i n g o n l y o n e
d i r e c to r d r a w n f r o m a ny o n e p r o fe s s i o n a l b a c kg r o u n d a t a ny o n e t i m e.
4.2. BOA RD M EMBERS
T h e D i r e c to r s i n o f f i c e a t t h e d a te o f t h i s s ta te m e nt a r e:
Name
Mr S L Pynt
Mr M Cherian
Mr G Smith
Position
Non-Executive Chairman
Chief Executive Officer and Managing Director
Non-Executive Director
Mr R Knowles AO
Non-Executive Director
Ms P Beerens
Non-Executive Director
T h e r e a r e fo u r N o n - E x e c u t i ve D i r e c to r s w h o a r e d e e m e d i n d e p e n d e nt u n d e r t h e p r i n c i p l e s s et
o u t b e l o w, a n d o n e E x e c u t i ve D i r e c to r, a t t h e d a te o f s i g n i n g t h e D i r e c to r s’ Re p o r t.
T h e B o a r d s e e k s to e n s u r e t h a t :
a t a ny p o i nt i n t i m e, i t s m e m b e r s h i p r e p r e s e nt s a n a p p r o p r i a te b a l a n c e b et w e e n D i r e c to r s
w i t h e x p e r i e n c e a n d k n o w l e d g e o f t h e G r o u p a n d D i r e c to r s w i t h a n e x te r n a l o r f r e s h
p e r s p e c t i ve; a n d
t h e s i z e o f t h e B o a r d i s c o n d u c i ve to e f fe c t i ve d i s c u s s i o n a n d e f f i c i e nt d e c i s i o n - m a k i n g .
A s a B o a r d , t h e D i r e c to r s n e e d to p r ov i d e t h e fo l l o w i n g s k i l l s a n d k n o w l e d g e:
• a b a l a n c e o f p r ove n e x p e r t i s e, d i ve r s e s k i l l s a n d e x p e r i e n c e i n c o m m e r ce, f i n a n ce, h e a l t h
ca r e i n n ova t i o n a n d ot h e r a r e a s w h e r e s o f t w a r e te c h n o l o g y ca n i m p r ove t h e e x p e r i e n ce
o f c o n s u m e r s a n d p r ov i d e r s o f h e a l t h ca r e s e r v i ce s ;
• u n d e r s ta n d i n g o f t h e r o l e s , d u t i e s a n d r e s p o n s i b i l i t i e s o f d i r e c to r s u n d e r t h e C o r p o r a t i o n s
Ac t ;
•
l e a d e r s h i p s k i l l s , e x p e r i e n c e m a k i n g d e c i s i o n s a t t h e h i g h e s t l eve l s , s t r a te g i c t h i n k i n g a n d
l o n g - te r m p l a n n i n g a b i l i t i e s ;
• a n u n d e r s ta n d i n g o f c u r r e nt i s s u e s a f fe c t i n g t h e A u s t r a l i a n h e a l t h ca r e i n d u s t r y
i n p a r t i c u l a r, a n d i n g e n e r a l a w i d e r u n d e r s ta n d i n g o f i nte r n a t i o n a l m e d i ca l a n d
te c h n o l o g i ca l t r e n d s i n h e a l t h ca r e p r ov i s i o n a n d c o n s u m pt i o n;
•
f l e x i b l e, c o n s u l ta t i ve a n d i n n ova t i ve a p p r o a c h e s to c o m m u n i ca t i n g a n d a c h i ev i n g
c o r p o r a te g o a l s ; a n d
• a p a s s i o n fo r a n d s t r o n g c o m m i t m e nt to t h e s u cc e s s o f t h e a c t i v i t i e s o f G l o b a l H e a l t h
L i m i te d .
A s G l o b a l H e a l t h L i m i te d h a s a r e l a t i ve l y s m a l l B o a r d , t h e f u l l B o a r d a c t s a s a n o m i n a t i o n
c o m m i t te e a n d r ev i e w s B o a r d m e m b e r s h i p s i n c l u d i n g a n a s s e s s m e nt o f n e ce s s a r y a n d
d e s i r a b l e c o m p ete n c i e s , p a r t i c u l a r l y i n c o n s i d e r a t i o n o f a p p o i nt m e nt s a n d r e m ova l s .
25
4.3. BOARD RESPONSIBIL IT IES
T h e r e s p o n s i b i l i t i e s o f t h e B o a r d i n c l u d e:
1. p r ov i d i n g s t r a te g i c g u i d a n c e to t h e C o m p a ny i n c l u d i n g c o nt r i b u t i n g to t h e d eve l o p m e n t
o f a n d a p p r ov i n g t h e c o r p o r a te s t r a te g y ;
2 .
r ev i e w i n g a n d a p p r ov i n g b u s i n e s s p l a n s , t h e a n n u a l b u d g et a n d f i n a n c i a l p l a n s i n c l u d i n g
a va i l a b l e r e s o u rc e s a n d m a j o r ca p i ta l e x p e n d i t u r e i n i t i a t i ve s ;
3 . ove r s e e i n g a n d m o n i to r i n g:
a . o r g a n i s a t i o n a l p e r fo r m a n ce a n d t h e a c h i eve m e nt o f t h e G r o u p’s s t r a te g i c g o a l s a n d
o b j e c t i ve s ; a n d
b. p r o g r e s s o f m a j o r ca p i ta l e x p e n d i t u r e s a n d ot h e r s i g n i f i ca nt c o r p o r a te p r o j e c t s
i n c l u d i n g a ny a cq u i s i t i o n s o r d i ve s t m e nt s ;
4 . m o n i to r i n g f i n a n c i a l p e r fo r m a n c e i n c l u d i n g a p p r ova l o f t h e a n n u a l a n d h a l f - ye a r
f i n a n c i a l r e p o r t s a n d l i a i s o n w i t h t h e C o m p a ny’s a u d i to r s ;
5 . a p p o i nt m e nt, p e r fo r m a n c e a s s e s s m e nt a n d , i f n e c e s s a r y, r e m ova l o f t h e M a n a g i n g
D i r e c to r ;
6 .
r a t i f y i n g t h e a p p o i nt m e nt a n d r e m ova l o f a n d c o nt r i b u t i n g to t h e p e r fo r m a n c e
a s s e s s m e nt o f m e m b e r s o f t h e s e n i o r m a n a g e m e nt te a m;
7. e n s u r i n g t h e r e a r e e f fe c t i ve m a n a g e m e nt p r o c e s s e s i n p l a c e a n d a p p r ov i n g m a j o r
c o r p o r a te i n i t i a t i ve s ;
8 . e n h a n c i n g a n d p r ote c t i n g t h e r e p u ta t i o n o f t h e o r g a n i s a t i o n; a n d
9. ove r s e e i n g t h e o p e r a t i o n o f t h e G r o u p’s s y s te m fo r co m p l i a n c e a n d r i s k m a n a g e m e nt
r e p o r t i n g to s h a r e h o l d e r s .
4.4. NON -EXECUTIVE DI REC T OR S’ IN DE P END E NCE
T h e B o a r d h a s a d o pte d s p e c i f i c p r i n c i p l e s i n r e l a t i o n to N o n - E x e c u t i ve D i r e c to r s’
i n d e p e n d e n ce. T h e s e s ta te t h a t to b e d e e m e d i n d e p e n d e nt, a D i r e c to r m u s t b e a N o n -
E x e c u t i ve a n d:
• n ot b e a s u b s ta nt i a l s h a r e h o l d e r o f t h e C o m p a ny o r a n o f f i c e r o f, o r ot h e r w i s e a s s o c i a te d
d i r e c t l y w i t h , a s u b s ta nt i a l s h a r e h o l d e r o f t h e C o m p a ny ;
• w i t h i n t h e l a s t t h r e e ye a r s , n ot h a ve b e e n e m p l oye d i n a n e x e c u t i ve ca p a c i t y by t h e
C o m p a ny o r a ny ot h e r G r o u p m e m b e r o r b e e n a D i r e c to r a f te r c e a s i n g to h o l d a ny s u c h
e m p l oy m e n t ;
• w i t h i n t h e l a s t t h r e e ye a r s n ot h a ve b e e n a p r i n c i p a l o f a m a te r i a l p r o fe s s i o n a l a d v i s o r
o r a m a te r i a l co n s u l ta nt to t h e C o m p a ny o r a ny ot h e r G r o u p m e m b e r, o r a n e m p l oye e
m a te r i a l l y a s s o c i a te d w i t h t h e s e r v i c e p r ov i d e d;
• n ot b e a m a te r i a l s u p p l i e r o r c u s to m e r o f t h e C o m p a ny o r a ny ot h e r G r o u p m e m b e r, o r
a n o f f i ce r o f o r ot h e r w i s e a s s o c i a te d d i r e c t l y o r i n d i r e c t l y w i t h a m a te r i a l s u p p l i e r o r
c u s to m e r ;
• m u s t h a ve n o m a te r i a l co nt r a c t u a l r e l a t i o n s h i p w i t h t h e C o m p a ny o r a co nt r o l l e d e n t i t y
ot h e r t h a n a s a D i r e c to r o f t h e G r o u p;
• n ot h a ve b e e n o n t h e B o a r d fo r a ny p e r i o d w h i c h co u l d , o r c o u l d r e a s o n a b l y b e
p e rc e i ve d to, m a te r i a l l y i nte r fe r e w i t h t h e D i r e c to r ’s a b i l i t y to a c t i n t h e b e s t i nte r e s t s o f
t h e C o m p a ny ; a n d
• b e f r e e f r o m a ny i nte r e s t a n d a ny b u s i n e s s o r ot h e r r e l a t i o n s h i p w h i c h c o u l d , o r c o u l d
r e a s o n a b l y b e p e rc e i ve d to, m a te r i a l l y i nte r fe r e w i t h t h e D i r e c to r ’s a b i l i t y to a c t i n t h e
b e s t i nte r e s t s o f t h e C o m p a ny.
26
4.5. TRADING POLICY
D i r e c to r s a r e s u b j e c t to t h e C o r p o r a t i o n s Ac t 2 0 01 r e l a t i ve to r e s t r i c t i o n s a p p l y i n g to
a cq u i r i n g a n d d i s p o s i n g o f s e c u r i t i e s o f t h e C o m p a ny, i f t h ey a r e i n p o s s e s s i o n o f i n fo r m a t i o n
w h i c h i s n ot g e n e r a l l y a va i l a b l e, a n d w h i c h , i f g e n e r a l l y a va i l a b l e, a r e a s o n a b l e p e r s o n
w o u l d e x p e c t to h a ve a m a te r i a l e f fe c t o n t h e p r i c e o f t h e s e c u r i t i e s o f t h e C o m p a ny.
T h e C o m p a ny’s p o l i c y r e s t r i c t s D i r e c to r s a n d e m p l oye e s f r o m a c t i n g o n m a te r i a l i n fo r m a t i o n
u nt i l i t h a s b e e n r e l e a s e d to t h e m a r ket a n d a d e q u a te t i m e h a s b e e n g i ve n fo r t h i s to b e
r e f l e c te d i n t h e s e c u r i t y’s p r i c e s .
4.6. CHAIR MAN AND CH IEF EXEC U TI V E OF FI CE R ( CE O )
T h e C h a i r m a n i s r e s p o n s i b l e fo r l e a d i n g t h e B o a r d , e n s u r i n g D i r e c to r s a r e p r o p e r l y b r i e fe d
i n a l l m a t te r s r e l eva nt to t h e i r r o l e a n d r e s p o n s i b i l i t i e s , fa c i l i ta t i n g B o a r d d i s c u s s i o n s a n d
m a n a g i n g t h e B o a r d’s r e l a t i o n s h i p w i t h t h e C o m p a ny’s s e n i o r e x e c u t i ve s .
T h e C E O i s r e s p o n s i b l e fo r i m p l e m e nt i n g G r o u p s t r a te g i e s a n d p o l i c i e s . T h e B o a r d c h a r te r
s p e c i f i e s t h a t t h e s e a r e s e p a r a te r o l e s to b e u n d e r ta ke n by s e p a r a te p e o p l e.
4.7. COMM ITM EN T
T h e B o a r d h e l d s i x B o a r d m e et i n g s d u r i n g t h e ye a r.
T h e n u m b e r o f m e et i n g s o f t h e C o m p a ny’s B o a r d o f D i r e c to r s a n d o f e a c h B o a r d c o m m i t te e
h e l d d u r i n g t h e ye a r e n d e d 3 0 J u n e 2 017, a n d t h e n u m b e r o f m e et i n g s a t te n d e d by e a c h
D i r e c to r i s d i s c l o s e d i n t h e D i r e c to r s’ Re p o r t.
T h e t h r e e N o n - E x e c u t i ve D i r e c to r s m e et d u r i n g t h e ye a r, i n s c h e d u l e d s e s s i o n s w i t h o u t t h e
p r e s e n c e o f m a n a g e m e nt, to d i s c u s s t h e o p e r a t i o n o f t h e B o a r d a n d a r a n g e o f ot h e r m a t te r s .
Re l eva nt m a t te r s a r i s i n g f r o m t h i s m e et i n g w a s s h a r e d w i t h t h e f u l l B o a r d .
I t i s t h e C o m p a ny’s p r a c t i c e to a l l o w i t s E x e c u t i ve D i r e c to r s to a cce pt a p p o i nt m e nt s o u t s i d e
t h e C o m p a ny w i t h p r i o r w r i t te n a p p r ova l o f t h e B o a r d .
P r i o r to a p p o i nt m e nt o r b e i n g s u b m i t te d to fo r r e - e l e c t i o n , e a c h N o n - E x e c u t i ve D i r e c to r
i s r e q u i r e d to s p e c i f i ca l l y a c k n o w l e d g e t h a t t h ey h a ve a n d w i l l co nt i n u e to h a ve t h e t i m e
a va i l a b l e to d i s c h a r g e t h e i r r e s p o n s i b i l i t i e s to t h e C o m p a ny.
4.8. CORPORATE REPOR TI NG
T h e M a n a g i n g D i r e c to r a n d C h a i r o f t h e A u d i t C o m m i t te e h a ve m a d e t h e fo l l o w i n g
c e r t i f i ca t i o n s to t h e B o a r d:
•
•
t h a t t h e G r o u p’s f i n a n c i a l r e p o r t s a r e c o m p l ete a n d p r e s e nt a t r u e a n d fa i r v i e w, i n a l l
m a te r i a l r e s p e c t s , o f t h e f i n a n c i a l c o n d i t i o n a n d o p e r a t i o n a l r e s u l t s o f t h e G r o u p a n d a r e
i n a c co r d a n ce w i t h r e l eva nt a cc o u nt i n g s ta n d a r d s ; a n d
t h a t t h e a b ove s ta te m e nt i s fo u n d e d o n a s o u n d s y s te m o f r i s k m a n a g e m e nt a n d i n te r n a l
c o m p l i a n ce a n d c o nt r o l w h i c h i m p l e m e nt s t h e p o l i c i e s a d o pte d by t h e B o a r d a n d t h a t
t h e G r o u p’s r i s k m a n a g e m e nt a n d i nte r n a l c o m p l i a n c e a n d co nt r o l i s o p e r a t i n g e f f i c i e nt l y
a n d e f fe c t i ve l y i n a l l m a te r i a l r e s p e c t s .
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4.9. AUDIT COMMI TTEE
T h e B o a r d h a s e s ta b l i s h e d a n A u d i t C o m m i t te e w h i c h a c t s i n a cc o r d a n c e w i t h i t s c h a r te r. T h e
A u d i t C o m m i t te e co n s i s t s o f t h e fo l l o w i n g N o n - E x e c u t i ve D i r e c to r s :
M r S L P y nt
M r G S m i t h
D u e to t h e s m a l l n u m b e r o f B o a r d m e m b e r s , t h e B o a r d h a s a g r e e d to a l l o w t h e A u d i t
C o m m i t te e to b e m a d e u p o f t w o i n d e p e n d e nt N o n - E x e c u t i ve D i r e c to r s . D eta i l s o f t h e s e
D i r e c to r s’ q u a l i f i ca t i o n s a n d a t te n d a n c e a t A u d i t C o m m i t te e m e et i n g s a r e s et o u t i n t h e
D i r e c to r s’ Re p o r t.
T h e A u d i t C o m m i t te e h a s a p p r o p r i a te f i n a n c i a l e x p e r t i s e a n d a l l m e m b e r s a r e f i n a n c i a l l y
l i te r a te a n d h a ve a n a p p r o p r i a te u n d e r s ta n d i n g o f t h e i n d u s t r i e s i n w h i c h t h e G r o u p
o p e r a te s . T h e A u d i t C o m m i t te e h a s a u t h o r i t y, w i t h i n t h e s c o p e o f i t s r e s p o n s i b i l i t i e s , to s e e k
a ny i n fo r m a t i o n i t r e q u i r e s f r o m a ny e m p l oye e o r e x te r n a l p a r t y.
I t i s t h e co m m i t te e’s r e s p o n s i b i l i t y to e n s u r e t h a t a n e f fe c t i ve i nte r n a l c o nt r o l f r a m e w o r k e x i s t s
w i t h i n t h e G r o u p i n c l u d i n g l i a i s o n w i t h e x te r n a l a u d i to r s . T h i s i n c l u d e s i nte r n a l co nt r o l s to
d e a l w i t h b ot h t h e e f fe c t i ve n e s s a n d e f f i c i e n c y o f s i g n i f i c a nt b u s i n e s s p r o c e s s e s . T h i s i n c l u d e s
t h e s a fe g u a r d i n g o f a s s et s , t h e m a i nte n a n c e o f p r o p e r a cco u nt i n g r e c o r d s a n d t h e r e l i a b i l i t y
o f f i n a n c i a l i n fo r m a t i o n .
4.10. REMU NERAT ION
T h e B o a r d d o e s n ot h a ve a s e p a r a te r e m u n e r a t i o n c o m m i t te e d u e to t h e s m a l l n u m b e r o f
B o a r d m e m b e r s . C o n s e q u e nt l y, t h e i s s u e o f r e m u n e r a t i o n i s u n d e r t h e c o nt r o l o f t h e B o a r d
w h i c h h a s t h e r e s p o n s i b i l i t y o f r ev i e w i n g a n d a p p r ov i n g r e m u n e r a t i o n o f t h e N o n - E x e c u t i ve
C h a i r m a n a n d ot h e r e x e c u t i ve s o f t h e G r o u p. Re m u n e r a t i o n l eve l s w i l l b e co m p et i t i ve l y
s et to a t t r a c t t h e m o s t q u a l i f i e d a n d e x p e r i e n c e d D i r e c to r s a n d s e n i o r e x e c u t i ve s . W h e r e
n e c e s s a r y t h e B o a r d m a y o bta i n i n d e p e n d e nt a d v i c e o n t h e a p p r o p r i a te n e s s o f r e m u n e r a t i o n
p a c ka g e s a n d o bta i n a ny n e ce s s a r y s h a r e h o l d e r a p p r ova l s . T h e a m o u nt o f r e m u n e r a t i o n fo r
a l l D i r e c to r s i s d eta i l e d i n t h e D i r e c to r s’ Re p o r t s e c t i o n .
Pa y m e nt o f e q u i t y - b a s e d e x e c u t i ve r e m u n e r a t i o n i s m a d e i n a cc o r d a n c e w i t h t h r e s h o l d s
s et i n p l a n s a p p r ove d by s h a r e h o l d e r s . T h e B o a r d e x p e c t s t h a t t h e r e m u n e r a t i o n s t r u c t u r e
i m p l e m e nte d w i l l r e s u l t i n t h e C o m p a ny b e i n g a b l e to a t t r a c t a n d r eta i n t h e b e s t e x e c u t i ve s
to r u n t h e G r o u p. I t w i l l a l s o p r ov i d e e x e c u t i ve s w i t h t h e n e c e s s a r y i n c e nt i ve s to w o r k to g r o w
l o n g - te r m s h a r e h o l d e r va l u e.
4.11. MONITORI NG OF THE BOAR D ’S PE R FO R M ANCE
T h e B o a r d h a s a d o pte d a co d e o f co n d u c t fo r D i r e c to r s i n ke e p i n g w i t h t h e C o m p a ny’s d e s i r e
to r e m a i n a g o o d co r p o r a te c i t i z e n a n d a p p r o p r i a te l y b a l a n ce, p r ote c t a n d p r e s e r ve a l l
s ta ke h o l d e r s’ i nte r e s t s .
I n o r d e r to e n s u r e t h a t t h e B o a r d co nt i n u e s to d i s c h a r g e i t s r e s p o n s i b i l i t i e s i n a n a p p r o p r i a te
m a n n e r, t h e C h a i r m a n r ev i e w s t h e p e r fo r m a n c e o f a l l D i r e c to r s a n n u a l l y.
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4.12. COMMU NICATION TO SHAR EHO LD E R S
T h e B o a r d a i m s to e n s u r e t h a t t h e s h a r e h o l d e r s , o n b e h a l f o f w h o m t h ey a c t, a r e i n fo r m e d o f
a l l i n fo r m a t i o n n e c e s s a r y to a s s e s s t h e p e r fo r m a n c e o f t h e e c o n o m i c e nt i t y. I n fo r m a t i o n i s
c o m m u n i ca te d to t h e s h a r e h o l d e r s t h r o u g h:
•
•
•
•
t h e A n n u a l Re p o r t w h i c h i s d i s t r i b u te d to a l l s h a r e h o l d e r s ;
t h e A n n u a l G e n e r a l M e et i n g a n d ot h e r m e et i n g s ca l l e d to o bta i n a p p r ova l fo r B o a r d
a c t i o n a s a p p r o p r i a te;
r e g u l a r r e l e a s e o f m e d i a a n d m a r ket u p d a te s to t h e A SX ; a n d
t h e C o m p a ny’s w e b s i te: w w w. g l o b a l - h e a l t h . c o m .
T h e C o m p a ny S e c r eta r y i s t h e p e r s o n r e s p o n s i b l e fo r c o m m u n i ca t i o n s w i t h t h e A u s t r a l i a n
Sto c k E x c h a n g e (A SX ). T h i s r o l e i n c l u d e s r e s p o n s i b i l i t y fo r e n s u r i n g c o m p l i a n c e w i t h t h e
c o nt i n u o u s d i s c l o s u r e r e q u i r e m e nt s i n t h e A SX L i s t i n g R u l e s a n d ove r s e e i n g a n d c o o r d i n a t i n g
i n fo r m a t i o n d i s c l o s u r e to t h e A SX , a n a l y s t s , b r o ke r s , s h a r e h o l d e r s , t h e m e d i a a n d t h e p u b l i c .
A l l i n fo r m a t i o n d i s c l o s e d to t h e A SX i s p o s te d o n t h e C o m p a ny’s w e b s i te a s s o o n a s i t i s
d i s c l o s e d to t h e A SX . W h e n a n a l y s t s a r e b r i e fe d o n a s p e c t s o f t h e G r o u p’s o p e r a t i o n s , t h e
m a te r i a l s u s e d i n t h e p r e s e n ta t i o n a r e r e l e a s e d to t h e A SX a n d p o s te d o n t h e C o m p a ny’s
w e b s i te.
A l l s h a r e h o l d e r s a r e e nt i t l e d to r e c e i ve a co py o f t h e C o m p a ny’s a n n u a l a n d h a l f ye a r l y
r e p o r t s . I n a d d i t i o n , t h e C o m p a ny s e e k s to p r ov i d e o p p o r t u n i t i e s fo r s h a r e h o l d e r s to
p a r t i c i p a te t h r o u g h e l e c t r o n i c m e a n s . I n i t i a t i ve s to fa c i l i ta te t h i s i n c l u d e m a k i n g a l l C o m p a ny
a n n o u n c e m e nt s , m e d i a b r i e f i n g s , d eta i l s o f C o m p a ny m e et i n g s , p r e s s r e l e a s e s fo r t h e l a s t
t h r e e ye a r s a n d f i n a n c i a l r e p o r t s fo r t h e l a s t t h r e e ye a r s a va i l a b l e o n t h e C o m p a ny’s w e b s i te.
T h e w e b s i te a l s o i n c l u d e s a n o pt i o n fo r s h a r e h o l d e r s to r e g i s te r t h e i r e m a i l a d d r e s s fo r d i r e c t
e m a i l u p d a te s o n C o m p a ny m a t te r s .
4.13. INDEPENDEN T PROFES SI ONAL AD V IC E
E a c h D i r e c to r i s e nt i t l e d to s e e k i n d e p e n d e nt p r o fe s s i o n a l a d v i c e a t t h e e x p e n s e o f t h e
C o m p a ny i n ca r r y i n g o u t h i s d u t i e s a s a D i r e c to r. P r i o r to o bta i n i n g s u c h a d v i ce, i f a t t h e
e x p e n s e o f t h e e c o n o m i c e nt i t y, t h e C h a i r m a n w i l l b e a d v i s e d o f t h e m a t te r a n d a n e s t i m a te
o f t h e c o s t.
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4.14. ASX RECOMMENDA TI ONS
1.1
A listed entity should disclose: (a) the respective roles and responsibilities of its Board and
management; and (b) those matters expressly reserved to the Board and those delegated to
senior management
1.2
A listed entity should: (a) undertake appropriate checks before appointing a person, or
putting forward to security holders a candidate for election, as a director; and (b) provide
security holders with all material information in its possession relevant to a decision on whether
or not to elect or re-elect a director.
1.3
A listed entity should have a written agreement with each director and senior executive
setting out the terms of their appointment.
1.4
The company secretary of a listed entity should be accountable directly to the Board, through
the chair, on all matters to do with the proper functioning of the Board.
1.5
A listed entity should have a diversity policy which includes requirements for the Board or a
relevant committee of the Board to set measurable objectives for achieving gender diversity
and to assess annually both the objectives and the entity’s progress in achieving them; (b)
disclose that policy or a summary of it; and disclose as at the end of each reporting period
the measurable objectives for achieving gender diversity set by the Board or a relevant
committee of the Board in accordance with the entity’s diversity policy and its progress
towards achieving them, and either: the respective proportions of men and women on
the board, in senior executive positions and across the whole organisation (including how
the entity has defined “senior executive” for these purposes); or if the entity is a ‘relevant
employer’ under the Workplace Gender Equality Act, the entity’s most recent ‘Gender
Equality Indicators’, as defined in and published under that Act.
1.6
A listed entity should have and disclose the process for periodically evaluating the
performance of the Board, its committees and individual directors; and (b) disclose, in relation
to each reporting period, whether a performance evaluation was undertaken in the reporting
period in accordance with that process.
1.7
A listed entity should have and disclose the process for periodically evaluating the
performance of its senior executives; and (b) disclose, in relation to each reporting period,
whether a performance evaluation was undertaken in the reporting period in accordance
with that process.
2.1
The board of a listed entity should: (a) have a nomination committee which: (1) has at least
three members, a majority of whom are independent directors; and (2) is chaired by an
independent director, and disclose: (3) the charter of the committee; (4) the members of
the committee; and (5) as at the end of each reporting period, the number of times the
committee met throughout the period and the individual attendances of the members at
those meetings; or (b) if it does not have a nomination committee, disclose that fact and the
processes it employs to address board succession issues and to ensure that the board has the
appropriate balance of skills, knowledge, experience, independence and diversity to enable
it to discharge its duties and responsibilities effectively.
A listed entity should have and disclose a board skills matrix setting out the mix of skills and
2.2
diversity that the board currently has or is looking to achieve in its membership.
2.3
A listed entity should disclose: (a) the names of the directors considered by the board to be
independent directors; (b) if a director has an interest, position, association or relationship of
the type described in Box 2.3 but the board is of the opinion that it does not compromise the
independence of the director, the nature of the interest, position, association or relationship in
question and an explanation of why the board is of that opinion; and (c) the length of service
of each director.
2.4
A majority of the Board of a listed entity should be independent Directors
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2.5
The Chair of the Board of a listed entity should be an independent director and, in particular,
should not be the same person as the CEO of the entity.
2.6
A listed entity should have a program for inducting new directors and provide appropriate
professional development opportunities for directors to develop and maintain the skills and
knowledge needed to perform their role as directors effectively.
3.1
A listed entity should: (a) have a code of conduct for its directors, senior executives and
employees; and (b) disclose that code or a summary of it.
4.1
The Board of a listed entity should: (a) have an Audit Committee which: (1) has at least three
members, all of whom are non-executive directors and a majority of whom are independent
directors; and (2) is chaired by an independent director, who is not the chair of the board,
and disclose: (3) the charter of the committee; (4) the relevant qualifications and experience
of the members of the committee; and (5) in relation to each reporting period, the number
of times the committee met throughout the period and the individual attendances of the
members at those meetings; or (b) if it does not have an audit committee, disclose that fact
and the processes it employs that independently verify and safeguard the integrity of its
corporate reporting, including the processes for the appointment and removal of the external
auditor and the rotation of the audit engagement partner.
4.2
The board of a listed entity should, before it approves the entity’s financial statements
for a financial period, receive from its CEO and CFO a declaration that, in their opinion,
the financial records of the entity have been properly maintained and that the financial
statements comply with the appropriate accounting standards and give a true and fair view
of the financial position and performance of the entity and that the opinion has been formed
on the basis of a sound system of risk management and internal control which is operating
effectively.
4.3
A listed entity that has an AGM should ensure that its external auditor attends its AGM and is
available to answer questions from security holders relevant to the audit.
5.1
A listed entity should: (a) have a written policy for complying with its continuous disclosure
obligations under the Listing Rules; and (b) disclose that policy or a summary of it.
6.1
A listed entity should provide information about itself and its governance to investors via its
website.
6.2
A listed entity should design and implement an investor relations program to facilitate
effective two-way communication with investors.
6.3
A listed entity should disclose the policies and processes it has in place to facilitate and
encourage participation at meetings of security holders.
6.4
A listed entity should give security holders the option to receive communications from, and
send communications to, the entity and its security registry electronically.
7.1
The board of a listed entity should: (a) have a committee or committees to oversee risk, each
of which: (1) has at least three members, a majority of whom are independent directors; and
(2) is chaired by an independent director, and disclose: (3) the charter of the committee; (4)
the members of the committee; and (5) as at the end of each reporting period, the number
of times the committee met throughout the period and the individual attendances of the
members at those meetings; or (b) if it does not have a risk committee or committees that
satisfy (a) above, disclose that fact and the processes it employs for overseeing the entity’s risk
management framework.
7.2
The Board or a committee of the Board should: (a) review the entity’s risk management
framework at least annually to satisfy itself that it continues to be sound; and (b) disclose, in
relation to each reporting period, whether such a review has taken place.
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7.3
A listed entity should disclose: (a) if it has an internal audit function, how the function is
structured and what role it performs; or (b) if it does not have an internal audit function, that
fact and the processes it employs for evaluating and continually improving the effectiveness
of its risk management and internal control processes.
7.4
A listed entity should disclose whether it has any material exposure to economic,
environmental and social sustainability risks and, if it does, how it manages or intends to
manage those risks.
8.1
The Board of a listed entity should : (a) have a remuneration committee which: (1) has at
least three members, a majority of whom are independent directors; and (2) is chaired by
an independent director, and disclose: (3) the charter of the committee; (4) the members
of the committee; and (5) as at the end of each reporting period, the number of times the
committee met throughout the period and the individual attendances of the members at
those meetings; or (b) if it does not have a remuneration committee, disclose that fact and
the processes it employs for setting the level and composition of remuneration for directors
and senior executives and ensuring that such remuneration is appropriate and not excessive.
8.2
A listed entity should separately disclose its policies and practices regarding the remuneration
of non-executive directors and the remuneration of executive directors and other senior
executives.
8.3
A listed entity which has an equity-based remuneration scheme should: (a) have a policy
on whether participants are permitted to enter into transactions (whether through the use of
derivatives or otherwise) which limit the economic risk of participating in the scheme; and (b)
disclose that policy or a summary of it.
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NOTES:
N ote 1: T h e B o a r d o f D i r e c to r s o f t h e C o m p a ny d o e s n ot h a ve a N o m i n a t i o n C o m m i t te e.
T h e B o a r d i s o f t h e o p i n i o n t h a t d u e to t h e n a t u r e a n d s i z e o f t h e C o m p a ny, t h e f u n c t i o n s
p e r fo r m e d by a N o m i n a t i o n C o m m i t te e ca n b e a d e q u a te l y h a n d l e d by t h e f u l l B o a r d .
N ote 2 : T h e C o m p a ny h a s t h r e e N o n - E x e c u t i ve D i r e c to r s , o f w h o m t w o co m p r i s e t h e A u d i t
C o m m i t te e. T h e B o a r d i s o f t h e o p i n i o n t h a t d u e to t h e n a t u r e a n d s i z e o f t h e C o m p a ny, t h i s
f u n c t i o n ca n b e a d e q u a te l y h a n d l e d w i t h l e s s t h a n t h e t h r e e m e m b e r s r e c o m m e n d e d u n d e r
A SX g u i d e l i n e s .
N ote 3 : T h e C o m p a ny d o e s n ot h a ve a n I nte r n a l A u d i t F u n c t i o n . T h e B o a r d i s o f t h e o p i n i o n
t h a t d u e to t h e n a t u r e a n d s i z e o f t h e C o m p a ny, t h e f u n c t i o n s p e r fo r m e d by a n i n te r n a l
a u d i to r a r e b e i n g a d e q u a te l y s e r ve d by t h e C o m p a ny’s i n d e p e n d e nt e x te r n a l a u d i to r s .
N ote 4: T h e C o m p a ny d o e s n ot h a ve a Re m u n e r a t i o n C o m m i t te e. T h e B o a r d i s o f t h e o p i n i o n
t h a t d u e to t h e n a t u r e a n d s i z e o f t h e C o m p a ny, t h e f u n c t i o n s p e r fo r m e d by a Re m u n e r a t i o n
C o m m i t te e ca n b e a d e q u a te l y h a n d l e d by t h e f u l l B o a r d .
32
5. ANNUAL FINANCIAL REP ORT
T h i s G l o b a l H e a l t h L i m i te d c o n s o l i d a te d e nt i t y (‘G r o u p’) f i n a n c i a l r e p o r t i s p r e s e nte d i n t h e
A u s t r a l i a n c u r r e n c y.
G l o b a l H e a l t h L i m i te d i s a c o m p a ny l i m i te d by s h a r e s , i n co r p o r a te d a n d d o m i c i l e d i n
A u s t r a l i a .
T h e C o m p a ny’s r e g i s te r e d o f f i c e a n d p r i n c i p a l p l a c e o f b u s i n e s s i s :
G l o b a l H e a l t h L i m i te d
L eve l 2 , 6 07 B o u r ke St r e et
M e l b o u r n e, V i c to r i a 3 0 0 0
A u s t r a l i a .
A d e s c r i pt i o n o f t h e n a t u r e o f t h e G r o u p’s o p e r a t i o n s a n d i t s p r i n c i p a l a c t i v i t i e s i s i n c l u d e d i n
t h e r ev i e w o f o p e r a t i o n s a n d a c t i v i t i e s i n t h e D i r e c to r s’ Re p o r t w h i c h a r e p a r t o f t h i s f i n a n c i a l
r e p o r t.
T h e f i n a n c i a l r e p o r t w a s a u t h o r i s e d fo r i s s u e by t h e D i r e c to r s o n 2 7 S e pte m b e r 2 017.
33
CONSOLIDATED STATEME NT OF P RO F IT OR L OS S AND OTHE R
COMPREHENSIVE INCOME FOR THE Y EAR E NDE D 30 JU NE 20 1 7
C on s o lid at ed G rou p
Revenue from the sale of licenses and
maintenance contracts
Revenue from professional services
Other income
Chiron Software Settlement
Total revenue from continuing operations
Salaries and related costs
Direct external costs
General and administration costs
Earnings before interest, tax, depreciation and
amortisation
Finance costs
Depreciation
Amortisation
Impairment
Non-operating foreign exchange gains/(losses)
Profit before income tax
Income tax benefit/(expense)
Net profit for the period
Other comprehensive income
Exchange differences on translating foreign
operations
Total comprehensive profit for the period
Net profit/(loss) for the period attributable to:
Owners of the parent
Non-controlling interest
Total comprehensive profit/(loss) attributable to:
Owners of the parent
Non-controlling interest
Earnings per share
Earnings per share – after tax
Basic earnings after tax per share (cents per share)
Diluted earnings per share after tax (cents per
share)
Earnings per share – before tax
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
No te
2
2
2
2
3
3
3
3
3
3, 9
3,9
4
17
18
25
25
24
24
2017
$
3,415,775
1,191,795
692,611
5,000,000
10,300,181
(4,954,609)
(263,754)
(1,731,893)
3,349,925
(146,500)
(87,931)
(266,021)
(917,381)
(73)
1,932,019
(203,974)
1,728,045
(6,259)
1,721,786
1,728,369
(324)
1,728,045
1,722,118
(332)
1,721,786
5.212
4.896
5.827
5.474
2016 Restated*
$
3,587,110
906,187
706,153
-
5,199,450
(3,496,079)
(170,475)
(957,523)
575,373
(97,568)
(122,048)
(262,043)
-
14,231
107,945
-
107,945
(18,757)
89,188
106,061
1,884
107,945
87,268
1,920
89,188
(0.329)
(0.327)
(0.329)
(0.327)
T h e a b ove s ta te m e nt o f p r o f i t o r l o s s a n d ot h e r co m p r e h e n s i ve i n c o m e
s h o u l d b e r e a d i n c o n j u n c t i o n w i t h t h e a c c o m p a ny i n g n ote s .
* A m o u n t s s h o w n i n t h e 2 016 c o m p a r a t i v e c o l u m n h e r e d o n o t c o r r e s p o n d t o t h e 2 016 f i n a n c i a l s t a t e m e n t s a n d r e f l e c t
r e s t a t e m e n t s m a d e , r e f e r t o N o t e 1( v)
34
C O NSOLIDATED STATEMENT OF F INANC IAL P OSITION AS AT 3 0 JU N E 2 01 7
C on s o lid at ed G rou p
Note
2017
$
2016 Res tated*
$
Current Assets
Cash and cash equivalents
Trade and Other Receivables
Other Assets
Current tax asset
Total Current Assets
Non-Current Assets
Trade and other receivables
Property, plant and equipment
Intangibles
Deferred tax asset
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Interest bearing liabilities
Provisions – Employee Benefits
Unearned income
Total Current Liabilities
Non-Current Liabilities
Interest bearing liabilities
Provisions – Employee Benefits
Unearned income
Deferred tax liability
Total Non-Current Liabilities
Total Liabilities
5
6
7
10
6
8
9
10
11
12
13
14
12
13
14
10
2,543,412
1,821,098
185,969
481,842
1,149,028
1,536,734
841,718
-
5,032,321
3,527,480
140,911
150,738
4,817,920
596,599
5,706,168
10,738,489
276,645
172,613
4,847,152
5,296,410
8,823,890
1,079,282
1,395,768
389,880
506,469
1,462,960
3,438,591
1,078,880
30,764
46,128
1,282,415
2,438,187
5,876,778
355,351
423,370
1,471,764
3,646,253
1,386,378
146,001
-
-
1,532,379
5,178,632
As a t 1 Ju ly 2015 Restat ed*
$
548,404
931,730
235,989
-
1,716,123
135,047
146,971
3,880,762
-
4,162,780
5,878,903
718,130
28,508
452,510
1,029,282
2,228,430
39,415
127,488
-
-
166,903
2,395,333
Net Assets/(Liabilities)
4,861,711
3,645,258
3,483,570
Equity
Contributed equity
Reserves
Accumulated losses
Total Parent Entity Interest
Non-controlling interest
15
16
17
18
20,836,242
20,728,742
105,079
60,463
(16,079,686)
(17,144,355)
4,861,635
3,644,850
76
408
Total Equity
4,861,711
3,645,258
20,656,242
79,256
(17,250,416)
3,485,082
(1,512)
3,483,570
T h e a b ove s ta te m e nt o f f i n a n c i a l p o s i t i o n s h o u l d b e r e a d i n co n j u n c t i o n w i t h t h e
a c c o m p a ny i n g n ote s .
* A m o u n t s s h o w n i n t h e 2 016 c o m p a r a t i v e c o l u m n h e r e d o n o t c o r r e s p o n d t o t h e 2 016 f i n a n c i a l s t a t e m e n t s a n d r e f l e c t
r e s t a t e m e n t s m a d e , r e f e r t o N o t e 1( v)
35
C O NSOLIDATED STATEMENT OF CHA NG ES IN EQU ITY FO R TH E YE A R E N D E D
30 J UNE 2 017
Issu e d
c apit al
o rdin a ry
O pti on
re se rv e
C urrency
trans lation
reserve
Retain ed
earni ngs
Total
attribu table
to owners of
the parent
Non-
C on trolling
interes t
Total equity
20,656,2 42
29,978
49,278
(17,250,416)
3,485,082
(1,512)
3, 483, 570
72,500
72,500
-
-
-
-
-
-
-
-
-
-
-
-
-
72,500
72,500
-
-
72,500
72,500
106,061
106,061
1,884
107,945
(18,793)
-
(18,793)
36
(18,757)
(18,793)
106,061
(106,061)
1,920
89,188
20,728,74 2
29,978
30,485
(17,144,355)
3,644,850
408
3, 645, 258
20,728,7 42
29,978
30,485
(17,144,355)
3,644,850
408
3, 645, 258
Consolidated Gro u p
Bala nce 1 July 201 5
Res ta ted*
Issue of share capital
Transactions with owners
Profit/(loss) for the period
Other comprehensive
income:
Exchange difference
on translation of foreign
operations
Total comprehensive profit/
(loss) for the period
Bala nce 30 June 2016
Res ta ted*
Balan ce 1 July 2016
Res ta ted*
Issue of share capital
Exercise of options
Share based payment
62,500
45,000
-
Transactions with owners
107,500
Profit/(loss) for the period
Payment of dividends
Other comprehensive
income:
Exchange difference
on translation of foreign
operations
Total comprehensive profit/
(loss) for the period
-
-
-
-
-
-
50,867
50,867
-
-
-
-
-
-
-
-
-
-
-
-
-
-
62,500
45,000
50,867
158,367
-
-
-
-
1,728,369
1,932,343
(324)
(663,700)
(663,700)
-
62,500
45,000
50,867
158,367
1,728,045
(663,700)
(6,251)
-
(6,251)
(8)
(6,259)
(6,251)
1,064,669
1,262,392
(332)
1,058,086
Ba lan ce 30 June 2017
20,836,2 42
80,845
24,234
(16,079,686)
5,065,609
76
4, 861, 711
T h e a b ove s ta te m e nt o f c h a n g e s i n e q u i t y s h o u l d b e r e a d i n c o n j u n c t i o n w i t h t h e
a c c o m p a ny i n g n ote s .
* A m o u n t s s h o w n i n t h e 2 016 c o m p a r a t i v e c o l u m n h e r e d o n o t c o r r e s p o n d t o t h e 2 016 f i n a n c i a l s t a t e m e n t s a n d r e f l e c t
r e s t a t e m e n t s m a d e , r e f e r t o N o t e 1( v)
36
STATEMENT OF CASH FLOWS F OR THE YE AR E NDE D 30 JU NE 2 0 1 7
C on s ol id at ed Gr o up
No te
Cash Flows from Operating Activities
Receipts from customers
Cash received from the settlement of Chiron Software
litigation
Receipts from Research and Development Grants
Payments to suppliers and employees
Interest received
Interest and finance costs paid
Net cash inflow from operating activities
27
Cash Flows from Investing Activities
Proceeds from sale of plant and equipment
Purchase of property, plant and equipment
Purchase of intangibles
Net cash outflow from investing activities
Cash Flows from Financing Activities
Proceeds from borrowings
Repayment of borrowings
Payment of dividends
Net cash (outflow)/inflow from financing activities
Net increase in cash and cash equivalents held
Cash and cash equivalents at the beginning of the financial
year
Cash and cash equivalents at the end of
the financial year
2017
$
4,722,667
5,000,000
423,002
(6,491,096)
43,206
(146,500)
3,551,279
-
(66,056)
(1,154,170)
(1,220,226)
-
(272,969)
(663,700)
(936,669)
1,394,384
1,149,028
2016
$
4,839,316
-
518,089
(4,743,208)
15,069
(97,568)
531,698
1,850
(149,273)
(1,457,457)
(1,604,880)
1,915,578
(241,772)
-
1,673,806
600,624
548,404
5
2,543,412
1,149,028
T h e a b ove s ta te m e nt o f ca s h f l o w s s h o u l d b e r e a d i n c o n j u n c t i o n w i t h t h e a c co m p a ny i n g
n ote s .
T h e co n s o l i d a te d f i n a n c i a l s ta te m e nt s a n d n ote s r e p r e s e nt t h o s e o f G l o b a l H e a l t h Ltd a n d
C o nt r o l l e d E nt i t i e s (t h e “c o n s o l i d a te d g r o u p” o r “g r o u p”).G l o b a l H e a l t h L i m i te d i s a fo r- p r o f i t
l i s te d c o m p a ny l i m i te d by s h a r e s a n d d o m i c i l e d i n A u s t r a l i a .
T h e co n s o l i d a te d f i n a n c i a l s ta te m e nt s a r e p r e s e nte d i n A u s t r a l i a n d o l l a r s w h i c h i s t h e p a r e n t
e nt i t y’s f u n c t i o n a l a n d p r e s e nta t i o n c u r r e n c y. U n l e s s s ta te d ot h e r w i s e, b a l a n c e s fo r t h e 2 016
a r e r e s ta te d a s p e r N ote 1(v).
T h e s e p a r a te f i n a n c i a l s ta te m e n t s a n d n ote s o f t h e p a r e n t e nt i t y, G l o b a l H e a l t h L i m i te d , h a ve
n ot b e e n p r e s e nte d w i t h i n t h i s f i n a n c i a l r e p o r t a s p e r m i t te d by a m e n d m e n t s m a d e to t h e
C o r p o r a t i o n s Ac t 2 0 01. T h e p a r e nt e nt i t y s u m m a r y i s i n c l u d e d i n N ote 3 0 .
T h e f i n a n c i a l s ta te m e nt s w e r e a u t h o r i s e d fo r i s s u e by t h e B o a r d o f D i r e c to r s o n x x S e pte m b e r
2 017.
37
1. S T AT EMENT O F S I GNIFIC ANT ACC OU NTING POL ICIE S
a . BASIS OF PREPARATION
T h e g e n e r a l p u r p o s e f i n a n c i a l s ta te m e nt s h a ve b e e n p r e p a r e d i n a cc o r d a n ce w i t h t h e
C o r p o r a t i o n s Ac t 2 0 01, A u s t r a l i a n Acc o u n t i n g Sta n d a r d s a n d I nte r p r eta t i o n s o f t h e A u s t r a l i a n
Acc o u nt i n g Sta n d a r d s B o a r d a n d I nte r n a t i o n a l F i n a n c i a l Re p o r t i n g Sta n d a r d s a s i s s u e d by
t h e I nte r n a t i o n a l Ac c o u nt i n g Sta n d a r d s B o a r d . T h e G r o u p i s a fo r- p r o f i t e nt i t y fo r f i n a n c i a l
r e p o r t i n g p u r p o s e s u n d e r A u s t r a l i a n Acc o u n t i n g Sta n d a r d s . M a te r i a l a cc o u nt i n g p o l i c i e s
a d o pte d i n t h e p r e p a r a t i o n o f t h e s e f i n a n c i a l s ta te m e nt s a r e p r e s e nte d b e l o w a n d h a ve b e e n
c o n s i s te nt l y a p p l i e d u n l e s s s ta te d ot h e r w i s e.
E x c e pt fo r ca s h f l o w i n fo r m a t i o n , t h e f i n a n c i a l s ta te m e nt s h a ve b e e n p r e p a r e d o n a n
a cc r u a l s b a s i s a n d a r e b a s e d o n h i s to r i ca l co s t s , m o d i f i e d , w h e r e a p p l i ca b l e, by t h e
m e a s u r e m e nt a t fa i r va l u e o f s e l e c te d n o n - c u r r e nt a s s et s , f i n a n c i a l a s s et s a n d f i n a n c i a l
l i a b i l i t i e s .
b . PRINCIPLES OF CONSOLIDA TION
T h e G r o u p f i n a n c i a l s ta te m e nt s c o n s o l i d a te t h o s e o f t h e Pa r e nt C o m p a ny a n d a l l o f i t s
s u b s i d i a r i e s a s o f 3 0 J u n e 2 017. T h e Pa r e nt c o nt r o l s a s u b s i d i a r y i f i t i s e x p o s e d , o r h a s r i g ht s ,
to va r i a b l e r et u r n s f r o m i t s i nvo l ve m e n t w i t h t h e s u b s i d i a r y a n d h a s t h e a b i l i t y to a f fe c t t h o s e
r et u r n s t h r o u g h i t s p o w e r ove r t h e s u b s i d i a r y.
A l i s t o f c o nt r o l l e d e nt i t i e s i s c o nta i n e d i n N ote 19 to t h e f i n a n c i a l s ta te m e nt s . A l l c o nt r o l l e d
e nt i t i e s h a ve a J u n e f i n a n c i a l ye a r e n d .
A s a t r e p o r t i n g d a te, t h e a s s et s a n d l i a b i l i t i e s o f a l l c o n t r o l l e d e nt i t i e s h a ve b e e n
i n co r p o r a te d i nto t h e c o n s o l i d a te d f i n a n c i a l s ta te m e n t s a s w e l l a s t h e i r r e s u l t s fo r t h e
ye a r t h e n e n d e d . W h e r e c o n t r o l l e d e nt i t i e s h a ve e n te r e d ( l e f t) t h e G r o u p d u r i n g t h e ye a r,
t h e i r o p e r a t i n g r e s u l t s h a ve b e e n i n c l u d e d (e x c l u d e d) f r o m t h e d a te c o nt r o l w a s o bta i n e d
(c e a s e d). A l l i nte r- c o m p a ny b a l a n c e s a n d t r a n s a c t i o n s b et w e e n e nt i t i e s i n t h e G r o u p,
i n c l u d i n g a ny u n r e a l i s e d p r o f i t s o r l o s s e s , h a ve b e e n e l i m i n a te d o n c o n s o l i d a t i o n . Acco u nt i n g
p o l i c i e s o f s u b s i d i a r i e s h a ve b e e n c h a n g e d w h e r e n e ce s s a r y to e n s u r e c o n s i s te n c y w i t h t h o s e
p o l i c i e s a p p l i e d by t h e p a r e nt e nt i t y.
N o n - c o nt r o l l i n g i nte r e s t s , b e i n g t h a t p o r t i o n o f t h e p r o f i t o r l o s s a n d n et a s s et s o f s u b s i d i a r i e s
a t t r i b u ta b l e to e q u i t y i nte r e s t s h e l d by p e r s o n s o u t s i d e t h e G r o u p, a r e s h o w n s e p a r a te l y
w i t h i n t h e e q u i t y s e c t i o n o f t h e c o n s o l i d a te d s ta te m e nt o f f i n a n c i a l p o s i t i o n a n d i n t h e
c o n s o l i d a te d s ta te m e nt o f p r o f i t o r l o s s .
B u s i n e s s c o m b i n a t i o n s o c c u r w h e r e a n a cq u i r e r o bta i n s co nt r o l ove r o n e o r m o r e b u s i n e s s e s
a n d r e s u l t s i n t h e c o n s o l i d a t i o n o f i t s a s s et s a n d l i a b i l i t i e s . A b u s i n e s s co m b i n a t i o n i s
a cco u nte d fo r by a p p l y i n g t h e a cq u i s i t i o n m et h o d , u n l e s s i t i s a c o m b i n a t i o n i nvo l v i n g
e nt i t i e s o r b u s i n e s s e s u n d e r c o m m o n c o n t r o l . T h e a cq u i s i t i o n m et h o d r e q u i r e s t h a t fo r e a c h
b u s i n e s s c o m b i n a t i o n o n e o f t h e co m b i n i n g e nt i t i e s m u s t b e i d e nt i f i e d a s t h e a cq u i r e r ( i . e.
p a r e nt e nt i t y). T h e b u s i n e s s co m b i n a t i o n w i l l b e a cco u nte d fo r a s a t t h e a cq u i s i t i o n d a te,
w h i c h i s t h e d a te t h a t c o nt r o l ove r t h e a cq u i r e e i s o bta i n e d by t h e p a r e nt e nt i t y. At t h i s
d a te, t h e p a r e nt s h a l l r e c o g n i s e, i n t h e co n s o l i d a te d a cco u nt s , a n d s u b j e c t to c e r ta i n l i m i te d
e x ce pt i o n s , t h e fa i r va l u e o f t h e i d e nt i f i a b l e a s s et s a cq u i r e d a n d l i a b i l i t i e s a s s u m e d . I n
a d d i t i o n , co nt i n g e nt l i a b i l i t i e s o f t h e a cq u i r e e w i l l b e r e c o g n i s e d w h e r e a p r e s e nt o b l i g a t i o n
h a s b e e n i n c u r r e d a n d i t s fa i r va l u e ca n b e r e l i a b l y m e a s u r e d .
38
T h e a cq u i s i t i o n m a y r e s u l t i n t h e r e co g n i t i o n o f g o o d w i l l . T h e m et h o d a d o pte d fo r t h e
m e a s u r e m e nt o f g o o d w i l l w i l l i m p a c t o n t h e m e a s u r e m e nt o f a ny n o n - c o nt r o l l i n g i nte r e s t to
b e r e c o g n i s e d i n t h e a cq u i r e e w h e r e l e s s t h a n 10 0 % o w n e r s h i p i s h e l d i n t h e a cq u i r e e.
T h e a cq u i s i t i o n d a te fa i r va l u e o f t h e c o n s i d e r a t i o n t r a n s fe r r e d fo r a b u s i n e s s c o m b i n a t i o n
p l u s t h e a cq u i s i t i o n d a te fa i r va l u e o f a ny p r ev i o u s l y - h e l d e q u i t y i nte r e s t s h a l l fo r m t h e co s t o f
t h e i nve s t m e nt. C o n s i d e r a t i o n m a y c o m p r i s e t h e s u m o f t h e a s s et s t r a n s fe r r e d by t h e a cq u i r e r,
l i a b i l i t i e s i n c u r r e d by t h e a c q u i r e r to t h e fo r m e r o w n e r s o f t h e a cq u i r e e a n d t h e e q u i t y
i nte r e s t s i s s u e d by t h e a cq u i r e r.
F a i r va l u e u p l i f t s i n t h e va l u e o f p r e - e x i s t i n g e q u i t y h o l d i n g s a r e ta ke n to t h e s ta te m e nt
o f p r o f i t o r l o s s . W h e r e c h a n g e s i n t h e va l u e o f s u c h e q u i t y h o l d i n g s h a d b e e n p r ev i o u s l y
r e co g n i s e d i n ot h e r co m p r e h e n s i ve i n c o m e, s u c h a m o u nt s a r e r e c yc l e d to p r o f i t o r l o s s .
I n c l u d e d i n t h e m e a s u r e m e nt o f c o n s i d e r a t i o n t r a n s fe r r e d i s a ny a s s et o r l i a b i l i t y r e s u l t i n g
f r o m a c o nt i n g e nt c o n s i d e r a t i o n a r r a n g e m e nt. A ny o b l i g a t i o n i n c u r r e d r e l a t i n g to c o nt i n g e nt
c o n s i d e r a t i o n i s c l a s s i f i e d a s e i t h e r a f i n a n c i a l l i a b i l i t y o r e q u i t y i n s t r u m e nt, d e p e n d i n g
u p o n t h e n a t u r e o f t h e a r r a n g e m e nt. R i g ht s to r e f u n d s o r c o n s i d e r a t i o n p r ev i o u s l y p a i d a r e
r e co g n i s e d a s a r e c e i va b l e. S u b s e q u e n t to i n i t i a l r e c o g n i t i o n , c o nt i n g e nt c o n s i d e r a t i o n
c l a s s i f i e d a s e q u i t y i s n ot r e - m e a s u r e d a n d i t s s u b s e q u e nt s et t l e m e nt i s a cc o u nte d fo r w i t h i n
e q u i t y. C o nt i n g e nt c o n s i d e r a t i o n c l a s s i f i e d a s a n a s s et o r a l i a b i l i t y i s r e - m e a s u r e d e a c h
r e p o r t i n g p e r i o d to fa i r va l u e t h r o u g h t h e s ta te m e nt o f p r o f i t o r l o s s a n d ot h e r c o m p r e h e n s i ve
i n co m e u n l e s s t h e c h a n g e i n va l u e ca n b e i d e nt i f i e d a s e x i s t i n g a t a cq u i s i t i o n d a te.
A l l t r a n s a c t i o n c o s t s i n c u r r e d i n r e l a t i o n to t h e b u s i n e s s c o m b i n a t i o n a r e e x p e n s e d to t h e
s ta te m e nt o f p r o f i t o r l o s s a n d ot h e r co m p r e h e n s i ve i n c o m e.
c.
IMPAI RMENT OF NON-FINA NC IAL AS SETS
At e a c h r e p o r t i n g d a te, t h e G r o u p r ev i e w s t h e ca r r y i n g va l u e s o f i t s ta n g i b l e a n d i nta n g i b l e
a s s et s to d ete r m i n e w h et h e r t h e r e i s a ny i n d i ca t i o n t h a t t h o s e a s s et s h a ve b e e n i m p a i r e d . I f
s u c h a n i n d i c a t i o n e x i s t s , t h e r e c ove r a b l e a m o u nt o f t h e a s s et, b e i n g t h e h i g h e r o f t h e a s s et ’s
fa i r va l u e l e s s co s t s to s e l l a n d va l u e i n u s e, i s c o m p a r e d to t h e a s s et ’s ca r r y i n g va l u e. I n
a s s e s s i n g va l u e i n u s e, t h e e s t i m a te d f u t u r e ca s h f l o w s a r e d i s c o u nte d to t h e i r p r e s e nt va l u e
u s i n g a p r e - ta x d i s co u nt r a te t h a t r e f l e c t s c u r r e nt m a r ket a s s e s s m e nt s o f t h e t i m e va l u e o f
m o n ey a n d t h e r i s k s s p e c i f i c to t h e a s s et fo r w h i c h t h e e s t i m a te s o f f u t u r e ca s h f l o w s h a ve n ot
b e e n a d j u s te d .
A ny e x c e s s o f t h e a s s et ’s ca r r y i n g va l u e ove r i t s r e c ove r a b l e a m o u nt i s e x p e n s e d to t h e
s ta te m e nt o f p r o f i t o r l o s s a n d ot h e r co m p r e h e n s i ve i n c o m e.
39
d . REVENUE RECOGNITION
Reve n u e i s m e a s u r e d a t t h e fa i r va l u e o f t h e c o n s i d e r a t i o n r e c e i ve d o r r e c e i va b l e. Reve n u e i s
r e co g n i s e d fo r t h e m a j o r b u s i n e s s a c t i v i t i e s a s fo l l o w s :
SA L E S R E V E N U E
S a l e s r eve n u e c o m p r i s e s r eve n u e e a r n e d (n et o f r et u r n s , d i s c o u nt a n d a l l o w a n c e s) f r o m t h e
p r ov i s i o n o f p r o d u c t s o r s e r v i c e s to e nt i t i e s o u t s i d e t h e co n s o l i d a te d e nt i t y. S a l e s r eve n u e i s
ca te g o r i s e d a n d r e c o g n i s e d a s fo l l o w s :
I n i t i a l L i c e n c e F e e s a n d U p g r a d e F e e s
I n i t i a l L i c e n c e F e e s a n d U p g r a d e F e e s a r e b r o u g ht to a cc o u nt o n t h e e a r l i e r o f :
1.
2 .
t h e d a te o f s i g n i n g t h e co nt r a c t o r a g r e e m e nt o r ;
t h e d a te s t i p u l a te d i n t h e e x e c u te d c o nt r a c t o r a g r e e m e nt.
T h e e nt i t y i s a b l e to r e c o g n i s e t h e r eve n u e w h e n t h e s i g n i f i ca nt r i s k s o f o w n e r s h i p a r e
t r a n s fe r r e d f r o m t h e e nt i t y to t h e b u ye r a n d o n e o f t h e a b ove c o n d i t i o n s i s m et.
M a i n t e n a n ce F e e s
M a i nte n a n c e fe e s a r e a n o n - r e f u n d a b l e d e fe r r e d r eve n u e s t r e a m . C l i e nt s s u b s c r i b e to t h e i r
l i ce n c e s i n a d va n ce – r a n g i n g f r o m m o nt h l y, q u a r te r l y, h a l f - ye a r l y to a n n u a l p a y m e nt s . T h ey
a r e p r o p o r t i o n a l l y a c c r u e d i n a r r e a r s , a t t h e e n d o f e a c h m o nt h a n d r e c o g n i s e d a s r eve n u e
ove r t h e l i c e n c e p e r i o d . T h e s e e n t i t l e t h e c u s to m e r to a u s a g e l i c e n c e, h e l p d e s k te l e p h o n e
s u p p o r t a n d r i g ht s to e x te n d e d w a r r a nt y a n d p r o d u c t e n h a n ce m e nt s .
P r o f e s s i o n a l S e r v i ce s
P r o fe s s i o n a l s e r v i c e s a r e b r o u g ht to a cco u nt o n t h e i s s u e o f i nvo i ce o n co m p l et i o n o f w o r k
t h a t m a y b e p e r fo r m e d o n a t i m e a n d m a te r i a l s o r a p r o j e c t m i l e s to n e b a s i s . T h i s i n c l u d e s
w o r k d o n e i n t h e h e a l t h a n d n o n - h e a l t h s e g m e n t s .
G R A N T S
G r a nt m o n i e s a r e n ot r e c o g n i s e d u nt i l t h e r e i s r e a s o n a b l e a s s u r a n c e t h a t t h e c o n s o l i d a te d
e nt i t y w i l l co m p l y w i t h t h e c o n d i t i o n s a t ta c h i n g to i t, a n d t h a t t h e g r a nt w i l l b e r e c e i ve d .
Re c e i pt o f a g r a nt d o e s n ot o f i t s e l f p r ov i d e c o n c l u s i ve ev i d e n ce t h a t t h e c o n d i t i o n s
a t ta c h i n g to t h e g r a nt h a ve b e e n o r w i l l b e f u l f i l l e d .
I N T E R E S T I N CO M E
I nte r e s t r eve n u e i s r e co g n i s e d u s i n g t h e e f fe c t i ve i nte r e s t m et h o d .
A S S E T SA L E S
T h e n et p r o f i t o r l o s s o n s a l e s o f f i x e d a s s et s i n c l u d i n g p l a nt a n d e q u i p m e nt i s i n c l u d e d a s
r eve n u e o f t h e c o n s o l i d a te d e nt i t y. T h e p r o f i t o r l o s s o n d i s p o s a l o f a s s et s i s b r o u g ht to
a cco u nt a t t h e d a te a n u n c o n d i t i o n a l c o nt r a c t o f s a l e i s s i g n e d .
e. GOOD S AND SERVICES TAX
Reve n u e s , e x p e n s e s a n d a s s et s a r e r e c o g n i s e d n et o f t h e a m o u nt o f G o o d s a n d S e r v i ce s
Ta x (G S T ), e x c e pt w h e r e t h e a m o u nt o f G S T i n c u r r e d i s n ot r e cove r a b l e f r o m t h e A u s t r a l i a n
Ta x a t i o n O f f i c e (ATO). I n t h e s e c i r c u m s ta n c e s t h e G S T i s r e c o g n i s e d a s p a r t o f t h e c o s t o f
a cq u i s i t i o n o f t h e a s s et o r a s p a r t o f a n i te m o f t h e e x p e n s e.
Re c e i va b l e s a n d p a ya b l e s a r e s ta te d w i t h t h e a m o u nt o f G S T i n c l u d e d . T h e n et a m o u nt o f
G S T r e c ove r a b l e f r o m , o r p a ya b l e to, t h e ATO i s i n c l u d e d a s a c u r r e nt a s s et o r l i a b i l i t y i n t h e
c o n s o l i d a te d s ta te m e n t o f f i n a n c i a l p o s i t i o n .
40
C a s h f l o w s a r e i n c l u d e d i n t h e s ta te m e nt o f ca s h f l o w s o n a g r o s s b a s i s . T h e G S T co m p o n e nt s
o f ca s h f l o w s a r i s i n g f r o m i nve s t i n g a n d f i n a n c i n g a c t i v i t i e s w h i c h a r e r e c ove r a b l e f r o m , o r
p a ya b l e to, t h e ATO a r e c l a s s i f i e d a s o p e r a t i n g ca s h f l o w.
f.
INCOME TAX
T h e i n c o m e ta x e x p e n s e o r r eve n u e fo r t h e p e r i o d i s t h e ta x p a ya b l e o n t h e c u r r e nt p e r i o d’s
ta x a b l e i n c o m e b a s e d o n t h e n a t i o n a l i n c o m e ta x r a te fo r e a c h j u r i s d i c t i o n a d j u s te d by
c h a n g e s i n d e fe r r e d ta x a s s et s a n d l i a b i l i t i e s a t t r i b u ta b l e to te m p o r a r y d i f fe r e n ce s b et w e e n
t h e ta x b a s e s o f a s s et s a n d l i a b i l i t i e s a n d t h e i r ca r r y i n g va l u e s i n t h e f i n a n c i a l s ta te m e nt s ,
a n d to u n u s e d ta x l o s s e s . D e fe r r e d ta x a s s et s a n d l i a b i l i t i e s a r e r e co g n i s e d fo r te m p o r a r y
d i f fe r e n c e s a t t h e ta x r a te s e x p e c te d to a p p l y w h e n t h e a s s et s a r e r e c ove r e d o r l i a b i l i t i e s
a r e s et t l e d , b a s e d o n t h o s e ta x r a te s w h i c h a r e s u b s ta n t i a l l y e n a c te d fo r e a c h j u r i s d i c t i o n .
T h e r e l eva nt ta x r a te s a r e a p p l i e d to t h e c u m u l a t i ve a m o u nt s o f d e d u c t i b l e a n d ta x a b l e
te m p o r a r y d i f fe r e n c e s a r i s i n g f r o m t h e i n i t i a l r e c o g n i t i o n o f a n a s s et o r a l i a b i l i t y. N o
d e fe r r e d ta x a s s et o r l i a b i l i t y i s r e c o g n i s e d i n r e l a t i o n to t h e s e te m p o r a r y d i f fe r e n ce s i f t h ey
a r o s e i n a t r a n s a c t i o n , ot h e r t h a n a b u s i n e s s c o m b i n a t i o n , t h a t a t t h e t i m e o f t h e t r a n s a c t i o n
d i d n ot a f fe c t e i t h e r a c c o u nt i n g p r o f i t o r ta x a b l e p r o f i t o r l o s s .
D e fe r r e d ta x a s s et s a r e r e c o g n i s e d fo r d e d u c t i b l e te m p o r a r y d i f fe r e n c e s a n d u n u s e d ta x
l o s s e s o n l y i f i t i s p r o b a b l e t h a t f u t u r e ta x a b l e a m o u nt s w i l l b e a va i l a b l e to u t i l i s e t h o s e
te m p o r a r y d i f fe r e n c e s a n d l o s s e s .
C u r r e nt a n d d e fe r r e d ta x b a l a n c e s a t t r i b u ta b l e to a m o u nt s d i r e c t l y i n e q u i t y a r e a l s o
r e co g n i s e d d i r e c t l y i n e q u i t y.
TA X CO N SO L I DAT I O N L E G I S L AT I O N
T h e C o m p a ny a n d i t s w h o l l y - o w n e d A u s t r a l i a n e nt i t i e s h a ve i m p l e m e n te d t h e ta x
c o n s o l i d a t i o n l e g i s l a t i o n . T h e s e w e r e fo r m a l l y a d o pte d o n l o d g e m e nt o f t h e 2 0 0 4 i n co m e ta x
r et u r n s .
T h e C o m p a ny i s r e s p o n s i b l e fo r r e c o g n i s i n g t h e d e fe r r e d ta x a s s et s r e l a t i n g to ta x l o s s e s fo r
t h e Ta x C o n s o l i d a te d G r o u p. T h e Ta x C o n s o l i d a te d G r o u p h a s e nte r e d i nto a ta x - s h a r i n g
a g r e e m e nt w h e r e by e a c h co m p a ny i n t h e G r o u p co nt r i b u te s to t h e i n c o m e ta x p a ya b l e i n
p r o p o r t i o n to t h e i r c o nt r i b u t i o n to t h e n et p r o f i t b e fo r e ta x o f t h e Ta x C o n s o l i d a te d G r o u p.
g.
INTANGIBLE ASSETS
I nta n g i b l e a s s et s c o n s i s t o f t h e fo l l o w i n g:
D E V E LO PE D PRO D U C T S
D eve l o p e d p r o d u c t s a r e i n i t i a l l y r e co g n i s e d a t c o s t a n d a r e s u b s e q u e nt l y m e a s u r e d a t co s t
l e s s a cc u m u l a te d a m o r t i s a t i o n a n d a cc u m u l a te d i m p a i r m e nt l o s s e s . D eve l o p e d p r o d u c t s
h a ve a f i n i te l i fe a n d a r e a m o r t i s e d o n a s y s te m a t i c b a s i s m a tc h e d to t h e f u t u r e e co n o m i c
b e n e f i t s ove r t h e u s e f u l l i fe o f t h e p r o j e c t w h i c h i s 10 ye a r s .
PRO D U C T S U N D E R D E V E LO PM E N T
E x p e n d i t u r e d u r i n g t h e r e s e a rc h p h a s e o f a p r o j e c t i s r e co g n i s e d a s a n e x p e n s e w h e n
i n c u r r e d . D eve l o p m e nt co s t s a r e ca p i ta l i s e d o n l y w h e n te c h n i ca l fe a s i b i l i t y s t u d i e s i d e nt i f y
t h a t t h e p r o j e c t w i l l d e l i ve r f u t u r e e co n o m i c b e n e f i t s a n d t h e s e b e n e f i t s ca n b e m e a s u r e d
r e l i a b l y.
41
T h e e x p e n d i t u r e ca p i ta l i s e d i n c l u d e s t h e c o s t o f m a te r i a l s , d i r e c t l a b o u r a n d ove r h e a d
c o s t s t h a t a r e d i r e c t l y a t t r i b u ta b l e to p r e p a r i n g t h e a s s et fo r i t s i nte n d e d u s e. O t h e r
d eve l o p m e nt e x p e n d i t u r e i s r e c o g n i s e d i n p r o f i t o r l o s s a s i n c u r r e d . T h e ca r r y i n g va l u e o f
p r o d u c t s u n d e r d eve l o p m e nt a r e r ev i e w e d a n n u a l l y w h e n t h e a s s et i s n ot yet a va i l a b l e fo r
u s e, o r w h e n eve nt s o r c i rc u m s ta n ce s i n d i ca te t h a t t h e ca r r y i n g va l u e m a y b e i m p a i r e d . O n
c o m m e rc i a l i s a t i o n o f t h e s e p r o d u c t s w h i c h i s r e p r e s e nte d by w h e n t h e a s s et i s a va i l a b l e fo r
u s e, t h e ca p i ta l i s e d c o s t s r e l a t i n g to t h e p r o j e c t i s t r a n s fe r r e d to D eve l o p e d p r o d u c t s
h .
PLAN T AND EQUIPMENT
CO S T A N D VA L UAT I O N
P l a nt a n d e q u i p m e nt, l e a s e h o l d i m p r ove m e nt s a n d f u r n i t u r e a n d f i t t i n g s a r e ca r r i e d a t co s t.
A s s et a r e ca r r i e d a t c o s t l e s s a ny a cc u m u l a te d d e p r e c i a t i o n a n d a ny i m p a i r m e nt l o s s e s . C o s t s
i n c l u d e p u rc h a s e p r i c e, ot h e r d i r e c t l y a t t r i b u ta b l e c o s t s a n d t h e i n i t i a l e s t i m a te o f t h e co s t s
o f d i s m a nt l i n g a n d r e s to r i n g t h e a s s et, w h e r e a p p l i ca b l e.
D E PR E C I AT I O N A N D A M O R T I SAT I O N
P l a nt a n d e q u i p m e nt, l e a s e h o l d i m p r ove m e nt s a n d f u r n i t u r e a n d f i t t i n g s o f t h e c o n s o l i d a te d
e nt i t y a r e d e p r e c i a te d /a m o r t i s e d o n a d i m i n i s h i n g va l u e b a s i s . Ra te s o f d e p r e c i a t i o n /
a m o r t i s a t i o n a r e ca l c u l a te d to a l l o ca te t h e c o s t, l e s s e s t i m a te d r e s i d u a l va l u e a t t h e e n d o f
t h e u s e f u l l i ve s o f t h e a s s et s .
T h e d e p r e c i a t i o n /a m o r t i s a t i o n r a te s u s e d fo r e a c h c l a s s o f d e p r e c i a b l e a s s et s a r e:
Class of As se t
Dim in ish in g
Va lue (%)
Leasehold Improvements
Plant and Equipment
29 - 37
25 - 50
T h e a s s et s’ r e s i d u a l va l u e s a n d u s e f u l l i ve s a r e r ev i e w e d , a n d a d j u s te d i f a p p r o p r i a te, a t t h e
e n d o f e a c h r e p o r t i n g p e r i o d .
G a i n s a n d l o s s e s o n d i s p o s a l s a r e d ete r m i n e d by c o m p a r i n g p r o c e e d s w i t h t h e ca r r y i n g
a m o u nt. T h e s e g a i n s a n d l o s s e s a r e i n c l u d e d i n t h e c o n s o l i d a te d s ta te m e nt o f p r o f i t o r l o s s
a n d ot h e r c o m p r e h e n s i ve i n c o m e.
i.
FOREIGN CURRENCY
F U N C T I O N A L A N D PR E S E N TAT I O N CU R R E N CY
I te m s i n c l u d e d i n t h e f i n a n c i a l s ta te m e nt s o f e a c h o f t h e G r o u p’s e nt i t i e s a r e m e a s u r e d
u s i n g t h e c u r r e n c y o f t h e p r i m a r y e c o n o m i c e nv i r o n m e nt i n w h i c h t h e e nt i t y o p e r a te s (‘ t h e
f u n c t i o n a l c u r r e n c y’). T h e c o n s o l i d a te d f i n a n c i a l s ta te m e nt s a r e p r e s e nte d i n A u s t r a l i a n
d o l l a r s , w h i c h i s G l o b a l H e a l t h L i m i te d’s f u n c t i o n a l a n d p r e s e nta t i o n c u r r e n c y.
T R A N S L AT I O N O F CO N T RO L L E D F O R E I G N E N T I T I E S
T h e r e s u l t s a n d f i n a n c i a l p o s i t i o n o f a l l t h e G r o u p e nt i t i e s t h a t h a ve a f u n c t i o n a l c u r r e n c y
d i f fe r e n t f r o m t h e G r o u p’s p r e s e n ta t i o n c u r r e n c y a r e t r a n s l a te d i nto t h e p r e s e nta t i o n c u r r e n c y
a s fo l l o w s :
• a s s et s a n d l i a b i l i t i e s a r e t r a n s l a te d a t e x c h a n g e r a te s p r eva i l i n g a t t h e e n d o f t h e
r e p o r t i n g p e r i o d;
•
•
i n co m e a n d e x p e n s e s a r e t r a n s l a te d a t a ve r a g e e x c h a n g e r a te s fo r t h e p e r i o d; a n d
r eta i n e d e a r n i n g s a r e t r a n s l a te d a t t h e e x c h a n g e r a te s p r eva i l i n g a t t h e d a te o f t h e
t r a n s a c t i o n .
42
E x c h a n g e d i f fe r e n c e s a r i s i n g o n t r a n s l a t i o n o f fo r e i g n o p e r a t i o n s w i t h f u n c t i o n a l c u r r e n c i e s
ot h e r t h a n A u s t r a l i a n d o l l a r s a r e r e c o g n i s e d i n ot h e r c o m p r e h e n s i ve i n c o m e a n d i n c l u d e d i n
t h e fo r e i g n c u r r e n c y t r a n s l a t i o n r e s e r ve i n t h e s ta te m e nt o f f i n a n c i a l p o s i t i o n . T h e c u m u l a t i ve
a m o u nt o f t h e s e d i f fe r e n c e s i s r e c l a s s i f i e d i nto p r o f i t o r l o s s i n t h e p e r i o d i n w h i c h t h e
o p e r a t i o n i s d i s p o s e d o f.
j.
LEASES
L e a s e s a r e c l a s s i f i e d a t t h e i r i n c e pt i o n a s e i t h e r o p e r a t i n g o r f i n a n c e l e a s e s b a s e d o n t h e
e c o n o m i c s u b s ta n c e o f t h e a g r e e m e nt s o a s to r e f l e c t t h e r i s k s a n d b e n e f i t s i n c i d e nta l to
o w n e r s h i p.
F i n a n ce l e a s e s , w h i c h e f fe c t i ve l y t r a n s fe r to t h e G r o u p, s u b s ta nt i a l l y a l l o f t h e r i s k s a n d
b e n e f i t s i n c i d e nta l to o w n e r s h i p o f t h e l e a s e d i te m , a r e ca p i ta l i s e d a t t h e p r e s e nt va l u e o f
t h e m i n i m u m l e a s e p a y m e nt s a n d a m o r t i s e d ove r t h e p e r i o d t h e G r o u p i s e x p e c te d to b e n e f i t
f r o m t h e u s e o f t h e l e a s e d a s s et s . O p e r a t i n g l e a s e p a y m e nt s , w h e r e t h e l e s s o r e f fe c t i ve l y
r eta i n s s u b s ta nt i a l l y a l l o f t h e r i s k s a n d b e n e f i t s o f o w n e r s h i p o f t h e l e a s e d i te m s , a r e
r e co g n i s e d i n o p e r a t i n g p r o f i t o r l o s s ove r t h e l e a s e te r m .
k .
EMPLOYEE BENEFITS
P r ov i s i o n i s m a d e fo r b e n e f i t s a cc r u i n g to e m p l oye e s i n r e s p e c t o f s a l a r i e s a n d w a g e s , a n n u a l
l e a ve a n d l o n g s e r v i c e l e a ve w h e n i t i s p r o b a b l e t h a t s et t l e m e nt w i l l b e r e q u i r e d a n d t h ey a r e
ca p a b l e o f b e i n g m e a s u r e d r e l i a b l y.
S H O R T T E R M B E N E F I T S
L i a b i l i t i e s a r i s i n g i n r e s p e c t o f w a g e s , s a l a r i e s , a n n u a l l e a ve a n d ot h e r e m p l oye e b e n e f i t s
e x p e c te d to b e w h o l l y s et t l e d w i t h i n 12 m o nt h s r e p r e s e nt t h e a m o u nt w h i c h t h e G r o u p h a s
a p r e s e nt o b l i g a t i o n to p a y r e s u l t i n g f r o m e m p l oye e s’ s e r v i c e s p r ov i d e d u p to t h e r e p o r t i n g
d a te. L i a b i l i t i e s h a ve b e e n c a l c u l a te d a t t h e a m o u nt s e x p e c te d to a p p l y a t t h e t i m e o f
s et t l e m e nt. O n - co s t s a r e i n c l u d e d i n t h i s a m o u nt.
LO N G T E R M B E N E F I T S
T h e l i a b i l i t y fo r e m p l oye e b e n e f i t s to l o n g s e r v i ce l e a ve r e p r e s e nt s t h e p r e s e nt va l u e o f
t h e e s t i m a te d f u t u r e ca s h o u t f l o w s to b e m a d e by t h e e m p l oye r r e s u l t i n g f r o m e m p l oye e s’
s e r v i c e s p r ov i d e d u p to t h e r e p o r t i n g d a te.
L i a b i l i t i e s fo r e m p l oye e b e n e f i t s w h i c h a r e n ot e x p e c te d to b e s et t l e d w i t h i n t w e l ve m o n t h s
a r e d i s c o u nte d u s i n g c o r p o r a te b o n d r a te s a t r e p o r t i n g d a te, w h i c h m o s t c l o s e l y m a tc h t h e
te r m s o f m a t u r i t y o f t h e r e l a te d l i a b i l i t i e s .
I n d ete r m i n i n g t h e l i a b i l i t y fo r l o n g s e r v i ce l e a ve, c o n s i d e r a t i o n h a s b e e n g i ve n to f u t u r e
i n c r e a s e s i n w a g e a n d s a l a r y r a te s , a n d t h e G r o u p’s e x p e r i e n ce w i t h s ta f f d e p a r t u r e s . Re l a te d
o n - co s t s h a ve a l s o b e e n i n c l u d e d i n t h e l i a b i l i t y.
S H AR E - BA S E D PAYM E N T S
S h a r e - b a s e d co m p e n s a t i o n b e n e f i t s a r e p r ov i d e d to e m p l oye e s v i a t h e C o m p a ny’s E m p l oye e
O pt i o n P l a n a n d a n e m p l oye e s h a r e s c h e m e. I n fo r m a t i o n r e l a t i n g to t h e s e s c h e m e s i s s et o u t
i n N ote 21.
T h e fa i r va l u e o f o pt i o n s g r a nte d u n d e r t h e C o m p a ny’s E m p l oye e O pt i o n P l a n i s r e c o g n i s e d
a s a n e m p l oye e b e n e f i t e x p e n s e ove r t h e ve s t i n g p e r i o d w i t h a c o r r e s p o n d i n g i n c r e a s e i n
t h e o pt i o n r e s e r ve. T h e fa i r va l u e i s m e a s u r e d a t g r a nt d a te a n d r e c o g n i s e d ove r t h e p e r i o d
d u r i n g w h i c h t h e e m p l oye e s b e c o m e u n c o n d i t i o n a l l y e nt i t l e d to t h e o pt i o n s .
43
T h e fa i r va l u e a t g r a nt d a te i s i n d e p e n d e nt l y d ete r m i n e d u s i n g t h e B l a c k- S c h o l e s p r i c i n g
m o d e l t h a t ta ke s i nto a cc o u n t t h e e x e rc i s e p r i c e, t h e te r m o f t h e o pt i o n , t h e ve s t i n g a n d
p e r fo r m a n c e c r i te r i a , t h e i m p a c t o f d i l u t i o n , t h e n o n - t r a d e a b l e n a t u r e o f t h e o pt i o n , t h e
s h a r e p r i c e a t g r a nt d a te a n d e x p e c te d p r i c e vo l a t i l i t y o f t h e u n d e r l y i n g s h a r e, t h e e x p e c te d
d i v i d e n d y i e l d a n d t h e r i s k- f r e e i nte r e s t r a te fo r t h e te r m o f t h e o pt i o n .
At e a c h r e p o r t i n g d a te, t h e e nt i t y r ev i s e s i t s e s t i m a te o f t h e n u m b e r o f o pt i o n s t h a t i s
e x p e c te d to b e c o m e e x e rc i s a b l e. T h e e m p l oye e b e n e f i t e x p e n s e r e co g n i s e d e a c h p e r i o d
ta ke s i nto a cc o u nt t h e m o s t r e c e nt e s t i m a te. U p o n t h e e x e rc i s e o f o pt i o n s , t h e b a l a n ce o f t h e
s h a r e - b a s e d p a y m e nt s r e s e r ve r e l a t i n g to t h o s e o pt i o n s i s t r a n s fe r r e d to s h a r e ca p i ta l .
T h e m a r ket va l u e o f s h a r e s i s s u e d to e m p l oye e s fo r n o ca s h c o n s i d e r a t i o n u n d e r t h e e m p l oye e
s h a r e s c h e m e i s r e c o g n i s e d a s a n e m p l oye e b e n e f i t s e x p e n s e w i t h a co r r e s p o n d i n g i n c r e a s e
i n e q u i t y w h e n t h e e m p l oye e s b e c o m e e nt i t l e d to t h e s h a r e s .
l.
TRAD E AND OTHER PAYAB LE S
Tr a d e a n d ot h e r p a ya b l e s r e p r e s e nt t h e l i a b i l i t i e s fo r g o o d s a n d s e r v i ce s r e c e i ve d by t h e
e nt i t y t h a t r e m a i n u n p a i d a t t h e e n d o f t h e r e p o r t i n g p e r i o d . T h e a m o u nt s a r e u n s e c u r e d
a n d a r e r e c o g n i s e d a s a c u r r e nt l i a b i l i t y w i t h t h e a m o u nt s n o r m a l l y p a i d w i t h i n 3 0 d a y s o f
r e c o g n i t i o n .
m. FINANCIAL I NSTRUMENTS
I n i t i a l r e c o g n i t i o n a n d m e a s u r e m e n t
F i n a n c i a l i n s t r u m e nt s , i n c o r p o r a t i n g f i n a n c i a l a s s et s a n d f i n a n c i a l l i a b i l i t i e s , a r e r e c o g n i s e d
w h e n t h e e nt i t y b e c o m e s a p a r t y to t h e co nt r a c t u a l p r ov i s i o n s o f t h e i n s t r u m e nt.
F i n a n c i a l i n s t r u m e nt s a r e i n i t i a l l y m e a s u r e d a t fa i r va l u e p l u s t r a n s a c t i o n s c o s t s w h e r e t h e
i n s t r u m e nt i s n ot c l a s s i f i e d a s a t fa i r va l u e t h r o u g h p r o f i t o r l o s s . F i n a n c i a l i n s t r u m e nt s a r e
c l a s s i f i e d a n d m e a s u r e d a s s et o u t b e l o w.
C L A S S I F I C AT I O N A N D S U B S E Q U E N T M E A S U R E M E N T
L o a n s a n d r e ce i va b l e s
L o a n s a n d r e c e i va b l e s a r e n o n - d e r i va t i ve f i n a n c i a l a s s et s w i t h f i x e d o r d ete r m i n a b l e
p a y m e nt s t h a t a r e n ot q u ote d i n a n a c t i ve m a r ket a n d a r e s ta te d a t a m o r t i s e d co s t u s i n g t h e
e f fe c t i ve i nte r e s t r a te m et h o d .
F i n a n c i a l l i a b i l i t i e s
N o n - d e r i va t i ve f i n a n c i a l l i a b i l i t i e s (e x c l u d i n g f i n a n c i a l g u a r a n te e s) a r e s u b s e q u e nt l y
m e a s u r e d a t a m o r t i s e d co s t u s i n g t h e e f fe c t i ve i nte r e s t r a te m et h o d .
T r a d e r e ce i va b l e s
Tr a d e r e c e i va b l e s a r e r e c o g n i s e d i n i t i a l l y a t fa i r va l u e a n d s u b s e q u e n t l y m e a s u r e d a t
a m o r t i s e d co s t u s i n g t h e e f fe c t i ve i nte r e s t m et h o d , l e s s p r ov i s i o n fo r i m p a i r m e n t. Tr a d e
r e ce i va b l e s a r e g e n e r a l l y d u e fo r s et t l e m e nt w i t h i n 3 0 d a y s .
C o l l e c ta b i l i t y o f t r a d e r e c e i va b l e s i s r ev i e w e d o n a n o n g o i n g b a s i s . D e bt s w h i c h a r e k n o w n
to b e u n c o l l e c t i b l e a r e w r i t te n o f f by r e d u c i n g t h e ca r r y i n g a m o u nt d i r e c t l y. A n a l l o w a n ce
a cco u nt (p r ov i s i o n fo r i m p a i r m e nt o f t r a d e r e c e i va b l e s) i s u s e d w h e n t h e r e i s o b j e c t i ve
ev i d e n ce t h a t t h e G r o u p w i l l n ot b e a b l e to co l l e c t a l l a m o u nt s d u e a cc o r d i n g to t h e o r i g i n a l
te r m s o f t h e r e c e i va b l e s . S i g n i f i ca nt f i n a n c i a l d i f f i c u l t i e s o f t h e d e bto r, p r o b a b i l i t y t h a t
t h e d e bto r w i l l e nte r b a n k r u ptc y o r f i n a n c i a l r e o r g a n i s a t i o n , a n d d e fa u l t o r d e l i n q u e n c y i n
p a y m e nt s (m o r e t h a n 3 0 d a y s ove r d u e) a r e c o n s i d e r e d i n d i ca to r s t h a t t h e t r a d e r e c e i va b l e
44
i s i m p a i r e d . T h e a m o u nt o f t h e i m p a i r m e nt a l l o w a n ce i s t h e d i f fe r e n c e b et w e e n t h e a s s et ’s
ca r r y i n g a m o u nt a n d t h e p r e s e nt va l u e o f e s t i m a te d f u t u r e ca s h f l o w s , d i s c o u nte d a t
t h e o r i g i n a l e f fe c t i ve i nte r e s t r a te. C a s h f l o w s r e l a t i n g to s h o r t - te r m r e c e i va b l e s a r e n ot
d i s c o u nte d i f t h e e f fe c t o f d i s c o u nt i n g i s i m m a te r i a l .
T h e a m o u nt o f t h e i m p a i r m e n t l o s s i s r e co g n i s e d i n t h e s ta te m e nt o f p r o f i t o r l o s s a n d
ot h e r c o m p r e h e n s i ve i n c o m e w i t h i n ot h e r e x p e n s e s . W h e n a t r a d e r e c e i va b l e fo r w h i c h a n
i m p a i r m e nt a l l o w a n c e h a d b e e n r e c o g n i s e d b e c o m e s u n c o l l e c t i b l e i n a s u b s e q u e n t p e r i o d ,
i t i s w r i t te n o f f a g a i n s t t h e a l l o w a n c e a c c o u nt. S u b s e q u e n t r e cove r i e s o f a m o u nt s p r ev i o u s l y
w r i t te n o f f a r e c r e d i te d a g a i n s t g e n e r a l a n d a d m i n i s t r a t i ve e x p e n s e s i n t h e s ta te m e nt o f
p r o f i t o r l o s s a n d ot h e r co m p r e h e n s i ve i n c o m e.
I M PA I R M E N T O F F I N A N C I A L A S S E T S
At e a c h r e p o r t i n g d a te, t h e G r o u p a s s e s s e s w h et h e r t h e r e i s o b j e c t i ve ev i d e n c e t h a t a
f i n a n c i a l i n s t r u m e nt h a s b e e n i m p a i r e d .
T h e ca r r y i n g a m o u nt o f f i n a n c i a l a s s et s i n c l u d i n g u n co l l e c t i b l e t r a d e r e c e i va b l e s i s r e d u c e d
by t h e i m p a i r m e nt l o s s t h r o u g h t h e u s e o f a n a l l o w a n c e a cc o u n t. S u b s e q u e nt r e c ove r i e s o f
a m o u nt s p r ev i o u s l y w r i t te n o f f a r e c r e d i te d a g a i n s t t h e a l l o w a n ce a cc o u nt. C h a n g e s i n t h e
ca r r y i n g a m o u nt o f t h e a l l o w a n c e a cco u nt a r e r e c o g n i s e d i n p r o f i t o r l o s s .
I f i n a s u b s e q u e nt p e r i o d , t h e a m o u nt o f t h e i m p a i r m e nt l o s s d e c r e a s e s a n d t h e d e c r e a s e
ca n b e r e l a te d o b j e c t i ve l y to a n eve nt o cc u r r i n g a f te r t h e i m p a i r m e nt w a s r e c o g n i s e d , t h e
p r ev i o u s l y r e c o g n i s e d i m p a i r m e nt l o s s i s r eve r s e d t h r o u g h p r o f i t o r l o s s .
F I N A N C I A L G UAR A N T E E S
W h e r e m a te r i a l , f i n a n c i a l g u a r a nte e s i s s u e d t h a t r e q u i r e t h e i s s u e r to m a ke s p e c i f i e d
p a y m e nt s to r e i m b u r s e t h e h o l d e r fo r a l o s s i t i n c u r s b e ca u s e a s p e c i f i e d d e bto r fa i l s to m a ke
p a y m e nt w h e n d u e a r e r e co g n i s e d a s a f i n a n c i a l l i a b i l i t y a t fa i r va l u e o n i n i t i a l r e c o g n i t i o n .
T h e fa i r va l u e o f f i n a n c i a l g u a r a nte e c o nt r a c t s h a s b e e n a s s e s s e d u s i n g t h e p r o b a b i l i t y
w e i g hte d d i s c o u nte d ca s h f l o w a p p r o a c h . T h e p r o b a b i l i t y h a s b e e n b a s e d o n:
•
•
•
t h e l i ke l i h o o d o f t h e g u a r a nte e d p a r t y d e fa u l t i n g i n a 12 - m o nt h p e r i o d;
t h e p r o p o r t i o n o f t h e e x p o s u r e t h a t i s n ot e x p e c te d to b e r e c ove r e d d u e to t h e
g u a r a nte e d p a r t y d e fa u l t i n g ; a n d
t h e m a x i m u m l o s s e x p o s e d i f t h e g u a r a n te e d p a r t y w e r e to d e fa u l t.
F i n a n c i a l g u a r a nte e s a r e s u b s e q u e nt l y m e a s u r e d a t t h e h i g h e r o f t h e b e s t e s t i m a te o f t h e
o b l i g a t i o n i n a cc o r d a n ce w i t h A A S B 137: P r ov i s i o n s , C o nt i n g e nt L i a b i l i t i e s a n d C o nt i n g e nt
A s s et s a n d t h e a m o u nt i n i t i a l l y r e c o g n i s e d l e s s , w h e n a p p r o p r i a te, c u m u l a t i ve a m o r t i s a t i o n
i n a cco r d a n c e w i t h A A S B 118 : Reve n u e. W h e r e t h e e nt i t y g i ve s g u a r a nte e s i n e x c h a n g e fo r a
fe e, r eve n u e i s r e co g n i s e d i n a cc o r d a n c e w i t h A A S B 118 .
D E R E CO G N I T I O N
F i n a n c i a l a s s et s a r e d e r e c o g n i s e d w h e r e t h e co nt r a c t u a l r i g h t s to r e c e i pt o f ca s h f l o w s
e x p i r e s o r t h e a s s et i s t r a n s fe r r e d to a n ot h e r p a r t y w h e r e by t h e e nt i t y n o l o n g e r h a s a ny
s i g n i f i ca nt c o nt i n u i n g i nvo l ve m e n t i n t h e r i s k s a n d b e n e f i t s a s s o c i a te d w i t h t h e a s s et.
F i n a n c i a l l i a b i l i t i e s a r e d e r e c o g n i s e d w h e r e t h e r e l a te d o b l i g a t i o n s a r e e i t h e r d i s c h a r g e d ,
ca n c e l l e d o r e x p i r e. T h e d i f fe r e n c e b et w e e n t h e ca r r y i n g va l u e o f t h e f i n a n c i a l l i a b i l i t y
e x t i n g u i s h e d o r t r a n s fe r r e d to a n ot h e r p a r t y a n d t h e fa i r va l u e o f c o n s i d e r a t i o n p a i d ,
i n c l u d i n g t h e t r a n s fe r o f n o n - c a s h a s s et s o r l i a b i l i t i e s a s s u m e d i s r e co g n i s e d i n p r o f i t o r l o s s .
45
n . CONTRIBUTED EQUITY
I s s u e d a n d p a i d u p ca p i ta l i s r e c o g n i s e d a t t h e fa i r va l u e o f t h e c o n s i d e r a t i o n r e ce i ve d by
t h e C o m p a ny.
Tr a n s a c t i o n co s t s a r i s i n g o n t h e i s s u e o f e q u i t y i n s t r u m e nt s a r e r e c o g n i s e d d i r e c t l y i n e q u i t y
a s a r e d u c t i o n o f t h e p r o c e e d s o f t h e e q u i t y i n s t r u m e n t s to w h i c h t h e c o s t s r e l a te.
o .
EARNINGS PER SHARE
B a s i c e a r n i n g s p e r s h a r e ( E P S) i s ca l c u l a te d a s t h e n et r e s u l t a t t r i b u ta b l e to m e m b e r s ,
a d j u s te d to e x c l u d e c o s t s o f s e r v i c i n g e q u i t y (ot h e r t h a n d i v i d e n d s), d i v i d e d by t h e w e i g hte d
a ve r a g e n u m b e r o f o r d i n a r y s h a r e s , a d j u s te d fo r a ny b o n u s e l e m e nt.
D i l u te d E P S i s ca l c u l a te d a s t h e n et r e s u l t a t t r i b u ta b l e to m e m b e r s , a d j u s te d fo r :
• c o s t s o f s e r v i c i n g e q u i t y (ot h e r t h a n d i v i d e n d s) a n d p r e fe r e n ce s h a r e d i v i d e n d s ;
•
t h e a f te r- ta x e f fe c t o f d i v i d e n d s a n d i nte r e s t a s s o c i a te d w i t h d i l u t i ve p ote nt i a l o r d i n a r y
s h a r e s t h a t h a ve b e e n r e co g n i s e d a s e x p e n s e s ; a n d
• ot h e r n o n - d i s c r et i o n a r y c h a n g e s i n r eve n u e s o r e x p e n s e s d u r i n g t h e p e r i o d t h a t w o u l d
r e s u l t f r o m t h e d i l u t i o n o f p ote nt i a l o r d i n a r y s h a r e s ;
d i v i d e d by t h e w e i g hte d a ve r a g e n u m b e r o f o r d i n a r y s h a r e s a n d d i l u t i ve p ote nt i a l o r d i n a r y
s h a r e s , a d j u s te d fo r a ny b o n u s e l e m e n t.
p. CASH AND CA SH EQUI VA LENTS
C a s h a n d ca s h e q u i va l e nt s i n c l u d e s ca s h o n h a n d , d e p o s i t s h e l d a t ca l l w i t h f i n a n c i a l
i n s t i t u t i o n s , ot h e r s h o r t - te r m , h i g h l y l i q u i d i nve s t m e nt s w i t h o r i g i n a l m a t u r i t i e s w i t h t h r e e
m o nt h s o r l e s s t h a t a r e r e a d i l y c o nve r t i b l e to k n o w n a m o u nt s o f ca s h a n d w h i c h a r e s u b j e c t
to a n i n s i g n i f i ca nt r i s k o f c h a n g e s i n va l u e.
q. GOVERNMENT GRANTS
G ove r n m e nt g r a nt s a r e r e c o g n i s e d a t fa i r va l u e w h e r e t h e r e i s r e a s o n a b l e a s s u r a n c e t h a t t h e
g r a nt w i l l b e r e ce i ve d a n d a l l g r a n t c o n d i t i o n s w i l l b e m et. G r a nt s r e l a t i n g to e x p e n s e i te m s
a r e r e co g n i s e d a s i n c o m e o n t h e d a te o f r e c e i pt o f t h e g r a nt.
T h e G ove r n m e nt h a s t h e r i g ht to r ev i e w g r a nt s p a i d a n d m a y c l a w b a c k f u n d s i n t h e eve nt o f
a n e x ce s s c l a i m .
Re s e a rc h a n d D eve l o p m e nt G r a nt
T h e C o m p a ny r e c e i ve d a fe d e r a l g ove r n m e nt Re s e a rc h a n d D eve l o p m e nt Ta x I n c e nt i ve o f
$ 4 2 3 , 0 0 2 (2 016: $ 518 , 0 8 9) i n r e l a t i o n to i t s r e s e a rc h a n d d eve l o p m e n t a c t i v i t i e s fo r t h e 2 017
f i n a n c i a l ye a r.
r.
BORROWI NG COSTS
B o r r o w i n g c o s t s a r e e x p e n s e d a s i n c u r r e d .
s. CRI TI CAL ACC OUNTING E STIMA TES A ND JUD GEME NTS
T h e D i r e c to r s eva l u a te e s t i m a te s a n d j u d g m e nt s i n c o r p o r a te d i nto t h e f i n a n c i a l r e p o r t
b a s e d o n h i s to r i ca l k n o w l e d g e a n d b e s t a va i l a b l e c u r r e nt i n fo r m a t i o n . E s t i m a te s a s s u m e
a r e a s o n a b l e e x p e c ta t i o n o f f u t u r e eve nt s a n d a r e b a s e d o n c u r r e nt t r e n d s a n d e c o n o m i c
d a ta , o bta i n e d b ot h e x te r n a l l y a n d w i t h i n t h e G r o u p.
46
Key e s t i m a t e s
( i )
I m p a i r m e nt
T h e G r o u p a s s e s s e s i m p a i r m e nt a t t h e e n d o f e a c h r e p o r t i n g p e r i o d by eva l u a t i n g co n d i t i o n s
a n d eve nt s s p e c i f i c to t h e G r o u p t h a t m a y b e i n d i ca t i ve o f i m p a i r m e nt t r i g g e r s . Re c ove r a b l e
a m o u nt s o f r e l eva nt a s s et s a r e r e a s s e s s e d u s i n g va l u e - i n - u s e ca l c u l a t i o n s w h i c h i n c o r p o r a te
va r i o u s key a s s u m pt i o n s . I m p a i r m e nt te s t s a r e ca r r i e d o u t o n i nta n g i b l e s , r e c e i va b l e s a n d
s u b s i d i a r i e s .
W i t h r e s p e c t to c a s h f l o w p r o j e c t i o n s i n A u s t r a l i a a n d ove r s e a s , m o d e s t g r o w t h r a te s h a ve
b e e n fa c to r e d i nto va l u a t i o n m o d e l s fo r t h e n e x t f i ve ye a r s o n t h e b a s i s o f m a n a g e m e nt ’s
e x p e c ta t i o n s a r o u n d t h e G r o u p’s c o nt i n u e d a b i l i t y to c a pt u r e m a r ket s h a r e f r o m co m p et i to r s .
Key j u d g m e n t s
( i )
P r ov i s i o n fo r I m p a i r m e nt o f Re c e i va b l e s
P r ov i s i o n fo r i m p a i r m e nt o f t r a d e r e c e i va b l e s h a s b e e n i n c l u d e d i n N ote 6 Re ce i va b l e s .
t. GOING CONCERN
A s a t 3 0 J u n e 2 017 t h e c o m p a ny h a s ca s h r e s e r ve s o f $ 2 , 5 4 3 , 412 (2 016 r e s ta te d: $1,14 9, 0 2 8 )
a n d a n et c u r r e nt a s s et p o s i t i o n o f $1, 5 9 3 , 7 3 0 (2 016: $ 2 0 9, 7 3 8 ). T h e c u r r e nt ye a r p r o f i t fo r t h e
p e r i o d w a s $1,9 2 5 , 76 0 a f te r r e c e i pt o f $ 5 , 0 0 0 , 0 0 0 r e l a te d to o u r C h i r o n s o f t w a r e d i s p u te (2 016
Re s ta te d: $107,94 5).
T h e a n n u a l f i n a n c i a l r e p o r t h a s b e e n p r e p a r e d o n a g o i n g co n ce r n b a s i s w h i c h a s s u m e s
t h a t t h e c o n s o l i d a te d e nt i t y w i l l b e a b l e to m e et t h e i r d e bt s a s a n d w h e n t h ey fa l l d u e. T h e
fo l l o w i n g m a t te r s h a ve b e e n c o n s i d e r e d by t h e d i r e c to r s i n d ete r m i n i n g t h e a p p r o p r i a te n e s s
o f t h e g o i n g c o n c e r n b a s i s o f p r e p a r a t i o n i n t h e f i n a n c i a l s ta te m e nt s :
S u cce s s i n co n t i n u e d o p e r a t i o n s
I n t h e c u r r e nt f i n a n c i a l ye a r, t h e G r o u p w a s s u c c e s s f u l i n o bta i n i n g c o nt r a c t s w i t h
G ove r n m e nt a g e n c i e s a n d l a r g e co m m u n i t y h e a l t h o r g a n i s a t i o n s . T h i s i s e x p e c te d to i n c r e a s e
ca s h f l o w s r e l a te d to t h e o p e r a t i o n s o f t h e e nt i t y.
M a n a g e m e nt a l s o h a ve t h e a b i l i t y to r e d u c e o p e r a t i n g c o s t s i n r e l a t i o n to d eve l o p m e nt
s h o u l d t h e n e e d a r i s e.
I n c r e a s e s i n e x p e c te d co l l e c t i o n s w i t h t h e a b i l i t y to r e d u c e o p e r a t i n g co s t s i n r e l a t i o n to
d eve l o p m e nt w i l l a l l o w t h e g r o u p to i n c r e a s e i t s o p e r a t i n g ca s h f l o w s .
E x p a n s i o n i n t o t h e A S E A N r e g i o n
T h e G r o u p h a s e x p a n d e d i t s a c t i v i t i e s i n t h e A S E A N r e g i o n (M a l a y s i a , S i n g a p o r e, I n d o n e s i a ,
T h a i l a n d , V i et n a m). M a n a g e m e nt e x p e c t to l eve r a g e t h i s p o s i t i o n to i n c r e a s e o p e r a t i n g
ca s h f l o w s t h r o u g h t h e s a l e o f s o f t w a r e a n d s e r v i ce s ta r g ete d to w a r d s i nte r n a t i o n a l m a r ket s .
Ava i l a b i l i t y o f F i n a n ce
T h e G r o u p, t h r o u g h i t s f i n a n c i a l i n s t i t u t i o n s , m a y b e a b l e to a cq u i r e a d d i t i o n a l f i n a n c i a l
s u p p o r t i f s o r e q u i r e d .
O n t h e b a s i s o f t h e s e fa c to r s , t h e D i r e c to r s b e l i eve t h a t t h e g o i n g c o n c e r n b a s i s o f
p r e p a r a t i o n i s a p p r o p r i a te a n d t h e G r o u p w i l l b e a b l e to r e p a y t h e i r d e bt s a s a n d w h e n t h ey
fa l l d u e. I n t h e eve nt t h a t t h e G r o u p c a n n ot c o nt i n u e a s a g o i n g c o n c e r n , i t m a y n ot r e a l i s e
i t s a s s et s a n d s et t l e i t s l i a b i l i t i e s i n t h e n o r m a l c o u r s e o f o p e r a t i o n s a n d a t t h e a m o u nt s s ta te d
i n t h e f i n a n c i a l s ta te m e nt s .
47
u . NEW ACCOUNTING STANDARDS AND AU STRAL IAN ACC OUN TIN G
INT ERPRETATIONS
Acc o u nt i n g Sta n d a r d s i s s u e d by t h e A A S B t h a t a r e n ot yet m a n d a to r i l y a p p l i ca b l e to t h e
G r o u p, to g et h e r w i t h a n a s s e s s m e n t o f t h e p ote nt i a l i m p a c t o f s u c h p r o n o u n ce m e nt s o n t h e
G r o u p w h e n a d o pte d i n f u t u r e p e r i o d s , a r e d i s c u s s e d b e l o w :
– A A S B 9 : F i n a n c i a l I n s t r u m e n t s a n d a s s o c i a t e d A m e n d i n g S t a n d a r d s (a p p l i ca b l e t o
a n n u a l r e p o r t i n g p e r i o d s b e g i n n i n g o n o r a f t e r 1 J a n u a r y 2 018)
A A S B 9 r e p l a ce s A A S B 13 9 F i n a n c i a l I n s t r u m e nt s : Re c o g n i t i o n a n d M e a s u r e m e nt a n d
i n c l u d e s r ev i s e d r e q u i r e m e nt s fo r t h e c l a s s i f i ca t i o n a n d m e a s u r e m e nt o f f i n a n c i a l
i n s t r u m e nt s , r ev i s e d r e c o g n i t i o n a n d d e - r e c o g n i t i o n r e q u i r e m e nt s fo r f i n a n c i a l
i n s t r u m e nt s , r ev i s e d i m p a i r m e nt r e q u i r e m e nt s a n d s i m p l i f i e d r e q u i r e m e nt s fo r h e d g e
a cco u nt i n g .
T h e r ev i s e d r e q u i r e m e nt s i n c l u d e:
-
-
s i m p l i f i ca t i o n s to t h e c l a s s i f i ca t i o n o f f i n a n c i a l a s s et s
s i m p l i f i ca t i o n s to t h e a c co u nt i n g o f e m b e d d e d d e r i va t i ve s
- a n e x p e c te d l o s s i m p a i r m e nt m o d e l
-
t h e i r r evo c a b l e e l e c t i o n to r e c o g n i s e g a i n s a n d l o s s e s o n i nve s t m e nt s i n e q u i t y
i n s t r u m e nt s t h a t a r e n ot h e l d fo r t r a d i n g i n ot h e r co m p r e h e n s i ve i n c o m e.
- a n e w m o d e l fo r h e d g e a c c o u nt i n g t h a t w i l l a l l o w g r e a te r f l e x i b i l i t y i n t h e a b i l i t y to
h e d g e r i s k , p a r t i c u l a r l y w i t h r e s p e c t to h e d g e s o f n o n - f i n a n c i a l i te m s .
T h e f i n a n c i a l a s s et s a n d l i a b i l i t i e s o f t h e G r o u p c o n s i s t o f c a s h , r e c e i va b l e s a n d
p a ya b l e s . T h e r e fo r e, t h e d i r e c to r s d o n ot e x p e c t a m a te r i a l i m p a c t o n t r a n s i t i o n to
A A S B 9.
– A A S B 15 : R eve n u e f r o m C o n t r a c t s w i t h C u s t o m e r s (a p p l i ca b l e t o a n n u a l r e p o r t i n g
p e r i o d s b e g i n n i n g o n o r a f t e r 1 J a n u a r y 2 018)
T h i s Sta n d a r d w i l l r e p l a c e t h e c u r r e nt a cc o u n t i n g r e q u i r e m e nt s a p p l i ca b l e to r eve n u e
w i t h a s i n g l e, p r i n c i p l e s - b a s e d m o d e l . E x ce pt fo r a l i m i te d n u m b e r o f e x c e pt i o n s ,
i n c l u d i n g l e a s e s , t h e n e w r eve n u e m o d e l i n A A S B 15 w i l l a p p l y to a l l co nt r a c t s w i t h
c u s to m e r s a s w e l l a s n o n - m o n eta r y e x c h a n g e s b et w e e n e nt i t i e s i n t h e s a m e l i n e o f
b u s i n e s s to fa c i l i ta te s a l e s to c u s to m e r s a n d p ote nt i a l c u s to m e r s .
T h e co r e p r i n c i p l e o f t h e Sta n d a r d i s t h a t a n e nt i t y w i l l r e c o g n i s e r eve n u e to d e p i c t
t h e t r a n s fe r o f p r o m i s e d g o o d s o r s e r v i c e s to c u s to m e r s i n a n a m o u nt t h a t r e f l e c t s t h e
c o n s i d e r a t i o n to w h i c h t h e e nt i t y e x p e c t s to b e e nt i t l e d i n e x c h a n g e fo r t h e g o o d s o r
s e r v i c e s . To a c h i eve t h i s o b j e c t i ve, A A S B 15 p r ov i d e s t h e fo l l o w i n g f i ve - s te p p r o c e s s :
-
-
-
-
-
i d e nt i f y t h e c o nt r a c t(s) w i t h a c u s to m e r ;
i d e nt i f y t h e p e r fo r m a n c e o b l i g a t i o n s i n t h e c o nt r a c t(s);
d ete r m i n e t h e t r a n s a c t i o n p r i c e;
a l l o ca te t h e t r a n s a c t i o n p r i c e to t h e p e r fo r m a n c e o b l i g a t i o n s i n t h e co nt r a c t(s);
a n d
r e c o g n i s e r eve n u e w h e n (o r a s) t h e p e r fo r m a n c e o b l i g a t i o n s a r e s a t i s f i e d .
T h e d i r e c to r s h a ve m a d e a p r e l i m i n a r y a s s e s s m e nt o f t h e i m p a c t a s fo l l o w s :
N e w L i ce n s e s :
N e w L i c e n s e s u n d e r A A S B 15 w i l l b e r e c o g n i s e d ove r t h e s e r v i c e p e r i o d i n w h i c h t h ey
fa l l d u e. T h i s i s co n s i s te nt w i t h t h e a p p r o a c h ta ke n fo r r e c u r r i n g r eve n u e. I n c o m e
r e ce i ve d i n a d va n c e fo r t h i s s e r v i c e p e r i o d w i l l b e c l a s s i f i e d a s a c u r r e nt l i a b i l i t y.
48
R e c u r r i n g l i ce n s e s :
T h e r e w i l l b e n o c h a n g e u n d e r A A S B 15 fo r r e co g n i t i o n o f r e c u r r i n g l i c e n s e s . T h e s e a r e
r e co g n i s e d ove r t h e s e r v i c e p e r i o d o f t h e c o nt r a c t. I n c o m e r e ce i ve d i n a d va n ce fo r
t h i s s e r v i c e p e r i o d w i l l b e c l a s s i f i e d a s a c u r r e nt l i a b i l i t y.
PRO F E S S I O N A L F E E S:
F o r p r o fe s s i o n a l s e r v i c e o f fe r e d to e x i s t i n g c l i e n t s fo r a d - h o c s e r v i c e s r eve n u e w i l l b e
r e co g n i s e d w h e n t h e p e r fo r m a n ce o b l i g a t i o n i s m et w h i c h w o u l d n o r m a l l y o cc u r w h e n
s e r v i c e s a r e r e n d e r e d . F o r p r o fe s s i o n a l s e r v i c e s p e r fo r m e d fo r n e w c l i e nt s r e l a te d to t h e s et u p
o f s o f t w a r e, r eve n u e w i l l r e c o g n i s e d ove r t h e a s s e s s e d e x p e c te d l i fe o f t h e c l i e nt. O u r c u r r e nt
a s s e s s m e nt o f c l i e nt l i fe i s fo r f i ve ye a r s . T h i s i s b a s e d o n o u r l o n g e s t co nt r a c t p e r i o d o f fe r e d
a s w e l l a s m a n a g e m e nt ’s a s s e s s m e nt o f c l i e nt l i fe.
OT H E R I N CO M E :
O t h e r i n c o m e w i l l n ot b e s i g n i f i c a n t l y i m p a c te d by A A S B 15 . I t w i l l b e r e c o g n i s e d a s i n co m e
w h e n t h e i d e nt i f i e d p e r fo r m a n c e o b l i g a t i o n s h a ve b e e n s a t i s f i e d .
T h e e f fe c t o n r eve n u e (c o n s o l i d a te d) a c co u n t s i s a s fo l l o w s :
2017 as
per c u rre n t
accou nt ing
standa rd s
$
Po te n tia l
re s ta t em en t
u n de r AASB 15
re q uir em e nt s
$
2017 Res t at ed
u n de r AASB 15
re q uir em e nt s
$
Account
Profit and Loss
Revenue from the sale of
licenses and maintenance
8,415,775
(281,984)*
8,133,791
contracts
Revenue from professional
services
Statement of Financial
Position
Current Liabilities.
1,191,795
(443,251)*
748,544
-
725,235
725,235
* Re s ta te m e nt o f r eve n u e i s b a s e d o n t h e c h a n g e s a nt i c i p a te d by A A S B 15 a n d by t h e
a s s u m pt i o n s m a d e by m a n a g e m e n t a s a t p r e p a r a t i o n d a te o f t h e f i n a n c i a l s ta te m e n t s .
A s s u m pt i o n s m a y b e r e a s s e s s e d i n t h e f u t u r e a cc o u nt i n g p e r i o d’s r e s u l t s i n d i f fe r e n c e s i n t h e
e x p e c te d r e s ta te m e nt o f r eve n u e b a l a n c e s fo r t h e 2 017 F i n a n c i a l Ye a r.
– A A S B 16: L e a s e s (a p p l i ca b l e t o a n n u a l r e p o r t i n g p e r i o d s b e g i n n i n g o n o r a f t e r 1
J a n u a r y 2 019) .
A A S B 16 w i l l r e p l a c e t h e c u r r e nt a cco u nt i n g r e q u i r e m e nt s a p p l i ca b l e to l e a s e s i n
A A S B 117: L e a s e s a n d r e l a te d I nte r p r eta t i o n s . A A S B 16 i nt r o d u ce s a s i n g l e l e s s e e
a cco u nt i n g m o d e l t h a t e l i m i n a te s t h e r e q u i r e m e nt fo r l e a s e s to b e c l a s s i f i e d a s
o p e r a t i n g o r f i n a n c e l e a s e s .
T h e m a i n c h a n g e s i nt r o d u c e d by t h e n e w Sta n d a r d i n c l u d e:
- r e co g n i t i o n o f a r i g ht - to - u s e a s s et a n d l i a b i l i t y fo r a l l l e a s e s (e x c l u d i n g s h o r t - te r m
l e a s e s w i t h l e s s t h a n 12 m o nt h s o f te n u r e a n d l e a s e s r e l a t i n g to l o w - va l u e a s s et s);
- d e p r e c i a t i o n o f r i g ht - to - u s e a s s et s i n l i n e w i t h A A S B 116: P r o p e r t y, P l a nt a n d
E q u i p m e nt i n p r o f i t o r l o s s a n d u n w i n d i n g o f t h e l i a b i l i t y i n p r i n c i p a l a n d i nte r e s t
c o m p o n e n t s ;
49
- va r i a b l e l e a s e p a y m e nt s t h a t d e p e n d o n a n i n d e x o r a r a te a r e i n c l u d e d i n
t h e i n i t i a l m e a s u r e m e nt o f t h e l e a s e l i a b i l i t y u s i n g t h e i n d e x o r r a te a t t h e
c o m m e n c e m e n t d a te;
- by a p p l y i n g a p r a c t i ca l e x p e d i e nt, a l e s s e e i s p e r m i t te d to e l e c t n ot to s e p a r a te
n o n - l e a s e c o m p o n e nt s a n d i n s te a d a cc o u nt fo r a l l c o m p o n e nt s a s a l e a s e; a n d
- a d d i t i o n a l d i s c l o s u r e r e q u i r e m e n t s .
T h e d i r e c to r s e x p e c t t h a t t h e a d o pt i o n o f A A S B 16 w i l l r e s u l t i n l e a s e a s s et s a n d
l i a b i l i t i e s b e i n g r e c o g n i s e d o n b a l a n c e s h e et a n d a c h a n g e i n h o w r e l a te d e x p e n s e s
a r e i n c u r r e d . T h e f i n a n c i a l i m p a c t o f t h i s h a s n ot yet b e e n d ete r m i n e d .
– A A S B 2 016 -1: A m e n d m e n t s t o Au s t r a l i a n Acco u n t i n g S t a n d a r d s – R e co g n i t i o n o f
D e f e r r e d Ta x A s s e t s f o r U n r e a l i s e d L o s s e s (a p p l i ca b l e f o r r e p o r t i n g p e r i o d s b e g i n n i n g
o n o r a f t e r 1 J a n u a r y 2 017 )
T h i s s ta n d a r d c l a r i f i e s t h a t d e fe r r e d ta x a s s et r e c o g n i t i o n o n u n r e a l i s e d l o s s e s a r i s i n g
f r o m a s s et s m e a s u r e d a t fa i r va l u e i n t h e f i n a n c i a l s ta te m e nt s s h o u l d ca r r i e d o u t a f te r
ta k i n g i nto a cc o u nt a ny r e s t r i c t i o n s i m p o s e d u n d e r ta x l a w s o n t h e s o u rce o f ta x a b l e
p r o f i t s a g a i n s t w h i c h t h e d e d u c t i b l e te m p o r a r y d i f fe r e n ce s ca n b e o f f s et. F u r t h e r
t h e f u t u r e ta x a b l e p r o f i t s s h o u l d n ot i n c l u d e a ny a m o u nt s t h a t a r e r eve r s a l o f t h e
d e d u c t i b l e te m p o r a r y d i f fe r e n c e s .
A A S B 2 016 -1 i s n ot e x p e c te d to i m p a c t t h e G r o u p’s f i n a n c i a l s ta te m e nt s s i n c e
t h e d i r e c to r s b e l i eve t h a t t h e G r o u p’s a cco u nt i n g p o l i c y fo r d e fe r r e d ta x a s s et i n
r e l a t i o n to a s s et s m e a s u r e d a t fa i r va l u e i s a l r e a d y i n c o m p l i a n ce w i t h t h e s ta n d a r d .
F u r t h e r m o r e, t h e G r o u p d o e s n ot h a ve a ny s i g n i f i c a nt a s s et s m e a s u r e d a t fa i r va l u e.
– A A S B 2 016 - 5 : A m e n d m e n t s t o A u s t r a l i a n Acco u n t i n g S t a n d a r d s – C l a s s i f i ca t i o n a n d
M e a s u r e m e n t o f S h a r e - b a s e d Pa y m e n t T r a n s a c t i o n s (a p p l i ca b l e f r o m 1s t J a n u a r y
2 018)
T h i s s ta n d a r d p r ov i d e s g u i d a n c e o n t r e a t m e nt o f ve s t i n g co n d i t i o n s i n a c a s h - s et t l e d
s h a r e b a s e d p a y m e nt a r r a n g e m e nt t h a t a r e s i m i l a r to w h a t h a s b e e n p r e s c r i b e d fo r
e q u i t y s et t l e d s h a r e b a s e d p a y m e n t a r r a n g e m e n t s . I t a l s o c l a r i f i e s t h a t, s u b j e c t to
c e r ta i n e x ce pt i o n s , s h a r e b a s e d p a y m e nt t r a n s a c t i o n s w i t h n et - s et t l e m e nt fe a t u r e
o n a c co u nt o f w i t h h o l d i n g ta x o b l i g a t i o n s s h o u l d b e c l a s s i f i e d i n e nt i r et y a s e q u i t y
s et t l e d s h a r e b a s e d p a y m e nt.
S i n c e t h e G r o u p d o e s n ot h a ve a p o l i c y o f ca s h - s et t l e d s h a r e b a s e d a w a r d s o r n et -
s et t l e m e nt fe a t u r e s i n e q u i t y s et t l e d p l a n s , t h i s s ta n d a r d i s n ot e x p e c te d to i m p a c t
t h e G r o u p’s f i n a n c i a l s ta te m e n t s .
v.
RESTA TEMENT OF PRIOR P ERIOD F INANCIA L STA TEMENTS
SA H E A LT H L I T I GAT I O N
T h e l e g a l s et t l e m e nt s u m o f $ 5 m i l l i o n r e c e i ve d f r o m t h e r e s o l u t i o n o f t h e C h i r o n S o f t w a r e
l i t i g a t i o n h a d b e e n p r o p o r t i o n a te l y r e co g n i s e d a s r eve n u e fo r t h e ye a r e n d e d 3 0 J u n e 2 016 .
T h i s h a s b e e n i d e nt i f i e d a s a n e r r o r g i ve n t h e n a t u r e o f t h e s et t l e m e nt w h e r e i t r e l a te d to
c o m p e n s a t i o n i n d a m a g e s w h i c h s h o u l d b e r e co g n i s e d a s r eve n u e o n t h e d a te o f r e c e i pt
w h i c h o cc u r r e d i n A u g u s t 2 016 . T h e r e w e r e n o f u r t h e r p e r fo r m a n c e o b l i g a t i o n s r e q u i r e d f r o m
G l o b a l H e a l t h to p r ov i d e s e r v i c e s to S A H e a l t h . Acco r d i n g l y, t h e s et t l e m e nt s u m o f $ 5 m s h o u l d
b e r e c o g n i s e d i m m e d i a te l y a s r eve n u e o n r e c e i pt. T h e i m p a c t o f t h e a b ove r e s ta te m e nt h a s
r e s u l te d i n $1. 2 5 m i l l i o n b e i n g d e r e c o g n i s e d fo r t h e ye a r e n d e d J u n e 2 016 a n d r e s ta te d i n t h e
2 017 f i n a n c i a l ye a r.
50
30 June 2016
Res t at em e nt
Receivables
Revenue
(1,250,000)
(1,250,000)
I mp ac t
Decrease
Decrease
I n a d d i t i o n , $ 6 0 9, 5 2 7 o f c a p i ta l i s e d l e g a l c o s t s w e r e m i s c l a s s i f i e d to i nta n g i b l e a s s et s
r e l a t i n g to t h e S A H e a l t h l i t i g a t i o n f r o m w h i c h a n a m o r t i s a t i o n c h a r g e o f $15 2 , 3 8 2 h a d
b e e n r e c o g n i s e d i n p r o f i t o r l o s s . T h e s e ca p i ta l i s e d l e g a l co s t s r e l a te to t h e p r ote c t i o n o f
i nte l l e c t u a l p r o p e r t y. T h i s h a d b e e n r e c l a s s i f i e d a s ot h e r a s s et s r e l a t i n g to t h e ye a r e n d e d 3 0
J u n e 2 016 . T h e a m o r t i s a t i o n c h a r g e o n t h e ca p i ta l i s e d l e g a l c o s t s h a d b e e n d e r e co g n i s e d i n
t h e 2 016 f i n a n c i a l ye a r.
30 June 2016
Restatement
Intangible Assets
Other assets
Amortisation expense
(457,145)
609,527
(152,382)
Impact
Decrease
Increase
Decrease
C A PI TA L I SAT I O N O F OV E R H E A D E X PE N D I T U R E
G e n e r a l ove r h e a d c o s t s n ot d i r e c t l y a t t r i b u ta b l e to t h e d eve l o p m e nt o f i nte r n a l l y g e n e r a te d
i nta n g i b l e a s s et s h a d b e e n i n c o r r e c t l y ca p i ta l i s e d by $14 4 , 4 3 6 a n d $119, 4 97 d u r i n g t h e
f i n a n c i a l ye a r s e n d e d 3 0 J u n e 2 015 a n d 3 0 J u n e 2 016 r e s p e c t i ve l y. T h e s e c o s t s h a ve b e e n
r e s ta te d a s a n e x p e n s e i n t h e co r r e c t r e p o r t i n g p e r i o d a n d h a ve a cco r d i n g l y b e e n d e -
r e co g n i s e d f r o m i nta n g i b l e a s s et s .
30 June 2 016
Res t at em e nt
Intangible Assets
Accumulated Losses
Operating Expenses
(263,933)
144,436
119,497
I mp ac t
Decrease
Increase
Increase
A BA K I SO F T WAR E PU R C H A S E
T h e p u rc h a s e o f t h e A b a k i s o f t w a r e w h i c h o cc u r r e d i n t h e ye a r e n d e d 3 0 J u n e 2 016 h a d
b e e n i n a p p r o p r i a te l y r e c o r d e d o n i n i t i a l r e c o g n i t i o n . T h i s r e s u l te d i n a n u n d e r s ta te m e nt
o f i nta n g i b l e a s s et s by $ 3 2 8 , 511. T h e s o f t w a r e w a s a l s o m i s c l a s s i f i e d a s ot h e r a s s et s i n t h e
c o n s o l i d a te d s ta te m e nt o f f i n a n c i a l p o s i t i o n a s a t 3 0 J u n e 2 016 r e s u l t i n g i n a m i s c l a s s i f i ca t i o n
e r r o r o f $171, 4 8 9. A n a m o r t i s a t i o n c h a r g e o f $ 5 0 , 0 94 h a d a l s o b e e n r e s ta te d i n t h e 2 016
f i n a n c i a l ye a r to r e f l e c t t h e s u b s e q u e nt m e a s u r e m e nt o f t h e i nta n g i b l e a s s et.
30 June 2016
Res t at em e nt
Intangible Assets
Other Assets
Amortisation expense
Trade payable
449,906
(171,489)
50,094
(328,511)
I mp ac t
Increase
Decrease
Increase
Increase
w. NON-CONTROLLI NG INTE RES T
T h e n o n - c o nt r o l l i n g i nte r e s t i n e q u i t y h a d b e e n ove r s ta te d by $13 6 , 6 6 4 a s a t 3 0 J u n e 2 016
a r i s i n g f r o m a m i s a l l o ca t i o n o f t h e p r o f i t o r l o s s a n d ot h e r c o m p r e h e n s i ve i n c o m e b et w e e n
o w n e r s o f t h e p a r e nt a n d n o n - c o n t r o l l i n g i nte r e s t p r i o r to t h a t p e r i o d . T h i s h a s b e e n r e s ta te d
i n t h e e a r l i e s t co m p a r a t i ve p e r i o d p r a c t i ca b l e, w h i c h h a s b e e n i d e nt i f i e d a s 3 0 J u n e 2 015 .
T h e i m p a c t h a d b e e n d ete r m i n e d a s fo l l o w s :
51
30 June 20 16
Res t at em e nt
Non-controlling interest
Accumulated losses
136,664
(136,664)
I m pac t
Increase
Decrease
T h e c u m u l a t i ve i m p a c t o n t h e f i n a n c i a l s ta te m e nt s a r i s i n g f r o m t h e r e s ta te m e nt s o n t h e p r i o r
p e r i o d e r r o r s a r e d i s c l o s e d a s fo l l o w s :
CO N SO L I DAT E D S TAT E M E N T O F F I N A N C I A L P O S I T I O N
30 June
2015
Increase/
(Decrease)
Receivables
Other Assets
931,730
235,989
0
0
Intangibles
4,025,198
(144,436)
Payables
718,130
0
30 Ju n e
2015
(Re st a te d)
931,730
235,989
3,880,762
718,130
30 Ju n e
2016
I n cr ea se /
(De c re as e)
30 Ju ne
2016
(Re st ated)
2,786,734
(1,250,000)
1,536,734
403,680
5,118,324
1,067,257
438,038
(271,172)
328,511
841,718
4,847,152
1,395,768
Net As sets
3,628,006
(14 4,436)
3, 483, 570
5, 056, 903
(1, 411, 645)
3, 645, 258
Accumulated
losses
Non-controlling
interest
(16,969,316)
(281,100)
(17,250,416)
(15,596,046)
(1,548,309)
(17,144,355)
(138,176)
136,664
(1,512)
(136,256)
136,664
408
Total Equity
3,628,006
(14 4,436)
3, 483, 570
5, 056, 903
(1, 411, 645)
3, 645, 258
CO N SO L I DAT E D S TAT E M E N T O F PRO F I T O R LO S S A N D OT H E R CO M PR E H E N S I V E
I N CO M E
30 June
2015
Increase/
(Decrease )
30 Ju n e
2015
(Re st a te d)
30 Ju n e
2016
I n cr ea se /
(De c re as e)
30 Ju ne
2016
(Re st ated)
Revenue from
the sale of
licenses and
3,504,313
0
3,504,313
4,837,110
(1,250,000)
3,587,110
maintenance
contracts
General and
administration
-777,354
-144,436
-921,790
-838,026
(119,497)
(957,523)
costs
Amortisation
-211,371
0
-211,371
-364,331
102,288
-262,043
Prof it
before
income tax
Income tax
expense
Net profit
for the
period
1,059,907
-144,4 36
915, 471
1, 375, 154
(1, 267, 209)
107, 94 5
0
0
0
1,059,907
-144,4 36
915, 471
1, 375, 154
(1, 267, 209)
107, 94 5
52
2. R EVEN UE A N D O T HER INC OME
Revenue
Sales of licenses
Maintenance contracts
Professional services
Other Income
Settlement on Chiron Software litigation - refer note 1(v)
Interest received on financial assets
Research and Development grants
Other
3. EX P ENS ES
Prof it bef ore inco me tax inclu de s th e f o llo w in g
specific expense s
Direct external costs
Depreciation of non-current assets
Amortisation of Intangibles
Impairment of Intangibles
C on s ol id at ed Gr o up
2017
$
906,187
2,509,588
1,191,795
4,607,570
5,000,000
43,206
423,002
226,403
5,692,611
2016
$
800,224
2,786,886
906,187
4,493,297
-
15,069
518,089
172,995
706,153
10,300,181
5,199,450
C on s ol id at ed Gr o up
2017
$
263,754
87,931
266,021
917,381
2016
$
170,475
122,048
262,043
-
Wages and salaries, net of Capitalised Development cost
4,954,609
3,496,079
Travel and accommodation
Operating lease expense
Finance cost (interest expense and bank charges)
116,222
149,700
146,500
118,502
161,794
97,568
53
4.
I NC O ME T AX EX PE NSE
C on s o lid at ed G rou p
The major component s of t ax e xpen s e c o m p ris e:
Current Tax
Deferred Tax
The prima facie t ax on pro fit fr o m o r d in a ry a c t iv it ie s
before income tax is r ec onc ile d t o t he i n c om e t ax as
follows:
Profit from continuing operations before income tax
Prima facie tax/ (tax benefit) at 30% (2016: 30%)
Add tax effect of:
AIFRS adjustments (non-deductible)
Foreign exchange taxable gains
Entertainment (non-deductible)
Entertainment (non-deductible)
Legal expenses (non-deductible)
Prior period differences
Less tax effect of:
Tax losses deducted
Grants receivable
Refundable tax offsets
Tax losses recognised
Income tax expense recognised
Current and Deferre d tax balanc e s :
Assets :
CURRENT/NON-CURRENT
Current tax asset
Deferred tax asset
Liabi lities:
Deferred tax liability
2017
$
(481,842)
685,816
1,932,019
579,606
19,965
-
17,712
17,712
5,815
1,122,211
(1,098,248)
(126,901)
(481,842)
(349,507)
203, 974
481,842
596,599
1,282,415
2016
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
54
5.
C AS H A N D CASH E QUIVAL ENTS
Cash at bank and on hand
Deposits at call
C on s ol id at ed Gr o up
2017
$
384,966
2,158,446
2016
$
1,149,028
-
Balance per St at eme nt of Ca sh F lo w s
2, 543, 412
1, 149, 028
6. T R AD E A ND OT HER RE CEIVAB L E S
Current
Trade receivables
Impairment of receivables
Non-Current
Trade receivables
C on s o lid at ed G rou p
2017
$
1,850,658
(29,560)
2016
$
1,537,645
(911)
1, 821, 098
1, 536, 734
140,911
140, 911
276,645
276, 645
1, 962, 009
1, 813, 379
PROV I S I O N F O R I M PA I R M E N T O F CU R R E N T T R A D E R E C E I VA B L E S
C u r r e nt t r a d e r e ce i va b l e s a r e n o n - i nte r e s t b e a r i n g r e c e i va b l e s a n d g e n e r a l l y o n 3 0 - d a y
te r m s . A p r ov i s i o n fo r i m p a i r m e nt i s r e c o g n i s e d w h e n t h e r e i s o b j e c t i ve ev i d e n ce t h a t a n
i n d i v i d u a l t r a d e r e c e i va b l e i s i m p a i r e d .
M ove m e nt s i n t h e p r ov i s i o n a r e a s fo l l o w s :
Balance at beginning of year
Charge for year
Amounts written off
Amounts reversed
Closing balanc e
C on s o lid at ed G rou p
2017
$
911
28,649
-
-
2016
$
911
-
-
-
29, 560
911
55
T R A D E R E C E I VA B L E S - I M PA I R E D
A s a t 3 0 J u n e 2 017, t h e fo l l o w i n g t r a d e r e c e i va b l e s o f t h e G r o u p w e r e p a s t d u e a n d i m p a i r e d
(2 016: $ 911). T h e a g e i n g o f t r a d e r e c e i va b l e s w h i c h h a ve b e e n i m p a i r e d a r e a s fo l l o w s :
1 to 3 months
3 to 6 months
Over 6 months
C on s ol id at ed Gr o up
2017
2016
$
-
-
29,560
$
-
-
911
T R A D E R E C E I VA B L E S T H AT AR E PA S T D U E B U T N OT I M PA I R E D
A s o f 3 0 J u n e 2 017, t r a d e r e ce i va b l e s o f $ 4 9 0 , 4 67 (2 016: $ 37 8 , 5 7 8 ) w e r e p a s t d u e b u t n ot
i m p a i r e d . T h e s e r e l a te to a n u m b e r o f i n d e p e n d e n t c u s to m e r s fo r w h o m t h e r e i s n o r e c e nt
h i s to r y o f d e fa u l t. T h e a g e i n g a n a l y s i s o f t h e s e t r a d e r e c e i va b l e s i s a s fo l l o w s :
1 month
2-3 months
Over 3 months
C on s ol id at ed Gr o up
2017
$
150,759
131,287
208,421
2016
$
66,411
193,518
118,649
FA I R VA L U E S
T h e ca r r y i n g va l u e l e s s i m p a i r m e nt p r ov i s i o n o f t r a d e r e c e i va b l e s a r e a s s u m e d to
a p p r o x i m a te fa i r va l u e.
7. O T HER AS SE TS
Current
Prepayments
SA Health – legal IP protection costs
Security bonds
C on s ol id at ed Gr o up
2017
$
77,504
-
108,465
185, 969
2016
$
116,089
609,527
116,102
841, 718
56
8. P R OP ER TY , P LAN T AND EQUIPM E NT
a . PROPERTY, PL ANT AND EQ UIP ME NT S U MMAR Y
Property, plant and e qu ip me n t
Leasehold improvements – at cost
Accumulated amortisation
Plant and equipment – at cost
Accumulated depreciation
Total property, plant and equ ipme n t
C on s ol id at ed Gr o up
2017
$
178,787
(117,727)
61, 060
344,221
(254,543)
89, 678
150, 738
2016
$
178,787
(92,065)
86, 722
278,165
(192,274)
85, 891
172, 613
b . PROPERTY, PL ANT AND EQ UIP ME NT R ECO NCIL IA TION
Movement in Carr ying Am ou n t
Leasehold improv ement s
Carrying amount – as at 1 July
Additions
Amortisation
Carrying amount – as at 30 June
Plant and equip me nt
Carrying amount – as at 1 July
Additions
Disposal, net
Depreciation
Carrying amount – as at 30 June
C on s ol id at ed Gr o up
2017
$
86,722
-
(25,662)
61,060
85,891
66,056
-
(62,269)
89, 678
2016
$
132,448
5,570
(51,296)
86,722
14,523
143,703
(1,583)
(70,752)
85, 891
Total property, plant and equ ipme n t
150, 738
172, 613
57
9.
I NT A NG IB LE AS SET S
a .
INTANGIBLE ASSET SUMMA RY
Intangible assets
C on s ol id at ed Gr o up
2017
$
2016
Res t at ed
$
Products und er d ev elopmen t – at co s t *
3, 946, 143
2, 838, 462
Developed Products
Cost
Accumulated amortisation
Accumulated Impairment
Total Develop ed Pr oduct s
Total intangible assets
2,844,203
(1,055,045)
(917,381)
871, 777
4,817,920
2,797,715
(789,024)
-
2, 008, 691
4,847,152
* T h i s r e p r e s e nt s c o s t s a r i s i n g f r o m t h e d eve l o p m e nt p h a s e o f i nte r n a l p r o j e c t s . D eve l o p m e nt
c o s t s i n c o r p o r a te d i r e c t l y a t t r i b u ta b l e e m p l oye e b e n e f i t e x p e n s e s , fe e s to r e g i s te r a l e g a l
r i g ht a n d ot h e r d i r e c t m a te r i a l a n d s e r v i c e s c o s t s to d eve l o p t h e p r o j e c t.
D eve l o p e d p r o d u c t s h a ve f i n i te u s e f u l l i fe o f 10 ye a r s w h i c h a r e a m o r t i s e d o n a s t r a i g ht l i n e
b a s i s ove r t h e i r e f fe c t i ve l i fe. T h e c u r r e n t a m o r t i s a t i o n c h a r g e s fo r i nta n g i b l e a s s et s h a ve
b e e n s e p a r a te l y p r e s e nte d a s a m o r t i s a t i o n e x p e n s e i n t h e co n s o l i d a te d s ta te m e nt o f p r o f i t o r
l o s s a n d ot h e r c o m p r e h e n s i ve i n c o m e.
b.
INTANGIBLE ASSET RECONC ILIA TION
Movement in Carrying
Amount
Carrying amount – as at 1 July 2015
Restated
Additions
Transfer of commercialised product
Disposals
Amortisation charge
Impairment
Carrying amount – as at 30
June 2016
Restated
Products u nd er
De velopm e nt
$
1,826,430
1,012,032
-
-
-
-
De velo pe d Pro du c ts
$
2,270,733
-
-
-
(262,043)
-
T ot a l
$
4,097,163
1,012,032
-
-
(262,043)
-
2,838, 462
2, 008, 690
4, 847, 152
Carrying amount – as at 1 July 2016
Additions
Transfer of commercialised product
Disposals
Amortisation charge
Impairment
2,838,462
1,107,682
-
-
-
-
Carrying amount – as at 30
June 2017
3,946, 144
2,008,690
46,487
-
-
(266,020)
(917,381)
871, 776
4,847,152
1,154,169
-
-
(266,020)
(917,381)
4, 817, 920
58
c .
IMPAI RMENT DISCLOSURES
D E V E LO PE D PRO D U C T S
A s a t 3 0 J u n e 2 017, a n i m p a i r m e nt c h a r g e o f $ 917, 3 81 h a d b e e n r e c o g n i s e d i n r e l a t i o n to
c e r ta i n d eve l o p e d p r o d u c t s d u e to i m p a i r m e nt i n d i ca to r s i d e n t i f i e d f r o m u n d e r p e r fo r m i n g
a s s et s . F o r e ca s te d ca s h f l o w s , b e i n g a n e s t i m a te o f t h e r e c ove r a b l e a m o u nt o f t h e a s s et s h a d
i n d i ca te d a d e f i c i e n c y a g a i n s t t h e a s s et ’s ca r r y i n g va l u e s , p r i n c i p a l l y d r i ve n by t h e b u s i n e s s
c h a l l e n g e s fa ce d i n t h e s o f t w a r e a n d te c h n o l o g i c a l e nv i r o n m e nt.
T h e i m p a i r m e nt te s t i n g h a d b e e n p e r fo r m e d b a s e d o n t h e ca s h g e n e r a t i n g u n i t s i d e nt i f i e d
by s o f t w a r e p r o d u c t l i n e s . T h e s e p r o d u c t l i n e s fa l l w i t h i n t h e a c u te a n d n o n - a c u te r e p o r t i n g
s e g m e nt s a s o u t l i n e d i n N ote 2 6 . T h e i m p a i r m e nt c h a r g e r e c o g n i s e d w i t h r e s p e c t to e a c h
s o f t w a r e p r o d u c t l i n e a r e:
Year ended
30 June
2017
Impairment
charge
Refer ralNet Mast erCare
L ife c ar d
Aba ki
St re am lin ing
t he Pat ien t
J ou rn e y
T ot al
(733,381)
-
(184,000)
-
-
(917,381)
T h e i m p a i r m e nt c h a r g e r e c o g n i s e d w i t h r e s p e c t to Re fe r r a l N et a n d L i fe ca r d fo r m p a r t o f t h e
n o n - a c u te r e p o r t i n g s e g m e nt.
T h e r e c ove r a b l e a m o u nt o f e a c h ca s h - g e n e r a t i n g u n i t a b ove i s d ete r m i n e d b a s e d o n va l u e -
i n - u s e ca l c u l a t i o n s . Va l u e - i n - u s e i s ca l c u l a te d b a s e d o n t h e p r e s e nt va l u e o f ca s h f l o w
p r o j e c t i o n s ove r a 5 ye a r p e r i o d . T h e ca s h f l o w s a r e d i s c o u nte d u s i n g a p r e - ta x d i s c o u nt r a te
o f 10 % .
T h e fo l l o w i n g key a s s u m pt i o n s w e r e u s e d i n t h e va l u e - i n - u s e ca l c u l a t i o n s :
P r e - ta x d i s co u nt r a te o f 10 %
- G r o w t h r a te s
- E m p l oy m e n t c o s t s
- N o te r m i n a l g r o w t h r a te to e x t r a p o l a te ca s h f l o w s b eyo n d t h e fo r e ca s t p e r i o d *
* T h e s o f t w a r e p r o d u c t l i n e s h a ve a f i n i te u s e f u l l i fe, h e n ce n o te r m i n a l va l u e h a d b e e n
i n c l u d e d a t t h e e n d o f t h e 5 ye a r p e r i o d i n t h e r e c ove r a b l e a m o u nt ca l c u l a t i o n .
M a n a g e m e nt h a s b a s e d t h e va l u e - i n - u s e c a l c u l a t i o n s o n b u d g et s fo r e a c h r e p o r t i n g
s e g m e nt. T h e s e b u d g et s u s e h i s to r i ca l w e i g hte d a ve r a g e g r o w t h r a te s to p r o j e c t r eve n u e.
C o s t s a r e c a l c u l a te d ta k i n g i nto a cc o u nt h i s to r i ca l g r o s s m a r g i n s a s w e l l a s e s t i m a te d
w e i g hte d a ve r a g e i n f l a t i o n r a te s ove r t h e p e r i o d , w h i c h a r e c o n s i s te nt w i t h i n f l a t i o n r a te s
a p p l i ca b l e to t h e l o ca t i o n s i n w h i c h t h e G r o u p o p e r a te s .
59
10. DEF ER RE D T AX BA LANC ES
Deferred tax asset
Open in g
Bala n ce
Rec o gn is ed in
Pr of it o r L os s
Opening balance at 1 July 201 6
Future income tax benefits attributable to
tax losses
Accrued expenses
Provisions
Cl osing balance at 30 J une 2017*
$
-
-
-
-
-
$
-
349,507
51,216
195,876
596, 599
Rec o gn is ed
dir e ct ly in
Eq u ity
$
-
-
-
-
-
Deferred tax liab ility
Opening balance at 1 July 201 6
Prepayments and other assets
Intangible assets
Clo sing balance at 3 0 June 201 7*
Open in g
Bala n ce
000’ s
$
-
-
-
-
Rec o gn is ed in
Pr of it o r L os s
000’ s
$
-
985
1,281,430
1, 282, 415
Rec o gn is ed
dir ec t ly in
Eq ui ty
000’ s
$
-
-
-
-
T ot al
$
-
349,507
51,216
195,876
596,5 99
T ot al
000 ’s
$
-
985
1,281,430
1, 282,4 15
* T h i s i s t h e f i r s t ye a r f r o m w h i c h ta x e f fe c t i ve a cc o u nt i n g h a d b e e n a p p l i e d i n d ete r m i n i n g
t h e r e s p e c t i ve d e fe r r e d a s s et s a n d l i a b i l i t i e s a s a t 3 0 J u n e 2 017.
11. P AY A B LES
Trade creditors
Other creditors and accruals
C on s o lid at ed G rou p
2017
$
469,635
609,647
2016
$
712,326
683,442
1, 079, 282
1, 395, 768
T h e ca r r y i n g va l u e o f t r a d e p a ya b l e s i s a s s u m e d to a p p r o x i m a te fa i r va l u e.
12. I NT ER E ST BE AR I N G LIABIL ITIES
Current
Borrowings
Non-Current
Borrowings
C on s o lid at ed G rou p
2017
$
2016
$
389,880
389, 880
355,351
355, 351
1,078,880
1,386,378
1, 078, 880
1, 386, 378
I nte r e s t b e a r i n g l i a b i l i t i e s a r e p r ov i d e d to G r o u p o n te r m s o f 5 ye a r s a n d a n a ve r a g e e f fe c t i ve
i nte r e s t r a te o f 8 . 6 0 % .
60
13. EMP LO Y EE BE NEFI TS
Analysis o f Emplo yee Be n ef it s
Co nsolidat ed Grou p
Opening balance at 1 July
Amounts taken during the year
Amount provided during the year
Closing Balance 30 June
Current
Employee benefits
Non – Current
Employee benefits
14. U NEA R NED INC O ME
C on s ol id at ed Gr o up
2017
$
2016
$
569,371
(254,744)
222,606
537,233
579,998
(252,291)
241,664
569,371
506,469
423,370
30,764
537, 233
146,001
569, 371
C on s o lid at ed G rou p
2017
$
2016
$
Current
Annual licence and maintenance in advance
1,462,870
1,471,764
Non-Current
Annual licence and maintenance in advance
46,218
-
A n n u a l l i c e n c e a n d m a i nte n a n c e i n a d va n ce r eve n u e c o m p r i s e s fe e s fo r t h e r i g ht to u s e
o u r s o f t w a r e, m i n o r f i x e s , r i g ht s to u p d a te d ve r s i o n s a n d l i m i te d h e l p l i n e s u p p o r t. T h e s e a r e
i nvo i c e d u p to 12 m o nt h s i n a d va n c e. T h e r eve n u e i s r e c o g n i s e d m o nt h l y a s t h e s e r v i c e s a r e
1, 509, 088
1, 471, 764
p r ov i d e d to c l i e nt s .
15. CO NT R I B UT ED EQ UI T Y
C on s ol id at ed Gr o up
2017
Nu m be r
2017
$
2016
Nu mb er
2016
$
Issued and paid up c ap ital
33, 354, 995 20, 836, 242 32, 846, 662 20, 728,7 42
Ordinary shares
Opening balance
Add: Shares issued for the purchase of the medical
software assets of Abaki Pty Ltd
32,846,662
20,728,742
32,659,758
20,656,242
208,333
62,500
146,904
62,500
Add: Shares issued under Exempt Employee Share Plan
-
-
40,000
10,000
Add: Shares issued from exercise of options
300,000
45,000
-
-
Total number of shares o n issu e
33, 354, 995 20, 836, 242 32, 846, 662 20, 728,7 42
61
a . ORDI NARY SHARES
T h e h o l d e r s o f o r d i n a r y s h a r e s a r e e nt i t l e d to r e c e i ve d i v i d e n d s a s t h ey a r e d e c l a r e d f r o m
t i m e to t i m e a n d a r e e nt i t l e d to o n e vote p e r s h a r e a t t h e s h a r e h o l d e r s m e et i n g . I n t h e
eve nt o f w i n d i n g u p t h e C o m p a ny o r d i n a r y s h a r e h o l d e r s r a n k a f te r a l l ot h e r s h a r e h o l d e r s
a n d c r e d i to r s a n d a r e f u l l y e nt i t l e d to a ny n et p r o c e e d s o f l i q u i d a t i o n . T h e r e i s n o p a r va l u e
a t t r i b u te d to t h e s h a r e s o f t h e C o m p a ny.
O n 2 A u g u s t 2 016 , 2 0 8 , 3 3 3 s h a r e s w e r e i s s u e d i n t h e s e c o n d i n s ta l l m e nt o f t h e A b a k i
a c q u i s i t i o n .
O n 9 F e b r u a r y 2 017, 3 0 0 , 0 0 0 o pt i o n s w e r e e x e rc i s e d a t a s t r i ke p r i c e o f $ 0 .15 p e r s h a r e
($ 4 5 , 0 0 0 )
b . OPTIONS
T h e m ove m e nt i n t h e n u m b e r o f u n l i s te d o pt i o n s o n i s s u e t h r o u g h o u t t h e ye a r i s a s fo l l o w s :
(i)
$0. 15 options ex ercisable on o r be fo re 5 J u ly 20 17
Opening balance
Issued
Exercised
Cancelled
Closing balance
(ii)
$0. 65 options ex ercisable on o r be fo re 1 9 De ce m be r 2017
Opening balance
Issued
Exercised
Cancelled
Closing balance
(iii )
$0. 75 options ex ercisable on o r be fo re 2 6 May 2019
Opening balance
Issued
Exercised
Cancelled
C on s ol id at ed Gr o up
2017
Nu mb er
201 6
Nu mbe r
300,000
-
(300,000)
-
-
300,000
-
-
-
300, 0 00
530,000
690,000
-
-
-
530, 000
-
-
(160,000)
530, 0 00
300,000
300,000
-
-
-
-
-
-
Closing balance
300, 000
300, 0 00
(iv)
$0. 65 options ex ercisable on o r be fo re 1 0 J un e 2020
Opening balance
Issued
Exercised
Cancelled
Closing balance
(v )
$0. 75 options ex ercisable on o r be fo re 3 0 No ve m be r 201 9
Opening balance
Issued
Exercised
Cancelled
Closing balance
62
390,000
390,000
-
-
(80,000)
310, 000
-
400,000
-
-
400, 000
-
-
-
390, 0 00
-
-
-
-
-
(v i)
$0. 75 options ex ercisable on o r be fo re 3 0 No ve m be r 202 1
Opening balance
Issued
Exercised
Cancelled
Closing balance
TOTAL
C on s o lid at ed G rou p
2017
Nu m be r
201 6
Nu m ber
-
600,000
-
-
600, 000
-
-
-
-
-
2, 140, 000
1, 520, 00 0
At t h e C o m p a ny A n n u a l G e n e r a l M e et i n g h e l d o n 2 9 N ove m b e r 2 016 , s h a r e h o l d e r s a p p r ove d
t h e i s s u e o f :
- 4 0 0 , 0 0 0 o pt i o n s w i t h a n e x p i r y d a te o f 3 0 N ove m b e r 2 019 a t a s t r i ke p r i c e o f $ 0 . 75 p e r s h a r e
- 6 0 0 , 0 0 0 o pt i o n s w i t h a n e x p i r y d a te o f 3 0 N ove m b e r 2 0 21 a t a s t r i ke p r i c e o f $ 0 . 75 p e r s h a r e.
O n 2 3 J u n e 2 017, d u e to t h e r e s i g n a t i o n o f a n e m p l oye e, 8 0 , 0 0 0 u n l i s te d e m p l oye e o pt i o n s
w h i c h h a d n ot yet ve s te d , w e r e fo r fe i te d .
c . CAPITAL MANAGEMENT
M a n a g e m e nt co nt r o l s t h e ca p i ta l o f t h e G r o u p i n o r d e r to m a i nta i n a g o o d d e bt to e q u i t y
r a t i o, p r ov i d e t h e s h a r e h o l d e r s w i t h a d e q u a te r et u r n s a n d e n s u r e t h a t t h e G r o u p ca n f u n d
i t s o p e r a t i o n s a n d c o nt i n u e a s a g o i n g co n ce r n . T h e G r o u p’s d e bt a n d ca p i ta l co m p r i s e s
o r d i n a r y s h a r e ca p i ta l , s u p p o r te d by f i n a n c i a l a s s et s . T h e r e a r e n o e x te r n a l l y i m p o s e d
ca p i ta l r e q u i r e m e nt s .
M a n a g e m e nt e f fe c t i ve l y m a n a g e s t h e G r o u p’s ca p i ta l by a s s e s s i n g t h e G r o u p’s f i n a n c i a l r i s k s
a n d a d j u s t i n g i t s c a p i ta l s t r u c t u r e i n r e s p o n s e to c h a n g e s i n t h e s e r i s k s a n d i n t h e m a r ket.
T h e s e r e s p o n s e s i n c l u d e t h e m a n a g e m e nt o f d e bt l eve l s , d i s t r i b u t i o n s to s h a r e h o l d e r s a n d
s h a r e i s s u e s .
T h e r e h a ve b e e n n o c h a n g e s i n t h e s t r a te g y a d o pte d by m a n a g e m e nt to c o nt r o l t h e ca p i ta l
o f t h e G r o u p s i n c e t h e p r i o r ye a r. T h e g e a r i n g r a t i o s fo r t h e ye a r s e n d e d 3 0 J u n e 2 017 a n d 3 0
J u n e 2 016 a r e a s fo l l o w s :
Gearing Ratios
Borrowings
Less Cash and Cash Equivalents
Net Debt
Total e quity
Total c apital
Gearing Ratio
C on s ol id at ed Gr o up
2017
Nu mb er
2016
Nu m be r
1,468,760
(2,543,412)
(1,074,652)
4, 861, 711
3, 787, 059
(28% )
1,741,219
(1,149,028)
592,191
3, 645, 258
4, 237, 449
14%
63
16. R ES ER VES
a . CURRENCY TRANSLATION RE SER VE
T h e fo r e i g n c u r r e n c y t r a n s l a t i o n r e s e r ve r e c o r d s t h e fo r e i g n c u r r e n c y d i f fe r e n c e s a r i s i n g f r o m
t h e t r a n s l a t i o n o f fo r e i g n o p e r a t i o n s .
Reconciliation of c urrency t ra n s lat io n r e s e r ve
Balance at beginning of financial year
Exchange differences on translation of foreign operations
Balanc e at the end of the fi na n ci al ye a r
C on s ol id at ed Gr o up
2017
$
30,485
(6,251)
24, 234
2016
$
49,278
(18,793)
30, 485
b . OPTION RESERVE
T h e o pt i o n r e s e r ve r e c o r d s i te m s r e c o g n i s e d a s e x p e n s e s o n va l u a t i o n o f e m p l oye e s h a r e
o pt i o n s .
Reconciliation o f opt ion r e se rv e
Balance at beginning of financial year
Share based payment expense
C on s ol id at ed Gr o up
2017
$
29,978
50,867
2016
$
29,978
-
Balanc e at the end of the fi na n ci al ye a r
80, 845
29, 978
17. A CCUMU LA TE D L OSSES
C on s o lid at ed G rou p
2017
$
2016
Res t at ed
$
Accumulated losses at the beginning of the financial year
(17,144,355)
(17,250,416)
Net profit attributable to the members of the parent entity
Dividends paid
1,728,369
(663,700)
106,061
-
Accumulated lo sses at the en d of t h e f in a n cia l ye a r
(16, 079, 686)
(17, 144, 355)
18. N ON - CO NT R OLLI NG INT EREST
G l o b a l H e a l t h L i m i te d h a s a 9 3 . 8 % (2 016: 9 3 . 8 %) i nte r e s t i n t h e s u b s i d i a r y Wo r k i n g Sy s te m s
S o l u t i o n s (M a l a y s i a) S d n B h d . Reta i n e d e a r n i n g s a t t r i b u ta b l e to t h e n o n - co nt r o l l i n g i nte r e s t
a r e a s fo l l o w s :
64
Balance at the beginning of t he f in an c ia l ye ar
Non-controlling interests attributable to this entity is as follows:
- share of profit/(loss)
- share of currency translation reserve
Balance at the e nd of t he fin a n c ia l yea r
C on s ol id at ed Gr o up
2017
$
408
(324)
(8)
76
2016
Res t at ed
$
(1, 512)
1,884
36
408
19. P AR T I CULA RS I N REL ATION T O C ONTROL L E D E NTITIE S
G l o b a l H e a l t h L i m i te d , i n c o r p o r a te d i n A u s t r a l i a , i s t h e u l t i m a te p a r e nt e n t i t y. I t s l e g a l fo r m
i s a p u b l i c c o m p a ny a n d t h e C o m p a ny i s d o m i c i l e d i n V i c to r i a . U n l e s s s ta te d ot h e r w i s e,
a l l s u b s i d i a r i e s p r i n c i p a l a c t i v i t y i s t h e s a l e a n d s u p p o r t o f a p p l i ca t i o n s o f t w a r e fo r t h e
h e a l t h ca r e s e c to r.
Controlled Entity
Plac e o f
In co rp or at io n
T ype of
Se cu r ity
I n te re s t
2017
I n te re st
2016
Global Health (Australia) Sdn Bhd
Kuala Lumpur
Working Systems Solutions (Malaysia)
Sdn Bhd
Kuala Lumpur
Working Systems Solutions Pty Ltd
Victoria
Uni U International Pty Ltd
Western Australia
Working Systems Solutions (Singapore)
Pte Ltd
Singapore
Bourke Johnston Systems Pty Ltd
Victoria
Working Systems Software Pty Ltd
Western Australia
Statewide Unit Trust
Western Australia
Ordinary
Shares
Ordinary
Shares
Ordinary
shares
Ordinary
shares
Ordinary
shares
Ordinary
shares
Ordinary
shares
Units
100%
100%
94%
94%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
65
20. F IN AN CI AL IN ST RU ME NTS AND RIS K M ANAGE ME NT
T h e G r o u p’s f i n a n c i a l i n s t r u m e nt s c o n s i s t p r i m a r i l y o f t r a d e r e c e i va b l e s , t r a d e p a ya b l e s a n d
b o r r o w i n g s . T h e G r o u p d o e s n ot h a ve s i g n i f i ca nt r i s k e x p o s u r e to f i n a n c i a l i n s t r u m e nt s a n d
a s s u c h r i s k e x p o s u r e s a r e g e n e r a l l y m a n a g e d a s p a r t o f t h e G r o u p’s ove r a l l s t r a te g i c a n d
o p e r a t i o n a l r i s k m a n a g e m e nt s t r a te g i e s . C o n s e q u e nt l y, t h e r e i s c u r r e n t l y n o s p e c i f i c r i s k
m i t i g a t i n g te c h n i q u e s e m p l oye d . H o w eve r, a s t h e G r o u p e x p a n d s b ot h d o m e s t i ca l l y a n d
i nte r n a t i o n a l l y, m a n a g e m e nt c o nt i n u e s to m o n i to r i t s e x p o s u r e a n d w i l l i m p l e m e nt s u i ta b l e
p o l i c i e s w h e n d e e m e d n e c e s s a r y.
T h e f i n a n c i a l i n s t r u m e nt s h e l d by t h e G r o u p a r e a s fo l l o w s :
Financial Asset s
Cash and cash equivalents
Trade and other receivables
Financial Liabilities
Financial liabilities at amortised cost:
Trade and other payables
Borrowings
C on s ol id at ed Gr o up
2017
$
2016
$
5
6
10
11
2,543,412
1,962,009
1,149,028
1,813,379
4, 505, 421
2, 962, 407
(1,079,282)
(1,468,761)
(1,395,768)
(1,741,729)
(2, 548, 042)
(3, 137, 497)
T h e G r o u p i s e x p o s e d to fo r e i g n c u r r e n c y f l u c t u a t i o n s d u e to l o a n a cc o u nt s b et w e e n r e l a te d
e nt i t i e s b e i n g u n h e d g e d a n d r e q u i r i n g p a y m e nt i n A u s t r a l i a n d o l l a r a t a n u n d ete r m i n e d d a te
i n t h e f u t u r e.
a. CREDI T RISK
C r e d i t r i s k r e fe r s to t h e r i s k t h a t t h e c o u nte r p a r t y w i l l d e fa u l t o n i t s co nt r a c t u a l o b l i g a t i o n s
r e s u l t i n g i n f i n a n c i a l l o s s to t h e G r o u p a n d e s s e n t i a l l y a r i s e s f r o m h o l d i n g s o f ca s h a n d
d e p o s i t s , t r a d e r e c e i va b l e s a n d l o a n s r e ce i va b l e a s w e l l a s f r o m t h e p a r e nt ’s p ote nt i a l
o b l i g a t i o n s u n d e r t h e i n d e m n i t y g u a r a nte e p r ov i d e d to b a n k s . T h e r i s k i s l a r g e l y m a n a g e d
t h r o u g h a p o l i c y o f o n l y d e a l i n g w i t h c r e d i t w o r t hy c o u nte r p a r t i e s . Pe r i o d i c a s s e s s m e nt s
o f d e bto r b a l a n ce s a r e u n d e r ta ke n a n d p r ov i s i o n s fo r i m p a i r m e nt a r e r e c o g n i s e d w h e r e
a p p r o p r i a te.
M a x i m u m e x p o s u r e to c r e d i t r i s k w i t h o u t ta k i n g a cc o u nt o f a ny c o l l a te r a l h e l d o r ot h e r
c r e d i t e n h a n c e m e nt s a r i s i n g f r o m t h e G r o u p’s r e c o g n i s e d f i n a n c i a l a s s et s i s co n s i d e r e d to
b e e q u i va l e nt to t h e i r ca r r y i n g va l u e s a t r e p o r t i n g d a te. M a x i m u m e x p o s u r e s a r i s i n g f r o m
t h e i n d e m n i t y g u a r a nte e a r e a s d i s c l o s e d a t N ote 2 4: C o m m i t m e nt s a n d C o nt i n g e n c i e s . T h e
G r o u p d o e s n ot h a ve a ny s i g n i f i ca nt c r e d i t r i s k e x p o s u r e to a ny s i n g l e c o u nte r p a r t y o r g r o u p s
o f c o u nte r p a r t i e s h a v i n g s i m i l a r c h a r a c te r i s t i c s .
T h e m a j o r i t y o f c u s to m e r s h a ve l o n g s ta n d i n g b u s i n e s s r e l a t i o n s h i p s w i t h t h e G r o u p a n d t h e i r
c r e d i t q u a l i t y w i t h r e s p e c t to t r a d e r e c e i va b l e s i s a s s e s s e d a s h i g h .
A l l ca s h a n d ca s h e q u i va l e nt s a r e h e l d w i t h l a r g e r e p u ta b l e f i n a n c i a l i n s t i t u t i o n s w i t h i n
A u s t r a l i a , M a l a y s i a a n d S i n g a p o r e a n d t h e r e fo r e c r e d i t r i s k i s c o n s i d e r e d ve r y l o w.
66
Cash at Bank and deposits
Australian banks
Malaysian banks
b .
LIQUIDI TY RISK
C on s o lid at ed G rou p
2017
$
2,529,019
13,791
2016
$
1,145,451
3,577
2, 542, 810
1, 149, 028
L i q u i d i t y r i s k i s m a n a g e d t h r o u g h m o n i to r i n g c u r r e nt f u n d s a va i l a b l e, u n d r a w n fa c i l i t i e s
a n d a nt i c i p a te d r e c ove r y o f r e ce i va b l e s a n d c o m p a r i n g w i t h f u t u r e f u n d i n g r e q u i r e m e nt s
c o nta i n e d i n m a n a g e m e nt b u d g et s a n d fo r e ca s t s . I n t h i s r e g a r d , t h e t i m i n g o f e x p e c te d
s et t l e m e nt o f l i a b i l i t i e s i s a l s o a n a l y s e d s o a s to m i n i m i s e r i s k w i t h r e s p e c t to o b l i g a t i o n s
b e c o m i n g p a s t d u e. T h i s i s c o n s i s te nt w i t h t h e p r i o r ye a r.
T h e m a t u r i t y p r o f i l e o f t h e G r o u p’s f i n a n c i a l l i a b i l i t i e s i s p r e s e nte d i n t h e fo l l o w i n g ta b l e
b a s e d o n c o nt r a c t u a l m a t u r i t y d a te s a n d r e p r e s e nt u n d i s c o u nte d ca s h f l o w s .
1 to 5 ye ar s Ove r 5 yea rs
Group 30 June 2017
Wit hin 1
yea r
$
Financial liabilities due for payment
Trade and Other Payables
(1,079,282)
$
-
Borrowings
(389,880)
(1,078,880)
Total expected out flo ws
(1,469, 162)
(1, 078, 880)
Financial assets – cash flows
realisable
Cash and cash equivalents
Trade and other receivables
2,543,412
1,821,098
-
140,911
Total anticipat ed inflo w o n
financial instr ument s
4,364, 510
140, 911
Net inflow on financial instruments
2,895,348
(937,969)
$
-
-
-
-
-
-
-
Group 30 June 2016
Wit hin 1
yea r
1 to 5 ye ar s Ove r 5 yea rs
$
$
Financial liabilities due for payment
Trade and Other Payables
(1,145,768)
(250,000)
Borrowings
(355,351)
(1,386,378)
Total expected out flo ws
(1,501, 119)
(1, 636, 378)
Financial assets – cash flows
realisable
Cash and cash equivalents
Trade and other receivables
Total anticipat ed inflo w o n
financial instr ument s
Net inflow/(outflow) on financial
instruments
1,149,028
1,536,734
-
276,645
2,685, 762
276, 645
1,184,643
(1,359,733)
$
-
-
-
-
-
-
-
67
T ot a l
c on t ra ct ed
c as h f low s
$
(1,079,282)
(1,468,760)
(2, 548, 042)
2,543,412
1,962,009
4, 505, 421
1,957,379
T ot a l
c on t ra ct ed
c as h f low s
$
(1,395,768)
(1,741,729)
(3, 137, 497)
1,149,028
1,813,379
2, 962, 407
(175,090)
c . MARKET RISK
T h e G r o u p i s e x p o s e d to i nte r e s t r a te a n d fo r e i g n c u r r e n c y r i s k .
( i )
I n t e r e s t r a t e r i s k
T h e G r o u p h a s e x p o s u r e to va r i a b l e i n te r e s t r a te s o n m o n i e s t h a t a r e ke pt i n a t - c a l l b a n k
a cco u nt s .
F o r s e n s i t i v i t i e s r e l a t i n g to i nte r e s t r a te r i s k , r e fe r to p a r a g r a p h ( i i i ) b e l o w.
( i i )
F o r e i g n exc h a n g e r i s k
T h e G r o u p co nt r o l s s u b s i d i a r i e s i n M a l a y s i a a n d S i n g a p o r e a n d p a r t i c i p a te s i n a j o i nt ve nt u r e
i n M a l a y s i a . T h e G r o u p i s t h e r e fo r e e x p o s e d to fo r e i g n e x c h a n g e r i s k a r i s i n g f r o m e x p o s u r e
to c u r r e n c i e s o f t h e s e r e s p e c t i ve c o u nt r i e s . S u c h r i s k a r i s e s f r o m f u t u r e t r a n s a c t i o n s a n d
a s s et s a n d l i a b i l i t i e s t h a t a r e d e n o m i n a te d i n f u n c t i o n a l c u r r e n c i e s ot h e r t h a t t h e A u s t r a l i a n
d o l l a r. M a n a g e m e nt d o e s n ot e n g a g e i n a n a c t i ve p r o g r a m o f h e d g i n g e x p o s u r e to fo r e i g n
c u r r e n c i e s .
T h e e x p o s u r e to fo r e i g n c u r r e n c y r i s k a t r e p o r t i n g d a te i s r e p r e s e nte d by t h e fo l l o w i n g
b a l a n c e s :
Assets denominated in foreign currency
Liabilities denominated in foreign currency
Net exposure t o foreign curr en c y
C on s o lid at ed G rou p
2017
2016
MY R
48,181
-
-
SG D
-
-
-
MY R
100,911
(24,287)
76, 624
SG D
12,889
(7,484)
5, 405
F o r s e n s i t i v i t i e s r e l a t i n g to fo r e i g n c u r r e n c y r i s k , r e fe r to p a r a g r a p h ( i i i ) b e l o w.
( i i i ) S e n s i t i v i t y A n a l y s i s
I n t e r e s t R a t e R i s k a n d F o r e i g n C u r r e n c y R i s k
T h e fo l l o w i n g s e n s i t i v i t y a n a l y s i s d e m o n s t r a te s t h e e f fe c t o n t h e c u r r e nt ye a r r e s u l t s a n d
e q u i t y w h i c h c o u l d r e s u l t f r o m a r e a s o n a b l y p o s s i b l e c h a n g e i n i nte r e s t r a te a n d fo r e i g n
c u r r e n c y r i s k s . T h e a n a l y s i s i s i n d i ca t i ve o n l y a n d a s s u m e s t h a t t h e m ove m e nt i n t h e
p a r t i c u l a r va r i a b l e i s i n d e p e n d e n t o f t h e ot h e r va r i a b l e s a n d t h a t a l l ot h e r va r i a b l e s
r e m a i n e d c o n s ta n t.
C on s ol id at ed Gr o up
2017
$
+/-11,000
+/-2,500
2016
$
+/-200
+/-0
+/-11,000
+/-2,500
+/-200
+/-28,000
Change in pr ofit after t ax
+/- in interest rate by 0.5%
+/- in $A/MYR rate by 15%
Change in Equity
+/- in interest rate by 0.5%
+/- in $A/MYR rate by 15%
68
( i v) C a p i t a l R i s k M a n a g e m e n t
M a n a g e m e nt co nt r o l s t h e ca p i ta l o f t h e G r o u p i n o r d e r to m a i nta i n a g o o d d e bt to e q u i t y
r a t i o, p r ov i d e t h e s h a r e h o l d e r s w i t h a d e q u a te r et u r n s a n d e n s u r e t h a t t h e G r o u p c a n f u n d
i t s o p e r a t i o n s a n d c o nt i n u e a s a g o i n g co n ce r n . T h e G r o u p’s d e bt a n d ca p i ta l co m p r i s e s
o r d i n a r y s h a r e ca p i ta l s u p p o r te d by f i n a n c i a l a s s et s .
T h e G r o u p d o e s n ot c u r r e nt l y h a ve s i g n i f i ca nt d e bt ca p i ta l e m p l oye d i n t h e b u s i n e s s . T h e r e
a r e n o e x te r n a l l y i m p o s e d c a p i ta l r e q u i r e m e nt s .
F a i r va l u e e s t i m a t i o n
T h e fa i r va l u e s o f f i n a n c i a l a s s et s a n d f i n a n c i a l l i a b i l i t i e s a r e a s p r e s e nte d i n t h e c o n s o l i d a te d
s ta te m e nt o f f i n a n c i a l p o s i t i o n . F a i r va l u e s a r e t h o s e a m o u nt s a t w h i c h a n a s s et c o u l d b e
e x c h a n g e d , o r a l i a b i l i t y s et t l e d , b et w e e n k n o w l e d g e a b l e, w i l l i n g p a r t i e s i n a n a r m’s l e n g t h
t r a n s a c t i o n .
F a i r va l u e s d e r i ve d m a y b e b a s e d o n i n fo r m a t i o n t h a t i s e s t i m a te d o r s u b j e c t to j u d g m e nt,
w h e r e c h a n g e s i n a s s u m pt i o n s m a y h a ve a m a te r i a l i m p a c t o n t h e a m o u nt s e s t i m a te d .
T h e n et fa i r va l u e o f ca s h a n d c a s h e q u i va l e nt s a n d n o n i nte r e s t b e a r i n g m o n eta r y f i n a n c i a l
a s s et s a n d f i n a n c i a l l i a b i l i t i e s o f t h e G r o u p a p p r o x i m a te s t h e i r ca r r y i n g a m o u nt s .
T h e ca r r y i n g va l u e l e s s i m p a i r m e nt p r ov i s i o n o f t r a d e r e c e i va b l e s a n d p a ya b l e s a r e a s s u m e d
to a p p r o x i m a te t h e i r fa i r va l u e s d u e to t h e i r s h o r t te r m n a t u r e.
2017
2016
Net C ar ryin g
Va lue
$
Ne t Fa ir valu e
$
Ne t C ar ryin g
Va lue
$
Ne t Fa ir valu e
$
Financial assets
Cash and cash equivalents
2,543,412
2,543,412
1,149,028
1,149,028
Trade and other receivables
1,962,009
1,962,009
1,813,379
1,813,379
Total financial asse t s
4, 505, 421
4, 505, 421
2, 962, 407
2, 962, 407
Financial liabilitie s
Trade and other payables
(1,079,282)
(1,079,282)
(1,395,768)
(1,395,768)
Borrowings
(1,468,761)
(1,468,761)
(1,741,729)
(1,741,729)
Total financial liabilit ies
(2, 548, 043)
(2, 548, 043)
(3, 137, 497)
(3, 137, 497)
69
21. S H AR E- BAS E D PA Y ME NT S
a .
EMPLOYEE SHARE OPT ION P LA N
T h e E m p l oye e S h a r e O pt i o n P l a n w a s a d o pte d w h e n t h e C o m p a ny w a s l i s te d . T h e p l a n
a l l o w s t h e C o m p a ny to g r a n t o pt i o n s ove r s h a r e s to key e x e c u t i ve s a n d d i r e c to r s a n d ot h e r
e m p l oye e s a s s e l e c te d by t h e D i r e c to r s to e n a b l e t h e m to p a r t i c i p a te i n t h e f u t u r e g r o w t h
a n d p r o f i ta b i l i t y o f t h e C o m p a ny, to p r ov i d e a n i n c e nt i ve a n d r e w a r d fo r t h e i r c o nt r i b u t i o n s
a n d to a t t r a c t a n d m a i nta i n p e r s o n n e l . T h e o pt i o n s a r e i s s u e d a t n o co n s i d e r a t i o n . T h e
e x e r c i s e p r i ce o f o pt i o n s i s b a s e d o n t h e w e i g hte d a ve r a g e m a r ket p r i c e o f t h e C o m p a ny’s
S h a r e s d u r i n g t h e f i ve t r a d i n g d a y s u p to a n d i n c l u d i n g t h e d a te o f g r a nt o f t h e o pt i o n o r
s u c h ot h e r d a te o r p e r i o d a s t h e D i r e c to r s c o n s i d e r a p p r o p r i a te. O pt i o n s ve s t o n e - t h i r d e a c h
ye a r ove r t h r e e ye a r s f r o m t h e g r a nt d a te a n d h a ve a n e x p i r y d a te o f f i ve ye a r s f r o m t h e
g r a nt d a te.
T h e p a r e nt e nt i t y h a s a d o pte d t w o i n c e nt i ve p l a n s to e n a b l e e m p l oye e s a n d d i r e c to r s to
p a r t i c i p a te i n o w n e r s h i p o f G l o b a l H e a l t h L i m i te d . T h e d i r e c to r s h a ve d ete r m i n e d t h a t t h e
tota l n u m b e r o f s e c u r i t i e s w h i c h m a y b e i s s u e d p u r s u a nt to t h e E x e m pt E m p l oye e S h a r e P l a n
a n d E m p l oye e S h a r e O pt i o n P l a n i n a ny f i ve - ye a r p e r i o d m u s t n ot e x c e e d 5 % o f t h e tota l
n u m b e r o f s e c u r i t i e s o n o f fe r f r o m t i m e to t i m e. T h i s l i m i ta t i o n o n l y a p p l i e s to n e w o f fe r s o f
s e c u r i t i e s by t h e p a r e nt e nt i t y a n d n ot to e x i s t i n g s e c u r i t i e s p u rc h a s e d o n m a r ket u n d e r t h e
E x e m pt E m p l oye e S h a r e P l a n .
T h e o pt i o n s i s s u e d u n d e r t h e E S O P a r e n ot q u ote d o n t h e A u s t r a l i a n Sto c k E x c h a n g e.
E m p l oye e S h a r e O pt i o n s a r e i s s u e d u n d e r t h e te r m s a n d co n d i t i o n s o f t h e P l a n a s d i s c l o s e d
o n t h e C o m p a ny’s w e b s i te. S h o u l d a n e m p l oye e c e a s e e m p l oy m e nt b e fo r e t h e c o m p l et i o n
o f t w o ye a r s a f te r t h e i s s u e o f a ny e m p l oye e o pt i o n , t h e o pt i o n i s s u e d a u to m a t i ca l l y l a p s e s ,
e x ce pt w h e r e c e s s a t i o n i s d u e to d e a t h o r tota l p e r m a n e nt d i s a b i l i t y, r et i r e m e nt, r e d u n d a n c y
o r a ny ot h e r r e a s o n , b a s e d o n w h i c h t h e d i r e c to r s b e l i eve i s fa i r a n d r e a s o n a b l e to w a r r a nt
t h e e m p l oye e m a i nta i n i n g t h e i r r i g ht to e x e rc i s e t h e o pt i o n i n w h i c h ca s e t h ey w i l l h a ve s i x (6)
m o nt h s to e x e r c i s e t h e o pt i o n s .
Opening balance
Issued
Exercised
Forfeited
Closing balanc e
C on s o lid at ed G rou p
2017
Nu m be r
1, 520, 000
1,000,000
(300,000)
(80,000)
2, 140, 000
2016
Nu mb er
1, 680, 000
-
-
(160,000)
1, 520, 000
D u r i n g t h e f i n a n c i a l ye a r a n d u p to t h e d a te o f t h e s e a cc o u nt s , 1, 0 0 0 , 0 0 0 o pt i o n s w e r e i s s u e d
(2 016: n i l).
T h e fa i r va l u e o f t h e 1, 0 0 0 , 0 0 0 o pt i o n s i s s u e d d u r i n g t h e ye a r w a s d ete r m i n e d u s i n g t h e B l a c k
S c h o l e s va l u a t i o n m o d e l o n g r a n t d a te b a s e d o n t h e fo l l o w i n g i n p u t s .
70
Grant date
Ve sting
date
Share
price at
valuat ion
date
Exe rc is e
Pr ice
Exp ec t ed
vo lat ility
Ris k f r ee
in te re s t
ra t e
F air va lue at
gr an t date
(p er o pt io n)
19 December
30 November
$0.49
2016
2021
19 December
30 November
$0.49
2016
2019
$0.75
$0.75
40%
40%
3.00%
3.00%
$0.1269
$0.0789
H i s to r i ca l vo l a t i l i t y h a s b e e n t h e b a s i s fo r d ete r m i n i n g e x p e c te d s h a r e p r i c e vo l a t i l i t y a s i t i s
a s s u m e d t h a t t h i s i s i n d i ca t i ve o f f u t u r e m ove m e nt s .
T h e m a r ket p r i c e o f t h e o r d i n a r y s h a r e s o f G l o b a l H e a l t h L i m i te d w a s $ 0 . 3 2 o n 3 0 J u n e 2 017
(2 016: $ 0 . 4 2).
S et o u t b e l o w a r e s u m m a r i e s o f o pt i o n s g r a nte d u n d e r t h e p l a n:
CONSOLIDATE D AND PAR EN T ENTITY - 20 17
Grant
D a te
Expir y
D a te
Exercise
Price
5 July 2013
5 Jul 2017
19 Dec 2013
19 Dec 2017
26 May 2014 26 May 2019
10 Jun 2016
10 Jun 2020
19 Dec 2016
30 Nov 2019
19 Dec 2016
30 Nov 2021
$0.15
$0.65
$0.75
$0.65
$0.75
$0.75
Balance
at start
of the
year
Number
300,000
530,000
300,000
390,000
-
-
Gr an t ed
du r in g
t he yea r
Nu m be r
Exe rc is ed
du r in g th e
yea r
Nu m be r
Exp ire d/
f or f eit ed
du r in g
t he yea r
Nu m be r
Bala n ce
at th e
e nd of
t he yea r
Nu mb er
Exerc isabl e
at th e e nd
o f th e ye ar
Number
-
-
-
-
400,000
600,000
(300,000)
-
-
-
-
-
-
-
-
(80,000)
-
-
-
530,000
300,000
310,000
400,000
600,000
-
530,000
300,000
260,000
133,333
120,000
TOTALS
1,5 20,000 1, 000, 000
(300, 000)
(80, 000)
2, 140, 000
1, 34 3, 33 3
We ig hted average e xer cise
p ric e
$0.57
$0. 75
$0. 15
$0. 65
$0. 71
$ 0.6 7
We ig hted average share pric e
$0.3916
CONSOLIDATED AND PARENT EN TITY - 2 016
Grant
D ate
Expiry
Date
Exercise
Price
5 Jul 2013
5 Jul 2017
19 Dec 2013
19 Dec 2017
26 May 2014 26 May 2019
10 Jun 2016
10 Jun 2020
$0.15
$0.65
$0.75
$0.65
TOTALS
We ig hted average e xer cise
p ric e
Balanc e
at start
of the
year
Number
300,000
690,000
300,000
390,000
1,680,000
$0.58
We ig hted average share pric e
$0.2971
Gr an t ed
du r in g
t he yea r
Nu mb er
Exe rc is ed
du r in g th e
yea r
Nu mb er
-
-
-
-
-
-
-
-
-
-
-
-
Exp ire d/
f or f eit ed
du r in g
t he yea r
Nu m be r
-
(160,000)
-
-
Bala n ce
at th e
e nd of
t he yea r
Nu mb er
300,000
530,000
300,000
390,000
Exerc isabl e
at th e e nd
o f th e ye ar
Number
200,000
380,000
200,000
130,000
(160, 000) 1, 520, 000
9 10 ,00 0
$0. 65
$0. 57
$ 0.5 6
71
b .
EXEMPT EMPLOYEE SHARE PL AN (‘EE S P’)
A p l a n u n d e r w h i c h s h a r e s m a y b e i s s u e d by t h e C o m p a ny to e m p l oye e s fo r n o ca s h
c o n s i d e r a t i o n w a s a d o pte d w h e n t h e C o m p a ny w a s l i s te d . A l l d i r e c to r s , o f f i c e r s o r e m p l oye e s
w h o a r e f r o m t i m e to t i m e e n g a g e d i n f u l l o r p a r t t i m e w o r k fo r t h e C o m p a ny a r e e l i g i b l e to
p a r t i c i p a te i n t h e E x e m pt E m p l oye e S h a r e P l a n .
U n d e r t h e p l a n , e l i g i b l e e m p l oye e s m a y b e g r a nte d u p to $1, 0 0 0 w o r t h o f f u l l y p a i d o r d i n a r y
s h a r e s i n t h e C o m p a ny fo r n o c a s h c o n s i d e r a t i o n . T h e m a r ket va l u e o f t h e s h a r e s w i l l b e
m e a s u r e d a s t h e m a r ket p r i ce q u ote d fo r b u ye r s o f t h e C o m p a ny s h a r e s a t t h e c l o s e o f
t r a d i n g o n t h e d a y i m m e d i a te l y p r e ce d i n g t h e d a te o f t h e o f fe r by t h e D i r e c to r s a s p u b l i s h e d
by t h e A SX .
O f fe r s u n d e r t h e p l a n a r e a t t h e d i s c r et i o n o f t h e C o m p a ny a n d t h e s h a r e s ca n n ot b e
t r a n s fe r r e d o r a s s i g n e d by t h e h o l d e r w i t h i n t h e p e r i o d o f t h r e e ye a r s f r o m t h e d a te o f i s s u e
o r t r a n s fe r to t h e h o l d e r u n l e s s t h e h o l d e r ce a s e s e m p l oy m e nt w i t h t h e C o m p a ny e a r l i e r t h a n
t h a t d a te e x c e pt t h a t t h e h o l d e r m a y a t a ny t i m e t r a n s fe r a l l o r a ny o f h i s S h a r e s to h i s s p o u s e
o r to a c o m p a ny t h e m a j o r i t y o f t h e i s s u e d s h a r e s i n w h i c h a r e b e n e f i c i a l l y o w n e d by h i m o r
to a ny t r u s t t h a t t h e h o l d e r i s a b e n e f i c i a r y o f.
D u r i n g t h e ye a r, n o s h a r e s w e r e i s s u e d u n d e r t h e p l a n (2 016: 4 0 , 0 0 0 s h a r e s a t $10 , 0 0 0 )
22. KE Y MAN AGEME NT PE RSONNE L DIS C LOS U RE S
a. DIRECTORS AND KEY MANAGEM ENT PER S ON NE L
T h e fo l l o w i n g p e r s o n s w e r e D i r e c to r s a n d Key M a n a g e m e nt Pe r s o n n e l o f t h e C o m p a ny d u r i n g
t h e f i n a n c i a l ye a r :
M r S P y nt
C h a i r m a n – I n d e p e n d e nt N o n - E x e c u t i ve
M r M C h e r i a n
C h i e f E x e c u t i ve O f f i c e r a n d M a n a g i n g D i r e c to r
M r G S m i t h
M r R K n o w l e s
M s P B e e r e n s
D i r e c to r – I n d e p e n d e nt N o n - E x e c u t i ve
D i r e c to r – I n d e p e n d e nt N o n - E x e c u t i ve
D i r e c to r – I n d e p e n d e nt N o n - E x e c u t i ve (a p p o i nte d 1 D e ce m b e r 2 016)
M r P C u r i g l i a n o
C o m p a ny S e c r eta r y a n d C h i e f F i n a n c i a l O f f i c e r (c e a s e d 2 8 D e c e m b e r 2 016)
M r K J a ye s u r i a
Te c h n o l o g y D e l i ve r y M a n a g e r
b. KEY MANAGEMENT PERSONN EL CO MP ENS ATION
Re fe r to t h e Re m u n e r a t i o n Re p o r t i n t h e D i r e c to r s’ Re p o r t fo r d eta i l s o f t h e r e m u n e r a t i o n p a i d
o r p a ya b l e to e a c h m e m b e r o f t h e G r o u p’s Key M a n a g e m e nt Pe r s o n n e l fo r t h e ye a r e n d e d 3 0
J u n e 2 017.T h e tota l r e m u n e r a t i o n p a i d to Key M a n a g e m e nt Pe r s o n n e l o f t h e C o m p a ny a n d t h e
G r o u p d u r i n g t h e ye a r a r e a s fo l l o w s :
C on s ol id at ed Gr o up
2017
$
653,661
6,624
101,350
2016
$
689,538
6,957
64,163
761, 635
760, 658
Short-term employee benefits
Other long-term benefits
Post-employment benefits
72
S H AR E S
T h e i nte r e s t o f key m a n a g e m e nt p e r s o n n e l a n d t h e i r r e l a te d e nt i t i e s i n s h a r e s o f t h e C o m p a ny
a s a t 3 0 J u n e 2 017 a r e:
Total number o f shares
Nu m be r of s h ar es so ld
Nu mb er of sh ar es
ac qu ir ed
Mr K Jayesuria
2017
4,000
4,000
2016
4,000
4,000
2017
2016
2017
2016
-
-
-
-
-
-
-
-
O P T I O N S
T h e i nte r e s t o f Key M a n a g e m e nt Pe r s o n n e l a n d t h e i r r e l a te d e nt i t i e s i n o pt i o n s o f t h e
C o m p a ny a s a t 3 0 J u n e 2 017 a r e:
Total number of o pt ions
Nu m be r of o pt io n
gr an t ed du rin g th e
yea r
Nu mb er of op tion s
e xer cis ed du rin g th e
yea r
Mr K Jayesuria
600,000
2017
2016
300,000
2017
300,000
600,000
300,000
300, 000
2016
2017
2016
-
-
-
-
-
-
23. R EMU NER A TI ON O F AUD ITORS
Amounts rece ived, or due a nd re c e ivab le b y t h e
auditors of the ent ity for:
- MSI Ragg Weir ( Australia)
Auditing or reviewing the financial report
Taxation services
Shine Wing (Aust ra lia)
C on s ol id at ed Gr o up
2017
$
2016
$
-
-
51,462
7,950
Auditing or reviewing the financial report
65,000
-
- TY Teoh Int ernational (Malays ia ) [ Pa r t o f t h e MSI
Group Allianc e]
Auditing or reviewing the financial report of controlled entities
Taxation services for controlled entities
- J Wong and Associat es (Sin gap or e )
Auditing or reviewing the financial report
3,150
1,500
1,500
71, 150
3,174
1,474
1,482
65, 542
73
24. CO MMI TME NT S AN D CONTINGE NCIE S
a . OPERA TI NG LEASE COMMITMEN TS
C on s o lid at ed G rou p
2017
$
2016
$
Future operating lease rentals n o t pr ovid e d fo r in t h e f in an c ial st ate m e n ts an d
payable:
Not later than 1 year
Later than 1 year but not later than 5 years
Later than 5 years
162,725
547,156
-
162,725
709,881
-
809, 881
872, 606
T h e p a r e nt e nt i t y’s o p e r a t i n g l e a s e fo r t h e r e l o ca te d M e l b o u r n e o f f i c e c o m m e n c e d o n 14 J u l y
2 014 w i t h r e d u c e d f l o o r s p a c e i n t h e s a m e b u i l d i n g . T h e C o m p a ny s i g n e d o n fo r a l e a s e te r m
o f 7 ye a r s .
b . GUARANTEES
The parent has provided a cash security bond in favour of the property
owner of the parent entity’s leased premises in Melbourne, Australia.
C on s ol id at ed Gr o up
2017
$
2016
$
102,187
102,187
I n t h e o p i n i o n o f t h e D i r e c to r s , t h e G r o u p d i d n ot h a ve a ny c o nt i n g e n c i e s a s a t 3 0 J u n e 2 017.
74
25. EA R NI N GS P ER S HA RE
C on s o lid at ed G rou p
2017
$
2016
Restat ed
$
The following re flects the inco me a n d s h ar e d at a u s e d in t h e c alc u lat io n s o f bas i c
and diluted ear nings per share :
Net profit/ (loss) attributable to owners of the parent
Net profit / (loss) attributable to non-controlling interests
1,932,343
(324)
Earnings used in calculating basic and diluted earnings per share
1,932,019
(106,061)
1,884
(107,945)
Weighted average number of ordinary shares used in calculating
basic earnings per share:
Nu m be r of
Sh a re s
Nu m be r of
Sh a re s
33,152,050
32,794,621
Weighted average number of ordinary shares used in calculating
diluted earnings per share:
35,292,050
32,910,114
Basic earnings after tax per share (cents per share)
Diluted earnings per share (after tax)
Basic Earnings Per Share (before tax)
Diluted Earnings Per Share (before tax)
26. S EGMENT INF OR MA TION
2017
c en ts
5.212
4.896
5.827
5.474
2016
c en ts
(0.329)
(0.327)
(0.329)
(0.327)
O PE R AT I N G S E G M E N T S
T h e G r o u p o p e r a te s i n t h e c o m p u te r te c h n o l o g y, s o f t w a r e a n d s e r v i c e s i n d u s t r y w i t h
p a r t i c u l a r e m p h a s i s o n h e a l t h ca r e a n d a s s o c i a te d p r o fe s s i o n a l s e r v i c e s .
T h e G r o u p h a s i d e nt i f i e d i t s o p e r a t i n g s e g m e nt s b a s e d o n t h e i nte r n a l r e p o r t s t h a t a r e
r ev i e w e d a n d u s e d by t h e e x e c u t i ve m a n a g e m e nt te a m (‘ t h e c h i e f o p e r a t i n g d e c i s i o n
m a ke r ’) i n a s s e s s i n g p e r fo r m a n c e a n d i n d ete r m i n i n g t h e a l l o ca t i o n o f r e s o u r ce s .
T h e o p e r a t i n g s e g m e nt s a r e i d e nt i f i e d by m a n a g e m e nt b a s e d o n t h e n a t u r e o f t h e s e r v i c e
p r ov i d e d . D i s c r ete f i n a n c i a l i n fo r m a t i o n a b o u t e a c h o f t h e s e o p e r a t i n g s e r v i c e l i n e s i s
r e p o r te d to t h e e x e c u t i ve m a n a g e m e nt te a m o n a t l e a s t a m o nt h l y b a s i s .
T h e r e p o r ta b l e s e g m e nt s a r e b a s e d o n a g g r e g a te d o p e r a t i n g s e g m e nt s d ete r m i n e d by t h e
s i m i l a r i t y o f t h e s e r v i ce s p r ov i d e d , t h e s i m i l a r i t y o f t h e c u s to m e r b a s e s , t h e c o m m o n r e p o r t i n g
a n d m a n a g e m e nt s y s te m s u s e d a n d t h e c o m m o n r e g u l a r i t y e nv i r o n m e nt a p p l i ca b l e to e a c h
r e p o r ta b l e s e g m e nt. T h e r e i s a c l e a r d e s i g n a t i o n o f r e s p o n s i b i l i t y a n d a cc o u nta b i l i t y by t h e
c h i e f o p e r a t i n g d e c i s i o n m a ke r s fo r t h e m a n a g e m e n t a n d p e r fo r m a n c e o f t h e s e r e p o r ta b l e
s e g m e n t s .
75
T h e G r o u p co m p r i s e s t h e fo l l o w i n g m a i n o p e r a t i n g s e g m e nt s :
•
•
•
•
Ac u te
I n fo r m a t i o n s y s te m a p p l i ca t i o n s fo r t h e h o s p i ta l a n d d a y s u r g e r y m a r ket to
d e l i ve r b et te r a n d m o r e i nte g r a te d h e a l t h ca r e.
N o n - Ac u te
C o m p r e h e n s i ve s u i te o f a p p l i ca t i o n s t h a t p r ov i d e t h e m a n a g e m e nt o f
p o p u l a t i o n o u tc o m e s fo r c o m m u n i t i e s o f c o m m o n i nte r e s t.
O t h e r
P r o d u c t s a n d s e r v i c e s d e l i ve r e d to n o n - h e a l t h c a r e c u s to m e r s a n d i n c l u d e
r eve n u e s a n d e x p e n s e s a s s o c i a te d w i t h t h i r d p a r t y p r o d u c t s a n d c o s t
r e c ove r i e s f r o m c u s to m e r s .
C o r p o r a te
E x p e n d i t u r e a s s o c i a te d w i t h C o r p o r a te, S a l e s a n d M a r ket i n g a c t i v i t i e s .
S E G M E N T ACCO U N T I N G P O L I C I E S
T h e G r o u p g e n e r a l l y a c c o u n t s fo r i nte r- s e g m e n t s a l e s a n d t r a n s fe r s a s i f t h e s a l e s o r t r a n s fe r s
w e r e to t h i r d p a r t i e s a t c u r r e nt m a r ket p r i c e s . Reve n u e s a r e a t t r i b u te d to g e o g r a p h i c a r e a s
b a s e d o n t h e l o ca t i o n o f t h e a s s et s p r o d u c i n g t h e r eve n u e s .
D u r i n g t h e f i n a n c i a l ye a r t h e r e w e r e n o c h a n g e s i n s e g m e nt a cc o u nt i n g p o l i c i e s t h a t h a d a
m a te r i a l e f fe c t o n t h e s e g m e nt i n fo r m a t i o n .
G E O G R A PH I C A L S E G M E N T S
A l t h o u g h t h e G r o u p’s d i v i s i o n s a r e m a n a g e d o n a g l o b a l b a s i s t h ey o p e r a te i n t w o m a i n
g e o g r a p h i ca l a r e a s :
A u s t r a l i a
T h i s i s t h e h o m e c o u nt r y o f t h e m a i n o p e r a t i n g e nt i t y. T h e c o r p o r a te h e a d o f f i ce i s b a s e d i n
M e l b o u r n e, V i c to r i a w i t h a s m a l l n u m b e r o f e m p l oye e s a l s o l o ca te d i n ot h e r s ta te s i n A u s t r a l i a
fo r t h e p r ov i s i o n o f p r o fe s s i o n a l s e r v i c e s a n d p r o d u c t d eve l o p m e nt.
M a l a y s i a
I n p r i o r ye a r s , t h e G r o u p o p e r a te d i n t h e A S E A N r e g i o n w i t h l o ca l r e s o u rc e s e m p l oye d to
p r ov i d e s u p p o r t to S o u t h e a s t A s i a n c l i e nt s o f t h e G r o u p. C u r r e nt l y, t h e C o m p a ny’s c l i n i ca l
s o f t w a r e, M a s te r C a r e E M R , i s u s e d by t h e M a l a y s i a n M i n i s t r y o f H e a l t h’s M E N TA R I c o m m u n i t y
m e nta l h e a l t h p r o g r a m . T h e C o m p a ny, t h r o u g h i t s M a l a y s i a n d i s t r i b u to r, i s l o o k i n g to f u r t h e r
i t s e n g a g e m e nt i n t h e m a r ket.
I n p r e s e nt i n g i n fo r m a t i o n o n t h e b a s i s o f g e o g r a p h i ca l s e g m e nt s , s e g m e nt r eve n u e i s b a s e d
o n t h e g e o g r a p h i ca l l o ca t i o n o f c u s to m e r s . S e g m e nt a s s et s a r e b a s e d o n t h e g e o g r a p h i ca l
l o ca t i o n o f t h e a s s et s .
76
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77
27. CO N SO LI DA TE D ST ATE ME NT OF C ASH FL OW S
R E CO N C I L I AT I O N O F O PE R AT I N G PR O F I T/(LO S S) B E F O R E I N CO M E TA X TO N E T
C A S H PROV I D E D BY O PE R AT I N G AC T I V I T I E S
C on s ol id at ed Gr o up
2017
$
2016
$
Operating profit/ (lo ss) be fore inc om e t a x
1, 932, 019
107, 945
Add /(deduct) non-cash items:
Amortisation of Intangibles
Depreciation of fixed assets
Impairment of intangible assets
Bad debt written off
Employee share option expense
Net loss/(gain) on disposal of plant and equipment
266,021
87,931
917,381
-
50,687
-
262,043
122,048
-
29,455
10,000
(100)
Net cash inflow/ (out flo w ) fro m o p e r at in g a c t ivit ie s
before change in asse ts and lia b ilit ie s
3, 254, 039
531, 391
Change in assets and liabilities during the period:
(Increase)/decrease in trade and other receivables
(Increase)/decrease in other assets
Increase/(decrease) in provisions
Increase/(decrease) trade and other payables
(111,306)
700,749
(32,138)
(260,065)
(531,533)
(263,263)
(10,627)
805,730
Net cash inflow fr om opera t ing a ct ivit ie s
3, 551, 279
531, 698
28. EVE NT S S UB SEQU EN T TO RE PO RTING D ATE
T h e r e h a ve b e e n n o s i g n i f i c a nt eve nt s s u b s e q u e nt to r e p o r t i n g d a te.
29. DI VI D ENDS
N o p r ov i s i o n i s m a d e fo r d i v i d e n d s o n o r b e fo r e t h e e n d o f t h e ye a r.
D u r i n g t h e ye a r t h e C o m p a ny d e c l a r e d a n d p a i d t w o s p e c i a l d i v i d e n d s o f 1 c e nt e a c h (2 016:
n i l). D eta i l s o f d i v i d e n d s d e c l a r e d a n d o r p a i d:
Div ide nd Det ails
Sp ec ial
Divid en d
Sp ec ial
Divid en d
T OT AL
Date dividend declared
14 Sep 2016
24 Feb 2017
Date dividend paid
25 Nov 2016
9 Mar 2017
Franked amount per share
Unfranked amount per share
Total per share
-
$0.01
$0. 01
-
$0.01
$0. 01
-
$0.02
$0. 02
Total value of dividend paid
$330,150
$333,550
$663,700
78
30. GLO BA L H EA L TH LI M ITED PAR ENT COM PANY INFORM AT IO N
Assets
Current Assets
Non-Current Assets
Total Assets
Liabi lities
Current Liabilities
Non-Current Liabilities
Total Liabilities
Glo ba l H ea lt h L im it ed
2017
$
4,935,761
5,572,401
10,508,162
3,484,719
2,392,059
5,876,778
2016
$
3,429,789
4,967,899
8,397,688
3,302,116
1,532,379
4,834,495
Net Ass ets/( Liabilities)
4, 631, 384
3, 563, 193
Equity
Contributed equity
Reserves
Accumulated Losses
Total Equity
Financial Perfor ma nce
Profit /(Loss) for the year
Other comprehensive income
Total Comprehe nsive income / ( los s )
20,836,242
20,728,742
80,846
60,463
(16,285,704)
(17,226,012)
4, 631, 384
3, 563, 193
1,766,025
-
1, 766, 025
87,268
-
87, 268
Other than that st at ed in Not e 24 to t h e fi n an ci al s t a t e m en ts , th e C o mpan y is n o t
subject to any co ntinge nt liab ilit ies or c on t ra ct u a l co m m it me n t s
79
6. DIRE CTORS DECLARAT ION
I n t h e o p i n i o n o f t h e D i r e c to r s o f G l o b a l H e a l t h L i m i te d (‘ t h e C o m p a ny’):
1.
t h e f i n a n c i a l s ta te m e nt s a n d n ote s , s et o u t o n p a g e s 2 6 to 6 0 a r e i n a cc o r d a n c e w i t h
t h e C o r p o r a t i o n s Ac t 2 0 01 i n c l u d i n g:
i .
g i v i n g a t r u e a n d fa i r v i e w o f f i n a n c i a l p o s i t i o n o f t h e c o n s o l i d a te d e nt i t y a s a t
3 0 J u n e 2 017 a n d o f i t s p e r fo r m a n c e, fo r t h e ye a r e n d e d o n t h a t d a te;
i i .
c o m p l y i n g w i t h Acc o u nt i n g Sta n d a r d s i n A u s t r a l i a a n d t h e C o r p o r a t i o n s
Re g u l a t i o n s 2 0 01;
i i i .
i v.
c o m p l y i n g w i t h I nte r n a t i o n a l Re p o r t i n g Sta n d a r d s a s d i s c l o s e d i n N ote 1; a n d
t h e r e a r e r e a s o n a b l e g r o u n d s to b e l i eve t h a t t h e C o m p a ny w i l l b e a b l e to p a y
i t s d e bt s a s a n d w h e n t h ey b e c o m e d u e a n d p a ya b l e.
2 .
T h e D i r e c to r s h a ve b e e n g i ve n t h e d e c l a r a t i o n s r e q u i r e d by s e c t i o n 2 95 A o f t h e
C o r p o r a t i o n s Ac t 2 0 01 f r o m t h e C h i e f E x e c u t i ve O f f i c e r a n d C h i e f F i n a n c i a l O f f i ce r
fo r t h e ye a r e n d e d 3 0 J u n e 2 017.
T h i s d e c l a r a t i o n i s m a d e i n a cco r d a n c e w i t h a r e s o l u t i o n o f t h e D i r e c to r s .
O n b e h a l f o f t h e B o a r d
S t eve n L e i g h P y n t
N o n - E xe c u t i ve C h a i r m a n
M e l b o u r n e, 2 8 S e p t e m b e r 2 017
80
7.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF GLOBAL HEALTH LIMITED AND CONTROLLED ENTITIES
Report on the Audit of the Financial Report
Qualified Opinion
We have audited the financial report of Global Health Limited (“the Company”) and its controlled entities (“the
Group”), which comprises the consolidated statement of financial position as at 30 June 2017, the consolidated
statement of comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and the directors’ declaration.
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section of our report,
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 2017 and of its financial performance
for the year then ended; and
b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Qualified Opinion
The Group had not applied tax effective accounting in recognising current and deferred tax in prior periods, which
constitutes a departure from Australian Accounting Standards. We were unable to obtain sufficient appropriate
audit evidence on opening tax balances in respect of the comparative period ended 30 June 2016. Accordingly, we
were unable to determine whether any adjustments were necessary on current and deferred tax in prior periods.
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our
report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (“the Code”) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
qualified opinion.
ShineWing Australia ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards Legislation. ShineWing Australia is an independent member of ShineWing
International Limited – members in principal cities throughout the world.
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.
In addition to the matter described in the Basis for Qualified Opinion section we have determined the matters
described below to be the key audit matters to be communicated in our report.
Key Audit Matter
How the matter was addressed during the audit
Valuation of Intangible Assets (Note 9)
Our procedures included, amongst others:
Australian Accounting Standards require the Group to
undertake an impairment analysis of assets where
impairment indicators are identified from internal and
external sources of information. As at 30 June 2017,
internal indicators were identified from management’s
forecast with respect to certain underperforming intangible
assets.
We have determined this is a key audit matter due to the
judgement required by management in preparing value in
use models to satisfy the impairment test as prescribed in
AASB 136 Impairment of Assets, including the forecasting
of future cash flows and applying an appropriate discount
rate which inherently involved a high degree of estimation
and judgement by management.
Assessing the model for compliance with AASB 136
Impairment of Assets;
Assessing management’s determination of the cash
generating units based on our understanding of the nature
of intangible assets;
Analysing the future cash flows forecasts and
understanding the process by which they were developed,
including testing the underlying calculations of the models
and reasonableness of key assumptions;
We performed sensitivity analysis on the key assumptions
and variables to determine various outcomes of the value in
use model and whether there were any significant
impairment indicators; and
Assessed the adequacy of the Group’s disclosures within
the financial statements.
Capitalisation of Development Costs (Note 9)
Our procedures included, amongst others:
During the year, Global Health Ltd continued to capitalise
development costs relating to internal software
development projects. For internally generated intangible
assets, the Australian Accounting Standards require
certain conditions to be satisfied prior to development
costs being capitalised.
We have determined this is a key audit matter due to the
judgement required by management to differentiate costs
between the research phase and development phase. As
at 30 June 2017, the Group had disclosed a carrying value
of $4,817,920 relating to internal software development
projects.
We checked the capitalisation process and status of current
projects to obtain an understanding of the relevant
procedures and control activities performed to appropriately
capitalise development costs;
We enquired with management on significant transactions
capitalised during the reporting period to determine the
nature of the additions and whether this had been
recognised in accordance with the relevant accounting
standards;
We discussed with management business plans and
examined post commercialisation revenue projections; and
We tested a sample of capitalised development costs for
the year to source documentation and assessed whether
the intangible asset recognition criteria had been satisfied
for capitalisation.
2
Key Audit Matter
How the matter was addressed during the audit
Revenue Recognition (Note 2)
Our procedures included, amongst others:
The Group’ derives revenue from the provision of licences,
maintenance fees and rendering of professional services.
Some of these streams are dependent on project
milestones being completed and also the subscription
period of contracts.
Revenue recognition from these streams can be complex
and require judgement. Accordingly, the terms of the
contracts and consequential revenue recognition has been
identified as a key audit matter.
In addition, Global Health Ltd had also settled a litigation
case during the financial year concerning SA Health
whereby Global Health had received $5m in
compensation. Determining the appropriate revenue
recognition of the compensation received and disclosures
of the event were a key focus area to the audit.
We documented and tested processes and key internal
controls in the revenue cycle (where applicable);
We considered the appropriateness of the accounting policy
used to recognise revenue;
We checked sales transactions both sides of the balance
sheet date for recognition in the appropriate year;
We selected a random sample of revenue transactions
recorded during the year and traced to source
documentation for reasonableness including an
examination on the terms of the contract for appropriate
revenue recognition;
We performed sales analytics against forecasts/prior year
results (where applicable) to identify any sales anomalies;
We examined the legal settlement documents relating to the
SA Health litigation and other relevant documentation to
assess the appropriate revenue recognition of the
compensation received; and
We checked the disclosures of the event and determined
whether this was appropriately reflected in the financial
statements.
Other Matter
The financial report of Global Health Ltd for the year ended 30 June 2016 was audited by another auditor who
expressed an unmodified opinion on that report on 29 September 2016.
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 2017, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact.
3
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true and
fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit.
We identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
We conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to
continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
4
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them, all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in
the audit of the financial report of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 15 to 17 of the directors’ report for the year ended 30
June 2017.
In our opinion, the Remuneration Report of Global Health Limited the year ended 30 June 2017 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.
ShineWing Australia
Chartered Accountants
Nick Michael
Partner
Melbourne, 28 September 2017
5
8.
SHAREHOLDER IN FORMATION
T h i s s h a r e h o l d e r i n fo r m a t i o n i s m a d e u p to 3 A u g u s t 2 017.
8.1. SHAREHOLDI NG
1. D i s t r i b u t i o n o f S h a r e h o l d e r N u m b e r s
Cat e go ry (s ize o f h o lding )
Num ber of H old er s
No. of S hares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
TO TAL
446
317
92
120
31
1,006
189,582
768,315
720,503
3,961,350
27,715,245
33,354,995
2 .
T h e n u m b e r o f s e c u r i t y i nve s to r s h o l d i n g l e s s t h a n a m a r keta b l e p a rce l o f 1, 4 3 0
s e c u r i t i e s ($ 0 . 3 5 p e r s h a r e o n 3 A u g u s t 2 017 ) i s 5 3 5 a n d t h ey h o l d 3 01, 4 0 0 s e c u r i t i e s .
A n u n m a r keta b l e p a rc e l o f s h a r e s i s g e n e r a l l y a p a rc e l o f s h a r e s w i t h a tota l va l u e o f
l e s s t h a n $ 5 0 0 .
3 .
T h e n a m e s o f t h e t w e nt y l a r g e s t h o l d e r s o f o r d i n a r y s h a r e s a r e:
Shareholder
No. of s hares held
% of is sued sh ares
Micron Holdings Pty Ltd (Cherian Family Account)
Micron Holdings Pty Ltd (Micron Holdings Pty Ltd Superfund A/c)
Mrs Elizabeth May Priscilla Thomas
Pacific Nominees Limited
Alumootil Mathew Cherian
Triglobal Management Limited
Dadiaso Holdings Pty Ltd
Dr Serene Lim
B&R James Investments Pty LTd
Mr David Leroy Boyles
Connaught Consultants (Finance) Pty Ltd
Damon Groenveld
Roxanne Investments Pty Ltd
Ms Serene Lim & Mr Nicholas Russell Ward
Lomas Superannuation Pty Ltd
Mr Rajiv Paramanathan
Asket Pty Ltd
Abaki Pty Ltd
Chris Bell Investments Pty Ltd
P Partnership Pacific Services Pty Limited
Total top 20 holders
13,558,334
4,311,036
1,530,702
1,497,196
750,000
500,000
450,000
400,000
400,000
400,000
347,000
300,000
300,000
260,000
250,000
250,000
226,074
202,885
200,000
175,000
40.65
12.92
4.59
4.49
2.25
1.50
1.35
1.20
1.20
1.20
1.04
0.90
0.90
0.78
0.75
0.75
0.68
0.61
0.60
0.52
26,308,227
78.88%
8.2. SUBSTANTIAL SHA REHOLDER S
Shareholder
Micron Holdings Pty Ltd (Cherian Family Account)
Micron Holdings Pty Ltd (Micron Holdings Pty Ltd Superfund A/c)
No. of s hares
Percentage
13,558,334
4,311,036
40.65%
12.92%
86
9. CORPORATE DIRECTORY
D i r e c t o r s
M r Steve n L e i g h P y nt ( I n d e p e n d e n t N o n - E x e c u t i ve C h a i r m a n)
M r M a t h e w C h e r i a n (C h i e f E x e c u t i ve O f f i c e r a n d M a n a g i n g D i r e c to r )
M r G r a nt S m i t h ( I n d e p e n d e nt N o n - E x e c u t i ve D i r e c to r )
M r Ro b e r t K n o w l e s AO ( I n d e p e n d e nt N o n - E x e c u t i ve D i r e c to r )
M s Pa t t i e B e e r e n s ( I n d e p e n d e nt N o n - E x e c u t i ve D i r e c to r )
C o m p a n y S e c r e t a r y
M r G l e n n F o w l e s
H e a d O f f i ce
L eve l 2 , 6 07 B o u r ke St r e et
M e l b o u r n e, V i c to r i a 3 0 0 0
A u s t r a l i a
Te l e p h o n e: + 61 (3 ) 9675 0 6 0 0
F a c s i m i l e: + 61 (3 ) 9675 0 69 9
E m a i l : i n fo @ g l o b a l - h e a l t h . c o m
S h a r e R e g i s t r a r
L i n k M a r ket S e r v i c e s L i m i te d
To w e r 4 , 7 2 7 C o l l i n s St r e et
M e l b o u r n e, V i c to r i a 3 0 0 8 ,
A u s t r a l i a
Te l e p h o n e: 13 0 0 5 5 4 474
F a c s i m i l e: + 61 (3 ) 9615 9 8 4 8
We b s i te: w w w. g l o b a l - h e a l t h . c o m
We b s i te: w w w. l i n k m a r ket s e r v i c e s . c o m . a u
E m a i l : r e g i s t r a r s @ l i n k m a r ket s e r v i c e s . c o m .
M a l a y s i a R e g i s t e r e d O f f i ce
B -2 5 -2 , B l o c k B , J a ya O n e
N o. 7 2 A J a l a n U n i ve r s i t i
a u
S o l i c i t o r s
4 62 0 0 Peta l i n g J a ya , S e l a n g o r D a r u l
D a v i e s C o l l i s o n C a ve, M e l b o u r n e,
E h s a n
M a l a y s i a
Te l e p h o n e: + 6 0 3 7 95 5 0 95 5
F a c s i m i l e: + 6 0 3 7 95 5 0 95 9
A u d i t o r s
S h i n eW i n g A u s t r a l i a
L eve l 10 , 5 3 0 C o l l i n s St r e et
M e l b o u r n e, V I C 3 0 0 0 A u s t r a l i a
Te l e p h o n e: + 61 3 8 6 3 5 18 0 0
F a c s i m i l e: + 61 3 810 2 3 4 0 0
A u s t r a l i a
F i n l a y s o n s , Ad e l a i d e, A u s t r a l i a
B a n ke r s
B a n k o f We s te r n A u s t r a l i a Ltd
A N Z B a n k Ltd
H S B C Ltd
S t o c k E xc h a n g e L i s t i n g
G l o b a l H e a l t h L i m i te d s h a r e s t r a d e o n
t h e A u s t r a l i a n Sto c k E x c h a n g e
We b s i te: w w w. s h i n e w i n g . c o m . a u
C o d e: G L H
T h e h o m e e x c h a n g e i s A u s t r a l i a n Sto c k
E x c h a n g e (M e l b o u r n e) L i m i te d
F u r t h e r I n f o r m a t i o n
F o r f u r t h e r i n fo r m a t i o n a b o u t G l o b a l H e a l t h L i m i te d a n d i t s o p e r a t i o n s , r e fe r to C o m p a ny
a n n o u n c e m e nt s to t h e A u s t r a l i a n Sto c k E x c h a n g e.
I n fo r m a t i o n i s a l s o a va i l a b l e o n o u r w e b s i te: w w w. g l o b a l - h e a l t h . c o m .
87
ASX:
GLH
ABN
75 091 377 892
GLOBAL HEALTH LIMITED
AND CONTROLLED ENTITIES
www.global-health.com/about-us/investor