Global Health Limited Annual Report 2018

FY2018 Annual Report · Global Health Limited
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Annual  Rep ort

2018

TAB LE O F CO NTE NT S

1. 

R E V I E W O F O PE R AT I O N S 

1.1. C H A I R M A N ’ S L E T T E R 

1. 2 .  C H I E F  E X E C U T I V E O F F I C E R ’ S   O P E R AT I O N S   R E P O R T 

1. 3 . F I N A N C I A L S U M M A RY 

2 . 

D I R E C TO R S’ R E PO R T 

2 .1.  D I R E C TO R S 

2 . 2 . CO M PA N Y S E C R E TA RY 

2 . 3 .  M E E T I N G  O F D I R E C TO R S  A N D   C O M M I T T E E S 

2 . 4 . D I R E C TO R S’  I N T E R E S T S 

2 . 5 .  P R I N C I PA L AC T I V I T I E S 

2 . 6 .  R E S U LT S  A N D D I V I D E N D S 

2 . 7.  R E V I E W O F O P E R AT I O N S 

2 . 8 .  S I G N I F I C A N T C H A N G E S  I N  T H E   S TAT E   O F  A F FA I R S 

2 . 9.  S I G N I F I C A N T E V E N T S  A F T E R   R E P O R T I N G   DAT E 

2 .10 .  L I K E LY  D E V E LO PM E N T S  

2 .11.  S H A R E  O P T I O N S 

2 .12 . R E M U N E R AT I O N R E P O R T  ( AU D I T E D ) 

2 .13 .  I N D E M N I F I C AT I O N O F D I R E C TO R S  A N D  E X E C U T I V E S   

2 .14 .  P R O C E E D I N G S  O N  B E H A L F   O F  T H E  C O M PA N Y 

2 .15 . N O N - AU D I T S E R V I C E S 

2 .16 . E N V I R O N M E N TA L  I S S U E S 

2 .17.  CO R P O R AT E G OV E R N A N C E 

2 .18 .  AU D I TO R S’  I N D E P E N D E N C E  D E C L A R AT I O N 

3 . 

CO R PO R AT E G OVE R NAN CE S TAT E M E N T 

3 .1. CO M P O S I T I O N  O F  T H E B OA R D 

3 . 2 . B OA R D  M E M B E R S  

3 . 3 . B OA R D   R E S P O N S I B I L I T I E S   

3 . 4 .  N O N - E X E C U T I V E D I R E C TO R S’  I N D E P E N D E N C E 

3 . 5 .  T R A D I N G P O L I C Y 

3 . 6 . C H A I R M A N A N D  C H I E F  E X E C U T I V E   O F F I C E R   (C E O) 

3 . 7. CO M M I T M E N T 

3 . 8 .  C O R P O R AT E  R E P O R T I N G   

3 . 9. AU D I T CO M M I T T E E 

3 .10 .   R E M U N E R AT I O N 

3 .11. R I S K 

3 .12 .  M O N I TO R I N G O F T H E B OA R D’ S   P E R F O R M A N C E 

3 .13 .  CO M M U N I C AT I O N  W I T H   S H A R E H O L D E R S 

3 .14 .    I N D E P E N D E N T  P R O F E S S I O N A L  A DV I C E 

3 .15 .  A S X R E CO M M E N DAT I O N S 

4 . 

AN N UAL F I NAN C I AL R E PO R T  

5 . 

6 . 

D I R E C TO R S D E CL AR AT I O N 

S HAR E H O LD E R I N F O R M AT I O N  

6 .1. S H A R E H O L D I N G 

6 . 2 .  S U B S TA N T I A L S H A R E H O L D E R S  

7. 

AU D I TO R S R E PO R T  

8 . 

CO R PO R AT E D I R E C TO RY 

3

3

4

4

10

10

13

13

13

13

13

14

14

14

14

14

15

18

18

19

19

19

19

21

2 2

2 3

2 3

2 4

2 4

2 4

2 5

2 5

2 5

2 6

2 6

2 6

2 6

2 7

2 8

31

76

7 7

7 7

7 7

78

8 3

ANNUAL REPORT1. 

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 2 018 . 

1.1. CHAIR MAN’S LET TER

D e a r S h a r e h o l d e r s ,

I  a m  p l e a s e d  to  p r e s e nt   to   yo u  o u r  A n n u a l  Re p o r t  fo r   2 018 .     T h e  C o m p a ny’s   u n d e r l y i n g 

p e r fo r m a n c e  d u r i n g  t h e  ye a r  w a s  r e a s o n a b l y  s t r o n g  g i ve n  t h e  c h a l l e n g i n g  e nv i r o n m e nt  w h i c h 

w e  o p e r a te  i n ,  w i t h  u n d e r l y i n g  r eve n u e  i n c r e a s i n g  to   $ 5 ,97 0 , 871  (f r o m  $ 5 , 3 0 0 ,181  t h e  p r ev i o u s 

ye a r ) a n d o p e r a t i n g c o s t s w e r e r e d u c e d to $ 6 ,10 9, 3 2 5 (f r o m $ 6 ,95 0 , 2 5 6 t h e p r ev i o u s ye a r ).  T h e 

n et  l o s s  fo r  t h e  ye a r  w a s  $ 4 21, 2 3 4 ,   c o m p a r e d  to   a  p r o f i t   t h e  p r ev i o u s   ye a r   o f   $1, 7 2 8 , 0 4 5   w h i c h 

i n c l u d e d a s i g n i f i ca nt a b n o r m a l i te m ($ 5 , 0 0 0 , 0 0 0 )  f r o m r e s o l v i n g t h e o n g o i n g u s e o f t h e C h i r o n 

s y s te m w i t h  S A H e a l t h .

Yo u r  B o a r d  e l e c te d  n ot  to  p a y   a  d i v i d e n d  fo r  t h e  ye a r,  w h i c h  r e f l e c t s  t h e  C o m p a ny’s  o n g o i n g 

i nve s t m e nt i n d eve l o p i n g o u r p r o d u c t s a n d p u r s u i n g g r o w t h i n A s i a .  We b e l i eve yo u r c o m p a ny 

i s   w e l l  p o s i t i o n e d  to  ca p i ta l i s e  o n   t h i s  i nve s t m e nt  to  c o nt i n u e  to   i n c r e a s e  r eve n u e,  r et u r n  to 

p r o f i ta b i l i t y, a n d s t r e n g t h e n  s h a r e h o l d e r va l u e ove r  t h e n e x t  fe w  ye a r s .

Key h i g h l i g ht s fo r t h e ye a r i n c l u d e:

• 

• 

• 

• 

• 

C o nt i n u e d  g r o w t h i n s a l e s o f   M a s te r C a r e  E M R ;

S i g n i f i c a nt i n c r e a s e i n t h e C o m p a ny’s  Re fe r r a l N et  S M D  s u b s c r i b e r  n et w o r k ;

F a s t  t r a c k i n g o f r e l e a s e o f o u r  C o n n e c te d H e a l t h  Re c o r d s  p o r t fo l i o;

Re c r u i t m e nt o f a d d i t i o n a l key p e r s o n n e l;

D eve l o p i n g  o p p o r t u n i t i e s fo r  o u r  p r o d u c t s i n A s i a .

I w o u l d l i ke to t h a n k m y fe l l o w  D i r e c to r s , o u r C E O M a t h e w  C h e r i a n , a n d  t h e e n t i r e te a m fo r t h e i r 

o n g o i n g  l oya l t y,  d e d i ca t i o n ,   a n d  t i r e l e s s  e f fo r t s  to  e x p a n d   o u r   b r a n d   a w a r e n e s s  a n d   g r o w   t h e 

C o m p a ny’s  r eve n u e  b a s e,  b ot h  i n   A u s t r a l i a  a n d  A s i a .   A l s o,  t h a n k s   to   yo u,  o u r  s h a r e h o l d e r s ,  fo r 

yo u r  c o nt i n u e d p a t i e n c e, a n d  u n d e r s ta n d i n g  o f  o u r b u s i n e s s s t r a te g y.

Yo u r s  s i n c e r e l y,

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,

Steve n L e i g h P y nt

N o n - E x e c u t i ve C h a i r m a n

3

ANNUAL REPORT 
1.2. CHIEF  EXECUTI VE OFF IC ER’ S O PE R ATI O NS   RE PO R T

1.3. FINANCI 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  2 018 .  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  2 017. 

R EVIE W  OF THE F INANCIAL YE AR  TO JU NE 2 018

FI NANCIAL RESULT

T h e f i n a n c i a l r e s u l t o f t h e C o m p a ny  fo r  t h e ye a r  e n d e d  3 0  J u n e 2 018  i s  s u m m a r i s e d  b e l o w :

2018
$

Licence Subscriptions 

3,880,443

Services & Other Revenue

2,090,428

Total Revenue

Total Operating Expenses

EBITDA

Net Profit / (Loss)

5,970,871

6,109,325

(138,454)

(421,234)

2017
$1

3,415,775

1,884,406

5,300,181

464,668

206,022

670,090

6,950,256

(890,931)

(1,650,075)

1,511,621

(3,271,955)

2,850,721

+14%

+11%

+13%

-12%

+92%

+87%

$ Change % Change

1 2017 results have been adjusted for significant one-off legal settlement of $5,000,000

T h e o p e r a t i o n s h a ve a c h i eve d  s t r o n g t r e n d s  a c r o s s  key  m e a s u r e s :

• 

• 

• 

• 

14 %  g r o w t h i n n e w a n d r e c u r r i n g L i c e n ce  S u b s c r i pt i o n s

13 %  g r o w t h  i n ove r a l l r eve n u e to  j u s t  u n d e r $ 6 M

12 % r e d u c t i o n i n o p e r a t i n g  e x p e n s e s

$1. 5 M  t u r n a r o u n d i n  E B I T DA  to  ($13 8 K ) 

•  Re d u c t i o n i n N et L o s s a f te r  a b n o r m a l  i te m s  f r o m ($ 3 . 2 7 2 M)  to  ($ . 4 21M).

BUSINESS AS USUAL ( BAU) - TODAY ’S RE VE NUE

O ve r  8 0 % o f r eve n u e w a s g e n e r a te d  f r o m t h e p r ov i s i o n  o f o u r s o f t w a r e s o l u t i o n s to c o m m u n i t y 

h e a l t h ,  h o s p i ta l  a n d  p r i m a r y   ca r e  h e a l t h  b u s i n e s s e s ,   d e p l oye d  o n   c u s to m e r ’s  I T  i n f r a s t r u c t u r e 

(“o n - p r e m i s e s ”).

• 

S a l e s  o f  M a s te r C a r e E l e c t r o n i c M e d i ca l  Re c o r d  ( E M R)  s o f t w a r e to  m e nta l  h e a l t h a n d 

c h r o n i c d i s e a s e h e a l t h c a r e  p r ov i d e r s  w a s  t h e  fa s te s t  g r o w i n g l i n e  o f b u s i n e s s  (u p 

3 3 %).  M a s te r C a r e E M R  n o w  r e p r e s e nt s  m o r e t h a n  5 0 %  o f tota l  r eve n u e.  A n u m b e r o f 

s i g n i f i ca nt i m p l e m e nta t i o n s  w e nt  “ l i ve”   t h r o u g h t h e ye a r :

• 

Te r r i to r y - w i d e d e p l oy m e nt a c r o s s  AC T fo r  M e nta l H e a l t h , J u s t i c e,  A l c o h o l a n d  O t h e r 

D r u g s p u b l i c  s e r v i c e s ;

•  M e rc y  M e nta l H e a l t h s e r v i c e s   d e p l oy m e nt  i n m et r o p o l i ta n  V i c to r i a

•  W i n d a n a D r u g a n d A l c o h o l  Re cove r y  i n  V i c to r i a

•  B a s s C o a s t C o m m u n i t y H e a l t h  S e r v i ce s  i n co u nt r y  V i c to r i a .

W i t h  a  c o n s i s te nt l y  s t r o n g  p i p e l i n e,  M a s te r C a r e  E M R  i s  e x p e c te d   to   co nt i n u e  i t s  g r o w t h  w e l l 

b eyo n d  t h e e x i s t i n g 10 0  c u s to m e r s  ove r  t h e  n e x t  18   m o nt h s . 

S e c u r e M e s s a g e D e l i ve r y ( S M D) p l a t fo r m s a r e s o f t w a r e  p l a t fo r m s t h a t  e n a b l e s e n s i t i ve c l i n i ca l 

i n fo r m a t i o n to b e e n c r y pte d ,  d i g i ta l l y s i g n e d a n d s e c u r e l y s h a r e d  b et w e e n p r ov i d e r s to  p r ote c t 

p a t i e nt p r i va c y  a n d c o n f i d e nt i a l i t y.

4

ANNUAL REPORTT h e C o m p a ny’s Re fe r r a l N et S M D s u b s c r i b e r n et w o r k g r e w 13 % p r o c e s s i n g 16% m o r e m e s s a g e s 

(o r  c l i n i c a l  d o c u m e nt s)  ove r  t h e  12   m o nt h s .   Re fe r r a l N et  i s  c u r r e nt l y  e n g a g e d   i n  t w o  F e d e r a l 

G ove r n m e nt p r o j e c t s to i m p r ove  i nte r o p e r a b i l i t y w i t h  A u s t r a l i a’s t w o  l a r g e s t  S M D  n et w o r k s .

T h e  c o m p l et i o n  o f   t h e  p r o j e c t  l a te r  i n  2 018   s h o u l d  e x te n d   t h e  n et w o r k  r e a c h  o f   Re fe r r a l N et 

to  ove r  8 0 %  o f  h e a l t h ca r e  p r ov i d e r s  t h a t   a r e  e n a b l e d  fo r  S M D.   T h e  i nte r o p e r a b i l i t y  p r o j e c t s 

w i l l  b e  fo l l o w e d  by  ca m p a i g n s  to   e x te n d  Re fe r r a l N et   s u b s c r i b e r s  b eyo n d   V i c to r i a  fo c u s i n g 

p r i m a r i l y o n  A l l i e d H e a l t h a n d  S p e c i a l i s t  p r ov i d e r s .

O ve r   3 , 0 0 0  h e a l t h ca r e  o r g a n i s a t i o n s  i n  A u s t r a l i a  r e l y  o n  G l o b a l  H e a l t h  o n - p r e m i s e s  s o f t w a r e 

a p p l i ca t i o n s to s u p p o r t t h e i r  i n te r n a l  o p e r a t i o n s  o r t h e i r  c o n n e c t i v i t y n e e d s . 

T h e  C o m p a ny’s  B u s i n e s s - a s - U s u a l  ( B AU)   p o r t fo l i o  o f   a p p l i ca t i o n s  t h a t   a r e  d e p l oye d  “o n -

p r e m i s e s ” i s  fo r e c a s t to co n t i n u e  d o u b l e - d i g i t g r o w t h ove r t h e  fo r e s e e a b l e f u t u r e.

B u t H e a l t h c a r e c a n n ot m a i nta i n   a  s ta t u s  q u o  o r “ B u s i n e s s - a s - U s u a l ”. 

T HE  PROBLEM – UNSUSTAINAB L E  COS T ESC AL A TION  IN H E AL THC A R E

• 

• 

5 0 %  o f u s h a ve o r w i l l h a ve a  c h r o n i c  d i s e a s e  i n  o u r  l i fet i m e; 

6 3 % o f t h o s e w i l l d i e  f r o m t h e i r d i s e a s e;

• 

5 0 %  o f u s w i l l e x p e r i e n c e a m e nta l h e a l t h  e p i s o d e.

T h e c o m b i n a t i o n o f :

• 

• 

• 

a n a g i n g  p o p u l a t i o n , 

u n h e a l t hy, s e d e nta r y  l i fe s t y l e s , 

o b e s i t y  a n d

• 

t h e s t r e s s e s o f m o d e r n l i fe. 

A s  w e l l a s  t h e:

• 

• 

r a p i d i m p r ove m e nt s i n m e d i ca l  te c h n o l o g y, 

e a r l i e r d ete c t i o n o f a d ve r s e  co n d i t i o n s , 

•  m o r e  m e d i ca t i o n s  to m a n a g e  l i fe l o n g c o n d i t i o n s   a n d

• 

i n n ova t i ve  d eve l o p m e nt s i n   m e d i ca l  d ev i c e s . 

H a ve c r e a te d a c r i s i s i n h e a l t h ca r e d e l i ve r y.

I n A u s t r a l i a h a l f a b i l l i o n d o l l a r s i s s p e nt o n h e a l t h ca r e e a c h a n d  eve r y d a y. A n d i t  i s g r o w i n g .

A p p r o x i m a te l y  3 5 %  o f  h e a l t h ca r e  c o s t s  a r e  n o n - p a t i e nt   fa c i n g  –  b a c k   o f f i ce  c o s t s   s u c h  a s 

p h o n e  co nve r s a t i o n s  b et w e e n  p r ov i d e r s ,  r e - key i n g  o f  i n fo r m a t i o n  o n  p a p e r   a s  va l u a b l e 

c l i n i ca l  i n fo r m a t i o n  i s  e x c h a n g e d  t h r o u g h  t h e  p a t i e nt   j o u r n ey,  r e - key i n g   o f  p a t i e nt   s to r i e s 

a n d r e - d o i n g te s t s . 

T h o u s a n d s o f a vo i d a b l e d e a t h s o cc u r d u e to p o o r a cce s s  to  r e l eva nt  i n fo r m a t i o n a t  t h e p o i nt 

o f ca r e.

H e a l t h ca r e  i s  a  c o m p l e x  s y s te m  o f   c o m p l e x  s y s te m s .   F u n d i n g  o f  h e a l t h ca r e  i n  A u s t r a l i a  i s 

a  c o m b i n a t i o n  o f  s e l f - f u n d i n g ,   p r i va te  i n s u r a n c e,   M e d i ca r e,  DVA ,  Wo r ke r s   C o m p e n s a t i o n , 

Tr a n s p o r t Acc i d e nt c o m p e n s a t i o n a n d  a  m y r i a d  o f  Sta te a n d  F e d e r a l f u n d i n g p r o g r a m s .

T h e r e a r e a n e s t i m a te d 15 0 , 0 0 0 d i f fe r e nt  b u s i n e s s e s i nvo l ve d  i n h e a l t h ca r e – f r o m  s ta te - f u n d e d 

A r e a H e a l t h S e r v i c e s i n e a c h s ta te,  c o m m o n w e a l t h - f u n d e d  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 , 

p r i va te   a g e d  c a r e  o p e r a to r s ,   g e n e r a l  p r a c t i ce,  d a y  h o s p i ta l s ,   ove r n i g ht   h o s p i ta l s ,  a l l i e d 

h e a l t h s e r v i c e s , d i a g n o s t i c  s e r v i c e s  a n d p h a r m a c i e s .

G l o b a l l y,  h e a l t h c a r e c o s t s a r e  i n c r e a s i n g a t  ove r  5 % p. a .  i n r e a l te r m s .

5

ANNUAL REPORTT h e  l a r g e s t  g r o w t h  i n  c h r o n i c  d i s e a s e  i s  i n  d eve l o p i n g  e c o n o m i e s  –  a s  p e o p l e  b e c o m e  m o r e 

a f f l u e nt, t h e p r e c u r s o r s o f c h r o n i c  d i s e a s e  ta ke  h o l d  a n d  eve nt u a l l y co s t s ta ke  o f f. 

H e a l t h ca r e  i s  a  u n i ve r s a l  p r o d u c t  –  d i a b ete s   i n  D u b a i  o r  D e l h i   i s  b e s t  t r e a te d  t h e  s a m e   w a y  a s 

d i a b ete s i n B o s to n o r  M e l b o u r n e.

S o m e b e l i eve t h a t a s i n g l e  h o m o g e n o u s s y s te m  a c r o s s  a l l  o f  h e a l t h ca r e  i s t h e  a n s w e r.

At G l o b a l  H e a l t h w e t h i n k d i f fe r e nt l y.

C O NNECTED  HEALTH RECORDS

O u r  v i s i o n  fo r  i m p r ov i n g  c o n s u m e r  o u tc o m e s  a n d  h e a l t h ca r e  p r o d u c t i v i t y  i s  a n  e c o - s y s te m  fo r 

d i g i ta l   h e a l t h b a s e d  o n c o n n e c t i v i t y,  s p e c i a l i s t a p p l i ca t i o n s  a n d c o n s u m e r e n g a g e m e n t.

C o n n e c t e d  H e a l t h  R e co r d s w i t h co n s u m e r s o r c u s to m e r s o f  t h e h e a l t h ca r e s y s te m a t  t h e c e nt r e.

C a r e  m a n a g e r s  d eve l o p  a c t i v i t y  ta s k s   o r  m a n a g e m e nt  p l a n s  ta i l o r e d   to   e a c h  i n d i v i d u a l’s 

c i r c u m s ta n ce t h a t n e e d to  b e  s h a r e d  a n d a c t i ve l y  m o n i to r e d  to m a x i m i s e  c o m p l i a n ce. 

E n g a g e d co n s u m e r  w i l l b e t h e key to d i s r u pt i n g t h e e s c a l a t i n g c o s t s o f  h e a l t h ca r e a n d i m p r ov i n g 

i n d i v i d u a l  h e a l t h  o u tc o m e s .   C o n s u m e r s   w i l l   c h o o s e  w h o  a n d  w h e n  to  s h a r e  i n fo r m a t i o n;  w i t h 

t h e i r  fa m i l y a n d e x te r n a l ca r e  te a m . 

M a ny h e a l t h c a r e i s s u e s ca n  b e a d d r e s s e d i f  a s c o n s u m e r s , w e e x e rc i s e m o r e,  e a t  h e a l t hy, s l e e p 

w e l l a n d m a n a g e s t r e s s b et te r. 

W i t h  t h e  u s e  o f  A r t i f i c i a l  I nte l l i g e n c e  (A I ),  m a c h i n e  l e a r n i n g  a n d  g a m i n g  te c h n i q u e s  w e  h a ve  a 

g r e a te r c h a n c e to i n f l u e n c e b e h a v i o u r m o d i f i c a t i o n s – to s to p  b a d  h a b i t s ,  l o s e w e i g ht, ta ke o u r 

m e d i c i n e s ,  e x e rc i s e m o r e a n d  b e c o m e  m o r e  s o c i a l l y  a c t i ve. 

T h e b et te r  w a y to s to p  t h e e s ca l a t i o n  i n  h e a l t h ca r e c o s t s i s  by  a d d r e s s i n g  t h e  d e m a n d  s i d e.

EMPOWERM ENT,  EN GAG EMEN T AND COLLABORATION W ITH P ROVI DERS.

Supporting consumers th roughou t thei r  life time

F a m i l y  H e a l t h

We l l b e i n g

S u p p o r t  a n d  C a r e N e t w o r k

6

ANNUAL REPORT 
T OMORROW’S GROWTH REVENUE

P r i o r to  J u l y 2 017, t h e C o m p a ny  s p e nt  a n a ve r a g e o f $1M e a c h ye a r  o n  p r o d u c t  d eve l o p m e nt 

fo r  t h e  n e x t - g e n e r a t i o n  o f  s o f t w a r e  p l a t fo r m s  a i m e d   a t   c o n n e c t i n g  h e a l t h ca r e  c o n s u m e r s 

a n d c l i n i c i a n s . 

T i m i n g i s c o n s i d e r e d o n e o f t h e m o s t i m p o r ta nt  fa c to r s  i n t h e s u cc e s s  o f te c h n o l o g y c o m p a n i e s . 

I n t h e p a s t ye a r, o u r p r o d u c t d eve l o p m e nt  w a s a cc e l e r a te d . We h a ve i nve s te d  a p p r o x i m a te l y 

$ 2 M i n n e w p r o d u c t  d eve l o p m e nt to fa s t t r a c k t h e r e l e a s e o f o u r S a a S ( 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 s  t h a t to g et h e r c o m p r i s e  o u r C o n n e c te d  H e a l t h Re co r d s  (C H R)  p o r t fo l i o.

T h e s e  a r e  d e s i g n e d fo r m o b i l i t y   a n d  i n te r n a t i o n a l  m a r ket s : 

• 

• 

• 

to  w o r k o n  s m a r t p h o n e s , ta b l et s  a n d l a pto p s , 

to  s u p p o r t  m u l t i p l e l a n g u a g e s ,   a n d 

to  o f fe r a n  o p e n m a r ket p l a ce  fo r t h i r d  p a r t i e s  to  va l u e - a d d  m o d u l e s u n i q u e  to  c e r ta i n 

s p e c i a l t i e s   o r j u r i s d i c t i o n s . 

C o n n e c t e d  H e a l t h  R e co r d s c o m p r i s e o f  fo u r  p l a t fo r m s :

M a s t e r C a r e +   i s  a  c l o u d - b a s e d  m a r ket p l a c e  w h e r e  h e a l t h ca r e  p r ov i d e r s  ca n  s u b s c r i b e  to 

t h e  S o f t w a r e  S e r v i c e s  a n d  fe a t u r e s   t h ey  n e e d  –   p a t i e nt   r e c o r d  m a n a g e m e nt,  p r e s c r i pt i o n s , 

m e d i ca t i o n m a n a g e m e nt,  d i a g n o s t i c s e r v i ce s ,  s e c u r e m e s s a g i n g ,  c l i n i c a l  n ote s ,  m a n a g e m e nt 

p l a n s ,  b i l l i n g ,  a p p o i nt m e nt s  etc .  W i t h i n  5  ye a r s ,   M a s te r C a r e +  i s  e x p e c te d   to  r e p l a c e  t h e 

f u n c t i o n a l i t y  o f  o u r   e x i s t i n g  o n - p r e m i s e s  h o s p i ta l ,   co m m u n i t y  h e a l t h ,   m e d i c a l   a n d   a l l i e d 

h e a l t h  a p p l i ca t i o n s . 

L i f e ca r d  i s  fo r   c o n s u m e r s ;  yo u  a n d  I  a s   c u s to m e r s   o f  h e a l t h ca r e  s e r v i c e s ,  e m p o w e r e d   to 

w o r k  p r o a c t i ve l y   w i t h  o u r   c a r e  te a m s .  L i fe ca r d  i s  a l r e a d y  a va i l a b l e  i n  T h a i ,  V i et n a m e s e  a n d 

B a h a s a  – t h e 3 l a r g e s t m a r ket s  w i t h i n A S E A N w i t h  a b o u t  4 5 0 M  c o n s u m e r s .

H o t H e a l t h   e n a b l e s  h e a l t h ca r e  p r ov i d e r s 

to   e n g a g e  w i t h 

t h e i r  p a t i e nt s ;   w i t h  v i d e o -

c o n fe r e n c i n g ,  t h e i r  o w n  w e b - s to r e,   o n l i n e  a p p o i nt m e nt s ,  s p e c i a l - i nte r e s t  g r o u p s  a n d  c h a t s ; 

I n  e s s e n c e,   t h e  o n l i n e  c l i n i c  fo r  h e a l t h ca r e  p r ov i d e r s  to  b u i l d   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. C o n s u m e r s c a n s u b s c r i b e to  m u l t i p l e p r ov i d e r s ,  fo r e x a m p l e t h e i r d e nt i s t, p hy s i o,  G P, 

n u t r i t i o n i s t a n d s o o n .

C o r e to a l l o f t h e s e i s t h e R e f e r r a l N e t  S M D  p l a t fo r m w h i c h e n a b l e s d a ta to  s e c u r e l y f l o w f r o m 

a s i n g l e  p o i nt o f e nt r y t h r o u g h  to  c o l l e a g u e s ,  f u n d e r s  a n d  co n s u m e r s .

O ve r   t h e  l a s t  15  m o nt h s ,  t h e  C H R   p o r t fo l i o  w a s  s u cc e s s f u l l y  d e p l oye d  to  a  l i m i te d  n u m b e r   o f 

e a r l y  a d o pte r s w i t h key l e a r n i n g s r e - fa c to r e d  i nto t h e p l a t fo r m s r e a d y fo r  c o m m e rc i a l i s a t i o n 

a n d g r o w t h .

Secure Connectivity 

Existing third 
party clinical 
and 
provider 
systems

Health Provider 
Applications

Consumer 
Applications

Consumer Engagement

Remote 
home 
monitoring 
devices and 
wearables

7

ANNUAL REPORTDI GI TALLY CONNECTED HEALTH CARE J O URNEY

We o p e r a te a t t h e i nte r s e c t i o n o f te c h n o l o g y a n d h e a l t h ca r e w h i c h r e p r e s e nt s t h e b e s t o f b ot h 

w o r l d s  -  h e a l t h c a r e  i s  a  d e fe n s i ve  i n d u s t r y  t h a t   i s  l e s s  s u s ce pt i b l e  to  e c o n o m i c  c yc l e s .  We   g et 

s i c k  i n  g o o d  t i m e s  a n d  i n  b a d;   e n a b l i n g  te c h n o l o g y  to  b e  t h e  fa s te s t   g r o w t h  i n d u s t r y  i n  t h e 

w o r l d .

H e a l t h ca r e te c h n o l o g y i s h a r d  b u t  s t i c k y.

At G l o b a l H e a l t h , o u r  s t r a te g y  i s to  fo c u s  o n a p a t h to  s u s ta i n a b l e p r o f i ta b i l i t y. O u r i nve s t m e n t s 

i n  n e w  p r o d u c t s  a n d  m a r ket s   h a ve   b e e n   f u n d e d  by  i nte r n a l l y  g e n e r a te d   f u n d s  –  c l o s e  to  $10 M 

ove r  t h e r e c e nt p a s t.

O u r  fo c u s  i s  o n  t h e  p r eve nt i o n  s i d e  o f  h e a l t h c a r e;  p l a t fo r m s  d e s i g n e d  to  e d u ca te  c o n s u m e r s 

a n d e n c o u r a g e b e h a v i o u r c h a n g e. 

Ac h i ev i n g  s ca l e  w i l l  d e p e n d  o n  t h e  a b i l i t y  to  e x e c u te  o u r  v i s i o n  i n  m a r ket s  w i t h  m u c h  g r e a te r 

p o p u l a t i o n s   o f  c o n s u m e r s . 

T h e l a r g e s t  p o p u l a t i o n s a n d  fa s te s t  g r o w i n g e co n o m i e s a r e  i n  o u r n e i g h b o u r h o o d  -

w i t h  a  p o p u l a t i o n  o f   6 5 0 M  c o n s u m e r s   a c r o s s  S o u t h - E a s t   A s i a  o r  A S E A N ,  t h e  p ote nt i a l   m a r ket  i s 

2 6  t i m e s  l a r g e r   t h a n  A u s t r a l i a .   W i t h  a  G D P   a l r e a d y  t w i c e  t h e  s i z e  o f   A u s t r a l i a  a n d  g r o w i n g  a t 

3 0 % , t h i s  i s a  key  fo c u s g o i n g  fo r w a r d . 

S u cc e s s f u l l y  e x p a n d i n g to i nte r n a t i o n a l m a r ket s g i ve s t h e s ca l e o f  c o n s u m e r s w e n e e d to  m a ke 

a n a f fo r d a b l e  d i f fe r e n c e.

O ve r   t h e  n e x t  t h r e e  to  f i ve  ye a r s ,   o u r  t r a d i t i o n a l  o n - p r e m i s e s  r eve n u e  d e r i ve d  f r o m  A u s t r a l i a n 

c u s to m e r s w i l l b e a u g m e nte d w i t h  r eve n u e f r o m  o u r C o n n e c te d H e a l t h Re co r d s p l a t fo r m s , f r o m 

a b r o a d e r r e g i o n a l m a r ket.

8

ANNUAL REPORTFo r m ore inf ormat ion: 

T: + 61  3 9675 0 6 8 8

Ab o ut  Globa l  Health Limited

G l o b a l  H e a l t h  i s  a  l e a d i n g  p r ov i d e r  o f   e - h e a l t h  s o l u t i o n s  to   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 

s u p p o r t i n g  h e a l t h c a r e d e l i ve r y   i n  h o s p i ta l s  a n d c o m m u n i t y s et t i n g s . 

C o n n e c t i v i t y i s e m b e d d e d i n G l o b a l H e a l t h a p p l i ca t i o n s to  p r o m ote s e c u r e i n fo r m a t i o n s h a r i n g , 

f i n a n c i a l t r a n s a c t i o n s a n d t h e  u s e o f  te c h n o l o g y i n  w a y s t h a t  t r a n s fo r m  h e a l t h ca r e d e l i ve r y. 

P r o d u c t s  i n  t h e  G l o b a l  H e a l t h  s u i te  i n c l u d e:   M a s te r C a r e  E M R ,   M a s te r C a r e  PA S ,   P r i m a r y C l i n i c , 

Re fe r r a l N et,  A l t i t u d e C l o u d  H o s t i n g ,  H ot H e a l t h  a n d  L i fe C a r d . 

G l o b a l  H e a l t h i s l i s te 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 w i t h  i t s h e a d  o f f i c e  i n  M e l b o u r n e. 

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  a n d  i t s  p r o d u c t s ,  v i s i t w w w. g l o b a l - h e a l t h . c o m .

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

9

ANNUAL REPORT2.  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 n t 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  2 018 .

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

Position

Non-executive Chairman

Executive director

Non-executive director

Non-executive director

Pattie Anne Beerens

Non-executive director

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 .

INFORMATI ON ON DIRECTORS

T h e s k i l l s ,  e x p e r i e n ce 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. STEVEN L.  PYNT 

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 ce 2 0 0 0  a n d  C h a i r m a n s i n ce 2 0 0 5 . 

E x p e r i e n ce 

H e  i s  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 ,   M P   C o m m e rc i a l   L a w ye r s ,  a n d   h i s  m a i n  a r e a  o f  p r a c t i ce 

i s   i n  co m m e rc 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   c o 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 rc 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 rc e s L i m i te d

G o n d w a n a  Re s o u rc e 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

ANNUAL REPORT 
2 .  MATHEW CHERIAN 

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

E x p e r i e n ce

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 c e  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 ce 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. GRANT SMI TH

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

E x p e r i e n ce

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 nt   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 nt  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 ca 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 c a  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

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

C h a i r m a n  o f t h e A u d i t  C o m m i t te e

11

ANNUAL REPORT 
 
            
4 .  RO BERT KNOWLES 

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

E x p e r i e n ce

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  B eyo n d  B l u e  Ltd . 

H e  i s  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 n t 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  to 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 s 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  a s  a n  Ag e d  C a r e  C o m p l a i nt 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 

St J o h n  o f G o d H e a l t h ca r e  Ltd

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. PATTIE ANNE BEERENS

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

E x p e r i e n ce

Pa t t i e 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 ca 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  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 .  M s  B e e r e n s’  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  t h e 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 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 ,  to o k  t h e l e a d o n p h a r m a c y 

s y s te m 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 c o 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  co m m e n c e d  i n  2 0 0 5  a n d   co nt i n u e s  to d a y  to  s u p p o r t 

a cce 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 .

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 .

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

12

ANNUAL REPORT 
                
 
                
2.2. COMPAN Y SECRETARY

M r S a m  B u tc h e r [ L L B( H o n s), B E c] 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 w i t h e f fe c t  f r o m 21 J u n e 

2 018 .  S a m 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 B H P B i l l i to n  L i m i te d , Z i n i fe x L i m i te d  a n d  B o n l a c 

F o o d s  L i m i te d .    M r  G l e n n  F o w l e s  w a s   c o m p a ny  s e c r eta r y  u nt i l   N ove m b e r   2 017  a n d  M r  J o s e p h 

P h i l l i p p o s  w a s c o m p a ny s e c r eta r y  f r o m N ove m b e r 2 017 to  J u n e 2 018 .

2.3. MEETI NG OF DIRECTO RS  AND   CO M M I TT EE S

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  A u d i t   co 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  c a 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  2 018 , 

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:

Directors Meetings

Audit Committee Meetings

Number of Meetings 

Attended

Number of 

Meetings eligible to 

attend

Number of 

Meetings Attended

Number of 

Meetings eligible 

to attend

Mr M Cherian

Mr S L Pynt

Mr G Smith

Mr R Knowles

Ms P Beerens

6

6

6

6

6

6

6

6

6

6

-

2

2

-

-

-

2

2

-

-

2.4. DIRECTORS’  INTERES TS
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:

Ordinary Shares

Options

Mr M Cherian

Mr S L Pynt

Mr G Smith

Mr R Knowles

Ms P Beerens

Total

18,619,370

257,408

300,000

20,000

22,000

19,218,778

 150,0001

 200,000

 100,000

 100,000

-

550,000

1 Options through a related party, Kye Cherian

2.5. PRINCI PAL A CTI VI TI ES

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. 

2 . 

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

t h e  d eve l o p m e nt  o f  s y s te m s 

i nte 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 n te 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. RESU LTS  AND  DIVI DENDS

2.6.1.  O PE R A TI NG  RE SULTS

T h e l o s s 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 c o 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 nte d  to  $ 4 21, 2 3 4  (2 017:  p r o f i t  $1, 7 2 8 , 0 4 5).

13

ANNUAL REPORT 
2.6.2.  DI V ID E ND S

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 2 018 , t h e C o m p a ny d i d n ot  p a y a d i v i d e n d .  D eta i l s  o f 

d i v i d e n d s 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. REVIEW 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 c e 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. SIGNIFI CANT  C HANGES  IN  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 2 018 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.

2.10. LIKEL Y DEVELOPME NTS

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. SHAR E OPTI ONS

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 Expiry

26 May 2014

10 June 2016

26 May 2019

10 June 2020

19 December 2016

30 November 2019

19 December 2016

30 November 2021

Exercise Price 

Number Under 

per option 

Option*

$0.75

$0.65

$0.75

$0.75

300,000

310,000

400,000

600,000

1,610,000

* O pt i o n h o l d e r s d o n ot h a ve  a ny  r i g ht s to  p a r t i c i p a te i n  a ny i s s u e s o f s h a r e s o r ot h e r i nte r e s t s  o f 

t h e c o m p a ny o r a ny  ot h e r  e nt i t y.  A l l o pt i o n s w e r e i s s u e d  by G l o b a l  H e a l t h L i m i te d a n d  e nt i t l e d 

t h e h o l d e r to  o n e o r d i n a r y  s h a r e  i n  G l o b a l H e a l t h L i m i te d  fo r e a c h  o pt i o n  e x e rc i s 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  2 018 ,   t h e  fo l l o w i n g  eve n t s o c c u r r e d:

• 

5 3 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 . 6 5  e x p i r e d  o n  19  D e ce m b e r  2 017

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.

14

ANNUAL REPORT2.12. 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 ce 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 c e eva l u a t i o n p r o ce 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 ce.     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 ce 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 . 

PERFORMANCE BASED REMUNERATION

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 et   P r o f i t  A f te r  Ta x  ( N PAT )   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 nt 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 .

RELATIONSHIP BETWEEN REMUNERATION AND COMPANY PERFORMANCE

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 c o 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 co u r a g e  t h e  a l i g n m e n t  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 n te r e s t s .  T h e r e  i s   n o 

fo r m a l  r e m u n e r a t i o n 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 c o m p a ny’s  p e r fo r m a n c e.

NON-EXECUTIVE DIRECTORS’ REMUNERATION

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 

c o 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 DIRECTORS’ REMUNERATION

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 REMUNERATION 

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  c o 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  co nt r a c t.

15

ANNUAL REPORT2.12.2.  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:

2018

Short-Term 
benefits

Performance 
related

Post-
Employment 
Benefits

Other long term 
benefits

Share-based 
Payment*

Name

Salary and 
or Fees

$

Bonus

Superannuation

Accrued Long 
Service Leave

Shares

Total

$

$

$

$

$

Mr S L Pynt

51,605

Mr M Cherian

212,534

Mr G Smith

32,036

Mr R Knowles

35,240

MS P Beerens

35,160

Mr D 

Groenveld

164,383

Mr K Jayesuria

134,288

TOTAL

665,246

-

-

-

-

-

-

-

-

4,902

53,027

3,043

3,347

3,340

Directors:

-

7,868

64,375

4,190

-

269,751

-

-

-

3,934

3,934

39,013

42,521

-

38,500

Key Management Personnel:

15,616

2,740

15,819

198,558

24,587

107,862

2,435

9,365

15,819

47,374

177,129

829,847

Proportion of 
Remuneration 
that is 
performance 
based

%

-

-

-

-

-

-

-

-

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 .

2017

Short-Term 
benefits

Performance 
related

Post-Employment 
Benefits

Other long 
term benefits

Share-based 
Payment*

Name

Salary and 
or Fees

$

Bonus

Superannuation

Accrued 
Long Service 
Leave

Shares

Total

$

$

$

$

$

Proportion of 
Remuneration 
that is 
performance 
based

%

Mr S L Pynt

Mr M Cherian

Mr G Smith

Mr R Knowles

Ms P Beerens

41,284

269,034

32,037

32,037

18,645

Mr P Curigliano 

(resigned 28 

140,044

Dec 2016)

Mr K Jayesuria

TOTAL

120,580

653,661

-

-

-

-

-

-

-

-

3,922

33,381

3,043

3,043

1,771

20,820

35,370

101,350

Directors:

9,432

54,638

-

306,604

4,716

4,716

-

39,796

39,796

20,416

Key Management Personnel:

-

160,864

-

4,189

-

-

-

-

2,435

6,624

16,002

174,387

34,866

796,501

-

-

-

-

-

-

-

-

* Re c o g n i s e  e x p e n s e o f g r a nt i n g  s h a r e  o pt i o n s  to  d i r e c to r s  a n d  K M P i n p r i o r  ye a r s .

16

ANNUAL REPORT 
2.12. 3.  SE RV IC E  AGR EEMEN 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 nt   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 nt r a c t s  c o 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   o f   n ot i c e,   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 c o n d u c t  o r  b r e a c h  o f   co 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 nt  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 c a 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.

Notice period by 

Notice period by 

Company

Employee

Termination Payments

Managing Director

     Mr M Cherian

6 months

6 months

6 months*

Principal Architect

Mr D Groenveld

1 month

Chief Operating Officer

     Mr K Jayesuria

1 month

* If termination is by reason of the employee’s illness or incapacity.

1 month

1 month

None

None

2.12. 4.  IN TE R E STS  I N  S HAR ES AND OP T IONS

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  2 018 

a r e:

Total number of 

shares

2018

Number of 

Number of 

shares sold

shares acquired

2017

2018

2017

2018

2017

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

257,408

300,000

20,000

22,000

TOTAL

19,218,778

19,218,778

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

25,000

-

-

22,000

47,000

D i r e c to r s r e c e i ve 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 n t 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 .

17

ANNUAL REPORTOPTIONS

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 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 2 018 

a r e:

Total number of 

options  2

Number 

Number of 

of options 

option granted 

exercised 

during the year

during 

the year

2018

2017

2018

2017

2018

Mr M Cherian1

150,000

150,000

Mr S L Pynt

200,000

200,000

Mr G Smith

100,000

100,000

Mr R Knowles

100,000

100,000

Ms P Beerens

-

-

-

-

-

-

-

-

200,000

100,000

100,000

-

-

-

-

-

-

Number 

Number 

Option 

Exercise 

of Options 

of Options 

type 

price per 

vested/ 

unvested 

(Listed / 

Option ($)

exercisable 

at report 

Unlisted)

at report 

date

date

2018

150,000

133,333

66,663

66,663

-

2018

-

Unlisted

66,667

33,337

33,337

-

Unlisted

Unlisted

Unlisted

-

$0.65

$0.75

$0.75

$0.75

-

TOTAL

550,000

550,000

-

400,000

-

416,659

133,341

1 Options through a related party, Kye Cherian     2 Options holders have no rights to participate in any share or interest issue of the entity/other entities. 

2.12. 5.  LOANS TO KEY MANAGEMENT  PE RS ONNE L

At  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 ,   a  l o a n  o f  $ 2 4 , 4 91  w a s  o u t s ta n d i n g  f r o m  Key  M a n a g e m e n t 

Pe r s o n n e l  o f  w h i c h  i nte r e s t  o f  $1, 7 7 2   h a d  b e e n  c h a r g e d  d u r i n g   t h e  ye a r.     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 nt  p e r s o n n e l  d u r i n g t h e ye a r (2 017:  $ 4 5 , 0 0 0 ).

2.12. 6.  O THE R  T RAN S ACTI ONS WITH  K E Y  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   co 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 

c o n d u c te d ot h e r t h a n i n a c co 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 –

2.13. INDEMNIFI CATION O F  DI RECT O RS   AND   E X EC U TI V ES 

D u r i n g  o r  s i n c e  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 ce r   o r  d i r e c to r  o f  t h e  p a r e n t  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 n t  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 c e  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 c o 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 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  18 2  o r  18 3  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 c e r s  L i a b i l i t y  I n s u r a n c e 

w a s $14 , 87 0  (2 017: $13 , 610 ).

2.14. PRO CEEDINGS ON B EHALF O F  T HE   CO M PANY

N o p e r s o n h a s a p p l i e d to t h e C o u r t  u n d e r s e c t i o n  2 37 o f t h e C o r p o r a t i o n s Ac t 2 0 01  fo r l e a ve to 

18

ANNUAL REPORTb r i n g   p r o c e e d i n g s  o n  b e h a l f  o f  t h e  C o m p a ny,  o r  to   i nte r ve n e  i n  a ny  p r o c e e d i n g s   to  w h i c h  t h e 

C o m p a ny i s a p a r t y, fo r t h e p u r p o s e o f  ta k i n g r e s p o n s i b i l i t y o n b e h a l f o f  t h e C o m p a ny fo r  a l l o r 

p a r t o f  t h o s e  p r o c e e d i n g s .

2.15. NON-AUDIT SERVICES

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   p r ov i d e d  co n s u l ta n c y  s e r v i c e s  r e g a r d i n g 

o u r  ta x  p o s i t i o n .  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 n d  co n s u l ta n c y  a r e 

d eta i l e d  i n N ote 2 3 .

2.16. EN VIR ONMENTAL I SSU ES

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 c e 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 

e nv i r o n m e n ta l  Ac t. 

2.17. CORPORATE GOVERNAN CE

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 nta 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.

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 2 018

19

ANNUAL REPORT3.  CORP ORATE G OVERNANCE ST A TE MENT

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  h i g h  s ta n d a r d s   o f  c o r p o r a te  g ove r n a n ce.   Acc o 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   c o r p o r a te  g ove r n a n c e  a r r a n g e m e nt s  co m p l y  w i t h  t h e  P r i n c i p l e s 

a n d Re 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  (3 r d  E d i t i o n -  2 014)  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 2 018 .

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 n t 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 nt.

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  c o r p o r a te  g ove r n a n c e  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 l o n g e r te r m a n d s e e k to b a l a n c e 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 

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 c e  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  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 i e s  a r e 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  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 ce  p r a c t i c e s   i s  s et   o u t   b e l o w.   A l l  o f 

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.

E t h i ca l S t a n d a r d s

T h e  B o a r d  i s  c o m m i t te d  to  i t s  co r e  g ove r n a n c e  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 n t 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  co n f l i c t s  o f i nte r e s t  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 ote nt i a l  c o n f l i c t s ;

•  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 c o 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   o r  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 nt  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  m a d e 

by  t h e B o a r d .

D i ve r s i t y  Po l i c y

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  co m m i t te d  to  d i ve r s i t y  a n d  r e co 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. 

T h e  C o m p a ny’s  d i ve r s i t y   p o l i c y   i n c l u d 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  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  t h e  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 e m .    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 n t i n u o u s i m p r ove m e nt ;

•  d eve l o p  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 cc o u nt w h e n 

c o n s i d e r i n g va ca n c i e s ;

21

ANNUAL REPORT•  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  c o 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 rce 

a n d  c o 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 :

2 018

2 017

N u m b e r

Pe r ce n t a g e

N u m b e r

Pe r ce n t a g e

Women on the Board

Women in Senior Management

Women employees in the Company

1

-

11

20%

0%

29%

1

-

14

20%

0%

35%

3.1. 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  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,   n a m e l y  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 ce  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 ce  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  c o 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 cco r d a n c e  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 n ta i n a  m a j o r i t y o f 

i n d e p e n d e n t  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  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 

• 

• 

p e r s o n;

• 

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 i te m s  o f  b u s i n e s s .

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  a n d 

e x p e r i e n c e d p r o fe s s i o n a l s a n d b u s i n e s s  p e o p l e.  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 n t s 

to  s o u rce  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  co nta c t s  to  i d e n t i f y 

p ote nt i a l ca n d i d a te s b a s e d o n  t h e i r 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 ce 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.

22

ANNUAL REPORT3.2. 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  c u r r e nt l y   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  co n s i d e r 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. 

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 co 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 a r e  e x p e c te 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 rce,  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 c a n  i m p r ove  t h e 

e x p e r i e n c e 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 c a r e  s e r v i ce s ;

•  a n  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 c a 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  t h e C o m p a ny.

A s   t h e  C o m p a ny  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  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  s k i l l s  a n d 

c o m p ete n c i e s , p a r t i c u l a r l y   i n  t h e  co nte x t  o f   b o a r d  r e n e w a l . 

3.3. BOAR D  RE SPON SI BI LI TI ES 

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  m a n a g e m e nt  te a m ,  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 nt o f a n d a p p r ov i n g  t h e  co 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 r c 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 ;

23

ANNUAL REPORT6 . 

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 co nt r i b u t i n g to t h e p e r fo r m a n ce 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 ce  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 G r o u p;  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 s 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 a n d 

r e p o r t i n g  to  s h a r e h o l d e r s .

3.4. 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  t h e  i n d e p e n d e n c e  o f   N o n - E x e c u t i ve 

D i r e c to r s .    T h e s e  s ta te  t h a t  to   b e  c o n s i d e r e d   i n d e p e n d e n t,  a  D i r e c to r  m u s t   b e  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 nt ; 

•  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 ce  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 ;

•  h a ve n o m a te r i a l c o 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  c o nt r o l l e d  e nt i t y ot h e r 

t h a n  a s  a  D i r e c to r ;

•  n ot  h a ve b e e n o n t h e B o a r d  fo r a  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  co u l d ,  o r  co 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.

3.5. TRADING  POLI CY

D i r e c to r s a r e s u b j e c t to t h e l e g i s l a t i ve r e s t r i c t i o n s  o n a cq u i r i n g o r 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 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  i f i t w e r e g e n e r a l l y   a va i l a b l e. 

T h e  C o m p a ny’s  s e c u r i t i e s  t r a d i n g   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 . 

3.6. CHAIR MA N AND CH I EF  EXEC U T IV 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.

24

ANNUAL REPORT3.7. COMM ITM EN T

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  2 018 ,  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  fo u r  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 a r e  s h a r e d  w i t h  t h e  f u l l  B o a r d  a s  a p p r o p r i a te. 

I t i s  t h e C o m p a ny’s p r a c t i ce  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 cc e 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 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  c o nt i n u e  to   m a ke  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.   

3.8. 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   F i n a n c i a l  C o nt r o l l e r  h a ve  m a d e  t h e  fo l l o w i n g  ce 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  co 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 cc o r d a n c e w i t h r e l eva nt  a cco 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 nte 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 n t 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  co m p l i a n c e a n d  c o 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 .

3.9. AUDIT  COMM ITTEE

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 (C h a i r )

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 C o m m i t te e i s c h a i r e d by   M r  S m i t h .

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 C o 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  c o nt r o l s  fo r 

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 ,  i n c l u d i n g  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 cc o 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 .

25

ANNUAL REPORT3.10. 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 co 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 c o 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. 

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 ce  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 ce 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.     D eta i l s   o f  t h e  r e m u n e r a t i o n  a n d  p e r fo r m a n ce  o f   e x e c u t i ve s  a r e 

i n c l u d e d   i n t h e D i r e c to r s’  Re p o r t.

3.11. RISK

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 i s k  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 .     T h e  B o a r d  i s  r e s p o n s i b l e  fo r  ove r s e e i n g  t h e  G r o u p’s  s y s te m s  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.    T h e  B o a r d  a p p r ove s   t h e  G r o u p’s  r i s k   m a n a g e m e n t  f r a m e w o r k ,   w h i c h  i s 

i m p l e m e nte d by  m a n a g e m e nt,   a n d  m o n i to r s  p e r i o d i ca l l y  r ev i e w s  t h e key r i s k s .

T h e  G r o u p  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  G r o u p,  t h e  f u n c t i o n s   p e r fo r m e d  by  a n  i nte 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 i n d e p e n d e nt  e x te r n a l  a u d i to r s .

3.12. 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  c o 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  c o 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 c e,   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 n t 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  B o a r d  r ev i e w s   i t s   p e r fo r m a n c e  a n d  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 ce   o f 

i n d i v i d u a l  D i r e c to r s  a n n u a l l y.     T h e s e  p e r fo r m a n ce  r ev i e w s  a r e  g e n e r a l l y  c o n d u c te d  i nte r n a l l y 

a n d t h e B o a r d w i l l s e e k  a n e x te r n a l l y - fa c i l i ta te d p e r fo r m a n ce r ev i e w i f i t c o n s i d e r s i t a p p r o p r i a te 

to d o s o.

3.13. COMMUNI CATI ON WIT H  SHAR E H OL D ER S

T h e B o a r d  a i m s to e n s u r e t h a t  s h a r e h o l d e r s  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 co m m u n i c a te d  to 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 l e a s e o f m a te r i a l i n fo r m a t i o n  to  t h e  A SX ,  i n c l u d i n g m e d i a a n d  m a r ket  u p d a te s ;  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 .

26

ANNUAL REPORTT 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 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  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 

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  d i s c l o s u r e  o f  i n fo r m a t i o n  to  t h e  A SX . 

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 f te r 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 nta 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 ce 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 n t 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 .   

3.14.   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  t h e i r  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 c e,   i f  a t  t h e 

e x p e n s e o f t h e G r o u p, 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.

27

ANNUAL REPORT3.15. ASX  RECOMMENDA TI ONS

Complied Note

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.

P

P

P

P

P

P

P

2.1 The board of a listed entity should: (a) have a nomination committee which: (1) has at least 

--

1

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.

2.2 A listed entity should have and disclose a board skills matrix setting out the mix of skills and 

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

P

P

P

28

ANNUAL REPORT 
Complied Note

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.  

P

P

P

P

P

P

P

P

P

P

P

__

P

2

3

29

ANNUAL REPORT 
Complied Note

4

5

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.

P

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P

P

N o t e s :

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 c a 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  c o 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 R i s k  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 R i s k  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  4:  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  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, 

N ote  5:  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 .

30

ANNUAL REPORT 
4.  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 c o 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 t e d

L eve l 2 , 6 0 7 B o u r ke S t r e e t

M e l b o u r n e, V i c t o 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  2 018 . 

31

ANNUAL REPORTCO N SO L I DAT E D S TAT E M E N T O F PR O 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 F O R T H E YE AR E N D E D  3 0 J U N E  2 018

Note

Consolidated Group

2018 
$

2017
$

Revenue  from  the  sale  of 

licenses  and  maintenance 

contracts 

   Revenue from professional services

   Other income

   Settlement on Chiron Software Litigation

Total revenue from continuing operations

   Salaries and related costs

   Direct external costs

   General and administration costs

interest, 

tax,  depreciation  and 

Earnings  before 
amortisation

   Finance costs

   Depreciation

   Amortisation 

   Impairment

   Non-operating foreign exchange gains/(losses)

(Loss)/profit before income tax

   Income tax benefit/(expense)

Net (loss)/profit for the year (after tax)

Other comprehensive income

       Exchange differences on translating foreign operations

Total comprehensive (loss)/profit for the year

Net (loss)/profit for the year attributable to:

   Owners of the parent

   Non-controlling interest

Total comprehensive (loss)/profit 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 before tax per share (cents per share)

   Diluted earnings per share before tax (cents per share)

2

2

2

2

3

3

3

3

3

3,9

3,9

4

17

18

25

25

25

25

3,880,443

1,408,076

682,352

-

5,970,871

(4,172,422)

(207,310)

(1,729,593)

(138,454)

(110,060)

(63,624)

(132,778)

-

(166)

(445,082)

23,848

(421,234)

-

(421,234)

(421,234)

-

(421,234)

(421,234)

-

(421,234)

(1.259)

(1.183)

(1.330)

(1.250)

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

T h e a b ove 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 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 cc o m p a ny i n g n ote s .

32

ANNUAL REPORTCO 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 A S  AT 3 0  J U N E  2 018

Consolidated Group

 Note

2018 

$

2017 

$

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

Net Assets

Equity

  Contributed equity

  Reserves

  Accumulated losses

Total Parent Entity Interest

  Non-controlling interest

Total Equity

5

6

7

4

6

8

9

10

11

12

13

14

12

13

14

10

15

16

17

18

1,157,536

2,262,567

187,752

805,136

2,543,412

1,821,098

185,969

481,842

4,412,991

5,032,321

-

87,694

6,533,971

517,819

7,139,484

11,552,475

1,312,032

515,657

574,201

1,427,676

3,829,566

140,911

150,738

4,817,920

596,599

5,706,168

10,738,489

1,079,282

389,880

506,469

1,462,960

3,438,591

1,170,513

1,078,880

17,121

-

1,984,923

3,172,557

7,002,123

30,764

46,128

1,282,415

2,438,187

5,876,778

4,550,352

4,861,711

20,898,742

152,454

(16,500,920)

4,550,276

76

20,836,242

105,079

(16,079,686)

4,861,635

76

4,550,352

4,861,711

T h e a b ove 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 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 .

33

ANNUAL REPORTCO N S O L I DAT E D S TAT E M E N T O F  C H A N G E S  I N  E Q U I T Y  F O R T H E  YE AR E N D E D  3 0  J U N E 
2 018

Issued 

capital 

ordinary

Option 

reserve

Currency 

translation 

reserve

Total 

Retained 

attributable 

earnings

to owners of 

the parent

Non-

Controlling 

interest

Total 

equity

Consolidated Group

Balance 1 July 2017 

20,836,242

80,845

24,234

(16,079,686)

4,861,635

76

4,861,711

Issue of share capital

Options revaluation

62,500

-

Transactions with owners

62,500

-

47,375

47,375

Profit/(loss) for the period

Other comprehensive 

income:

Exchange difference 

on translation of foreign 

operations

Total comprehensive profit/

(loss) for the period

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

62,500

47,375

109,875

(421,234)

(421,234)

-

-

-

-

(421,234)

(421,234)

-

-

-

-

-

-

-

62,500

47,375

109,875

(421,234)

-

-

(421,234)

Balance 30 June 2018 

20,898,742

128,220

24,234

(16,500,920)

4,550,276

76

4,550,352

Balance 1 July 2016 

20,728,742

29,978

30,485

(17,144,355)

3,644,850

408

3,645,258

Issue of share capital

Exercise of options

Share based payment

62,500

45,000

-

Transactions with owners

107,500

-

-

50,867

50,867

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

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1,728,369

(663,700)

62,500

45,000

50,867

158,367

1,728,369

(663,700)

-

-

-

-

62,500

45,000

50,867

158,367

(324)

1,728,045

-

(663,700)

(6,251)

-

(6,251)

(8)

(6,259)

(6,251)

1,064,669

1,058,418

(332)

1,058,086

Balance 30 June 2017

20,836,242

80,845

24,234

(16,079,686)

4,861,635

76

4,861,711

T h e a b ove c o n s o l i d a te d 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 .

34

ANNUAL REPORTS TAT E M E N T O F C A S H F LOW S F O R  T H E Y E AR E N D E D  3 0 J U N E  2 018

Consolidated Group

Note

2018 

$

2017 

$

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 inflow/(outflow) from financing activities

5,080,045

4,722,667

-

5,000,000

491,888

(5,232,719)

16,969

(110,060)

246,123

-

(580)

(1,848,829)

(1,849,409)

423,002

(6,491,096)

43,206

(146,500)

3,551,279

-

(66,056)

(1,154,170)

(1,220,226)

602,807 

(385,397)

-

217,410

-

(272,969)

(663,700)

(936,669)

Net (decrease)/increase in cash and cash equivalents held

(1,385,876)

1,394,384

Cash and cash equivalents at the beginning of the financial 

year

2,543,412

1,149,028

Cash and cash equivalents at the end of 

the financial year

5

1,157,536

2,543,412

T h e a b ove c o n s o l i d a te d 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 c o m p a ny i n g n ote s .

35

ANNUAL REPORT 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

1.  S TA T EMEN T  OF  SI GN IFICANT ACC OUNT ING   POL IC IE 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 n te 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 nt 

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.  T h e  s e p a r a te f i n a n c i a l  s ta te m e nt s  a n d  n ote s  o f 

t h e p a r e nt  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 nt 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  2 7  S e pte m b e r 

2 018

B ASIS  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 cco 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 nt 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 n te 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 nt 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 c c 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  c o 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 n t 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 .

a.  PRINCIPLES OF CONSOLIDATION

T h e  G r o u p  f i n a n c i a l  s ta te m e n t 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  2 018 .     T h e  Pa r e nt  co 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 nt   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 nt r o l l e d  e nt i t i e s  h a ve  b e e n  i n c o r p o r a te d   i nto   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 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 nt r o l l e d e n t i t i e s  h a ve e nte 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- co 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  co n s o l i d a t i o n . 

Acc o 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 co 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 cc u r  w h e r e  a n   a cq u i r e r  o bta i n s  c o 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  c o 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 

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u n d e r   c o m m o n  c o nt r o l .  T h e  a c q 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  co m b i n a t i o n 

o n e o f t h e c o 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 c q 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 

c o 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  co n t r o l 

ove r   t h e  a c q u i r e e  i s  o bta i n e d  by   t h e  p a r e nt   e n t 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  c o n s o l i d a te d  a c c o u n t 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 c e 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 ,   c o 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 co 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 .

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 c o 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 co 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 c q 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  co 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 c q 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 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 co 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 c o 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 nt 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 n t  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  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  co 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  co 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. 

b. 

IMPA IRMENT OF NON-FINANC IAL  A SSE TS

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 ca 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  c o 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  c a 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 co 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 cove 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. 

c.  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 ce 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 :

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SAL ES REV EN UE

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  c o 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 c e  –  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 cc 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 nt 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 ce,  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 cc o 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 nt 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  co n s o l i d a te d 

e nt i t y  w i l l  c o 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 c e 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 n t 

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 . 

d.  GOOD S AND  SERVI CES TA X

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 c e s   Ta x 

(G S T ), e x ce 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  co 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 nt o f f i n a n c i a l p o s i t i o n . 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  c o 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 cove 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  c a s h 

f l o w.

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e . 

INCOME TAX

T h e  i n co 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 c e 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 c o 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 co 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 c e 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 cc 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 c o 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 nte 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  c o m p a ny  i n  t h e  G r o u p  c o 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.

f. 

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 c o 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 n t 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 c o 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 c o 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  c o s t s  a r e  c a 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 c o 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 c a n b e  m e a s u r e d  r e l i a b l y.

T h e  e x p e n d i t u r e  c a 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 c a 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 r c 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

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g .  PLANT 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 r c 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 co 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 c o 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 c a 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 Asset

Diminishing Value (%)

Leasehold Improvements

Plant and Equipment

29 - 37

13 - 67

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 co 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.

h. 

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  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 

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 nta 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 .

E x c h a n g e  d i f fe r e n ce 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 n to 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. 

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i. 

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 n t  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 c a 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 n t 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 c o 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 .

j. 

EMPLOYEE  BENEF ITS

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  ca 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 n t. 

O n - c o s t s  a r e i n c l u d e d i n t h i s  a m o u n t.

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 c e  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 nt h s a r e 

d i s c o u nte d  u s i n g  co 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 c e  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 n te 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 co 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 .

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 nt 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 ce 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

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At e a c h r e p o r t i n g d a te, t h e e n t 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 co 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 c o g n i s e d   e a c h  p e r i o d   ta ke s   i nto 

a cco 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 c o 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 . 

k . 

TRADE AND  OTHER PAYAB LES

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 c e 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 n t s  a r e  u n s e c u r e d  a n d   a r e 

r e co 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 . 

l. 

FINANCIAL  INSTRUMENTS

I n i t i a l r e co 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 n t 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  co 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 c o 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 nt l y m e a s u r e d  a t  a m o r t i s e d 

c o 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 nt.    Tr a d e  r e c e 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 co 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 c e  a cc o 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 n t s   d u e  a c co 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 ce 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  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 c e  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 nt  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 ce 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 co g n i s e d b e co m e s u n co l l e c t i b l e i n a s u b s e q u e nt  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 nt  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 c o m p r e h e n s i ve i n c o m e.

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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 c o 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 nt.    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 c e  a c c 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 c o 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 c c 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 n t 

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 co 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 c o g n i s e d i n  a c c 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 c o nt r a c t u a l  r i g ht s to r e c e i pt o f c a 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 n t 

c o nt i n u i n g  i nvo l ve m e nt  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 ce 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  c a 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   co 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 - ca 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 c o g n i s e d  i n  p r o f i t  o r l o s s .

m.  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 c e 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 co 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 ce e d s  o f  t h e  e q u i t y i n s t r u m e nt s  to  w h i c h  t h e  co s t s  r e l a te.

n. 

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 

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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 nt.

o .  CASH AND CASH  EQUIVAL EN TS

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.

p .  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 c e i ve d a n d a l l g r a nt  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 n t.

T h e  G ove r n m e nt  h a s  t h e  r i g h t  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 .

q.  BORROWING  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 .

r.  CRI TICAL ACCOUNTING ES TIMATE S AND J UDG EM E 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 n t 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.

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 cove 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 co 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  c a 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  ca 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 .

 ( i i ) 

D e fe r r e d Ta x  A s s et

T h e e x te nt  to w h i c h d e fe r r e d  ta x  a s s et s  ca n b e  r e c o g n i s e d  i s b a s e d  o n a n  a s s e s s m e nt  o f t h e 

p r o b a b i l i t y o f t h e C o m p a ny’s   f u t u r e  ta x a b l e i n co m e  a g a i n s t  w h i c h t h e  d e fe r r e d  ta x a s s et s 

ca n b e u t i l i s e d . I n a d d i t i o n ,   s i g n i f i ca n t  j u d g e m e nt  i s  r e q u i r e d  i n a s s e s s i n g  t h e  i m p a c t  o f  a ny 

l e g a l  o r  e c o n o m i c l i m i t s o r  u n c e r ta i nt i e s  i n va r i o u s  ta x j u r i s d i c t i o n s

44

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

( i i i ) 

E m p l oye e B e n e f i t s P r ov i s i o n s

E m p l oy m e nt o n - c o s t s e x p e n s e s  s u c h  a s  w o r ke r s’  c o m p e n s a t i o n i n s u r a n ce a n d  p a y r o l l  ta x a r e 
i n c l u d e d i n  t h e ca l u c l a t i o n  o f  e m p l oye e b e n e f i t  p r ov i s i o n s .   

( i v) 

C a p i ta l i s a t i o n o f D eve l o p m e nt  C o s t s

D i s t i n g u i s h i n g t h e r e s e a rc h  a n d  d eve l o p m e nt  p h a s e s  o f  a  n e w  c u s to m i s e d  s o f t w a r e p r o j e c t 

a n d d ete r m i n i n g w h et h e r  t h 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 t h e ca p i ta l i s a t i o n  o f   d eve l o p m e nt 

c o s t s a r e m et  r e q u i r e s j u d g e m e nt.   A f te r ca p i ta l i s a t i o n ,  m a n a g e m e nt  m o n i to r s w h et h e r t h e 

r e co g n i t i o n  r e q u i r e m e nt s c o nt i n u e to  b e m et  a n d  w h et h e r t h e r e  a r e a ny  i n d i ca to r s t h a t 
ca p i ta l i s e d c o s t s m a y  b e i m p a i r e d . 

s.  GOING CON CERN

A s  a t 3 0 J u n e 2 018 t h e c o m p a ny   h a s  ca s h  r e s e r ve s  o f  $1,15 7, 5 3 6  (2 017:  $ 2 , 5 4 3 , 412)  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 $ 5 8 3 , 4 2 6  (2 017:  $1, 5 9 3 , 7 3 0 ).  T h e c u r r e n t ye a r l o s s b e fo r e ta x fo r t h e 

p e r i o d w a s  $ 4 4 5 , 0 8 2 (2 017: P r o f i t  $1,9 3 2 , 019   -  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). 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  c o n c e 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  co n ce 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 a n d p r ev i o u s 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 cc e s s f u l  i n o bta i n i n g  co 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 n t i t y.  We h a ve p r e p a r e d  a n d  p r ov i d e d 

a ca s h f l o w s ta te m e nt  fo r t h e  n e x t  12  m o nt h s  i n d i ca t i n g p o s i t i ve  ca s h  f l o w s fo r t h i s  p e r i o d  u p 

to S e pte m b e r 2 019.  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 ce 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  c o 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 c e 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 t h r o u g h 

i nte r n a t i o n a l  d i s t r i b u to r 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 ,  i s  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 .  A fa c i l i t y l i m i t o f  $1, 0 0 0 , 0 0 0 i s  a va i l a b l e i m m e d i a te l y  to  t h e C o m p a ny. 

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  ca 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 .

t.  NEW  ACCOUNTING STANDARDS  AND AU STRAL IAN ACC OUN TIN G 
INTERPRETATIONS

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 nt  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 :

45

ANNUAL REPORT 
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

– AASB 9: Financial Instruments and associated Amending Standards (applicable to annual 

reporting periods beginning on or after 1 January 2019)

AASB 9 replaces AASB 139 Financial Instruments: Recognition and Measurement and includes revised 

requirements for the classification and measurement of financial instruments, revised recognition and 

de-recognition requirements for financial instruments, revised impairment requirements and simplified 

requirements for hedge accounting.

The revised requirements include: 

-  simplifications to the classification of financial assets 

-  simplifications to the accounting of embedded derivatives 

-  an expected loss impairment model 

-  the irrevocable election to recognise gains and losses on investments in equity instruments that are not 

-  held for trading in other comprehensive income. 

-  a new model for hedge accounting that will allow greater flexibility in the ability to hedge risk,       

   particularly with respect to hedges of non-financial items. 

The financial assets and liabilities of the Group consist of cash, receivables and payables. Therefore, the 

directors do not expect a material impact on transition to AASB 9.

– AASB 15: Revenue from Contracts with Customers (applicable to annual reporting periods 

beginning on or after 1 January 2019) 

This Standard will replace the current accounting requirements applicable to revenue with a single, 

principles-based model. Except for a limited number of exceptions, including leases, the new revenue 

model in AASB 15 will apply to all contracts with customers as well as non-monetary exchanges between 

entities in the same line of business to facilitate sales to customers and potential customers.

The core principle of the Standard is that an entity will recognise revenue to depict the transfer of 

promised goods or services to customers in an amount that reflects the consideration to which the entity 

expects to be entitled in exchange for the goods or services. To achieve this objective, AASB 15 provides 

the following five-step process:

-

-

identify the contract(s) with a customer;

identify the performance obligations in the contract(s);

- determine the transaction price;

- allocate the transaction price to the performance obligations in the contract(s); and

-

recognise revenue when (or as) the performance obligations are satisfied.

The directors have made a preliminary assessment of the impact as follows:

New Licenses:
New Licenses under AASB 15 will be recognised over the service period in which they fall due. This is 

consistent with the approach taken for recurring revenue. Income received in advance for this service 

period will be classified as a current liability.

Recurring licenses:
There will be no change under AASB 15 for recognition of recurring licenses. These are recognised over 

the service period of the contract. Income received in advance for this service period will be classified 

as a current liability.

Professional Fees:
For professional service offered to existing clients for ad-hoc services revenue will be recognised when 

the performance obligation is met which would normally occur when services are rendered. For 

professional services performed for new clients related to the setup of software, revenue will recognised 

over the assessed expected life of the client. Our current assessment of client life is for five years. This is 

based on our longest contract period offered as well as management’s assessment of client life.

Other income:
Other income will not be significantly impacted by AASB 15. It will be recognised as income when the 

identified performance obligations have been satisfied.

46

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

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 cc o u nt s i s  a s  fo l l o w s :

Account

2018 as per current 

Potential restatement 

2018 Restated 

accounting 

standards

under AASB 15 

under AASB 15 

requirements

requirements

$

$

$

P r o f i t a n d L o s s

D e c r e a s e i n Reve n u e f r o m 

t h e s a l e o f l i c e n s e s a n d 

m a i nte n a n ce c o nt r a c t s

D e c r e a s e i n  Reve n u e f r o m 

p r o fe s s i o n a l  s e r v i c e s

Sta te m e nt o f F i n a n c i a l 

Po s i t i o n

I n c r e a s e i n N e w 

s u b s c r i pt i o n s/p r o fe s s i o n a l 

s e r v i c e s  i n a d va n c e

3 , 8 8 0 , 4 4 3

(18 8 , 7 9 2)*

3 , 691, 6 51

1, 4 0 8 , 076

( 8 4 5 , 5 9 2)*

5 62 , 4 8 4

-

1, 0 3 4 , 3 8 4

1, 0 3 4 , 3 8 4

Account

2017 as per current 

Potential restatement 

2017 Restated 

accounting 

standards

under AASB 15 

under AASB 15 

requirements

requirements

Profit and Loss

Revenue from the sale of licenses 

and maintenance contracts

Revenue from professional services

Statement of Financial Position

Increase in New subscriptions/

professional services in advance

$

$

$

8,415,775

1,191,795

(281,984)*

(443,251)*

8,133,791

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 nt 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 c c 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  2 018  F i n a n c i a l   Ye a r.

47

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

– AASB 16: Leases (applicable to annual reporting periods beginning on or after 1 January 

2019).

AASB 16 will replace the current accounting requirements applicable to leases in AASB 117: Leases 

and related Interpretations. AASB 16 introduces a single lessee accounting model that eliminates the 

requirement for leases to be classified as operating or finance leases.

The main changes introduced by the new Standard include:

-

-

-

-

-

recognition of a right-to-use asset and liability for all leases (excluding short-term leases with less 

than 12 months of tenure and leases relating to low-value assets);

depreciation of right-to-use assets in line with AASB 116: Property, Plant and Equipment in profit or 

loss and unwinding of the liability in principal and interest components;

variable lease payments that depend on an index or a rate are included in the initial 

measurement of the lease liability using the index or rate at the commencement date;

by applying a practical expedient, a lessee is permitted to elect not to separate non-lease 

components and instead account for all components as a lease; and

additional disclosure requirements.

The directors expect that the adoption of AASB 16 will result in lease assets and liabilities being 

recognised on balance sheet and a change in how related expenses are incurred. It is expected total 

property leases of $667,550 will be recognised on the balance sheet as lease assets and liabilities and 

that annual rental of approximately $154,693 will be reclassified from occupancy costs to depreciation 

and interest.

48

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

– AASB 2018-1 Annual Improvements to IFRS Standards 2015–2017 Cycle

AASB 2018-1 makes a number of relatively minor amendments to AASB 3 Business Combinations, AASB 

111 Joint Arrangements, AASB 112 Income Taxes and AASB 123 Borrowing Costs.

When these amendments are first adopted for the year ending 30 June 2020, there will be no material 

impact on the financial statements.

–

AASB 2018-1 Annual Improvements to IFRS Standards 2015–2017 Cycle

Interpretation 22 looks at what exchange rate to use for translation when payments are made or 

received in advance of the related asset, expense or income. Although AASB 121 The Effects of 

Changes in Foreign Exchange Rates sets out requirements about which exchange rate to use when 

recording a foreign currency transaction on initial recognition in an entity’s functional currency, the 

IFRS Interpretations Committee had observed diversity in practice in circumstances in which an entity 

recognises a non-monetary liability arising from advance consideration. The diversity resulted from 

the fact that some entities were recognising revenue using the spot exchange rate at the date of the 

receipt of the advance consideration while others were using the spot exchange rate at the date that 

revenue was recognised. 

Interpretation 22 addresses this issue by clarifying that the date of the transaction for the purpose of 

determining the exchange rate to use on initial recognition of the related asset, expense or income (or 

part of it) is the date on which an entity initially recognises the nonmonetary asset or non-monetary 

liability arising from the payment or receipt of advance consideration. If there are multiple payments 

or receipts in advance, the entity shall determine a date of the transaction for each payment or 

receipt of advance consideration.

When these amendments are first adopted for the year ending 30 June 2020, there will be no material 

impact on the financial statements.

49

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

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

Interest received on financial assets

Research and Development grants

Other

3.  EX P ENS ES

Profit before income tax includes the following specific expenses

Direct external costs

Depreciation of non-current assets

Amortisation of Intangibles

Impairment of Intangibles

Consolidated Group

2018 

$

2017 

$

1,267,218

2,613,225

1,408,076

5,288,519

906,187

2,509,588

1,191,795

4,607,570

-

5,000,000

16,969

491,888

173,495

682,352

43,206

423,002

226,403

5,692,611

5,970,871

10,300,181

Consolidated Group

2018

$

2017

$

207,310

63,624

132,778

-

263,754

87,931

266,021

917,381

Wages and salaries, net of Capitalised Development cost

4,172,422

4,954,609

Travel and accommodation

Operating lease expense

Finance cost (interest expense and bank charges)

198,054

154,693

110,060

116,222

149,700

146,500

50

ANNUAL REPORT                        
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

4. 

I NC O ME T AX   EX PE NSE 

The major components of tax expense comprise:

(Increase) in Current Tax

Increase/(decrease) in Deferred Taxes

The prima facie tax on profit from ordinary activities before 
income tax is reconciled to the income tax as follows:

(Loss)/profit from continuing operations before income tax

Prima facie tax/(tax benefit) at 27.5% (2017: 30%)

Add tax effect of:

Other expenses (non-deductible)

Entertainment (non-deductible)

Legal expenses (non-deductible)

Legal Expenses deducted in 2016

Tax Losses not recognised as a deferred tax asset

Prior period differences

Less tax effect of:

Tax losses deducted

Grants receivable

Refundable tax offsets

Tax losses recognised

Consolidated Group

2018
$

2017
$

(805,136)

781,288

(23,848)

(481,842)

685,816

203,974

(445,082)

(122,398)

44,903

2,185

2,829

-

122,398

176,105

-

-

(249,870)

-

1,932,019

579,606

19,965

17,712

5,815

182,858

-

1,122,211

(1,098,248)

(126,901)

(149,537)

(349,507)

Income tax (benefit)/expense recognised

(23,848)

203,974

Current and Deferred tax balances:

Assets:

CURRENT/NON-CURRENT

Current tax asset

Deferred tax asset

Liabilities:

Deferred tax liability

805,136

517,819

481,842

596,599

1,984,923

1,282,415

51

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

5.  CA S H  A ND C ASH E QUIVAL ENTS

Cash at bank and on hand

Deposits at call 

Total cash and cash equivalents

6.  T R AD E A ND  OT HER RE CEIVAB L E S

Current

Trade receivables 

R&D Tax Offset

Impairment of receivables

Non-Current

Trade receivables

Consolidated Group

2018 

$

2017 

$

657,289

500,247

384,966

2,158,446

1,157,536

2,543,412

Consolidated Group

2017 

$

2017 

$

1,502,222

1,850,658

789,905

(29,560)

2,262,567

-

(29,560)

1,821,098

-

-

140,911

140,911

Total Trade Receivables

2,262,567

1,962,009

P r ov i s i o n f o r I m p a i r m e n t o f C u r r e n t  T r a d e  R e ce i va b l e s

C u r r e nt t r a d e r e c e 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 co 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 balance

Consolidated Group

2018
$

2017
$

29,560

-

-

-

911

28,649

-

-

29,560

29,560

52

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

T r a d e r e ce i va b l e s - i m p a i r e d

A s  a t  3 0  J u n e  2 018 ,   t h e  fo l l o w i n g   t r a d e  r e ce 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 

(2 017: $ 2 9, 5 0 0 ).  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

Consolidated Group

2018
$

2017
$

-

-

-

-

29,560

29,560

T r a d e r e ce i va b l e s t h a t a r e p a s t   d u e   b u t  n o t i m p a i r e d

A s  o f 3 0 J u n e 2 018 , t r a d e r e c e i va b l e s o f  $ 5 5 0 , 318  (2 017:  $ 4 9 0 , 4 67 ) 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 nt  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

F a i r Va l u e s

Consolidated Group

2018

$

2017

$

91,436

19,612

439,270

150,759

131,287

208,421

T h e c a 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.  OT HE R  A S SET S

Current

Prepayments - Expenses

Security bond - Property at Level 2, 607 Bourke Street Melbourne

Consolidated Group

2018

$

2017

$

79,287

108,465

187,752

77,504

108,465

185,969

53

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

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 equipment

 Leasehold improvements – at cost

 Accumulated amortisation 

 Plant and equipment – at cost

 Accumulated depreciation

Total property, plant and equipment

Consolidated Group

2018
$

2017
$

178,787

(135,765)

43,022

232,842

(188,170)

44,672

87,694

178,787

(117,727)

61,060

344,221

(254,543)

89,678

150,738

b .  PROPERTY, PL ANT AND EQ UIP ME NT R ECO NCIL IA TION

Movement in Carrying Amount

Leasehold improvements

Carrying amount – as at 1 July 

Additions 

Amortisation

Carrying amount – as at 30 June 

Plant and equipment 

Carrying amount – as at 1 July 

Additions 

Disposal, net

Depreciation 

Carrying amount – as at 30 June

Total property, plant and equipment 

Consolidated Group

2018

$

2017

$

61,060

-

(18,038)

43,022

89,678

580

-

(45,586)

44,672

87,694

86,722

-

(25,662)

61,060

85,891

66,056

-

(62,269)

89,678

150,738

54

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

9. 

I NT A NG IB LE  AS SET S

a . 

INTANGIBLE ASSET SUMMA RY

Intangible assets

Consolidated Group

2018
$

2017
$

Products under development – at cost*

5,794,972

3,946,143

Developed Products

Cost

Accumulated amortisation

Accumulated Impairment 

Total Developed Products

Total intangible assets

2,844,203

(1,187,823)

(917,381)

738,999

2,844,203

(1,055,045)

(917,381)

871,777

6,533,971

4,817,920

*  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 n te 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  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. 

b. 

INTANGIBLE ASSET RECONCILIATION

Movement in Carrying Amount

Products under 
Development

Developed Products

Total

Carrying amount – as at 1 July 2016

Additions 

Transfer of commercialised product

Disposals

Amortisation charge

Impairment

$

2,838,462

1,107,681

-

-

-

-

Carrying amount – as at 30 June 2017

3,946,143

Carrying amount – as at 1 July 2017

Additions 

Transfer of commercialised product

Disposals

Amortisation charge

Impairment

3,946,143

1,848,829

-

-

-

-

$

$

2,008,690

46,488

-

-

(266,020)

(917,381)

871,777

871,777

-

-

-

4,847,152

1,154,169

-

-

(266,020)

(917,381)

4,817,920

4,817,920

1,848,829

-

-

(132,778)

(132,778)

-

-

Carrying amount – as at 30 June 2018

5,794,972

738,999

6,533,971

55

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

c . 

IMPAI RMENT DISCLOSURES

I M PA I R M E N T T E S T I N G O F PRO D U C T S U N D E R  D E V E LO PM E N T
I r r e s p e c t i ve  o f  w h et h e r  t h e r e  i s  a ny  i n d i ca t i o n  o f   i m p a i r m e nt,   t h e  co m p a ny  w i l l   te s t  a n 

i nta n g i b l e  a s s et  w i t h  a n  i n d e f i n i te  u s e f u l  l i fe  o r  a n  i nta n g i b l e  a s s et   n ot   yet  a va i l a b l e  fo r   u s e 

fo r  i m p a i r m e nt  a n n u a l l y  by   co m p a r i n g  i t s  ca r r y i n g  a m o u nt   w i t h  i t s   r e cove r a b l e  a m o u nt.   T h i s 

i m p a i r m e nt te s t  i s p e r fo r m e d a s a t t h e e n d o f  t h e f i n a n c i a l p e r i o d . 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 n t s  a s  o u t l i n e d  i n  N ote  2 6 . 

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   c a 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 (s a l e s)

• 

E m p l oy m e nt 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 c a 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 

Hospitals

Consumer

Connectivity

Allied Health

Sales Growth Rates

Discount Rates

2018

2.1%

2.1%

2.1%

2.1%

2017

3.4%

3.4%

3.4%

3.4%

2018

10%

10%

10%

10%

2017

10%

10%

10%

10%

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 c e 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 cove 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 n t  h a s 

b a s e d  t h e  va l u e - i n - u s e  ca 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 c a 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  ca 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 c a 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 h te 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  co 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 . 

T h e  ta b l e  b e l o w  d i s c l o s e s  t h e  e x p e c te d  s u b s c r i b e r  g r o w t h  r a te s  a s  a n  a ve r a g e  fo r  t h e  n e x t 

5  ye a r s  a n d  t h e i r  s e n s i t i v i t y   to   c h a n g e.   T h e  s e n s i t i v i t y  te s t   r a n g e  r e p r e s e nt s  r e d u c t i o n s   to 

s u b s c r i b e r g r o w t h r a te s a p p l i e d to e a c h CG U to te s t a t  w h i c h p o i nt i m p a i r m e n t i n d i ca to r s e x i s t.  

B a s e d o n t h e i m p a i r m e nt te s t i n g p e r fo r m e d fo r e a c h CG U,  t h e r e w e r e n o i m p a i r m e nt i n d i ca to r s 

fo r p r o d u c t s u n d e r  d eve l o p m e nt. 

Subscriber Growth
(5 year average)  

2018

13%

13%

13%

13%

2017

13%

13%

13%

13%

Sensitivity Test Range 
(Reduction of Growth)

2018

2017

10% - 80%

10% - 80%

10% - 80%

10% - 80%

10% - 80%

10% - 80%

10% - 80%

10% - 80%

Hospitals

Consumer

Connectivity

Allied Health

56

ANNUAL REPORT 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

10.  DEF ER RE D  T AX  BA LANC ES

Deferred tax asset

Opening 
Balance

$

Opening balance at 1 July 2017

596,599

Future income tax benefits 

attributable to tax losses

Accrued expenses

Provisions

Closing balance at 30 June 2018

349,507

51,216

195,876

Recognised 
in Profit or 
Loss

Recognised 
directly in 
Equity

Total

$

$

(49,917)

(51,216)

22,353

$

-

-

-

Deferred tax liability

Opening 
Balance

Recognised in 
Profit or Loss

Recognised 
directly in 
Equity

$

$

Opening balance at 1 July 2017

1,282,415

Prepayments and other assets

986

Intangible assets

1,281,430

18,571

683,936

Closing balance at 30 June 2018

$

-

-

299,590

-

218,229

517,819

Total

$

19,557

1,965,366

1,984,923

Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised 

against future taxable income, based on the Group’s forecast of future operating results which is 

adjusted for significant non-taxable income and expenses and specific limits to the use of any unused 

tax loss or credit. Deferred tax liabilities are always provided for in full.

11.  P AY A B LES

Trade creditors

Other creditors and accruals

Consolidated Group

2018

$

2017

$

437,506

874,526

469,635

609,647

1,312,032

1,079,282

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.

57

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

12.  I N TER ES T  B EA R I N G LI ABIL ITIE S

Current

Borrowings

Non-Current

Borrowings

Consolidated Group

2018

$

2017

$

515,657

515,657

389,880

389,880

1,170,513

1,170,513

1,078,880

1,078,880

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 % .

13.  EMP LO Y EE BE NEFI TS

Analysis of Employee Benefits

Consolidated Group

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

Consolidated Group

2018

$

2017

$

537,233

(214,140)

268,229

591,322

569,371

(254,744)

222,606

537,233

574,201

506,469

17,121

591,322

30,764

537,233

Consolidated Group

2018

$

2017

$

Current

Annual subscriptions and maintenance in advance

1,427,676

1,462,960

Non-Current

Annual subscriptions and maintenance in advance

-

1,427,676

46,218

1,509,178

A n n u a l  l i c e n ce  a n d  m a i nte n a n ce  i n  a d va n c e  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 

p r ov i d e d  to c l i e nt s .

58

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

15.  CO N TR I BU TE D  EQU ITY

Consolidated Group

2018 

Number

2018 

$

2017 

Number

2017 

$

Issued and paid up capital

33,470,259

20,898,742 33,354,995

20,836,242

Ordinary shares

Opening balance

Add: 

Shares issued for the purchase of the 

medical software assets of Abaki Pty Ltd

Add: 

Shares issued under Exempt Employee 

Share Plan

Add: 

Shares issued from exercise of options

33,354,995

20,836,242

32,846,662

20,728,742

115,264

62,500

208,333

62,500

-

-

-

-

-

-

300,000

45,000

Total number of shares on issue 

33,470,259

20,898,742 33,354,995

20,836,242

a .  ORD INARY 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 ce 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.

59

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

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 exercisable on or before 5 July 2017

Opening balance

Issued

Exercised

Cancelled

Closing balance

(ii) 

$0.65 options exercisable on or before 19 December 2017

Opening balance

Issued

Exercised

Cancelled

Closing balance

(iii) 

$0.75 options exercisable on or before 26 May 2019

Opening balance

Issued

Exercised

Cancelled

Consolidated Group

2018     

Number

2017 

Number

-

-

-

-

-

300,000

-

(300,000)

-

-

530,000

530,000

-

-

(530,000)

-

-

-

-

530,000

300,000

300,000

-

-

-

-

-

-

Closing balance

300,000

300,000

(iv) 

$0.65 options exercisable on or before 10 June 2020

Opening balance

Issued

Exercised

Cancelled

Closing balance

(v) 

$0.75 options exercisable on or before 30 November 2019

Opening balance

Issued

Exercised

Cancelled

310,000

390,000

-

-

-

310,000

400,000

-

-

-

-

-

(80,000)

310,000

-

400,000

-

-

Closing balance

400,000

400,000

(vi) 

$0.75 options exercisable on or before 30 November 2021

Opening balance

Issued

Exercised

Cancelled

Closing balance

TOTAL

600,000

-

-

-

600,000

1,610,000

-

600,000

-

-

600,000

2,140,000

60

ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

c .  CAPITAL MANAGEMENT

M a n a g e m e nt  c o nt r o l s  t h e  c a 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   c o 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 n t 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  2 018   a n d   3 0 

J u n e 2 017  a r e a s fo l l o w s :

Gearing Ratios

Borrowings

Less Cash and Cash Equivalents

Net Debt

Total equity

Total capital

Gearing Ratio

16.  R ES ER VES

Consolidated Group

2018

$

2017 

$

1,686,170

(1,157,536)

528,634

4,550,352

5,078,986

10%

1,468,760

(2,543,412)

(1,074,652)

4,861,711

3,787,059

(28%)

a.  CURRENCY TRANSLATI ON  RESE R 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 ce 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 currency translation reserve

Balance at beginning of financial year

Exchange differences on translation of foreign operations

Balance at the end of the financial year

Consolidated Group

2018 

$

2017 

$

24,234

-

24,234

30,485

(6,251)

24,234

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 of option reserve

Balance at beginning of financial year

Share based payment expense

Balance at the end of the financial year

Consolidated Group

2018 

$

2017 

$

80,845

47,375

128,220

29,978

50,867

80,845

61

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

17.  A CCU MUL AT ED  LO SS ES

Consolidated Group

2018 

$

2017 

$

Accumulated losses at the beginning of the financial year

(16,079,686)

(17,144,355)

Net profit attributable to the members of the parent entity

Dividends paid

(421,234)

-

1,728,369

(663,700)

Accumulated losses at the end of the financial year

(16,500,920)

(16,079,686)

18.  N O N- CO NT RO LLI N G INT ERE ST

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 - c o 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 :

Balance at the beginning of the financial year

Non-controlling interests attributable to this entity is as follows:

- share of profit/(loss)

- share of currency translation reserve

Balance at the end of the financial year

Consolidated Group

2018 

$

2017 

$

76

-

76

408

(324) 
(8)

76

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 nt 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

Place of 

Incorporation

Type of 

Security

Interest 

Interest 

2018

2017

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

Ordinary 

Shares

Ordinary 

Shares

Ordinary 

shares

Ordinary 

shares

Ordinary 

shares

Ordinary 

shares

Ordinary 

shares

Statewide Unit Trust

Western Australia

Units

100%

100%

94%

94%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

62

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

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  co 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 nt 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 Assets

Cash and cash equivalents

Trade and other receivables 

Financial Liabilities

Financial liabilities  at amortised cost:

Trade and other payables

Borrowings

Consolidated Group

2018 

$

2017 

$

1,157,536

2,262,567

2,543,412

1,962,009

3,420,103

4,505,421

(1,312,032)

(1,686,170)

(1,079,282)

(1,468,760)

(2,998,202)

(2,548,042)

5

6

11

12

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  c o 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 nt 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  c a 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 c e 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 c e 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 ce 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 c a 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  co n s i d e r e d  ve r y l o w.

63

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

 Cash at Bank and deposits

Australian banks

Malaysian banks

Consolidated Group

2018 

$

2017 

$

1,143,744

13,792

2,529,019

13,791

1,157,536

2,542,810

b . 

LIQUIDI TY  RISK

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 c e 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 c a 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 co u nte d  ca s h  f l o w s .

Group 30 June 2018

Financial liabilities due for 

payment

Within 1 year

1 to 5 years

Over 5 years

contracted 

$

$

$

$

cash flows

Total 

Trade and Other Payables

(1,312,032)

-

Borrowings

(515,657)

(1,170,513)

Total expected outflows

(1,827,689)

(1,170,513)

Financial assets – cash flows 

realisable

Cash and cash equivalents

Trade and other receivables

Total anticipated inflow on 
financial instruments

Net inflow/(outflow) on 
financial instruments

1,157,536

2,262,567

3,420,103

-

-

-

1,592,414

(1,170,513)

-

-

-

-

-

-

-

(1,312,032)

(1,686,170)

(2,998,202)

1,157,536

2,262,567

3,420,103

421,901

64

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

Group 30 June 2017

Financial liabilities due for 

payment

Within 1 year

1 to 5 years

Over 5 years

contracted 

$

$

$

$

cash flows

Total 

Trade and Other Payables

(1,079,282)

-

Borrowings

(389,880)

(1,078,880)

Total expected outflows

(1,469,162)

(1,078,880)

Financial assets – cash flows 

realisable

Cash and cash equivalents

Trade and other receivables

Total anticipated inflow on 
financial instruments

Net inflow/(outflow) on financial 

instruments

c.  MARKET RISK

2,543,412

1,821,098

-

140,911

4,364,510

140,911

2,895,348

(937,969)

-

-

-

-

-

-

-

(1,079,282)

(1,468,760)

(2,548,042)

2,543,412

1,962,009

4,505,421

1,957,379

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 nte 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 - ca 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  c o 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 to foreign currency

Consolidated Group

2018

MYR

41,100

-

41,100

2017

MYR

48,181

-

48,181

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.

65

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

( i i i )   S e n s i t i v i t y  A n a l y s i s

In te rest Rate  Risk and Forei gn C u rrenc y Ris 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 nt 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  co n s ta nt.

Change in profit after tax

+/- 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%

Consolidated Group

2018 

$

2017 

$

+/-5,800

+/-2,100

+/-11,000

+/-2,500

+/-5,800

+/-2,100

+/-11,000

+/-2,500

( 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  c o nt r o l s  t h e  c a 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 c o n c e 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 c a 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 ca p i ta l  r e q u i r e m e nt s .

Fair v alue  estimat ion

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 n t 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  ca 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 ce 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.

Financial assets

Cash and cash equivalents

Trade and other receivables

Total financial assets

Financial liabilities

Trade and other payables

Borrowings

Total financial liabilities

2018

2017

Net Carrying 
Value

Net Fair value

Net Carrying 
Value

Net Fair value                

$

1,157,536

2,262,567

$

1,157,536

2,262,567

$

2,543,412

1,962,009

$

2,543,412

1,962,009

3,420,103

3,420,103

4,505,421

4,505,421

(1,312,032)

(1,686,170)

(1,312,032)

(1,686,170)

(1,079,282)

(1,468,760)

(1,079,282)

(1,468,760)

(2,998,202)

(2,998,202)

(2,548,042)

(2,548,042)

66

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

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 nt 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 ce 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  c o n s i d e r a t i o n .  T h e e x e rc i s e p r i c e 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 ce 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 n t  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  c o 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   c a 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 balance

Consolidated Group

2018 

Number

2017 

Number

2,140,000

-

-

(530,000)

1,610,000

1,520,000

1,000,000

(300,000)

(80,000)

2,140,000

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 ce  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 . 2 0   o n  3 0   J u n e  2 018 

($ 0 . 3 2 o n 3 0  J u n e 2 017 ).

67

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

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:

Consolidated and parent entity - 2018

Balance at 

Granted 

Exercised 

Grant Date

Expiry 

Exercise 

start of the 

during the 

during the 

Date

Price

year 

year 

year 

Number

Number

Number

Expired/ 

Balance 

forfeited 

at the 

during 

end of 

the year 

the year 

Number

Number

Exercisable 

at the end 

of the year 

Number

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

TOTALS

$0.65

$0.75

$0.65

$0.75

$0.75

Weighted average exercise price

Weighted average share price

530,000

300,000

310,000

400,000

600,000

2,140,000

$0.71

$0.2600

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(530,000)

-

-

-

-

-

300,000

310,000

400,000

600,000

-

300,000

310,000

200,333

240,000

(530,000)

1,610,000

1,050,333

$0.65

$0.73

$0.73

Consolidated and parent entity - 2017

Balance at 

Granted 

Exercised 

Grant Date

Expiry 

Exercise 

start of the 

during the 

during the 

Date

Price

year 

year 

year 

Number

Number

Number

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

300,000

530,000

300,000

390,000

-

-

-

-

-

-

400,000

600,000

(300,000)

-

-

-

-

-

Expired/ 

forfeited 

during 

the year 

Number

-

-

-

(80,000)

-

-

Balance at 

Exercisable 

the end of 

at the end 

the year 

of the year 

Number

Number

-

530,000

300,000

310,000

400,000

600,000

-

530,000

300,000

260,000

133,333

120,000

TOTALS

1,520,000

1,000,000

(300,000)

(80,000)

2,140,000

1,343,333

Weighted average exercise price

Weighted average share price

$0.57

$0.3916

$0.75

$0.15

$0.65

$0.71

$0.67

b. 

EXEMPT EMPLOYEE SHARE P LAN (‘E E SP’)

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 ce 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   ca 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 c e 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 . 

68

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

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 c a 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  c e 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 ce 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 (2 017:  N i l).

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 n t N o n - E x e c u t i ve

M r  D G r o e nve l d 

P r i n c i p a l  A r c h i te c t

M r  K  J a ye s u r i a  

C h i e f O p e r a t i n g O f f i ce 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 2 018 . 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 :

Short-term employee benefits

Other long-term benefits

Share-based payments 

Post-employment benefits

S h a r e s

Consolidated Group

2018 

$

2017 

$

665,246

9,365

47,374

107,862

829,847

653,661

6,624

34,866

101,350

796,501

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 2 018 a r e:

Total number of shares

Number of shares sold

Number of shares acquired

2018

2017

2018

2017

2018

2017

Mr D 

Groenveld

Mr K Jayesuria

300,000

300,000

4,000

304,000

4,000

304,000

-

-

-

-

-

-

-

-

-

300,000

-

300,000

69

ANNUAL REPORT 
 
 
 
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

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 2 018 a r e:

Total number of options

Number of option granted 

Number of options 

during the year

exercised during the year

2018

2017

2018

2017

2018

2017

Mr D 

Groenveld

-

-

Mr K Jayesuria

600,000

600,000

600,000

600,000

-

-

-

-

300,000

300,000

-

-

-

-

-

-

L o a n s Pa ya b l e

T h e  C o m p a ny  c u r r e nt l y  h a s   o u t s ta n d i n g  $ 61, 7 94  p a ya b l e  to  M a t h e w  C h e r i a n  (2 017:   $ 47, 5 0 5) 

r e l a te d  to w a g e s p a y m e nt s  i n  a r r e a r s .

23.  R EMU NER A TI ON O F AUD ITORS 

Amounts received, or due and receivable by the auditors of the entity 

for:

ShineWing Australia

Taxation services for controlled entities

Auditing or reviewing the financial report

-  TY Teoh International (Malaysia) [Part of the MSI Group Alliance]

Auditing or reviewing the financial report of controlled 

entities  

Taxation services for controlled entities

- J Wong and Associates (Singapore)

         Auditing or reviewing the financial report

24.  CO MMI TME NT S AN D  CONTINGE NCIE S 

a.  OPERA TI NG LEASE COMMITMEN TS

Consolidated Group

2018 

$

2017 

$

3,409

106,357

601

-

4,240

114,607

-

65,000

3,150

1,500

1,500

71,150

Consolidated Group

2018 

$

2017 

$

Future operating lease rentals not provided for in the financial statements and payable:

Not later than 1 year

Later than 1 year but not later than 5 years

Later than 5 years

214,907

452,643

-

667,550

162,725

547,156

-

709,881

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 ce  c o m m e n ce d   o n  14  J u l y 

2 014  w i t h  r e d u ce 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 .

70

ANNUAL REPORT 
       
       
       
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

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.

Consolidated Group

2018 

$

2017 

$

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 2 018 .

25.  EA R NI N GS  P ER S HA RE

Consolidated Group

2018

$

2017

$

The following reflects the income and share data used in the calculations of basic and diluted earnings 

per share:

(Loss)/profit after tax from continuing operations attributable to 

owners of the parent

Net (loss) from continuing operations attributable to non-controlling 

interests

Earnings  used in calculating basic and diluted earnings per share 

(after tax)

Earnings from continuing operations used in calculating basic and 

diluted earnings per share (before tax)

Weighted average number of ordinary shares used in calculating 

basic earnings per share:

(421,234)

1,728,369 

- 

(324)

(421,234)

1,728,045 

(445,082)

1,932,019

Number of 

Shares

Number of 
Shares

33,450,679

33,152,050

Weighted average number of ordinary shares used in calculating 
diluted earnings per share:

35,590,680

35,292,050

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)

2018 

Cents

(1.259)

(1.183)

(1.330)

(1.250)

2017 
cents

5.212

4.896

5.827

5.474

E a r n i n g s  p e r  s h a r e fo r  d i s c o n t i n u e d  o p e r a t i o n s w a s  N I L  (2 017:  N I L).

26.  S EGMENT   INF OR MA TION

OPERATI NG SEGMENT 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 ce  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 rc e s .

71

ANNUAL REPORT     
 
 
 
 
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

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 n t 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  co 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 c a 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 cco 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 nt  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 nt s . 

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 n te 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 ca 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 .

SEGMENT ACCOUNTING POLI CIE S

T h e  G r o u p  g e n e r a l l y  a c c o u nt s   fo r  i nte r- s e g m e nt  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 c co 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 .

GEOGRAPHICAL SEGMENTS

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 c e  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 r ce 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 rca 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 c a 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 .

72

ANNUAL REPORTNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

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73

ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

27.  CO NS O LID AT ED ST AT E MENT OF   CAS H F L OW S

Re c o n c i l i a t i o n o f O p e r a t i n g ( L o s s)/ P r o f i t b e fo r e I n c o m e Ta x to N et C a s h p r ov i d e d  by  O p e r a t i n g 

Ac t i v i t i e s

Consolidated Group

2018 

 $

2017 

 $

Operating (loss)/profit before income tax

(445,082)

1,932,019

Add /(deduct) non-cash items:

Amortisation of Intangibles

Depreciation of fixed assets

Impairment of intangible assets

Employee share option expense

Net cash (outflow)/inflow from operating activities before 
change in assets and liabilities

Change in assets and liabilities during the period:

(Increase) in trade and other receivables

(Increase)/decrease in other assets

Increase/(decrease) in provisions

Increase/(decrease) in trade and other payables

Net cash inflow from operating activities

132,778

63,624

- 

47,375

266,021

87,931

917,381

50,687

(201,305)

3,254,039

(300,558)

(246,295)

54,089

940,192

246,123

(111,306)

700,749

(32,138)

(260,065)

3,551,279

28.  EV ENT S  S UBS EQ UENT T O R EPORTING  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 V ID ENDS

N o  D i v i d e n d s  w e r e  d e c l a r e d  o r  p a i d  i n  2 018 .   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  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  ce nt   e a c h .  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:

Dividend Details

Special 

Dividend

Special 

Dividend

TOTAL

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

74

ANNUAL REPORT 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (CONTINUED)

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

Liabilities

Current Liabilities

Non-Current Liabilities

Total Liabilities

Net Assets

Equity

  Contributed equity

  Reserves

  Accumulated Losses

Total Equity

Financial Performance

  (Loss)/profit for the year after tax

  Other comprehensive income

Total Comprehensive (loss)/income

Global Health Limited

2018 

$

2017 

$

4,371,068

7,139,465

11,510,533

4,935,761 

5,572,401

10,508,162

3,829,566

3,172,557

7,002,123

3,484,719

2,392,059

5,876,778

4,508,410

4,631,384

20,898,742

20,836,242

152,454

80,846

(16,542,786)

(16,285,704)

4,508,410

4,631,384

(424,456)

1,766,025

-

-

(424,456)

1,766,025

Other than that stated in Note 24 to the financial statements, the Company is not subject to any contingent 

liabilities or contractual commitments 

75

ANNUAL REPORT5.  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’):

a . 

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  3 2   to   75   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 2 018 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 . 

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 i i . 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

b.  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.

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 c e r  fo r  t h e  ye a r  e n d e d   3 0 

J u n e 2 018 .

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

Steve n L e i g h  P y nt

N o n - E x e 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 pte m b e r 2 018

76

ANNUAL REPORT6. 

SHAREHOLDER INFORMAT ION 

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  2 5  S e pte m b e r  2 018 .

6.1. SHAR EHOLDING

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

Category (size of holding)

Number of Holders

No. of Shares

1 – 1,000

1,001 – 5,000

5,001 – 10,000

10,001 – 100,000

100,001 and over

35

140

85

103

31

394

10,375

441,161

668,418

3,799,682

28,510,623

33,430,259

TOTAL

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 rc e l   o f  2 , 3 8 0 

s e c u r i t i e s ($ 0 . 21 p e r s h a r e 2 5 S e pte m b e r 2 018 ) i s 6 4 a n d t h ey h o l d  6 0 ,12 4  s e c u r i t i e s . A n 

u n m a r keta b l e p a rce l o f s h a r e s i s g e n e r a l l y a p a rce 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 shares held % of issued shares

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 

ANNEX PARTNERS PTY LTD 

TRIGLOBAL MANAGEMENT LIMITED 

B & R JAMES INVESTMENTS PTY LIMITED 

CONNAUGHT CONSULTANTS (FINANCE) PTY LTD 

DR SERENE LIM 

MR DAVID LEROY BOYLES 

LOMAS SUPERANNUATION PTY LTD 

EMERALD SHARES PTY LIMITED 

ROXANNE INVESTMENTS PTY LTD 

DAMON GROENVELD 

MR RAJIV PARAMANATHAN 

MS SERENE LIM & MR NICHOLAS RUSSELL WARD 

CEBON 

ASKET PTY LTD 

DADIASO HOLDINGS PTY LTD 

MR BRENDAN THOMAS BIRTHISTLE 

DR MARIE HEITZ 

LILYFIELD HOLDINGS PTY LTD 

MR MICHAEL JOHN THROWER & MRS SUSAN KATHRYN THROWER 

BUJO PTY LTD 

Total top 20 holders

6.2. SUBSTANTIA L SHAREHO LDERS

13,558,334

4,311,036

1,530,702

1,502,196

750,000

500,000

500,000

500,000

458,500

400,000

400,000

315,000

300,000

300,000

300,000

280,000

274,480

235,335

226,074

200,000

186,000

167,066

150,000

136,035

130,000

40.56

12.90

4.58

4.49

2.24

1.50

1.50

1.50

1.37

1.20

1.20

0.94

0.90

0.90

0.90

0.84

0.82

0.70

0.68

0.60

0.56

0.50

0.45

0.41

0.39

27,610,758

82.59

Shareholder

No. of shares

Percentage

Micron Holdings Pty Ltd (Cherian Family Account)

Micron Holdings Pty Ltd (Micron Holdings Pty Ltd Superfund A/c)

13,558,334

4,311,036

40.56

12.90

77

ANNUAL REPORT7.  AUDI TORS  R EPORT 

8.  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 nt  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 S a m B u tc h e r

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 

We b s i te: w w w. g l o b a l - h e a l t h . 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

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. 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 . a u

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  E h s a n

S o l i c i t o r s

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

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, 

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

We b s i te: w w w. s h i n e w i n g . c o m . a u 

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 

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

ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
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