RRECTIFIER TECHNOLOGIES LTD
ABN: 82 058 010 692
ANNUAL REPORT
2020
For personal use only RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
COMPANY PARTICULARS
BOARD OF DIRECTORS
Mr. Ying Ming Wang
Mr. Yanbin Wang
Mr. Valentino Vescovi
Mr. Nigel Machin
SECRETARY
Mr. Justyn Stedwell
REGISTERED AND BUSINESS OFFICE
Rectifier Technologies Ltd
97 Highbury Road
BURWOOD, VIC 3125
Telephone:
Facsimile:
+ 61 3 9896 7550
+ 61 3 9896 7566
MANUFACTURING FACILITY- MALAYSIA
Rectifier Technologies (M) Sdn Bhd
No. 5, 7 & 9, Jalan Laman Setia 7/8
Taman Laman Setia
81550 GELANG PATAH, JOHOR
MALAYSIA
Telephone: + 60 7 522 6006
Facsimile: + 60 7 522 6060
SHARE REGISTRY
Computershare Investor Services Pty Ltd
452 Johnston Street
ABBOTSFORD, VIC 3067
Telephone: 1300 137 328
BANKERS
ANZ Banking Group Limited
10 Main Street
BOX HILL, VIC 3128
FINANCIERS
Scottish Pacific Benchmark Group
Level 2, 441 St Kilda Rd
MELBOURNE, VIC 3004
AUDITORS
Grant Thornton Audit Pty Ltd
Collins Square, Tower 5
727 Collins Street
MELBOURNE, VIC 3008
For personal use only RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
CCONTENTS
Chairman’s Report
Directors’ Report
Auditor’s Independence Declaration
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Equity
Notes to the Financial Statements
Directors’ Declaration
Auditor’s Report
Additional Information
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CHAIRMAN’S REPORT
Financial Results
The total revenues decreased by approximately 11.33% to $16.7 million from $18.9 million in the previous reporting period.
The decrease in total revenues during the year to 30 June 2020 was due to the impact from the COVID-19 pandemic. To protect the safety and
health of the public, the Government has imposed restrictions on movement, including in each jurisdiction that the Company has been
operating. The Company’s factory in Malaysia was required by local authorities to shut down in the middle of March and was reopened under a
limited capacity in April. This factory has resumed full operation since May 2020.
The Company reported a profit before tax of $3.1 million compared to a profit of approximate $3.3 million in the previous reporting period, a
slight decline in the profit before income tax despite the global economics negatively impacted by COVID-19. However, the Company was still
able to report a profit with support from the Governments in each operating jurisdiction, financial institutions, key stakeholders and our own
reserves. The effective plan enables us to mitigate risk exposure.
The results for the 12 months to June 2020 compared with those of the previous corresponding period are shown in the following table.
Revenue from continuing operations (refer to note 3)
Gross Profit
Gross Margin %
Profit from continuing operations before tax
Income Tax Expense
Profit from continuing operations after tax
Net Profit
Funding
($'000')
2020
2019
16,735
8,565
54%
3,085
(1,263)
1,822
1,822
18,874
7,962
45%
3,339
(1,212)
2,127
2,127
On 6 February 2017, Rectifier Technologies Malaysia obtained a loan amounting to MYR$5,460,000 from Public Bank Berhad to acquire a new
manufacturing facility. After monthly repayments, the carrying amount of the loan was MYR$5,006,564 at the end of reporting period of 2020.
On 7 October 2019, Rectifier Technologies Malaysia obtained another loan amounting to MYR$2,730,000 from the same bank to acquire an
additional new block factory. After monthly repayments, the carrying amount of the loan was MYR$2,718,938 at end of reporting period of 2020.
The total balance of the loans was MYR$7,725,502 at the end of the current reporting period.
Options Granted as Employee Benefits
As per the ASX announcement made on 9 August 2019, the Company granted 42,000,000 share options of its common stock to employees
under its Employee Share Option Plan (ESOP) at an exercise price of $0.07 on 22 July 2019. Options under this plan vest immediately allowing
the holder to purchase one ordinary share per option, exercisable in multiples of 100,000. The maximum term of the options granted under the
ESOP ends on 13 September 2022. The weighted average fair value of options granted has been calculated as $0.015 per option. All granted
employee options were immediately recognised as an expense in the statement of profit or loss with a corresponding credit to share option
reserve for the value of $630,000 according to AASB 2.
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
Review of Operations
During the current reporting period, we moved into a new office premises with upgraded R&D facilities (Melbourne, Australia) and an additional
new block factory (Johor Bahru, Malaysia). Our new Melbourne office premises has doubled our total floor space and enables us to continue
investing effectively in the development of new products for both traditional industrial power and new energy markets. The additional block
factory acquired in Malaysia is expected to increase our total production capacity as needed in the future.
The Company has adapted the effective plan like many others during this COVID-19 period and supported by good business fundamentals and
a strong reserve built up from profits accumulated over the past several years, impacts to our business were mitigated.
There were no retrenchments in any of our 3 main offices during the current reporting period, in fact additional engineers were added to R&D
team at our Melbourne office. Our engineering team in Melbourne has continued to work remotely with the exception of a restricted number of
technician staff on-site, in compliance with Victorian Government regulations.
Outlook
Despite the challenges of 2020, the Company has continued to expand its R&D capability to enable the delivery of new products to increase our
market share in New Energy applications including E-Mobility. In addition to the major developments of our ‘Highbury DC Bi-Directional Charger’
and ‘RT22 50KW EV Charger Module’, we are also developing a high voltage input rectifier for the defense industry. We are now anticipating
these products to be released in 2021.
OnOn bbehehaalf ofof tthehe BBoaoardrd
On behalf of the Board
YiYingng MMiningggg WaWWWangng
Ying Ming Wang
ChChaia rmmann
Chairman
Dated this 30th day of September 2020
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
Your directors present their report on the company and its controlled entities for the financial year ended 30 June 2020.
DIRECTORS’ REPORT
Directors
The names of directors in office at any time during or since the end of the year are:
Mr. Ying Ming Wang
Mr. Yanbin Wang
Mr. Valentino Vescovi
Mr. Nigel Machin
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Company Secretary
Mr. Justyn Stedwell was appointed as Company Secretary on 31 July 2014. He is a professional Company Secretary with over 10 years’
experience as a Company Secretary of ASX listed companies. Mr Stedwell holds Bachelor of Commerce from Monash University and a
Graduate Diploma in Accounting from Deakin University.
Principal Activities
The principal activities of the consolidated entity during the financial year were the design and manufacture of high efficiency power rectifiers,
and the production of electronic and specialised magnetic components.
Operating Results
The consolidated profit of the Group after providing for income tax amounted to a profit of $1,821,638 compared to a profit of $2,127,038 in
2019.
Review of Operations, Financial Position and Business Strategies
Specific information on the review of operations, financial position and business strategies is stated in the Chairman’s Report.
Likely Developments
Information on likely developments in the operations of the consolidated entity and the expected results of those operations in future financial
years is stated in the Chairman’s Report.
Dividends Paid or Recommended
No dividend was paid or recommended during the financial year.
Significant Changes in State of Affairs
There are no other significant changes in the state of affairs of the consolidated Group other than these referred to under the heading “Likely
Developments”.
Matters subsequent to the end of the financial year
Subsequent to 30 June 2020, on 11 August 2020, the company has announced a less than marketable parcel sale facility for holders of less
than marketable parcels of the Company’s shares.
On 31 August 2020. The company declared to pay a 0.1 cent ($0.001) per share fully franked dividend
The key proposed dates in relation to the financial year 2020 dividend are as follows:
Ex Date - 29 October 2020
Record Date - 30 October 2020
Payment Date - 8 December 2020
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
Environmental Issues
DIRECTORS’REPORT
The consolidated entity’s operations are not subject to significant environmental regulation under the law of the Commonwealth or of a State.
Information on Directors
Mr. Ying Ming Wang
Qualification
Experience
Interest in Shares and Options
Mr. Yanbin Wang
Qualifications
Experience
Interest in Shares and Options
-
-
-
-
-
-
-
-
Director (Non-executive)
Ph. D in Science
Board Member since June 2006
224,643,616 Ordinary Shares of Rectifier Technologies Ltd
Director and CEO
Master of Law, Bachelor of Philosophy
Board Member since August 2010
70,000,000 Ordinary Shares of Rectifier Technologies Ltd
Mr. Valentino Vescovi
-
Director (Non-executive)
Qualifications
Experience
Interest in Shares and Options
-
-
-
Master of Science, Bachelor of Science
Board member 2003-2010 and from 30 October 2012
30,600,000 Ordinary Shares, and 7,040,000 unlisted options exercisable at 2c each
Mr. Nigel Machin -
Director and Head of Power Engineering
Qualification
Experience
Interest in Shares and Options
Audited Remuneration Report
-
-
-
Bachelor of Engineering
Board member since 3 April 2017
22,010,000 Ordinary Shares, and 1,800,000 unlisted options exercisable at 2c each
This report details the nature and amount of remuneration for each director of Rectifier Technologies Ltd and other key management
personnel. The Remuneration Report is audited.
Remuneration Policy
The remuneration policy of Rectifier Technologies Ltd has been designed to align director and executive objectives with shareholder and
business objectives by providing a fixed remuneration component and offering specific long-term incentives based on key performance areas
affecting the consolidated entity’s financial results. The Board of Rectifier Technologies Ltd believes the remuneration policy to be appropriate
and effective in its ability to attract and retain the best executives and directors to run and manage the consolidated entity, as well as create
goal congruence between directors, executives and shareholders.
The Board’s policy for determining the nature and amount of remuneration for Board members and senior executives of the consolidated entity
is as follows:
The performance of executives is measured against criteria agreed annually with each executive and is based predominantly on the forecast
growth of the consolidated entity’s profits and shareholders’ value. All bonuses and incentives must be linked to predetermined performance
criteria. The Board has discretion in relation to approving incentives, bonuses and options. Any changes must be justified by reference to
measurable performance criteria.
The policy is designed to attract the highest calibre of executives and reward them for performance that results in long-term growth in
shareholder wealth.
Executives and Key management personnel are also entitled to participate in the share option arrangements.
The executive directors and key management personnel receive a superannuation guarantee contribution required by the local Government
and do not receive any other retirement benefits. Some individuals, however, have chosen to sacrifice part of their salary to increase
payments towards superannuation.
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
DIRECTORS’REPORT
All remuneration paid to directors and executives is valued at the cost to the company and expensed. Should shares be given to directors or
executives, they would be valued as the difference between the market price of those shares and the amount paid by the director or executive.
Options are valued using an appropriate methodology.
The Board policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment and
responsibilities. The Board determines payments to the non-executive directors and reviews their remuneration annually, based on market
practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that can be
paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting. Fees for non-executive directors are not
linked to the performance of the consolidated entity.
Performance Based Remuneration
As part of each executive director and executive’s remuneration package there may be a performance-based component, consisting of key
performance indicators (KPI’s). The intention of this program is to facilitate goal congruence between directors/executives with that of the
business and shareholders. Where applicable, the KPI’s are set annually, with a certain level of consultation with directors/executives to
ensure buy-in. The measures are specifically tailored to the areas each director/executive is involved in and has a level of control over. The
KPI’s target areas the Board believes hold greater potential for Group expansion and profit, covering financial and non-financial as well as
short-term and long-term goals. The level set for each KPI is based on budgeted figures for the Group and respective industry standards.
Performance in relation to the KPI’s is assessed annually, with bonuses being awarded depending on the number and deemed difficulty of the
KPI’s achieved. Following the assessment, the KPI’s are reviewed by the Board in light of the desired and actual outcomes, and their
efficiency is assessed in relation to the Group’s goals and shareholder wealth, before the KPI’s are set for the following year.
In determining whether or not a KPI has been achieved, Rectifier Technologies Ltd bases the assessment on audited figures, however, where
the KPI involves comparison of individual performance within the Group, management reports which form the foundation for the Group audited
results are used.
Names and positions held of Directors and Key Management Personnel of the Group in office at any time during the financial year are:
Directors
Mr. Ying Ming Wang
Mr. Yanbin Wang
Chairman – Non-Executive
Director – Executive and Chief Executive Officer
Mr. Valentino Vescovi
Director – Non-Executive
Mr. Nigel Machin Director – Executive and Head of Power Engineering
Other Key Management Personnel
Mr. Paul Davis
Mr. Seong Bow Lee
Mr. Nicholas Yeoh
Operations Manager – Rectifier Technologies Pacific Pty Ltd
General Manager – Rectifier Technologies (M) Sdn Bhd
Director of Sales & Marketing – Rectifier Technologies Singapore Pte Ltd
Mr. Wang Yanbin and Mr Nigel Machin were executives of the parent entity in 2020.
Mr. Nicholas Yeoh has been appointed as the director of Rectifier Technologies Singapore Pte Ltd on 3rd July 2019.
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
DIRECTORS’ REPORT
Key Management Personnel Compensation Consolidated Entity
2020
Short-term employee benefits
Long-term
employee
benefits
Post-employment
benefits
Share-
based
payment
Cash salary
and fees
Cash bonus
Non-
monetary
benefits
Long Service
Leave
Super-
annuation
Retirement
benefits
Shares
Total
Name
$
$
$
$
$
$
$
$
Parent Entity Directors
Mr. Ying Ming Wang
15,750
-
-
Mr. Yanbin Wang (CEO)
353,160
44,884
21,075
Mr. Valentino Vescovi
10,500
-
Mr. Nigel Machin 179,045
22,836
Other Key Management Personnel
Subsidiary Entities
Mr. Paul Davis
Mr. Seong Bow Lee
Mr. Nicholas Yeoh
150,546
92,752
296,864
26,022
10,690
35,267
-
-
-
1,054
1,940
-
-
-
-
6,912
-
6,256
29,691
5,515
-
-
25,151
12,715
-
Total
1,098,617
139,699
24,069
11,771
74,469
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15,750
426,031
10,500
237,828
207,234
117,211
334,071
1,348,625
In 2020, 10.54% of Mr. Yanbin Wang’s remuneration, 9.60% of Mr. Nigel Machin’s remuneration, 9.12% of Mr. Seong Bow Lee’s remuneration,
10.56% of Mr. Nicholas Yeoh and 12.56% of Mr. Paul Davis’ remuneration were performance based. The cash bonus were approved upon
payment on 31/01/2020.
2019
Short-term employee benefits
Long-term
employee
benefits
Post-employment
benefits
Share-
based
payment
Cash salary
and fees
Cash bonus
Non-
monetary
benefits
Long Service
Leave
Super-
annuation
Retirement
benefits
Shares
Total
Name
$
$
$
$
$
$
$
$
Parent Entity Directors
Mr. Ying Ming Wang
8,750
-
-
Mr. Yanbin Wang (CEO)
304,288
31,465
31,654
Mr. Valentino Vescovi
8,333
-
Mr. Nigel Machin 169,685
14,738
Other Key Management Personnel
Subsidiary Entities
Mr. Paul Davis
Mr. Seong Bow Lee
Mr. Nicholas Yeoh
Total
139,852
81,524
264,283
976,715
19,663
8,238
22,030
96,134
-
-
-
841
998
-
-
-
-
-
-
3,135
28,032
2,641
-
-
26,654
10,092
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,750
367,407
8,333
215,590
188,810
100,695
287,311
1,176,896
33,493
5,776
64,778
In 2019, 8.56% of Mr. Yanbin Wang’s remuneration, 6.84% of Mr. Nigel Machin’s remuneration, 8.18% of Mr. Seong Bow Lee’s remuneration,
7.67% of Mr. Nicholas Yeoh and 10.41% of Mr. Paul Davis’ remuneration were performance based. The cash bonus were approved upon
payment on 28/02/2019.
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
Key Management Personnel Compensation Consolidated Entity
Options and Rights Holdings
DIRECTORS’ REPORT
Number of share options of Rectifier Technologies Ltd held by Key Management Personnel in the parent and consolidated entity are as follows:
Balance
1.7.19
Options
Exercised
Net Change
Other
Balance
Total Vested
30.6.20
30.6.20
Total Vested &
Exercisable
Total Vested &
Unexercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,040,000
7,040,000
7,040,000
1,800,000
1,800,000
1,800,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
9,000,000
17,840,000
17,840,000
17,840,000
-
-
-
-
-
-
-
-
Total
8,840,000
Number of share options of Rectifier Technologies Ltd held by Key Management Personnel in the parent and consolidated entity are as follows:
Balance
1.7.18
Options
Exercised
Net Change
Other
Balance
Total Vested
30.6.19
30.6.19
Total Vested &
Exercisable
Total Vested &
Unexercisable
2020
Parent Entity Directors
Mr. Ying Ming Wang
Mr. Yanbin Wang
Mr. Valentino Vescovi
Mr. Nigel Machin
Other Key Management
Personnel of the Group
Subsidiary Entities
Mr. Paul Davis
Mr. Seong Bow Lee
Mr. Nicholas Yeoh
2019
Parent Entity Directors
Mr. Ying Ming Wang
Mr. Yanbin Wang
Mr. Valentino Vescovi
Mr. Nigel Machin
Other Key Management
Personnel of the Group
Subsidiary Entities
Mr. Paul Davis
Mr. Seong Bow Lee
Mr. Nicholas Yeoh
-
-
7,040,000
1,800,000
-
-
-
-
-
7,040,000
1,800,000
-
-
-
Total
8,840,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,040,000
7,040,000
7,040,000
1,800,000
1,800,000
1,800,000
-
-
-
-
-
-
-
-
-
8,840,000
8,840,000
8,840,000
-
-
-
-
-
-
-
-
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
Key Management Personnel Compensation Consolidated Entity
DIRECTORS’ REPORT
Shareholdings
2020
Number of Shares held by Parent Entity Directors and Other Key Management Personnel in Rectifier Technologies Ltd.
Balance
1.7.19
Received as
Director Loan
Repayment
Received as
Remuneration
Employee Share
Scheme
Net Change
Balance
Other
30.6.20
224,643,616
70,000,000
37,821,196
22,010,000
5,000,000
2,767,550
20,500,000
382,742,362
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
224,643,616
70,000,000
(7,221,196)
30,600,000
-
22,010,000
-
-
-
5,000,000
2,767,550
20,500,000
(7,221,196)
375,521,166
Parent Entity Directors
Mr. Ying Ming Wang
Mr. Yanbin Wang
Mr. Valentino Vescovi
Mr. Nigel Machin
Other Key Management
Personnel of the Group
Subsidiary Entities
Mr. Paul Davis
Mr. Seong Bow Lee
Mr. Nicholas Yeoh
Total
2019
Number of Shares held by Parent Entity Directors and Other Key Management Personnel in Rectifier Technologies Ltd.
Parent Entity Directors
Mr. Ying Ming Wang
Mr. Yanbin Wang
Mr. Valentino Vescovi
Mr. Nigel Machin
Other Key Management
Personnel of the Group
Subsidiary Entities
Mr. Paul Davis
Mr. Seong Bow Lee
Mr. Nicholas Yeoh
Total
Balance
1.7.18
Received as
Director Loan
Repayment
Received as
Remuneration
Employee Share
Scheme
Net Change
Balance
Other
30.6.19
224,643,616
70,000,000
37,821,196
22,010,000
5,000,000
2,767,550
21,000,000
383,242,362
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
224,643,616
70,000,000
37,821,196
22,010,000
5,000,000
2,767,550
(500,000)
20,500,000
(500,000)
382,742,362
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
DIRECTORS’ REPORT
Shares granted as remuneration
There were no shares granted as remuneration in 2020.
Remuneration Practices
The company’s policy for determining the nature and amount of emoluments of board members and senior executives of the company is as
follows:
The remuneration structure for executive officers, including executive directors, is based on a number of factors, including length of service,
particular experience of the individual concerned, and overall performance of the company or Group. The contracts for service between the
company and specified directors and executives are on a continuing basis, the terms of which are not expected to change in the immediate
future. Upon retirement specified directors and executives are paid employee benefit entitlements accrued to date of retirement. Any options
issued as remuneration under the Company’s Share Option Plan not exercised before or on the date of termination lapse.
The service contracts stipulate a range of one to three months resignation periods. The company may terminate an employment contract
without cause by providing up to 3 months’ written notice or making payment in lieu of notice, based on the individual’s annual salary
component together with an appropriate redundancy payment, depending on the individual contract terms. Termination payments are
generally not payable on resignation or dismissal for serious misconduct. In the instance of serious misconduct, the company can terminate
employment at any time. Any options not exercised before or on the date of termination will lapse.
The commentary above should be read in conjunction with the information provided in the Directors’ Report under Remuneration Policy.
Company Performance, Shareholder Wealth and Directors’ and Executives’ Remuneration
The remuneration policy has been tailored to increase goal congruence between shareholders and directors and executives. There have been
two methods applied in achieving this aim, the first being a performance-based bonus which is based on key performance indicators, and the
second being the issue of options to the majority of directors and executives to encourage the alignment of personal and shareholder
interests. The company believes this policy to be the most effective manner to increase shareholder wealth.
The following table shows the gross revenue, profits and dividends for the last five years for the listed entity, as well as the share price at the
end of the respective financial years. The full year results for 2016 represented a significant improvement of the company’s operational
performance and resulted from the increase in sales and product margin compared to previous financial year. The lower overall sales in the
year to 30 June 2017 were due to the slowing down in sales of some of our key products used in the industrial market. The increase in
revenue during the year to 30 June 2018 was due to the improving sales of some of our key products used in the industrial power supplies,
particularly in the electric vehicle (EV) charging market. The significant increase in revenue during the year to June 2019 was due to the
significant sales increase in EV charging market. The decline in total revenues during 30 June 2020 was due to the impact from COVID-19
pandemic. We expect the continued improvement of revenue from the EV charging market with new products expected to be released in
2021.
2016
2017
2018
2019
2020
Revenue ($’000) (Including discontinued operation)
Net Profit/(Loss) ($’000)
Share Price at Year-end (cents)
Change in Share Price (cents)
Dividends Paid
8,459
1,685
2.9
2.2
-
6,881
(35)
1.7
1.2
-
7,835
62
2.6
0.9
-
18,874
2,127
4.6
2.0
-
16,735
1,822
3.8
0.8
-
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Options Issued as Part of Remuneration
DIRECTORS’ REPORT
Options may be issued to executives as part of their remuneration. Such options are generally not issued based on performance criteria, but
are issued to increase goal congruence between executives, directors and shareholders through the linkage between remuneration and
increasing shareholder value.
Employment Contracts of Directors and Senior Executives
The employment conditions of the CEO and specified executives are formalised in contracts of employment and all contracts require 4 weeks’
notice, with no termination payments specified other than employee entitlements.
END OF AUDITED REMUNERATION REPORT
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
Meetings of Directors
During the financial year, 4 meetings of directors and 2 audit committee meetings were held. Attendances were:
DIRECTORS’ REPORT
DIRECTORS’ MEETINGS
AUDIT COMMITTEE
Number eligible to attend
Number Attended
Number eligible to attend
Number Attended
Mr. Ying Ming Wang
Mr. Yanbin Wang
Mr. Valentino Vescovi
Mr. Nigel Machin
Indemnifying Officers or Auditor
4
4
4
4
2
4
4
4
2
2
2
2
2
2
2
2
During the financial year the Company has paid premiums to insure each of the directors and officers against liabilities for costs and
expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director or officer of
the Company and of any related body corporate, other than conduct involving a wilful breach of duty in relation to the Company. The amount
of the premium was $21,500 for all directors and officers.
The company has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to
indemnify an officer or auditor of the company or of any related body corporate against a liability incurred as such an officer or an auditor.
Options
At the date of this report, the unissued ordinary shares of Rectifier Technologies Ltd under option are as follows:
Grant Date
Date of Expiry
Exercise Price
Number Under Option
June 2003
November 2003
No expiry date
No expiry date
July 2019
13 September 2022
2.0¢ per share
2.0¢ per share
7.0¢ per share
11,520,000
8,360,000
42,000,000
61,880,000
No person entitled to exercise the option had or has any right by virtue of the option to participate in any share issue of another body
corporate.
Proceedings on Behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervened in any proceedings to which the
Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the year.
Non-audit Services
The board of directors, in accordance with advice from the audit committee, review the provision of non-audit services during the year to ensure
that they are compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors satisfy
themselves that the services do not compromise the external auditor’s independence for the following reasons:
(cid:120)
(cid:120)
all non-audit services are reviewed and approved by the audit committee prior to commencement to ensure they do not adversely affect
the integrity and objectivity of the auditor; and
the nature of the services provided do not compromise the general principles relating to auditor independence as set out in the Code of
Conduct APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional & Ethical Standards Board.
Details of the amounts paid to the auditors of the Company, Grant Thornton Audit Pty Ltd, and its related practices for audit and non-audit
services provided during the year are set out in Note 8 to the financial statements.
11
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
Auditors Independence Declaration
DIRECTORS’ REPORT
A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on the following page.
Signed in accordance with a resolution of the Board of Directors.
…………………………………..
Mr. Yanbin Wang
Director
Melbourne
Dated this 30th day of September 2020
12
For personal use only
Collins Square, Tower 5
727 Collins Street
Melbourne VIC 3008
Correspondence to:
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
F +61 3 (cid:27)320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Auditor’s Independence Declaration
To the Directors of Rectifier Technologies Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Rectifier
Technologies Limited for the year ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have
been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
S C Trivett
Partner – Audit & Assurance
Melbourne, 30 September 2020
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
13
For personal use only RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2020
Revenue
Other income
Changes in inventories of finished goods and work in progress
Raw materials and consumables used
Employee benefits expense
Share options expense
Depreciation expense
Finance costs
Other expenses
Profit before income tax expense
Income tax expense
Note
Consolidated Entity
2020
$
2019
$
3
3
4
4
4
5
16,128,925
18,262,098
605,834
(1,089,437)
(4,715,006)
(5,099,663)
(630,000)
(502,523)
(187,852)
(1,424,667)
3,085,611
(1,263,973)
612,395
943,987
(8,836,781)
(5,401,786)
-
(257,361)
(151,310)
(1,832,403)
3,338,839
(1,211,801)
Profit from continuing operations after income tax
1,821,638
2,127,038
Net profit after income tax attributable to owners of Rectifier
Technologies Limited
1,821,638
2,127,038
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation differences
(135,906)
52,484
Total other comprehensive income for the year
Total comprehensive income for the year
(135,906)
1,685,732
52,484
2,179,522
Basic earnings per share (cents per share):
Diluted earnings per share (cents per share):
9
9
0.13
0.13
0.16
0.15
The accompanying notes form part of these financial statements
14
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020
Note
Consolidated Entity
2020
$
2019
$
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Current tax assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Deferred tax assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Interest bearing liabilities
Provisions
Current tax liabilities
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing liabilities
Deferred tax liabilities
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
The accompanying notes form part of these financial statements
10
11
12
14
5
15
16
18
16
5
18
6,873,680
1,676,228
2,555,080
726,598
2,834,440
1,432,197
5,577,926
493,784
11,831,586
10,338,347
5,651,766
452,501
6,104,267
3,671,240
215,839
3,887,079
17,935,853
14,225,426
2,251,184
461,891
608,773
1,143,210
4,465,058
3,429,810
375,160
69,987
3,874,957
8,340,015
2,570,406
543,286
446,069
1,228,943
4,788,704
2,088,630
42,613
60,573
2,191,816
6,980,520
9,595,838
7,244,906
19
19
39,851,775
671,828
39,816,575
177,734
(30,927,765)
(32,749,403)
9,595,838
7,244,906
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020
Note
Consolidated Entity
2020
$
2019
$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs
Income taxes paid
Net cash provided by operating activities
23
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issue
Proceeds from borrowings
Repayment of lease liability
Repayment of borrowings
Net cash provided by financing activities
Net increase in cash held
Cash and cash equivalents at beginning of the year
Effect of exchange rates on cash holdings in foreign currencies
Cash and cash equivalents at end of the year
10
The accompanying notes form part of these financial statements
22,789,570
15,533,821
(15,625,852)
(14,562,460)
12,311
(1,113)
(995,477)
6,179,439
14,992
(147,033)
(187,860)
651,460
(2,001,238)
(2,001,238)
(459,808)
(459,808)
35,200
1,564,321
(374,601)
(884,979)
339,941
4,518,142
2,834,440
(478,902)
6,873,680
-
311,869
(110,335)
(57,992)
143,542
335,194
2,183,902
315,344
2,834,440
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2020
Consolidated Entity
$
$
$
$
Share
Capital
Accumulated Losses
Reserve
Total
Balance at 1.7.2018
39,816,575
(34,876,441)
125,250
5,065,384
Total comprehensive income for the year
Transactions with owners in their capacity as
owners:
Shares issued (Note 19)
Balance at 30.06.2019
-
-
2,127,038
52,484
2,179,522
-
-
-
39,816,575
(32,749,403)
177,734
7,244,906
Balance at 1.7.2019
39,816,575
(32,749,403)
177,734
7,244,906
Total comprehensive income for the year
-
1,821,638
(135,906)
1,685,732
Transactions with owners in their capacity as
owners:
Shares issued (Note 19)
35,200
Options reserve – share based payment (Note 19)
-
-
-
Balance at 30.06.2020
39,851,775
(30,927,765)
-
630,000
671,828
35,200
630,000
9,595,838
The accompanying notes form part of these financial statements.
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1:
Corporate information
The financial statements of Rectifier Technologies Limited for the year ended 30 June 2020 were authorised for issue in accordance with
a resolution of the directors on 30 September 2020 and covers the consolidated entity consisting of Rectifier Technologies Limited and its
subsidiaries as required by the Corporations Act 2001.
The financial report is presented in Australian dollars, unless otherwise noted.
Rectifier Technologies Limited is a company limited by shares and incorporated in Australia; whose shares are publicly traded on the
Australian Stock Exchange.
The address of the registered office and principal place of business is 97 Highbury Road, Burwood, Vic 3125, Australia.
NOTE 2:
Summary of significant accounting policies
a.
Basis of preparation
The consolidated financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting
Standards, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. Rectifier
Technologies Limited is a for-profit entity for the purpose of preparing the financial statements.
Compliance with Australian Accounting Standards ensures that the financial statements and notes of the consolidated entity comply with
International Financial Reporting Standards (IFRS).
Historical cost convention
These financial statements have been prepared under the historical cost basis, except for investments that have been measured at fair
value.
b.
Basis of Consolidation
Subsidiaries
The Group financial statements consolidate those of the Rectifier Technologies Limited and all of its subsidiaries as of 30 June 2020.
Rectifier Technologies Limited controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the subsidiary
and has the ability to affect those returns through its power over the subsidiary. All subsidiaries have a reporting date of 30 June. All
transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on
transactions between Group companies. Where unrealised losses on intra-Group asset sales are reversed on consolidation, the underlying
asset is also tested for impairment from a Group perspective. Amounts reported in the financial statements of subsidiaries have been
adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are recognised from the effective date
of acquisition, or up to the effective date of disposal, as applicable.
Subsidiaries are accounted for at cost by the parent entity and are included in the balances disclosed in note 26.
c.
Income Tax
The income tax expense for the period is the tax payable on the current period's taxable income based on the national income tax rate for
each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax base of
assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for all temporary differences, between carrying amounts of assets and liabilities for
financial reporting purposes and their respective tax bases, at the tax rates expected to apply when the assets are recovered or liabilities
settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. Exceptions are made for certain
temporary differences arising on initial recognition of an asset or a liability if they arose in a transaction, other than a business combination,
that at the time of the transaction did not affect either accounting profit or taxable profit.
Deferred tax assets are only recognised for deductible temporary differences and unused tax losses if it is probable that future taxable
amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments
in subsidiaries, associates and interests in joint ventures where the parent entity is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse in the foreseeable future.
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2:
Summary of significant accounting policies (Cont’d)
c.
Income Tax (Cont’d)
Current and deferred tax balances relating to amounts recognised directly in other comprehensive income or directly in equity are also
recognised in other comprehensive income or directly in equity, respectively.
Tax Consolidation
Rectifier Technologies Limited and its Australian wholly owned subsidiaries have implemented the tax consolidation legislation for the whole
of the financial year. Rectifier Technologies Limited is the head entity in the tax consolidated Group. The separate taxpayer within a Group
approach has been used to allocate current income tax expense and deferred tax expense to wholly owned subsidiaries that form part of the
tax consolidated Group. Rectifier Technologies Limited has assumed all the current tax liabilities and the deferred tax assets arising from
unused tax losses for the tax consolidated Group via intercompany receivables and payables because a tax funding arrangement has been
in place for the whole financial year. The amounts receivable/payable under tax funding arrangements are due upon notification by the head
entity, which is issued soon after the end of each financial year. Interim funding notices may also be issued by the head entity to its wholly
owned subsidiaries in order for the head entity to be able to pay tax instalments. These amounts are recognised as current intercompany
receivables or payables (refer to note 24).
d.
Inventories
Raw materials, Work in Progress and Finished goods
Inventories are measured at the lower of cost and net realisable value. The cost of manufactured products includes direct materials, direct
labour and an appropriate portion of variable and fixed overheads. Overheads are applied on the basis of normal operating capacity. Costs
are assigned on the basis of weighted average costs. Net realisable value is the estimated selling price in the ordinary course of business,
less the estimated selling cost of completion and selling expenses.
e.
Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses.
Land and Buildings
Freehold land is not depreciated but is subject to impairment testing if there is any indication of impairment.
Building are measured on the cost basis less depreciation and impairment losses. Historical costs include costs directly attributable to
bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Plant and equipment
Plant and equipment are measured on the cost basis less depreciation and impairment losses. Historical costs include costs directly
attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by
management.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other
repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets including capitalised leased assets is depreciated on a straight-line basis over their useful lives to
the consolidated entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter
of either the unexpired period of the lease or the estimated useful lives of the improvements.
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2:
Summary of significant accounting policies (Cont’d)
e.
Property, Plant and Equipment (Cont’d)
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Building
Leasehold improvements
Motor vehicles
Plant and equipment
Leased plant and equipment
Depreciation Rate
2%
10%
20%
20-40%
20-33%
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of the reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated
recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and
losses are included in profit or loss.
f. Lease
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the
initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any
lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs
expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset,
whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at the end of the lease term, the
depreciation is over its estimated useful life. Right-of-use assets are subject to impairment or adjusted for any remeasurement of lease
liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months
or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease
payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the consolidated entity's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives
receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees,
exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties.
The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
For any new contracts entered into on or after 1 July 2019, the Company considers whether a contract is, or contains a lease. A lease is
defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for
consideration’. To apply this definition the Company assesses whether the contract meets three key evaluations which are whether:
• the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified at the
time the asset is made available to the Company;
• the Company has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use,
considering its rights within the defined scope of the contract; and
• the Company has the right to direct the use of the identified asset throughout the period of use. The Company assesses whether it has the
right to direct ‘how and for what purpose’ the asset is used throughout the period of use.
20
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2:
Summary of significant accounting policies (Cont’d)
f. Lease (Cont’d)
At lease commencement date, the Company recognises a right-of-use asset and a lease liability on the balance sheet. The right-of-use
asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred by the
Company, an estimate of any costs to dismantle and remove the asset at the end of the lease, and any lease payments made in advance
of the lease commencement date (net of any incentives received).
The Company depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of
the useful life of the right-of-use asset or the end of the lease term. The Company also assesses the right-of-use asset for impairment
when such indicators exist.
At the commencement date, the Company measures the lease liability at the present value of the lease payments unpaid at that date,
discounted using the interest rate implicit in the lease if that rate is readily available or the Company’s incremental borrowing rate.
Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed), variable
payments based on an index or rate, amounts expected to be payable under a residual value guarantee and payments arising from
options reasonably certain to be exercised.
Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is remeasured to reflect
any reassessment or modification, or if there are changes in in-substance fixed payments.
When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or profit and loss if the right-of-
use asset is already reduced to zero.
The Company has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of
recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in profit or loss on a
straight-line basis over the lease term.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a
change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty
of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of
use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down
Accounting Policy applicable to comparative period (30 June 2019)
Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classified as
finance leases and capitalised at inception of the lease at the fair value of the leased property, or if lower, at the present value of the
minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to
achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to profit or loss over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.
Leases where the lessor retains substantially all the risks and rewards of ownership of the net asset are classified as operating leases.
Payments made under operating leases (net of incentives received from the lessor) are charged to profit or loss on a straight-line basis
over the period of the lease.
Capital work-in-progress consists of property, plant and equipment for intended use as production facilities. The amount is stated at cost and
includes capitalisation of interest incurred on borrowings related to property, plant and equipment under construction/installation until the
property, plant and equipment are ready for their intended use.
21
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2:
Summary of significant accounting policies (Cont’d)
g.
Impairment of Assets
At the end of each reporting period, the Group assesses whether there is any indication that individual assets have been impaired.
Where impairment indicators exist, recoverable amount is determined and impairment losses are recognised in profit or loss where the
asset's carrying value exceeds its recoverable amount. Recoverable amount is the higher of an asset's fair value less costs to sell and
value in use. For the purpose of assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
Where it is not possible to estimate recoverable amount for an individual asset, recoverable amount is determined for the cash-generating
unit to which the asset belongs.
h.
Investments and Other Financial Assets
Financial Instruments Accounting Policy
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial
instrument and are measured initially at fair value adjusted by transactions costs, except for those carried at fair value through profit or
loss, which are measured initially at fair value. Subsequent measurement of financial assets and financial liabilities are described below.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset
and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or
expires.
Trade and other receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.
After initial recognition, these are measured at amortised cost using the effective interest method, less provision for impairment.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other
receivables fall into this category of financial instruments.
Individually significant receivables are considered for impairment when they are past due or when other objective evidence is received that
a specific counterparty will default. Receivables that are not considered to be individually impaired are reviewed for impairment in
Companies, which are determined by reference to the industry and region of a counterparty and other shared credit risk characteristics.
The impairment estimate is then based on the expected credit loss.
Classification and measurement of financial liabilities
The Company’s financial liabilities include trade and other payables, borrowings and related party loans. Financial liabilities are initially
measured at fair value, and, where applicable, adjusted for transaction costs unless the Company designated a financial liability at fair
value through profit or loss. Subsequently, financial liabilities are measured at amortised cost using the effective interest.
All interest-related charges and, if applicable, changes in an instrument's fair value that are reported in profit or loss are included within
finance costs or finance income.
22
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2:
Summary of significant accounting policies (Cont’d)
i.
Foreign Currency Transactions and Balances
The functional and presentation currency of Rectifier Technologies Limited and its Australian subsidiaries is Australian dollars ($AUD).
Foreign currency transactions are translated into the functional currency using the exchange rates ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the end of reporting
period. Foreign exchange gains and losses resulting from settling foreign currency transactions, as well as from restating foreign currency
denominated monetary assets and liabilities, are recognised in profit or loss, except when they are deferred in other comprehensive
income as qualifying cash flow hedges or where they relate to differences on foreign currency borrowings that provide a hedge against a
net investment in a foreign entity. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates
at the date when fair value was determined.
The functional currency of the overseas subsidiaries is the Malaysian ringgit, the US dollars and Singapore dollars. At the end of the
reporting period, the assets and liabilities of these overseas subsidiaries are translated into the presentation currency of Rectifier
Technologies Limited at the closing rate at the end of the reporting period and income and expenses are translated at the weighted
average exchange rates for the year. All resulting exchange differences are recognised in other comprehensive income as a separate
component of equity (foreign currency translation reserve). On disposal of a foreign entity, the cumulative exchange differences recognised
in foreign currency translation reserves relating to that particular foreign operation are recognised in profit or loss.
j.
Employee Benefits
Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to the end of the reporting
period. Benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and sick leave are recognised
when it is probable that settlement will be required, and the liability is capable of being measured reliably. Employee benefits that are
expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related
on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to
be made for those benefits.
Long Service Leave
Liabilities for long service leave are recognised as part of the provision for employee benefits and measured as the present value of
expected future payments to be made in respect of services provided by employees to the end of reporting period using the projected unit
credit method. Consideration is given to expect future salaries and wages levels, experience of employee departures and periods of
service. Expected future payments are discounted using high quality corporate bonds rates at the end of the reporting period with terms to
maturity and currency that match, as closely as possible, the estimated future cash outflows.
k.
Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an
outflow of economic benefits will result, and that outflow can be reliably measured. Where the effect of the time value of money is material,
provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the
time value of money and, where appropriate, the risks specific to the liability.
l.
Cash and Cash Equivalents
For the purposes of the Statement of Cash Flows, cash and cash equivalents includes cash on hand and deposits held at call, net of any
bank overdrafts. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash, which
are not subject to insignificant risk of changes in value and have a maturity of three months or less at the date of acquisition.
23
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2:
Summary of significant accounting policies (Cont’d)
m.
Revenue Recognition
To determine whether to recognise revenue, the Group follows a 5-step process:
1. Identifying the contract with a customer
2. Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations
5. Recognising revenue when/as performance obligation(s) are satisfied.
The Group often enters into transactions involving a range of the Group’s products and services, for example for the delivery of rectifiers
and related after-sales services. In all cases, the total transaction price for a contract is allocated amongst the various performance
obligations based on their relative stand-alone selling prices. The transaction price for a contract excludes any amounts collected on
behalf of third parties.
Revenue is recognised at a point in time, when the Group satisfies performance obligations by transferring the promised services and the
ownership of the products to the customers.
The Group recognises contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these
amounts as other liabilities in the statement of financial position. Similarly, if the Group satisfies a performance obligation before it
receives the consideration, the Group recognises either a contract asset or a receivable in its statement of financial position, depending
on whether something other than the passage of time is required before the consideration is due. Interest income is reported on an
accrual’s basis. Revenue arises mainly from the sale of rectifiers. This is recognized at a point in time when the performance obligation is
satisfied and the ownership of the products have been transferred to the customers.
n.
Trade and other Payables
Trade and other payables represent liabilities for goods and services provided to the Group prior to the year end and which are unpaid.
These amounts are unsecured and have 30-60 day payment terms.
o.
Interest-bearing liabilities
All loans and borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss
over the period of the loans and borrowings using the effective interest method.
All borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least
12 months after the end of the reporting period.
p.
Borrowing Costs
Borrowing costs incurred for the construction of a qualifying asset are capitalised during the period of time that it is required to complete
and prepare the asset for its intended use or sale. Other borrowing costs are expensed when incurred.
q.
Goods and Services Tax (GST)
Revenues, expenses are recognised net of GST except where GST incurred on a purchase of goods and services is not recoverable from
the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the
taxation authority is included as part of receivables or payables in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and
financing activities, which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
24
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2:
Summary of significant accounting policies (Cont’d)
r.
New accounting standards and interpretations
The following standards and interpretations have been recently issued and have been adopted by the Group for the year ended 30 June
2020.
AASB 16 Leases
AASB 16 replaces AASB 117 Leases and some lease-related Interpretations. AASB 16
(cid:120)
(cid:120)
(cid:120)
(cid:120)
requires all leases to be accounted for ‘on-balance sheet’ by lessees, other than short-term and low value asset leases
provides new guidance on the application of the definition of lease and on sale and lease back accounting
largely retains the existing lessor accounting requirements in AASB 117
requires new and different disclosures about leases
The new Standard has been applied using the modified retrospective approach for the current period. Prior periods have not been
restated.
On transition, for leases previously accounted for as operating lease with a remaining lease term of less than 12 months or for leases of
low-value assets the group has applied the option exemptions to not recognise right-of-use assets but to account for the leases expenses
on a straight-line basis over the remaining lease term.
On transition to AASB16, the weighted average borrowing rate applied to lease liabilities recognised under AASB 16 was 5.88% for both
of Rectifier Technologies Pacific Pty Ltd and Rectifier Technologies Singapore Pte Ltd, 5.19% for Rectifier Technologies Malaysia Sdn
Bhd. The total value of the right-of-use asset at 1 July 2019 was $1,479,707 , of which $929,552 [Note 14] was recognised according to
AASB 16 and $550,155 was the value of existing finance lease. The total carrying amount of the right-of-use asset was $1,162,921 at 30
June 2020 after amortisation expense of $283,193 and foreign exchange difference/adjustments of $33,593.
The following is a reconciliation of total operating lease commitments at 30 June 2019 to the lease liabilities recognised at 1 July 2019:
Total operating lease commitments disclosed at 30 June 2019 1,484,806
(187,136)
Discounted using the incremental borrowing rate of at the date of the initial application
550,154
Finance Lease Liabilities [Note 20]
(30,774)
Recognition exemption – short term
(2,957)
Recognition exemption – low value
40,822
Extension options reasonably certain to be exercised
(431,893)
Change in variable payments
Total lease liabilities recognised under AASB 16 at 1 July 2019
1,423,022
AASB Interpretation 23 Uncertainty over Income Tax Treatments
The adoption of this amending Standard has not impacted on the disclosure or the amounts recognised in the Group’s consolidated
financial statements at the current reporting period to 30 June 2020.
s.
New accounting standards that are not yet effective and have not been adopted by the Group
There were no new accounting standards that are not yet effective as at 30 June 2020.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2:
Summary of significant accounting policies (Cont’d)
t.
Share capital
Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the definition of a financial liability.
The company’s ordinary shares are classified as equity instruments. Equity instruments issued by the company are recorded at the
proceeds received, net of direct issue costs.
u.
Share-based payments
Share-based compensation benefits are provided to employees via the Rectifier Technologies Limited Employee Option Plan and an
employee share scheme.
The fair value of options granted under the Rectifier Technologies Limited Employee Option Plan is recognised as an employee benefit
expense with a corresponding increase in equity. The fair value is measured at grant date and recognised over the period during which
the employees become unconditionally entitled to the options.
The fair value at grant date is independently determined using the Black-Scholes option pricing model that takes into account the exercise
price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk free interest rate for the term of the option. The fair value of the options granted is adjusted to reflect
market vesting conditions, but excludes the impact of any non-market vesting conditions (for example, profitability and sales growth
targets). Non-market vesting conditions are included in assumptions about the number of options that are expected to become
exercisable. The employee benefit expense recognised each period takes into account the most recent estimate. The impact of the
revision to the original estimates, if any, is recognised in profit or loss with a corresponding adjustment to equity.
Under the employee share scheme, shares issued to employees for no cash consideration vest immediately on grant date. On this date,
the market value of the shares issued is recognised as an employee benefits expense with a corresponding increase in equity.
All goods and services received in exchange for the grant of any share-based payment are measure at their fair values. Where employees
are rewarded using share-based payments, the fair values of the employees’ services are determined indirectly by reference of the fair
value of the equity instruments granted. This fair value is appraised at the grant date and excludes the impact of non-market vesting
conditions (for example profitability and sales growth targets and performance conditions).
All share-based remuneration is ultimately recognised as an expense in the statement of profit or loss with a corresponding credit to share
option reserve. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best
available estimate of the number of share options expected to vest.
Upon exercise of share options, the proceeds received net of any directly attributable transaction costs are allocated to share capital up to a
nominal (or par) value of the shares issued with any excess being recorded as share premium.
v.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The
consolidated entity makes certain judgements and assumptions concerning the future. These estimates and assumptions have an
inherent risk in respect of estimates based on future events which could have a material impact on the assets and liabilities in the next
financial year are outlined below:
1.
Provision for stock obsolescence
The Group calculates the provision for stock obsolescence based on slow-moving inventory on hand for more than 12 months.
2.
R & D tax rebate
The Group has recognised the R&D rebate relating to the 2020 year on an accrual basis. As the return has not yet been submitted, the
Group has made an estimate of the likely refund amount based on the preliminary number provided by external tax consultant.
26
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2:
Summary of significant accounting policies (Cont’d)
3.
Taxation
The Group has significant transactions between the Australian and Malaysian subsidiary and significant judgment involved in determining
the transfer price of goods and services exchanged. Management believe the prices exchange are determined on a fair and reasonable
basis and reflect an appropriate basis under the tax legislation of Australia and Malaysia.
4. Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using the Black-Scholes model taking into account the
terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-settled
share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but
may impact profit or loss and equity.
w.
Earnings per Share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to members of Rectifier Technologies Limited, adjusted for
the after-tax effect of preference dividends on preference shares classified as equity, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares during the year. The weighted average number of
issued shares outstanding during the financial year does not include shares issued as part of the Employee Share Loan Plan that are
treated as in-substance options.
Diluted earnings per share
Earnings used to calculate diluted earnings per share are calculated by adjusting the basic earnings by the after-tax effect of dividends
and interest associated with dilutive potential ordinary shares. The weighted average number of shares used is adjusted for the weighted
average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary
shares.
x.
Going Concern
The financial report has been prepared on the basis of the Group continuing as a going concern, which assumes continuity of normal
business activities and realisation of assets and the settlement of liabilities in the ordinary course of business.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 3:
REVENUE AND OTHER INCOME
Revenue
-
-
-
sale of goods
interest received
sundry income
Other income
-
R&D tax rebate
NOTE 4:
PROFIT FROM CONTINUING ACTIVITIES
Profit before income tax has been determined after the following expenses:
Cost of sales
Finance costs
Depreciation of non-current assets:
-
-
-
-
land and building
plant and equipment
leasehold improvements
motor vehicle
Total depreciation
Consolidated Entity
2020
$
2019
$
15,860,046
17,725,540
11,940
256,939
15,002
521,556
16,128,925
18,262,098
605,834
605,834
612,395
612,395
Consolidated Entity
2020
$
2019
$
7,294,912
9,763,706
187,852
151,310
148,009
305,545
32,649
16,320
502,523
29,114
207,860
12
20,375
257,361
Rental expense on leases - minimum lease payments
-
120,240
Personnel Expenses - defined contributions superannuation
447,689
405,600
Share Option Expenses
630,000
-
Research and development costs expensed
1,392,722
1,392,646
Loss on disposal of property, plant and equipment
66,463
11
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 5:
INCOME TAX EXPENSE
Current tax
Deferred tax - temporary differences
Deferred tax – tax losses
Consolidated Entity
2020
$
1,198,056
65,917
-
2019
$
1,244,314
(32,513)
-
1,263,973
1,211,801
Reconciliation of the effective tax rate
The prima facie tax on profit before income tax is reconciled to the income tax expense as
follows:
Profit before income tax
3,085,611
3,338,839
Prima facie tax payable on profit/ (loss) before income tax at 27.5% (2019: 27.5%)
-
consolidated entity
848,543
918,181
Add: Tax effect of:
-
-
-
-
R&D expenditures
Controlled foreign company attributed income
Other non-allowable items
Effect of lower rates of tax on overseas income
Less Tax effect of:
-
-
-
Other non-assessable items
Foreign income tax offset
Effect of lower rates of tax on overseas income
Tax effect of carry-forward tax losses not previously bought to account
184,233
138,651
173,250
-
382,978
165,888
118,084
91,348
1,344,677
1,676,479
(17,187)
38,289
(101,806)
1,263,973
-
(168,409)
(296,269)
-
1,211,801
-
Income tax attributable to entity
1,263,973
1,211,801
Reconciliation to continuing / discontinued operations
Consolidated profit before income tax
Profit before income tax from continuing operations
Consolidated income tax expense
Income tax expense from continuing operations
3,085,611
3,085,611
1,263,973
1,263,973
3,338,839
3,338,839
1,211,801
1,211,801
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 5:
INCOME TAX EXPENSE (Cont’d)
Unrecognised deferred tax assets
Unused capital losses for which no deferred tax asset recognised relating to the Australian
entities in the tax consolidated group
Consolidated Entity
2020
$
2019
$
18,409,594
18,409,594
18,409,594
18,409,594
Potential tax benefit at applicable tax rates
5,062,638
5,062,638
Deferred tax assets have not been recognised in the statement of financial position for the following items:
Unused capital losses
Potential tax benefit at applicable tax rates
18,409,594
18,409,594
18,409,594
18,409,594
5,062,638
5,062,638
The capital losses do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of this item
because it is not probable that future taxable profits will be available against which the group can utilise the benefits from these capital
losses.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 5:
INCOME TAX EXPENSE (Cont’d)
The following table regarding DTA during the current reporting period:
Deferred Tax Assets
Provision for stock obsolescence
Accrued
Unrealised FX Loss
Employee entitlements
Blackhole expenditure
Property, plant and equipment
Deferred tax movement
1 July 2019
$
49,489
86,526
(36,424)
129,100
203
(55,668)
173,226
Recognised in Profit &
Loss
$
3,298
(74,164)
(4,036)
19,965
(3,373)
(37,575)
(95,885)
30 Jun 2020
$
52,787
12,362
(40,460)
149,065
(3,170)
(93,243)
77,341
The Group has unused capital losses of $18,409,592. All previously unrecognised tax losses have been brought to account by the Group
in prior years.
NOTE 6:
DIVIDENDS
No dividends declared or paid during the year ended 30 June 2020. The amounts of franking credits available for subsequent reporting
periods are:
Opening balance of franking account
Closing balance of franking account
Consolidated Entity
2020
$
308,296
789,296
2019
$
481,000
308,296
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 7:
KEY MANAGEMENT PERSONNEL
a.
Names and positions held of Parent Entity Directors and other Key Management Personnel in office at any time during
the financial year are:
Parent Entity Directors
Mr. Ying Ming Wang
Mr. Yanbin Wang
Mr. Valentino Vescovi
Chairman – Non-Executive
Executive Director & Chief Executive Officer
Director – Non-Executive
Mr. Nigel Machin Executive Director & Head of Power Engineering
Other Key Management Personnel
Mr. Paul Davis
Mr. Seong Bow Lee
Mr. Nicholas Yeoh
Operations Manager – Rectifier Technologies Pacific Pty Ltd
General Manager – Rectifier Technologies (M) Sdn Bhd
Director of Sales & Marketing – Rectifier Technologies Singapore Pte Ltd
b.
Key Management Personnel Compensation
Short-term employee benefits
Long-term employee benefits
Post-employment benefits
Consolidated Entity
2020
$
2019
$
1,262,385
1,106,342
11,771
74,469
5,776
64,778
1,348,625
1,176,896
Transactions with Parent Entity Directors and other Key Management Personnel:
Disclosures relating to other transactions and balances between the consolidated entity and parent entity directors and other key
management personnel are set out in Note 24.
NOTE 8:
AUDITOR’S REMUNERATION
Audit and review services
Grant Thornton - Audit and review of financial reports
Total remuneration for audit services
Consolidated Entity
2020
$
2019
$
73,992
73,992
68,374
68,374
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 9: EARNINGS PER SHARE
Consolidated Entity
2020
$
2019
$
a. Reconciliation of earnings used to calculate earnings per share
Profit/(Loss) from continuing operation attributable to the ordinary equity holders used in the
calculation of basic and dilutive earnings per share
1,821,638
2,127,038
b. Weighted average number of ordinary shares outstanding during the year used in
calculation of basic earnings per share
Adjustments for calculations of diluted earnings per share:
1,368,660,602
1,366,900,602
Options
61,880,000
21,640,000
Weighted average number of ordinary shares and potential ordinary shares used as the
denominator in calculating diluted earnings per share
1,430,540,602
1,388,540,602
NOTE 10:
CASH AND CASH EQUIVALENTS
Cash at bank
NOTE 11:
TRADE AND OTHER RECEIVABLES
CURRENT
Trade debtors (a)
Other debtors
R&D tax incentives
Prepayments
Consolidated Entity
2020
$
2019
$
6,873,680
6,873,680
2,834,440
2,834,440
Consolidated Entity
2020
$
2019
$
530,576
530,576
401,311
605,834
138,507
430,407
430,407
275,714
605,801
120,275
1,676,228
1,432,197
a. Included in debtors of $530,576 (2019: $430,407) are debts which have been assigned to financing companies in Australia. The company
had received advances of $165 (2019: $1,932) against these debts which are included within the debtor financing facility disclosed in note
15 to the financial statements.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 11:
TRADE AND OTHER RECEIVABLES (Cont’d)
Gross
2020
$
396,973
4,899
128,704
530,576
Consolidated entity
Gross
2019
$
Carrying Amount
2020
$
Carrying Amount
2019
$
61,817
169,146
199,444
430,407
396,973
4,899
128,704
530,576
61,817
169,146
199,444
430,407
Not past due
Past due 0-30 days
Past due 31+ days
1. Ageing and impairment losses
Payment terms on receivables past due but not considered impaired have not been re-negotiated. The Group has been in direct contact
with the relevant customers and are reasonably satisfied that payment will be received in full. The Group estimate of impairment losses is
based on the expected credit loss.
2. The maximum exposure to credit risk for trade receivables at the end of reporting period by geographic region is as follows:
Australia
Asia
Europe
USA
Others
Total
2020
$
2019
$
247,774
118,388
75,594
81,414
7,406
530,576
24,233
38,785
117,297
150,160
99,932
430,407
3. Past due analysis of trade receivables by geographic region is as follows:
Consolidated Entity
Not past due
2020
$
2019
$
Past due 30 days
2019
2020
$
$
Past due 60 days
2019
2020
$
$
Total
2020
$
2019
$
Australia
Asia
Europe
USA
Others
Total
241,124
115,996
-
39,481
372
396,973
14,776
36,138
214
6,402
4,287
61,817
4,763
3
131
2
-
4,899
9,436
-
116,585
32,228
10,897
169,146
1,887
2,389
75,463
41,931
7,034
128,704
21
2,647
498
111,530
84,748
199,444
247,774
118,388
75,594
81,414
7,406
530,576
24,233
38,785
117,297
150,160
99,932
430,407
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 12:
INVENTORIES
Raw materials
Work in progress
Finished goods at cost
Consolidated Entity
2020
$
2019
$
1,925,260
3,858,668
591,041
38,779
912,229
807,029
2,555,080
5,577,926
Inventories are recognised net of a provision for obsolescence of $620,619 (2019: $568,480).
Inventory expense
Change in inventories recognised as expense during the year ended 30 June 2020 amounted to $1,089,437 (2019: $968,578). The
expense/ income has been included in ‘changes in inventories of finished goods and work in progress’ in the profit and loss.
NOTE 13:
SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following entities in accordance with the
accounting policy described in note 2(b):
Name
Ultimate Parent Entity:
Rectifier Technologies Ltd
Subsidiaries of Rectifier Technologies Ltd:
Protran Technologies Pty Ltd
Rectifier Technologies Pacific Pty Ltd
Rectifier Technologies Singapore Pte Ltd.
ICERT Inc.
Rectifier Technologies (M) Sdn Bhd
ICERT (HK) Co. Ltd
Country of
Incorporation
Class of Share Percentage Owned
2020
(%)
Australia
Ordinary
-
Australia
Australia
Ordinary
Ordinary
Singapore
Ordinary
USA
Malaysia
Ordinary
Ordinary
Hong Kong
Ordinary
100
100
100
100
100
100
2019
(%)
-
100
100
100
100
100
100
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 14:
PROPERTY, PLANT AND EQUIPMENT
Consolidated Entity
Land
At cost
Building
At cost
Accumulated depreciation
Plant and equipment
At cost
Accumulated depreciation
Leasehold improvements
At cost
Accumulated depreciation
Motor Vehicle
At Cost
Accumulated depreciation
Total Property, Plant and Equipment
2020
$
2,280,963
2,280,963
1,523,344
(148,009)
1,375,335
2,075,254
(305,545)
1,769,709
216,441
(32,649)
183,792
58,287
(16,320)
41,967
5,651,766
2019
$
1,549,587
1,549,587
329,637
(29,113)
300,524
1,970,625
(207,860)
1,762,765
120
(12)
108
78,631
(20,375)
58,256
3,671,240
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 14:
PROPERTY, PLANT AND EQUIPMENT (Cont’d)
Movements in Carrying Amounts
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current
financial year.
2020
Land
$
Building
$
Plant and
Equipment
$
Leasehold
Improvements
$
Motor
Vehicle
$
Total
$
Consolidated Entity:
Balance at the beginning of year
Right-of-use assets
Additions
Disposals
Adjustments
Depreciation/amortisation expense
Net exchange differences on translation of foreign
subsidiaries
1,549,587
-
777,310
-
-
-
300,524 1,762,765
-
929,552
192,934
332,747
(6,960)
-
(26,987)
-
(305,545)
(148,009)
108
-
216,333
-
-
(32,649)
58,256
-
-
-
-
(16,320)
3,671,240
929,552
1,519,324
(6,960)
(26,987)
(502,523)
(45,934)
(12,492)
126,515
-
31
68,120
Carrying amount at the end of year
2,280,963 1,375,335 1,769,709
183,792
41,967
5,651,766
Included in the above line items are right-of-use asset balances as follows:
Right-of-use assets
Consolidated Entity:
Buildings
Plant and Equipment
Total
Balance at the
Beginning of
Financial Year
$
Assets
Recognised on
Adoption of
AASB 16
$
Additions
$
Exchange
Difference/
Adjustments
Depreciation
$
$
Net Carrying
Amount
$
-
550,155
929,552
-
550,155
929,552
-
-
-
(139,713)
(143,480)
(28,995)
(4,598)
760,844
402,077
(283,193)
(33,593)
1,162,921
2019
Land
$
Building
$
Plant and
Equipment
$
Leasehold
Improvements
Motor
Vehicle
$
$
Total
$
Consolidated Entity:
Balance at the beginning of year
Additions – Motor vehicle
Additions - Other plant and equipment
Disposals
Depreciation/amortisation expense
Net exchange differences on translation of foreign
subsidiaries
1,500,052
-
-
-
-
296,957
-
75,244
-
(29,114)
909,552
-
962,191
(347)
(207,860)
49,535
(42,563)
99,229
Carrying amount at the end of year
1,549,587
300,524 1,762,765
120
-
-
-
(12)
-
108
38,998
37,762
-
-
(20,375)
2,745,679
37,762
1,037,435
(347)
(257,361)
1,871
108,072
58,256
3,671,240
37
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 15:
TRADE AND OTHER PAYABLES
CURRENT
Unsecured liabilities:
Trade creditors
Sundry creditors and accrued expenses
Secured liabilities:
Debtor financing facility
NOTE 16:
INTEREST-BEARING LIABILITIES
CURRENT
Lease liability (secured)
Borrowings - Rectifier Technologies (M) Sdn Bhd (secured)
NON-CURRENT
Lease liability (secured)
Borrowings - Rectifier Technologies (M) Sdn Bhd (secured)
Lease liabilities and borrowings are secured over the assets to which they relate.
Lease liabilities as at 30 June 2019 represents finance lease liability under AASB 117.
Consolidated Entity
2020
$
2019
$
1,393,459
857,560
2,251,019
165
165
1,691,765
876,709
2,568,474
1,932
1,932
2,251,184
2,570,406
Consolidated Entity
2020
$
2019
$
328,075
133,816
461,891
862,767
2,567,043
3,429,810
3,891,701
163,690
379,596
543,286
386,464
1,702,166
2,088,630
2,631,916
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 16:
INTEREST-BEARING LIABILITIES (Cont’d)
On 6 Feb 2017, Rectifier Technologies (M) Sdn Bhd obtained a loan of MYR$5,460,000(AUD$1,629,851) from Public Bank Berhad to
acquire two blocks of a semi-detached factory. The monthly repayment includes the payment of loan principal and interest. The first monthly
instalment commenced on 1 May 2017, subsequent instalments are to be paid on or before the 1st of each calendar month and total
repayments are 240 instalments in 240 months. The term of the loan is 20 years and loan interest is calculated using the Base Lending Rate
(Variable Rate) less a discount of 2.20% at bank’s discretion from time to time.
On 7 Oct 2019, Rectifier Technologies (M) Sdn Bhd obtained another loan of MYR$2,730,000 (AUD$929,393) from Public Bank Berhad to
acquire an additional block of a semi-detached factory. The monthly repayment includes the payment of loan principal and interest. The first
monthly instalment commenced on 1 Dec 2019, subsequent instalments are to be paid on or before the 1st of each calendar month and total
repayments are 240 instalments in 240 months. The term of the loan is 20 years and loan interest is calculated using the Base Lending Rate
(Variable Rate) less a discount of 2.20% at bank’s discretion from time to time.
The terms and condition of loans are secured against the following:
(a) Fixed charge over a freehold land and factory buildings of the company; and
(b) Jointly and severally guaranteed by a Director of the Company.
On 17 December 2019, Rectifier Technologies (M) Sdn Bhd obtained a trade facility of MYR$20,000(AUD$6,809) from Public Bank Berhad.
Subsequently Rectifier Technologies (M) Sdn Bhd has obtained 2 trade facilities of MYR$138,000(AUD$46,980) and
MYR$50,000(AUD$17,022)) from the same bank on 12 May 2020 and 18 May 2020, respectively. The total balance of the trade facility was
MYR$208,000(AUD$70,811) at the end of the current reporting period. The terms of the facility are 623 days with bank commission 1.75%,
119 days with interest rate 2.85% and 116 days with interest rate 2.93% respectively.
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 17:
MATURITY ANALYSIS
2020
Financial Liabilities
Consolidated Entity:
Trade creditors
Other creditors
Borrowings - Rectifier Technologies (M)
Sdn Bhd
Debtor financing facility
Lease liability
Total
Contractual
Amount
< 6 mths
6 – 12 mths
1 – 3 years
> 3 years
1,393,459
857,560
1,393,459
857,560
3,874,901
165
1,370,429
7,496,514
106,169
165
202,968
2,560,321
-
-
106,074
-
192,343
298,417
-
-
424,294
-
523,871
948,165
-
-
3,238,364
-
451,247
3,689,611
Rectifier Technologies (M) Sdn Bhd ‘s term loan and lease repayment include principal and interest.
2019
Contractual
Amount
< 6 mths
6 – 12 mths
1 – 3 years
> 3 years
Financial Liabilities
Consolidated Entity:
Trade creditors
Other creditors
Borrowings - Rectifier Technologies (M)
Sdn Bhd
Debtor financing facility
Lease liability
Total
NOTE 18:
PROVISIONS
CURRENT
Employee entitlements
NON-CURRENT
Employee entitlements
1,691,766
876,709
2,882,495
1,932
615,053
6,067,955
1,691,766
876,709
386,598
1,932
98,829
3,055,834
-
-
71,526
-
98,829
170,355
-
-
286,106
-
366,815
652,921
-
-
2,138,265
-
50,580
2,188,845
Consolidated Entity
2020
$
2019
$
608,773
446,069
69,987
60,573
40
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 19:
CONTRIBUTED EQUITY AND RESERVES
a. Ordinary shares
At the beginning of the reporting period
Options exercised
At reporting date
At the beginning of reporting period
Options exercised
At reporting date
Consolidated Entity
2020
$
2019
$
39,816,575
39,816,575
35,200
-
39,851,775
39,816,575
Number
Number
1,366,900,602
1,366,900,602
1,760,000
-
1,368,660,602
1,366,900,602
There were new shares issued upon option exercised during 2020 financial year period.
All shares issued at reporting date have been fully paid.
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote
on a show of hands.
b. Nature and purpose of reserves
The foreign currency translation reserve is used to record exchange differences on translation of foreign controlled subsidiaries. The
reserve is recognised in profit or loss when the investment is disposed of. The share-based payment options reserve of $630,000 is used
to record the fair value of options granted under Employee Share Option Plan (ESOP) on 22 July 2019 (note 19d).
Foreign currency transaction reserve
At the beginning of the reporting period
Transactions during the year
At reporting date
Share-based payment options reserve
At the beginning of the reporting period
Transactions during the year
At reporting date
Total
c. Options
At 30 June 2020, there were 61,880,000 (2019: 21,640,000) options outstanding.
Consolidated Entity
2020
$
2019
$
177,734
(135,906)
41,828
-
630,000
630,000
671,828
125,250
52,484
177,734
-
-
-
177,734
41
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 19:
CONTRIBUTED EQUITY AND RESERVES (Cont’d)
d. Share-based employee remuneration
On 22 July 2019, the Company granted 42,000,000 share options of its common stock to employees under its Employee Share Option
Plan (ESOP) at an exercise price of $0.07. Options under this plan vest immediately allowing the holder to purchase one ordinary share
per option, exercisable in multiples of 100,000. The maximum term of the option granted under the ESOP ends on 13 September 2022.
The weighted average fair value of options granted during the year has been calculated as $0.015 per option. This value was calculated
by using the Black-Scholes pricing model applying the following inputs:
Weighted average fair value:
0.015
Weighted average life of the options: 1.57 years
Expected share price volatility
62%
Risk-free interest rate:
0.75%
The underlying expected volatility was determined by reference to historical data of the Company’s share over a period of time in
conjunction with comparable market data within the industry.
Options
Outstanding at 1 July 2019
-
Granted
Forfeited
Exercised
Expired
42,000,000
-
-
-
Outstanding at 30 June 2020 42,000,000
e. Capital risk management
The Group's and the Parent Entity's objectives when managing capital are to safeguard their ability to continue as a going concern, so
that they can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure
to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares or sell assets to reduce debt.
Consistently with others in the industry, the Group and the parent entity monitor capital on the basis of the gearing ratio. This ratio is
calculated as net debt divided by total capital. Net debt is calculated as total borrowings less cash and cash equivalents. Total capital is
calculated as ‘equity’ as shown in the statement of financial position plus net debt.
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 19:
CONTRIBUTED EQUITY AND RESERVES (Cont’d)
The gearing ratios at 30 June 2020 were as follows:
Consolidated
Notes
2020
$
2019
$
Total borrowings
Less: cash and cash equivalents
15 & 16
3,891,866
2,633,848
10
(6,873,680)
(2,834,440)
Net cash
Total Equity
Total Capital
Gearing Ratio
(2,981,814)
9,595,838
6,614,024
(200,592)
7,244,906
7,044,314
-45%
-3%
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 20:
CAPITAL AND LEASING COMMITMENTS
Lease liabilities are presented in the statement of financial position within interest bearing liabilities are as follows:
Lease Liabilities
Consolidated Entity:
Lease Liabilities (current)
Lease Liabilities (non-current)
Total
30 June 2020
30 Jun 2019
328,075
862,767
1,190,842
163,690
386,464
550,154
The Group has leases for the offices, staff accommodations, equipments and motor vehicles in Australia, Singapore and Malaysia. Future
minimum lease payments at 30 June 2020 were as follows:
30 June 2020
0 – 12 mths
1 – 5 years
> 5 years
Total
Lease Liabilities
Consolidated Entity:
Lease Payments
Finance Charges
Net present Value
395,311
(67,236)
328,075
809,404
(106,416)
702,988
165,713
(5,934)
159,779
1,370,429
(179,587)
1,190,842
30 Jun 2019
0 – 12 mths
1 – 5 years
> 5 years
Total
Lease Liabilities
Consolidated Entity:
Lease Payments
Finance Charges
197,658
(33,968)
Net present Value
163,690
Capital Commitments
417,394
(30,930)
386,464
-
-
-
615,052
(64,898)
550,154
Rectifier Technologies Pacific Pty Ltd has signed a contract to purchase CHAdeMO EV Stimulator and Controller at a cost of USD$22,000
(AUD$32,056) payable in the 2020 financial year.
Rectifier Technologies (M) Sdn Bhd has signed a contract to purchase the new electronical load at a cost of USD$31,000 (AUD$45,150)
payable in the 2020 financial year.
NOTE 21:
CONTINGENT LIABILITIES
There are no contingent liabilities or contingent assets as at 30 June 2020.
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 22:
SEGMENT INFORMATION
Description of segments
Operating segments have been determined on the basis of reports reviewed by the executive management committee. The executive
management committee ("committee") is considered to be the chief operating decision maker of the Group. The committee considers the
business from both a product and geographic perspective and assesses performance and allocates resources on this basis. The
reportable segments are as follows:
Electronic Components
Under this segment, Rectifier Technologies Pacific Pty Ltd and Rectifier Technologies Malaysia Sdn Bhd which is based in Malaysia
(operations transferred from Protran Technologies Pty Ltd during the year of 2014/2015) manufacture electronic components for a number
of industries.
Industrial Power Supplies (Electricity generation/distribution and Defence)
Under this segment, Rectifier Technologies Pacific Pty Ltd and Rectifier Technologies Malaysia Sdn Bhd manufacture and distribute
rectifiers, controllers, accessories and complete systems for the power generation, distribution industries and defence. Rectifier
Technologies Singapore Pte Ltd only focuses on distribution.
Industrial Power Supplies (Transport and Telecommunication)
Under this segment, Rectifier Technologies Pacific Pty Ltd and Rectifier Technologies Malaysia Sdn Bhd manufacture and distribute
power supplies for the transport industries and telecommunications. Rectifier Technologies Singapore Pte Ltd only focuses on distribution.
Industrial Power Supplies (Electric vehicles)
Under this segment, Rectifier Technologies Pacific Pty Ltd, Rectifier Technologies Singapore Pte Ltd and Rectifier Technologies Malaysia
Sdn Bhd manufacture and distribute electric vehicle charges, battery charges and power supplies for a number of industries. Rectifier
Technologies Singapore Pte Ltd only focuses on distribution.
Information provided to the executive management committee
Segment information provided to the executive management committee for the year ended 30 June 2020 is as follows:
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 22:
SEGMENT INFORMATION (Cont’d)
2020
Electronic
Components
Industrial
Power Supplies
(E&D)
Industrial
Power Supplies
(T&T)
Industrial
Power
Supplies (EV)
Total
$
$
$
$
$
Total segment revenue
Inter-segment revenue
328,773
6,212,311
2,288,167
17,373,987
26,203,238
-
(1,570,986)
(857,693)
(7,040,990)
(9,469,669)
Segment revenue from external customers
328,773
4,641,325
1,430,474
10,332,997
16,733,569
EBITDA
105,200
1,485,122
457,720
3,306,333
5,354,375
Interest revenue
Interest expense
Depreciation and amortisation
Income tax expense
Segment Assets and Liabilities
Segment assets
Segment liabilities
1,115
(90,834)
(166,430)
(117,723)
4,823
(47,157)
(159,869)
(253,995)
487
(26,915)
(54,018)
(87,185)
4,324
10,749
(22,946)
(187,852)
(122,206)
(502,523)
(445,222)
(904,125)
411,085
5,803,328
1,788,607
12,919,968
20,922,988
232,620
3,283,921
1,012,117
7,311,004
11,839,662
Inter-segment revenue comprises sales between segments which are on arm's length terms. Segment revenues from external customers
are measured in accordance with accounting policy 2(m).
Management monitors segment performance based on EBITDA. This measure excludes non-recurring expenditure such as restructuring
costs, impairments and share-based payments as well as interest revenue and interest expense and other items which are considered
part of the corporate treasury function.
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 22:
SEGMENT INFORMATION (Cont’d)
Segment revenue reconciles to total revenue:
Revenue from external customers
Corporate head office sundry revenue
Corporate head office interest received
Total revenue from operations
Reconciliation of EBITDA to profit before income tax from continuing operations:
Total segment EBITDA
- interest revenue
- interest expense
- depreciation and amortisation
- corporate head office costs
Profit before income tax from continuing operations
Segment assets reconcile to total assets as follows:
Segment assets
Inter-segment eliminations
Corporate head office - Cash
Corporate head office - PPE
Corporate head office - other receivables
Corporate head office – deferred tax assets
Total assets per statement of financial position
Segment liabilities reconcile to total liabilities as follows:
Segment liabilities
Inter-segment eliminations
Corporate head office - trade & other creditors
Corporate head office - provisions
Corporate head office - borrowings
Total liabilities per statement of financial position
2020
$
16,733,569
-
1,190
16,734,759
5,354,375
11,940
(187,852)
(502,523)
(1,590,329)
3,085,611
20,922,988
(6,463,488)
2,522,921
-
941,057
12,375
17,935,853
11,839,662
(3,961,113)
114,429
347,037
-
8,340,015
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 22:
SEGMENT INFORMATION (Cont’d)
2019
Electronic
Components
Industrial
Power Supplies
(E&D)
Industrial Power
Supplies (T&T)
Industrial
Power Supplies
(EV)
Total
$
$
$
$
$
Total segment revenue
Inter-segment revenue
307,537
6,569,227
-
(2,112,088)
2,353,172
(678,546)
21,002,303
30,232,239
(8,700,045)
(11,490,679)
Segment revenue from external customers
307,537
4,457,139
1,674,626
12,302,258
18,741,560
EBITDA
78,530
1,138,139
427,619
3,141,404
4,785,692
Interest revenue
Interest expense
Depreciation and amortisation
221
(62,670)
(103,420)
2,499
(11,270)
(25,344)
420
(58,712)
(96,719)
9,945
(300)
13,085
(132,952)
(31,878)
(257,361)
Income tax refund (expense)
(149,737)
(190,701)
(157,880)
(644,159)
(1,142,477)
Segment Assets and Liabilities
Segment assets
Segment liabilities
312,601
4,530,527
1,702,199
12,504,815
19,050,142
197,776
2,866,369
1,076,945
7,911,533
12,052,623
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 22:
SEGMENT INFORMATION (Cont’d)
Segment revenue reconciles to total revenue:
Revenue from external customers
Corporate head office sundry revenue
Corporate head office interest received
Total revenue from operations
Reconciliation of EBITDA to profit before income tax from continuing operations:
Total segment EBITDA
- interest revenue
- interest expense
- depreciation and amortisation
- corporate head office costs
Profit before income tax from continuing operations
Segment assets reconcile to total assets as follows:
Segment assets
Inter-segment eliminations
Corporate head office - Cash
Corporate head office - PPE
Corporate head office - other receivables
Corporate head office – deferred tax assets
Total assets per statement of financial position
Segment liabilities reconcile to total liabilities as follows:
Segment liabilities
Inter-segment eliminations
Corporate head office - trade & other creditors
Corporate head office - provisions
Corporate head office - borrowings
Total liabilities per statement of financial position
2019
$
18,741,560
131,017
1,916
18,874,493
4,785,692
15,002
(151,310)
(257,361)
(1,053,184)
3,338,839
19,050,142
(5,006,893)
148,002
-
34,175
-
14,225,426
12,052,623
(5,177,844)
105,741
-
-
6,980,520
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 22:
SEGMENT INFORMATION (Cont’d)
Geographical Information
Revenues and non-current assets by geographical location is as follows:
Geographic location
Australia
Asia
North America
South America
Europe
Oceania
Revenues from external customers of
continuing operations
2020
$
2019
$
Non-current assets*
2020
$
2019
$
4,834,309
1,813,185
1,446,203
36,709
7,725,996
3,644
13,339,748
1,591,216
1,636,902
232,432
923,475
1,766
1,123,444
4,528,322
173,057
3,498,184
-
-
-
-
-
-
-
-
15,860,046
17,725,539
5,651,766
3,671,241
* Excludes financial instruments, deferred tax assets, post-employment benefit assets and rights arising under insurance contracts.
Major customers - Revenue of $9,797,329 (2019: $11,131,096) and $1,846,270 (2019: $1,670,239) were derived from two Australia
customers, which are allocated to the Industrial Power Supplies (EV) and Industrial Power Supplies (E&D) respectively. Revenue of
$1,323,290 (2019: $1,250,677) was derived from a single customer in Singapore under Industrial Power Supplies (E&D) segment.
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RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 23:
CASH FLOW INFORMATION
a. Reconciliation of Cash Flow from Operations with Profit after Income Tax
Profit after income tax
Non-cash flows adjustments:
Depreciation
Provision for stock obsolescence
Options expense
Unrealised currency (gain)/loss
Net loss/(gain) on sale/acquisition of assets
Changes in assets & liabilities:
Decrease/(increase) in trade debtors
Decrease/(increase) in other debtors & prepayments
Decrease/(increase) in inventories
Increase/(decrease) in trade creditors/accruals
Increase/(decrease) in income taxes payable
Deferred tax liability/asset
Increase/(decrease) in provisions
Cash flows from operations
b. Credit Standby Arrangements
Consolidated Entity
2020
$
2019
$
1,821,638
2,127,038
502,523
52,139
630,000
231,028
66,463
257,361
387,098
-
(204,918)
(11)
(184,714)
(1,685,228)
202,959
499,612
3,484,845
(3,304,946)
762,027
406,731
(104,993)
196,980
6,179,439
375,314
165,434
50,577
95,942
651,460
The Group has 2.6 million overdraft facility with ANZ bank, which has not been utilised at the end of 2020 financial year. Other than this is
the debtor finance facility.
NOTE 24:
RELATED PARTY TRANSACTIONS
a.
Subsidiaries
Interests in subsidiaries are set out in Note 13.
b.
Key management personnel
Disclosures relating to key management personnel are set out in Note 7.
Transactions between related parties are on normal commercial terms and conditions no more favourable to other parties unless otherwise
stated. There is no requirement for transactions and balances between the entities within the consolidated Group to be disclosed.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 25:
FINANCIAL INSTRUMENTS RISK EXPOSURE AND MANAGEMENT
Categories of Financial Instruments
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial liabilities
Amortised cost
Consolidated Entity
2020
$
2019
$
6,873,680
577,261
7,450,941
6,142,885
6,142,885
2,834,440
706,121
3,540,561
5,202,322
5,202,322
In common with all other businesses, the Group and the Parent Entity are exposed to risks that arise from its use of financial instruments.
This note describes the Group and the parent entity’s objectives, policies and processes from managing those risks and the methods
used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.
There have been no substantive changes in the Group and the Parent Entity’s exposure to financial instrument risks, its objectives,
policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in
this note.
a.
Principal financial instruments
The principal financial instruments used by the Group and the parent entity, from which financial instrument risk arises, are as follows:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
b.
trade and other receivables
cash and cash equivalents
lease liabilities
trade and other payables
bank loans
loan from related parties
General objectives, policies and processes
The Board has overall responsibility for the determination of the Group and the parent entity’s risk management objectives and policies
and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the
effective implementation of the objectives and policies to the Group and the parent entity’s finance function. The Board receives monthly
reports from the Chief Financial Officer through which it reviews the effectiveness of the processes put in place and the appropriateness
of the objectives and policies it sets.
The overall objective of the Board is to set polices that seek to reduce risk as far as possible without unduly affecting the Group and the
parent entity’s competitiveness and flexibility. Further details regarding these policies are set out below:
52
For personal use only RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 25:
FINANCIAL INSTRUMENTS RISK EXPOSURE AND MANAGEMENT (Cont’d)
i.
Credit risk
Credit risk arises principally from the Group and the Parent Entity’s trade receivables. It is the risk that the counterparty fails to discharge
its obligation in respect of the instrument.
Prior to accepting new customers, a credit check is obtained from a reputable external source. Based on this information, credit limits and
payment terms are established. Customers who subsequently fail to meet their credit terms are required to make purchases on a
prepayments basis until creditworthiness can be re-established.
The nature of the Group and the parent entity’s operations means that approximately 90% (2019: 88%) of its sales are made to 5 (2019:5)
key customers in Australia, Singapore and America. Whilst credit risk is mainly influenced by factors specific to these individual
customers, the concentration of sales geographically is a contributory factor. Refer to note 11 for further information regarding the Group’s
credit risk.
ii.
Liquidity risk
Liquidity risk arises from the Group and the Parent Entity’s management of working capital and the finance charges and principal
repayments on its debt instruments. It is the risk that the Group and the parent entity will encounter difficulty in meeting its financial
obligations as they fall due. The Group and the parent entity aim to have sufficient cash to allow it to meet its liabilities when they become
due. The Group and the parent entity do not have any undrawn standby credit arrangements available. Refer to note 23(b).
The Board receives cash flow projections monthly as well as information regarding cash balances. Refer to maturity analysis in note 17.
iii.
Market risk
Market risk arises from the Group and the parent entity’s use of interest bearing and foreign currency financial instruments. It is the risk
that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk),
foreign exchange rates (currency risk) or other market factors (other price risk).
iv.
Interest rate risk
The consolidated entity's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as a result of
changes in market interest rates and the effective weighted average interest rates on classes of financial assets and financial liabilities, is
as follows:
Fixed Interest Rate Maturing
Floating Interest
Rate
$
Within Year
1 to 5 Years
Over 5 Years
Non-interest-Bearing
$
$
$
$
Total
$
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
Financial Assets:
Cash
Receivables
6,873,680 2,834,440
-
-
Total Financial Assets
6,873,680 2,834,440
Financial Liabilities:
Trade and sundry creditors
-
-
Borrowings
2,700,859 2,081,762
Debtor Financing Facility
165
1,932
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Lease liabilities
-
- 328,075 163,690 862,767 386,464
Total Financial Liabilities 2,701,024 2,083,694 328,075 163,690 862,767 386,464
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,873,680 2,834,440
577,261
706,121
577,261
706,121
577,261
706,121
7,450,941 3,540,561
2,251,019 2,568,474 2,251,019 2,568,474
-
-
-
-
-
-
2,700,859 2,081,762
165
1,932
1,190,842
550,154
2,251,019 2,568,474 6,142,885 5,202,322
53
For personal use only RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 25:
FINANCIAL INSTRUMENTS RISK EXPOSURE AND MANAGEMENT (Cont’d)
The Group and the parent entity’s exposure to interest rate risk is limited to cash balances and the debtor financing facility, as these are at
a floating rate. Interest rates on loan and lease liabilities are fixed.
The Group’s profit and loss sensitivity and movement in the interest rates are as follows:
Cash
Debtor finance
Amounts
$6,873,680
($165)
v.
Foreign currency risk
+1%
$68,737
($2)
-1%
($68,737)
$2
The only currency where receivables are not denominated in their functional currency is US dollars (USD). Cash balances in USD are
kept at levels only sufficient to pay the amounts owing. Since the local sales in Malaysia are made by foreign operations in their individual
functional currencies, there is no direct foreign currency risk exposure involved. The Group and the parent entity’s exposure to foreign
currency risk is primarily its exposure to trade receivables denominated in USD. The total exposure to foreign currency risk at 30 June
2020 was as follows: Receivables in USD totalled USD$189,530 and payables totalled USD$44,263.
The Group and the parent entity’s profit and loss sensitivity and movement in the USD: AUD exchange rates are as follows:
2020
2019
USD
USD/AUD
USD/AUD
USD
USD/AUD
USD/AUD
Consolidated
+10%
-10%
+10%
-10%
Trade Receivables
189,530
25,106
(30,685)
Trade Payables
44,263
5,863
(7,166)
220,118
430,623
28,523
55,799
(34,858)
(68,194)
54
For personal use only
RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 25:
FINANCIAL INSTRUMENTS RISK EXPOSURE AND MANAGEMENT (Cont’d)
vi.
Fair Values
An analysis of financial assets and financial liabilities for the consolidated entity is shown below:
Financial assets
Cash
Receivables
Financial Liabilities
Other loans
2020
2019
Carrying
Amount
Fair Value
$
$
Carrying
Amount
$
Fair Value
$
6,873,680
6,873,680
2,834,440
2,834,440
577,261
577,261
706,121
706,121
7,450,941
7,450,941
3,540,561
3,540,561
-
-
-
-
Trade and sundry creditors
2,251,019
2,251,019
2,568,474
2,568,474
Borrowings - Rectifier Technologies (M) Sdn Bhd
2,700,859
2,700,859
2,081,762
2,081,762
Debtor financing facility
Lease liabilities
165
165
1,190,842
1,190,842
1,932
550,154
1,932
550,154
6,142,885
6,142,885
5,202,322
5,202,322
The fair value of the other loans has been calculated by adding the accrued interest to the original principal adjusted for relevant
exchange rate movements where applicable.
The fair value for the remaining financial liabilities and financial assets approximates their carrying value as they are short-term.
NOTE 26:
PARENT ENTITY FINANCIAL INFORMATION
a. Summary Financial Information
The individual financial statements for the parent entity show as follow:
Statement of Financial Position
Current Assets
Total Assets
Current Liabilities
Total Liabilities
Net Assets
Shareholders’ Equity
Reserve
Accumulated Losses
Total Equity
Profit/(Loss) for the year
Total Comprehensive Income/(Loss)
2020
$
2019
$
3,401,345
3,466,259
461,467
1,041,909
147,440
1,797,947
82,819
96,163
2,424,350
1,701,784
39,851,775
39,816,575
680,647
50,647
(38,108,072)
(38,165,438)
2,424,350
1,701,784
57,366
57,366
102,955
102,955
55
For personal use only
RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 26:
PARENT ENTITY FINANCIAL INFORMATION (Cont’d)
b.
Guarantees entered into by the parent entity
The parent entity has not provided any financial guarantees except as disclosed in the notes to the financial statements.
c.
Contingent liabilities of the parent entity
The parent entity did not have any contingent liabilities as at 30 June 2020.
d.
Contractual commitments
There were not contractual commitments for the parent entity as at 30 June 2020.
NOTE 27:
EVENTS SUBSEQUENT TO REPORTING DATE
Subsequent to 30 June 2020, on 11 August 2020, the company has announced a less than marketable parcel sale facility for holders of less
than marketable parcels of the Company’s shares.
On 31 August 2020. The company declared to pay a 0.1 cent ($0.001) per share fully franked dividend
The key proposed dates in relation to the financial year 2020 dividend are as follows:
Ex Date - 29 October 2020
Record Date - 30 October 2020
Payment date - 8 December 2020
NOTE 28:
COMMITMENTS
Rectifier Technologies Malaysia Sdn Bhd has non-cancellable purchase commitments of approx.1.3 million and estimated delivery in the
next few month.
NOTE 29:
COMPANY DETAILS
The registered office is:
Rectifier Technologies Ltd
97 Highbury Road, Burwood, VIC 3125
The principal places of business are:
Rectifier Technologies Ltd
97 Highbury Road, Burwood, VIC 3125
Rectifier Technologies (M) SDN. BHD
No. 5, 7 & 9, Jalan Laman Setia 7/8
Taman Laman Setia
81550 GELANG PATAH, JOHOR
MALAYSIA
Rectifier Technologies Singapore Pte.Ltd
5 Tampines Central 6
TELEPARK #03-38, 529482
SINGAPORE
56
For personal use only
RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
RECTIFIER TECHNOLOGIES LTD
Tel: +61 3 9896 7588
(ABN 82 058 010 692)
Fax: +61 3 9896 7566
97 Highbury Road, Burwood
Email: mail@rtl-corp.com
Vic, 3125, AUSTRALIA
Web: www.rectifiertechnologies.com
DECLARATION OF BY DIRECTORS
The directors of the company declare that:
1.
The financial statements, comprising the statement of profit or loss and other comprehensive income, statement of financial
position, statement of cash flows, statement of changes in equity and accompanying notes, are in accordance with the
Corporations Act 2001 and:
a)
b)
Comply with Accounting Standards and the Corporations Regulations 2001; and
Give a true and fair view of the financial position as at 30 June 2020 and of the performance for the year ended on that date
of the consolidated entity.
2.
3.
4.
5.
The company has included in the notes to the financial statements an explicit and unreserved statement of compliance with
International Financial Reporting Standards.
In the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they
become due and payable.
The remuneration disclosures included on pages 4 to 10 of the directors’ report (as part of the audited Remuneration Report) for
the year ended 30 June 2020, comply with Section 300 A of the Corporations Act 2001.
The directors have been given the declarations by the chief executive officer and chief financial officer required by section 295A of
the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by:
Mr. Yanbin Wang
Director
Rectifier Technologies Ltd
97 Highbury Road
Burwood
VIC 3125
Dated the 30th day of September 2020
57
For personal use only
Collins Square, Tower 5
727 Collins Street
Melbourne VIC 3008
Correspondence to:
GPO (cid:37)(cid:82)(cid:91)(cid:3)4736
Melbourne VIC 3001
T +61 3 8320 222(cid:21)
F +61 3 (cid:27)320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Independent Auditor’s Report
To the Members of Rectifier Technologies Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Rectifier Technologies Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 30 June 2020, the consolidated statement of profit
or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash
flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its performance for the year
ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
58
For personal use only Key audit matter
How our audit addressed the key audit matter
Recognition of R&D tax incentive (Note 3 and 11)
The Group receives a 43.5% refundable tax offset of eligible
expenditure under the research and development (“R&D”)
scheme if its turnover is less than $20 million per annum,
provided it is not controlled by income tax exempt entities. A
registration of R&D activities is filed with AusIndustry in the
following financial year, and based on this filing; the group
receives the incentive in cash.
The Group engaged an R&D expert to perform a detailed
review of the Group’s total R&D expenditure to determine the
potential claim under the R&D tax incentive legislation. As at
30 June 2020, a receivable totalling to $605,834 has been
recorded. This represents the estimated claim for the period 1
July 2019 to 30 June 2020.
This is a key audit matter due to the size of the receivable and
the degree of judgement and interpretation of the R&D tax
legislation required by management to assess the eligibility of
the R&D expenditure under the scheme.
Our procedures included, amongst others:
(cid:120) Obtaining and documenting through discussions with
management, an understanding of the process to estimate
the claim;
(cid:120) Evaluating the competence, capabilities and objectivity of
management’s expert;
(cid:120) Reviewing and testing the R&D estimate by:
-
-
-
reviewing the methodology used by management’s expert
for consistency with the R&D tax offset rules:
performing testing on a sample of R&D expenses to
supporting documents to assess eligibility and accuracy
of the amounts recorded in the general ledger; and
considering the nature of expenses against the eligibility
criteria of the R&D tax incentive scheme to assess
whether the expense included in the estimate were likely
to meet the eligibility criteria.
(cid:120) Comparing the nature of the R&D expenditure included in
the current year to the prior year claim;
(cid:120) Comparing the eligible expenditure used in the receivable
calculation to expenditure recorded in the general ledger;
(cid:120) Considering the entity’s history of successful claims;
(cid:120) Inspecting copies of relevant correspondence with
AusIndustry and the Australian Taxation Office related to
the claims; and
(cid:120) Assessing the adequacy of the relevant disclosures in the
financial statements.
Inventory valuation (Note 12)
As at 30 June 2020, the Group holds inventory with a carrying
amount totalling $2,555,080 and is required to carry its
inventory at the lower of cost or net realisable value, in
accordance with AASB 102: Inventories.
The determination of the valuation of inventory requires
significant judgement. The following factors add complexity
that could increase the likelihood of errors in the determination
of the lower of cost or net realisable value:
Our procedures included, amongst others:
(cid:120) Understanding and documenting management's process of
calculating the inventory provision and evaluating the
Group’s compliance with the requirements of AASB 102;
(cid:120) Performing testing on a sample of inventory items to
assess the cost basis and net realisable value of
inventories and:
1)
2)
large inventory holdings of electronic components and slow
inventory turnover on certain lines indicate that there may
be obsolete stock on hand; and
the methodology of estimating inventory provisions involve
significant management judgment, including predictions
about market conditions and future sales of certain lines.
-
-
for inventory sold in the last 12 months or post year end,
tracing to sales invoice and agreeing that the selling price
exceeded the item’s cost;
for items not sold in the last 12 months, considering
whether the value of these items were adjusted for in
inventory obsolescence provision;
59
For personal use only Inventory valuation (Note 12) (continued)
This is a key audit matter due to the materiality of the
inventory balance and the level of management judgement
required in determining the value of inventory.
(cid:120) Analysing any inventory items with no movement in the last
12 months and considering whether they should be
included in the inventory obsolescence provision and
assessing their saleability in the future;
(cid:120) Considering whether any other factors might indicate the
inventory items would require a provision to write down to
net realisable value, such as any discontinued lines; and
(cid:120) Assessing the adequacy of the related disclosures in the
financial statements.
Revenue recognition (Note 3)
Revenue recorded from sale of products and services to
customers amounted to $16,128,925 for the year ended 30
June 2020.
The Group enters into transactions that involve a range of
products and services. The total transaction price for a
contract is allocated amongst the various performance
obligations based on their relative stand-alone selling prices.
Revenue is recognised either at a point in time or over time,
when (or as) the Group satisfies the performance obligations.
The allocation of the transaction price and the determination of
the timing of revenue recognition requires management
judgement.
Our procedures included, amongst others:
(cid:120) Reviewing revenue recognition policies for appropriateness
in accordance with AASB 15 Revenue from Contracts with
Customers;
(cid:120) Documenting the design and testing the operating
effectiveness of the internal controls in respect to revenue
from the sales of goods;
(cid:120) Performing detailed testing of a sample of revenue
transactions during the year and assessing whether
revenue has been recognised in accordance with AASB 15,
which included;
This is a key audit matter given the management judgement
applied in determining the appropriate recognition of revenue
and material nature of revenue to Group’s overall
performance.
- Reviewing the relevant contracts with customers;
- Assessing management’s determination of
performance obligations within contracts and the allocation
of the transaction price to those obligations;
(cid:120) Evaluating sales transactions around reporting date to
assess whether revenue is recognised in the correct
periods;
(cid:120) Performing analytical procedures to assess revenue
recognised against known business factors, and
investigating variances to our expectation; and
(cid:120) Assessing the adequacy of related disclosures in the
financial statements.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included in the
Group’s annual report for the year ended 30 June 2020, but does not include the financial report and our auditor’s report
thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
60
For personal use only Responsibilities of the Directors for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: https://www.auasb.gov.au/auditors_responsibilites/ar1_2020.pdf. This description forms part of
our auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 4-10 of the Directors’ report for the year ended 30 June
2020.
In our opinion, the Remuneration Report of Rectifier Technologies Limited, for the year ended 30 June 2020 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing Standards.
Grant Thornton Audit Pty Ltd
Chartered Accountants
S C Trivett
Partner – Audit & Assurance
Melbourne, 30 September 2020
61
For personal use only RECTIFIER TECHNOLOGIES LTD & CONTROLLED ENTITIES
The following additional information is required by the Australian Stock Exchange Ltd in respect of listed public companies only.
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
1.
Shareholding
a.
Category (size of Holding)
Distribution of Shareholders Number
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – 9,999,999,999
Ordinary
288
317
215
1,030
460
2,310
The number of shareholdings held in less than marketable parcels is 940.
The names of the substantial shareholders listed in the holding company’s register as at 30th of June 2020 are:
b.
c.
Shareholder
Number Ordinary
224,643,616
150,000,000
125,068,336
Pudu Investments (Aust) Pty Ltd
Yung Shing
Winter Storms Ltd
Voting Rights
d.
The voting rights attached to each class of equity security are as follows:
Ordinary shares
-
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one
vote on a show of hands.
e.
20 Largest Shareholders - Ordinary Shares
Name
1.PUDU INVESTMENT (AUSTRALIA) PTY LTD
2.YUNG SHING
3.WINTER STORMS LTD
4.MR SONGWU LU
5.YANBIN WANG
6.MR LEI LI
7.MS ZHU FURONG
8.MR WEIGUO XIE
9.MR MAKRAM HANNA + MRS RITA HANNA
10.MR VALENTINO FRANCESCO VESCOVI + MRS GLENDA JILL VESCOVI
11.BOND STREET CUSTODIANS LIMITED
12.JP MORGAN NOMINEES AUSTRALIA PTY LIMITED
13.MR NICHOLAS SENG TET YEOH
14.MR NIGEL MACHIN
15.MR PETER HIONG HUO HII
16.TOPAZ INVESTMENTS PTE LTD
17.GENISTA COURT PTY LTD
18.MR MAKRAM HANNA
19.AUSTRALIAN EXPORTS & INDUSTRIALISATION SUPER PTY LTD
20.MR RAYMOND ROCKMAN + MR ANTHONY ROCKMAN
Totals: Top 20 holders of ORDINARY SHARES
Number of Ordinary
Fully Paid Shares
Held
% Held of
Issued Ordinary
Capital
224,643,616
150,000,000
125,068,336
89,508,408
70,000,000
68,460,000
64,000,000
45,314,823
37,797,542
30,600,000
25,999,605
24,430,852
20,500,000
20,000,000
17,383,975
13,837,650
11,848,272
10,934,134
10,000,000
9,677,106
1,070,004,319
16.41
10.96
9.14
6.54
5.11
5.00
4.68
3.31
2.76
2.24
1.90
1.79
1.50
1.46
1.27
1.01
0.87
0.80
0.73
0.71
78.18
The following additional information is required by the Australian Stock Exchange Ltd in respect of listed public companies only.
2.
The name of the Company Secretary is Justyn Stedwell.
3.
The address of the principal registered office in Australia is 97 Highbury Road, Burwood, Victoria.
Telephone 03 9896 7550
Registers of securities are held at the following address:
4.
Computershare Investor Services Pty Ltd
452 Johnston Street, Abbotsford, VIC 3067
Stock Exchange Listing
5.
Quotation has been granted for all the ordinary shares of the Company on all Member Exchanges of the Australian Stock Exchange Limited
and the Home Exchange is Melbourne.
Unquoted Securities
A total of 61,880,000 (2019: 21,640,000) options over unissued shares are on issue.
7.
Nil
Restricted Securities
8.
On market buy-back
There is no current on market buy back.
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For personal use only