RECTIFIER TECHNOLOGIES LTD
ABN: 82 058 010 692
ANNUAL REPORT
2023
Rectifier Technologies Ltd
Contents
30 June 2023
Corporate directory
Chairman's report
Directors' report
Auditor's independence declaration
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Rectifier Technologies Ltd
Shareholder information
2
3
6
15
16
17
18
19
20
52
53
57
1
Rectifier Technologies Ltd
Corporate directory
30 June 2023
Directors
Mr. Ying Ming Wang
Mr. Yanbin Wang
Mr. Valentino Vescovi
Mr. Nigel Machin
Mr. Nicholas Yeoh
Company secretary
Ms Nova Taylor
Registered office
Share register
Auditor
Bankers
97 Highbury Road
BURWOOD, VIC 3125
Telephone: + 61 3 9896 7550
Facsimile: + 61 3 9896 7566
Computershare Investor Services Pty Ltd
452 Johnston Street
ABBOTSFORD, VIC 3067
Telephone: 1300 137 328
Grant Thornton Audit Pty Ltd
Collins Square, Tower 5
727 Collins Street
MELBOURNE, VIC 3008
ANZ Banking Group Limited
10 Main Street BOX HILL, VIC 3128
Westpac Banking Corporation
39-41Hamilton Place, MOUNT WAVERLEY, VIC 3149
Stock exchange listing
Rectifier Technologies Ltd shares are listed on the Australian Securities Exchange
(ASX code: RFT)
Website
https://www.rectifiertechnologies.com/
Corporate Governance Statement
The directors and management are committed to conducting the business of Rectifier
Technologies Ltd in an ethical manner and in accordance with the highest standards
of corporate governance. Rectifier Technologies Ltd has adopted and has
substantially complied with the ASX Corporate Governance Principles and
Recommendations (Fourth Edition) ('Recommendations') to the extent appropriate to
the size and nature of its operations.
The consolidated entity’s Corporate Governance Statement, which sets out the
corporate governance practices that were in operation during the financial year and
identifies and explains any Recommendations that have not been followed and ASX
Appendix 4G are released to the ASX on the same day the Annual Report is
released. The Corporate Governance Statement and Corporate Governance
Compliance Manual can be found on the Company’s website
at https://www.rectifiertechnologies.com/investors-relations/.
2
Rectifier Technologies Ltd
Chairman's report
30 June 2023
Financial Results
The Company has experienced remarkable growth from 2022 to 2023, not only in terms of sales but also in profitability. The
surge in revenue, coupled with efficient cost management, has resulted in a significantly improved net profit margin. The
Company's post-tax profit has reached to $6,457,153, marking a substantial increase from the $491,955 recorded as of 30
June 2022.
Notably, total revenues have witnessed an extraordinary increase, soaring by approximately 144.2% to reach $39,808,597.
This starkly contrasts with the total of $16,303,329 reported in the preceding period.
Additionally, the Company has reported a significantly higher profit before tax of $8,698,539 compared to the $1,231,874
reported in the previous reporting period. The following table below shows the results for the 12 months to June 2023
compared with those of the previous corresponding period.
($'000')
2023
2022
39,809
19,030
48%
8,698
(2,241)
6,457
6,457
16,303
7,409
50%
1,232
(740)
492
492
Revenue from continuing operations (refer to note 5&6)
Gross Profit
Gross Margin %
Profit from continuing operations before tax
Income Tax Expense
Profit from continuing operations after tax
Net Profit
Funding
Rectifier Technologies Malaysia:
On 6 February 2017, obtained a MYR 5,460,000 (AUD 1,629,851) loan from Public Bank Berhad for a new manufacturing
facility. As of 30 June 2023, the carrying amount was MYR 4,408,557 (AUD 1,421,107).
On 7 October 2019, obtained a MYR 2,730,000 (AUD 929,393) loan from the same bank for another manufacturing facility.
As of 30 June 2023, the carrying amount was MYR 2,439,670 (AUD 786,432).
On 2 October 2020, obtained a MYR 498,800 (AUD 159,780) loan from the same bank for rooftop solar PV net energy
metering. As of 30 June 2023, the carrying amount was MYR 385,631 (AUD 124,309).
Rectifier Technologies Australia:
On 30 March 2022, obtained a AUD 3,000,000 loan from ANZ for working capital. The loan was fully paid on 2 September
2022.
On 2 September 2022, obtained a AUD 5,000,000 loan from WBC for working capital with a term of five years and a variable
interest rate of 7.38% p.a. As of 30 June 2023, the carrying amount was AUD 4,144,353.
On 21 July 2023, obtained a Bank Bill Business Loan of AUD 5,000,000 from WBC for working capital with a two-year term
and a variable interest rate of 5.9363% p.a. The repayment arrangement includes both principal and interest, up to 20 July
2025.
3
Rectifier Technologies Ltd
Chairman's report
30 June 2023
Dividends Payments
No dividend was declared for the 2023 Financial year.
Review of Operations
The Company has demonstrated adept and effective management in the aftermath of the disruptions caused by the COVID-
19 pandemic and global supply chain shortages. We are pleased to announce that our organization has achieved noteworthy
growth from 2022 to 2023. This growth is characterized by a substantial increase in sales and a significant improvement in
profitability. This remarkable surge in revenue, underpinned by rigorous cost management strategies, has substantially
enhanced our net profit margin.
Sales Order Fulfilment Update
In FY2023, we have achieved a significant milestone by successfully fulfilling and delivering 75% of the orders received from
Tritium Pty Ltd. This accomplishment translates to a total order value approaching 15 million USD. This aligns seamlessly with
our announcement on 9 February 2022, where we disclosed an order value of approximately 20 million USD.
Furthermore, within the same financial period, we have realized a remarkable achievement by fulfilling 37% of the orders for
the RT22 product from I-Charging Mobilidade Electrica SA (‘I-Charging’), amounting to a total order value of approximately 8
million USD. This achievement is in direct correspondence with the details outlined in our ASX announcement from 16
November 2022, which pertained to the Purchase Order received from I-Charging, with a total order value of 22 million USD.
The Company is confident of its ability to fulfil and deliver the remaining orders to the Tritium and I-charging by the end of the
2023 calendar year as previously advised, subject to approval and ongoing requirements of the client. Our procurement
team demonstrated exceptional efficiency in sourcing the requisite manufacturing materials, ensuring the seamless
fulfilment of these orders. These outstanding achievements underscore our unwavering commitment to meeting our
customer's needs and delivering on our promises, even amidst the challenges presented by the global supply chain.
Digital Enterprise Transformation
Our Digital Enterprise Transformation initiative continues to make significant strides. The successful consolidation of our
Australia and Singapore subsidiaries onto a unified platform represents a significant milestone. The second phase of this
initiative, which encompasses the implementation of our Malaysia factory, is proceeding as planned and is expected to achieve
go-live status by the end of October 2023. This phase promises to substantially enhance operational efficiency and provide
comprehensive business intelligence through a unified platform.
Outlook
The Company's outlook involves several significant strategies:
RT22 Opportunities: The Company has identified new opportunities for the markets of the RT22 in conjunction with existing
customers and new customers to sell the product into the USA Federal Government National EV Infrastructure (NEVI) $7.5b
program by redesigning the RT22 for automated manufacturing in high labour cost environments.
Manufacturing Improvements: A Chief Manufacturing Officer in Malaysia is leading efforts to streamline production, increase
capacity, and maintain quality.
EV Charging Station Starter Kit: The Company is developing a starter kit by integrating the EV station control system with
RT22, enabling swift EV charging station deployment.
High-Voltage Input Rectifier: A custom high-voltage input rectifier project is advancing, with prototypes due by Q4 2023 and
production starting in early 2024, indicating growing demand, particularly in defence products.
Megawatt Charging System (MCS): The Company is actively exploring emerging markets for MegaWatt Charging systems,
encompassing transport, marine, and aeronautics, as well as x-MegaWatt Charging for mining and power systems for net-
zero energy sources like hydrogen generation. The research and development team is initially developing a customized liquid-
cooled rectifier module tailored for these markets. Upon finalizing a formal agreement with a customer, the project will
commence with meticulous attention to detail and precision.
Long-Term E-Mobility Outlook: Despite near-term grid capacity challenges, the Company expects continued revenue growth
in the E-Mobility sector due to consistent demand for charging modules.
4
Rectifier Technologies Ltd
Chairman's report
30 June 2023
In conclusion, the Company is strategically positioning itself for growth in the EV industry, focusing on innovation, automation,
and customization to adapt to evolving market needs.
On behalf of the Board
Ying Ming Wang
Chairman
28 September 2023
Melbourne
5
Rectifier Technologies Ltd
Directors' report
30 June 2023
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Rectifier Technologies Ltd (referred to hereafter as the 'Company' or 'parent entity')
and the entities it controlled at the end of, or during, the year ended 30 June 2023.
Directors
The following persons were directors of Rectifier Technologies Ltd during the whole of the financial year and up to the date
of this report, unless otherwise stated:
Mr. Ying Ming Wang
Mr. Yanbin Wang
Mr. Valentino Vescovi
Mr. Nigel Machin
Mr. Nicholas Yeoh (appointed on 8 December 2022)
Principal activities
The principal activities of the consolidated entity during the financial year were designing and manufacturing high-efficiency
power rectifiers and producing electronic and specialised magnetic components.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The profit for the consolidated entity after providing for income tax amounted to $6,457,153 (30 June 2022: $491,955).
Specific information on the review of operations, financial position and business strategies is stated in the Chairman’s report.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
No matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Likely developments and expected results of operations
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.
Environmental regulation
The consolidated entity is not subject to any significant environmental regulation under Australian, Singaporean and
Malaysian Commonwealth or State law.
Information on directors
Name:
Title:
Qualifications:
Experience and expertise:
Mr. Ying Ming Wang
Chairman – Non-Executive
Master of Science
As Managing Director of the Pudu Group, Ying Ming has built up a range of technology
and property businesses, including Epern Telecom Co. Ltd., Beijing’s largest privately
owned ISP. He is also involved in the China Digital Kingdom, an internet datacentre
development business in China.
Board Member since June 2006
Pudu Group
Other current directorships:
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Interests in options:
Member of the audit committee
224,643,616 Ordinary Shares
None
6
Rectifier Technologies Ltd
Directors' report
30 June 2023
Name:
Title:
Qualifications:
Experience and expertise:
Mr. Yanbin Wang
Director – Executive and Chief Executive Officer
Master of Law, Bachelor of Philosophy
Before joining Rectifier Technologies as CEO in 2010, Yanbin was Chief Operations
Officer at Tianjin IC Card Public Network Company of Tianjin, China and Vice-President
of Transtech Sino America, based in Florida, USA. He was instrumental in restructuring
the Rectifier Technologies group in 2012, leading it back to growth and profitability.
Board Member since August 2010
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Interests in options:
Member of the audit committee
70,000,000 Ordinary Shares
None
Name:
Title:
Qualifications:
Experience and expertise:
Mr. Valentino Vescovi
Director – Non-Executive
Master of Science, Bachelor of Science
As a founding director of Rectifier Technologies Pacific, Valentino was instrumental in
its product development programs that led the world in telecom power using switch
mode technology. He brings the board a significant amount of technical and business
expertise.
Board member 2003-2010 and from 30 October 2012
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Interests in options:
Member of the audit committee
36,440,000 Ordinary Shares
None
Name:
Title:
Qualifications:
Experience and expertise:
Mr. Nigel Machin
Director – Executive and Head of Power Engineering
Bachelor of Engineering
Nigel was a founding director of Rectifier Technologies Pacific and has been involved
in all its product development since. Before Rectifier Technologies, Nigel was involved
in induction melting equipment at Inductotherm Melting, in sound reinforcement power
amplifiers for professional audio at Clockwork Audio, and then in telecom power
supplies at Ausmode/Exicom. He has published 8 papers and holds two current
patents.
Board member since 3 April 2017
None
Other current directorships:
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Interests in options:
Member of the audit committee
22,010,000 Ordinary Shares
1,800,000 unlisted options
Name:
Title:
Qualifications:
Experience and expertise:
Mr. Nicholas Yeoh
Director - Executive (appointed on 8 December 2022) and Director of Sales and
Marketing
Executive Master of Business Administration and Bachelor of Engineering (Hons)
Nicholas joined Rectifier Technologies in 2008 as a software development engineer
and later transitioned to a sales role within the group. He brings commercial leadership
and technical input to the management team, fundamental in identifying new markets
and promoting business growth for Rectifier Technologies.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
20,500,000 Ordinary Shares
None
'Other current directorships' quoted above are current directorships for listed entities only and exclude directorships of all
other types of entities unless otherwise stated.
7
Rectifier Technologies Ltd
Directors' report
30 June 2023
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and exclude
directorships of all other types of entities unless otherwise stated.
Company secretary
Ms. Nova Taylor was appointed as Company Secretary on 3 February 2022. Ms Taylor has approximately 5 years’
experience working with listed companies in Company Secretary and Assistant Company Secretary roles. She previously
worked for Computershare Investor Services Pty Limited in various roles for over 10 years. Nova has completed a Bachelor
of Laws at Deakin University.
Meetings of directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2023, and
the number of meetings attended by each director was:
Mr. Ying Ming Wang
Mr. Yanbin Wang
Mr. Valentino Vescovi
Mr. Nigel Machin
Mr. Nicholas Yeoh (appointed on 8 December 2022)
Full Board
Attended
Held
Audit and Risk Committee
Attended
Held
6
6
6
5
3
6
6
6
6
3
-
-
-
-
-
-
-
-
-
-
Held: represents the number of meetings held during the time the director held office.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives
and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of
reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward
governance practices:
competitiveness and reasonableness;
acceptability to shareholders;
performance linkage/alignment of executive compensation; and
transparency.
The Board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The
performance of the consolidated entity depends on the quality of its directors and executives. The remuneration philosophy
is to attract, motivate and retain high-performance and high-quality personnel.
The reward framework is designed to align executive reward to shareholders' interests. The Board has considered that it
should seek to enhance shareholders' interests by:
having economic profit as a core component of plan design;
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value; and
attracting and retaining high calibre executives.
8
Rectifier Technologies Ltd
Directors' report
30 June 2023
Additionally, the reward framework should seek to enhance executives' interests by:
rewarding capability and experience
reflecting competitive reward for contribution to growth in shareholder wealth
providing a clear structure for earning rewards
In accordance with best practice corporate governance, the remuneration structure of non-executive director and executive
director is separate.
Non-executive directors' remuneration
The Board's 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.
ASX listing rules require the aggregate non-executive directors' remuneration to be determined periodically by a general
meeting. The most recent determination was at the Annual General Meeting held on 13 November 2003, where the
shareholders approved a maximum annual aggregate remuneration of $100,000.
Executive remuneration
The consolidated entity aims to reward executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components.
The executive remuneration and reward framework has four components:
base pay and non-monetary benefits;
short-term performance incentives;
long-term incentives; and
other remuneration such as superannuation and long service leave.
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, is reviewed annually by the Board
based on individual and business unit performance, the overall performance of the consolidated entity and comparable
market remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits), which does not create any additional costs to the consolidated entity and provides additional value to the executive.
The short-term incentives ('STI') program is designed to align the targets of the business units with the performance hurdles
of executives. STI payments are granted to executives based on specific annual targets and key performance indicators
('KPI's') being achieved. KPI's include profit contribution, customer satisfaction, leadership contribution and product
management.
The long-term incentives ('LTI') includes share-based payments. Shares are awarded to executives in accordance with
performance guidelines established by the Board. These include increase in shareholders' value relative to the entire market
and the increase compared to the consolidated entity's direct competitors. The Board reviewed the long-term equity-linked
performance incentives specifically for executives during the year ended 30 June 2023.
Consolidated entity performance and link to 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 the consolidated entity 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 consolidated entity and respective industry
standards.
9
Rectifier Technologies Ltd
Directors' report
30 June 2023
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 consolidated entity’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 consolidated entity, management reports
which form the foundation for the consolidated entity audited results are used.
Refer to the section 'Additional information' below for details of the earnings and total shareholders return for the last five
years.
Use of remuneration consultants
During the financial year ended 30 June 2023, the consolidated entity, did not engage any remuneration consultants.
Voting and comments made at the Company's 30 June 2022 Annual General Meeting ('AGM')
At the 25 November 2022 AGM, 99.55% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2022. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
The key management personnel of the consolidated entity consisted of the following directors of Rectifier Technologies Ltd:
Mr. Ying Ming Wang - Chairman – Non-Executive
Mr. Yanbin Wang - Director – Executive and Chief Executive Officer
Mr. Valentino Vescovi - Director – Non-Executive
Mr. Nigel Machin - Director – Executive and Head of Power Engineering
Mr. Nicholas Yeoh - Director – Executive (appointed on 8 December 2022) and Director of Sales & Marketing
And the following persons:
Mr. David Xu - Chief Financial Officer – Rectifier Technologies Ltd (appointed on 7 December 2022)
Mr. Paul Davis - General Manager – Rectifier Technologies Pacific Pty Ltd (appointed on 7 December 2022)
Mr. Tan Uei Jou - Chief Manufacturing Officer – Rectifier Technologies (M) Sdn Bhd (appointed on 13 June 2023)
Mr. Seong Bow Lee - General Manager – Rectifier Technologies (M) Sdn Bhd (resigned on 9 June 2023)
10
Rectifier Technologies Ltd
Directors' report
30 June 2023
2023
Non-Executive Directors:
Mr. Ying Ming Wang
Mr. Valentino Vescovi
Executive Directors:
Mr. Yanbin Wang
Mr. Nigel Machin
Mr. Nicholas Yeoh**
Other Key Management
Personnel:
Mr. David Xu
Mr. Paul Davis
Mr.Tan Uei Jou
Mr. Seong Bow Lee
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Cash salary
and fees
$
Cash
bonus*
$
Non-
monetary***
$
Super-
annuation
$
Long service
leave
$
Total
$
16,500
11,000
373,519
217,952
369,329
-
-
55,231
26,307
47,777
233,217
206,891
5,185
109,714
1,543,307
23,283
31,083
-
17,099
200,780
-
-
20,692
-
2,706
-
-
1,245
1,245
25,888
-
-
57,159
35,247
-
26,933
32,638
652
15,586
168,215
-
-
16,500
11,000
-
4,813
-
506,601
284,319
419,812
14,839
21,501
-
-
41,153
298,272
292,113
7,082
143,644
1,979,343
*
The cash bonuses were approved upon payment on 23 February 2023. The cash bonus is payable at the discretion of
the board, equal to an amount of 5-10% of the total salary, subject to achievement of target profit.
** Mr. Nicholas Yeoh was appointed as Executive Director on 8 December 2022. Prior to that, he was already considered
KMP in his role as Director of Sales & Marketing – Rectifier Technologies Singapore Pte Ltd.
*** The non-monetary benefits include accommodation, health insurances and allowances.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Cash salary
and fees
$
Cash
bonus*
$
Non-
monetary
$
Super-
annuation
$
Long service
leave
$
Total
$
16,500
11,000
-
-
-
-
-
-
-
-
16,500
11,000
320,500
205,449
20,950
8,352
20,233
-
45,648
30,980
-
6,374
407,331
251,155
179,920
96,390
312,281
1,142,040
7,322
8,093
25,663
70,380
-
1,246
2,096
23,575
26,374
12,827
-
115,829
5,577
-
-
11,951
219,193
118,556
340,040
1,363,775
2022
Non-Executive Directors:
Mr. Ying Ming Wang
Mr. Valentino Vescovi
Executive Directors:
Mr. Yanbin Wang
Mr. Nigel Machin
Other Key Management
Personnel:
Mr. Paul Davis
Mr. Seong Bow Lee
Mr. Nicholas Yeoh
*
The cash bonus were approved upon payment on 25 February 2022. The cash bonus is payable at the discretion of the
board, equal to an amount of 5-10% of the total salary, subject to achievement of target profit.
11
Rectifier Technologies Ltd
Directors' report
30 June 2023
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Mr. Ying Ming Wang
Mr. Valentino Vescovi
Executive Directors:
Mr. Yanbin Wang
Mr. Nigel Machin
Mr. Nicholas Yeoh
Other Key Management
Personnel:
Mr. David Xu
Mr. Paul Davis
Mr.Tan Uei Jou
Mr. Seong Bow Lee
Fixed remuneration
2022
2023
Performance-based
remuneration - STI
2022
2023
Performance-based
remuneration - LTI
2022
2023
100.00%
100.00%
100.00%
100.00%
-
-
89.10%
90.75%
88.62%
94.86%
96.67%
92.45%
10.90%
9.25%
11.38%
92.19%
89.36%
100.00%
88.10%
-
96.66%
-
93.17%
7.81%
10.64%
-
11.90%
-
-
5.14%
3.33%
7.55%
-
3.34%
-
6.83%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Service agreements
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.
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of compensation during the year
ended 30 June 2023.
Options
There were no options over ordinary shares issued to directors and other key management personnel as part of
compensation that were outstanding as at 30 June 2023.
There were no options over ordinary shares granted to or vested by directors and other key management personnel as part
of compensation during the year ended 30 June 2023.
Additional information
The earnings of the consolidated entity for the five years to 30 June 2023 are summarised below:
2023
$
2022
$
2021
$
2020
$
2019
$
Revenue (Including discontinued operation)
Net Profit/(Loss)
39,808,597
6,457,153
16,303,329
491,955
13,266,295
540,379
16,734,759
1,821,638
18,874,493
2,127,038
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
2023
2022
2021
2020
2019
Share price at financial year end (cents per
share)
Changes Share price at financial year end
(cents per share)
Total dividends paid (cents per share)
4.00
1.20
-
2.80
(1.00)
0.10
3.80
(0.80)
-
4.60
2.00
-
5.40
1.40
-
12
Rectifier Technologies Ltd
Directors' report
30 June 2023
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the Company held during the financial year by each director and other members of key management
personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at
the start of
the year
Received
as part of
remuneration
Additions
Disposals/
other
Balance at
the end of
the year
Ordinary shares
Mr. Ying Ming Wang*
Mr. Yanbin Wang
Mr. Valentino Vescovi
Mr. Nigel Machin
Mr. Nicholas Yeoh
Mr. David Xu
Mr. Paul Davis
Mr.Tan Uei Jou
Mr. Seong Bow Lee (resigned on 9 June
2023)**
224,643,616
70,000,000
37,040,000
22,010,000
20,500,000
4,000,000
5,000,000
-
2,767,550
385,961,166
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(600,000)
-
-
-
-
-
224,643,616
70,000,000
36,440,000
22,010,000
20,500,000
4,000,000
5,000,000
-
(2,767,550)
-
(3,367,550) 382,593,616
Mr. Ying Ming Wang indirectly hold ordinary shares through Pudu Investment (Australia) Pty Ltd.
*
** Mr.Seong Bow Lee disposals/other represents a member no longer being designated as a key management personnel
and does not represent a disposal of holding.
Option holding
The number of options over ordinary shares in the Company held during the financial year by each director and other
members of key management personnel of the consolidated entity, including their personally related parties, is set out below:
Options over ordinary shares
Mr. Ying Ming Wang
Mr. Yanbin Wang
Mr. Valentino Vescovi
Mr. Nigel Machin
Mr. Nicholas Yeoh
Mr. David Xu
Mr. Paul Davis
Mr.Tan Uei Jou
Mr. Seong Bow Lee (resigned on 9 June 2023)
Balance at
the start of
the year
-
-
-
1,800,000
3,000,000
2,000,000
3,000,000
-
3,000,000
12,800,000
Granted
Exercised
-
-
-
-
-
-
-
-
-
-
Expired/
forfeited/
other
Balance at
the end of
the year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(3,000,000)
(2,000,000)
(3,000,000)
-
(3,000,000)
(11,000,000)
-
-
-
1,800,000
-
-
-
-
-
1,800,000
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Rectifier Technologies Ltd under option at the date of this report are as follows:
Grant date
June 2003
November 2003
Expiry date
No expiry date
No expiry date
Exercise
price
Number
under option
$0.020
$0.020
480,000
8,360,000
8,840,000
13
Rectifier Technologies Ltd
Directors' report
30 June 2023
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
Company or of any other body corporate.
Shares issued on the exercise of options
The following ordinary shares of Rectifier Technologies Ltd were issued during the year ended 30 June 2023 and up to the
date of this report on the exercise of options granted:
Date options granted
June 2003
Exercise
price
Number of
shares issued
$0.020
4,000,000
Indemnity and insurance of officers or auditor
The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as a director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
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 $41,450 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.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility
on behalf of the Company for all or part of those proceedings.
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Officers of the Company who are former partners of Grant Thornton Audit Pty Ltd
There are no officers of the Company who are former partners of Grant Thornton Audit Pty Ltd.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Mr. Yanbin Wang
Director
28 September 2023
Melbourne
14
Grant Thornton Audit Pty Ltd
Level 22 Tower 5
Collins Square
727 Collins Street
Melbourne VIC 3008
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
Auditor’s Independence Declaration
To the Directors of 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 2023, I declare that, to the best of my knowledge
and belief, there have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
T S Jackman
Partner – Audit & Assurance
Melbourne, 28 September 2023
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
15
w
Rectifier Technologies Ltd
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2023
Revenue
Other income
Interest revenue
Expenses
Changes in inventories of finished goods and work in progress
Raw materials and consumables used
Professional and compliance expense
Employee benefits expense
Subcontractor expense
Depreciation expense
Other expenses
Finance costs
Profit before income tax expense
Income tax expense
Consolidated
Note
2023
$
2022
$
5
6
7
7
7
8
39,428,363
14,761,523
279,677
100,557
1,535,954
5,852
8,412,399
(24,036,255)
(1,000,624)
(8,784,246)
(1,676,953)
(747,061)
(3,061,341)
(215,977)
2,097,687
(7,656,716)
(776,884)
(6,310,321)
(429,160)
(607,239)
(1,235,697)
(153,125)
8,698,539
1,231,874
(2,241,386)
(739,919)
Profit after income tax expense for the year attributable to the owners of
Rectifier Technologies Ltd
6,457,153
491,955
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive income for the year, net of tax
Total comprehensive income for the year attributable to the owners of
Rectifier Technologies Ltd
111,670
166,439
111,670
166,439
6,568,823
658,394
Cents
Cents
Basic earnings per share
Diluted earnings per share
31
31
0.47
0.47
0.04
0.03
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
16
Rectifier Technologies Ltd
Statement of financial position
As at 30 June 2023
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Current tax assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangibles
Deferred tax assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Contract liabilities
Borrowings
Lease liabilities
Current tax liabilities
Employee benefits
Provisions
Total current liabilities
Non-current liabilities
Contract liabilities
Borrowings
Lease liabilities
Deferred tax liabilities
Employee benefits
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Consolidated
Note
2023
$
2022
$
9
10
11
8
12
13
14
8
15
16
17
18
8
19
20
16
17
18
8
19
6,348,867
2,970,669
18,448,667
630,655
28,398,858
7,295,534
2,910,217
5,877,879
734,150
16,817,780
5,292,905
592,662
104,772
799,699
6,790,038
4,605,248
886,673
94,859
524,993
6,111,773
35,188,896
22,929,553
7,277,466
452,941
952,229
228,492
2,296,033
1,101,778
214,737
12,523,676
442,353
5,523,972
423,835
220,664
50,866
6,661,690
5,549,921
-
1,122,142
212,781
795,256
933,573
-
8,613,673
-
4,151,846
457,534
295,404
56,389
4,961,173
19,185,366
13,574,846
16,003,530
9,354,707
21
22
40,072,575
114,934
(24,183,979)
39,992,575
513,264
(31,151,132)
16,003,530
9,354,707
The above statement of financial position should be read in conjunction with the accompanying notes
17
Rectifier Technologies Ltd
Statement of changes in equity
For the year ended 30 June 2023
Consolidated
Balance at 1 July 2021
Profit after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Transactions with owners in their capacity as owners:
Lapsed options transferred to accumulated losses
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
39,992,575
466,825
(31,763,087)
8,696,313
-
-
-
-
-
166,439
491,955
-
491,955
166,439
166,439
491,955
658,394
(120,000)
120,000
-
Balance at 30 June 2022
39,992,575
513,264
(31,151,132)
9,354,707
Consolidated
Balance at 1 July 2022
Profit after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 21)
Lapsed options transferred to accumulated losses
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
39,992,575
513,264
(31,151,132)
9,354,707
-
-
-
-
111,670
6,457,153
-
6,457,153
111,670
111,670
6,457,153
6,568,823
80,000
-
-
(510,000)
-
510,000
80,000
-
Balance at 30 June 2023
40,072,575
114,934
(24,183,979)
16,003,530
The above statement of changes in equity should be read in conjunction with the accompanying notes
18
Rectifier Technologies Ltd
Statement of cash flows
For the year ended 30 June 2023
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs
Income taxes refunded/(paid)
Consolidated
Note
2023
$
2022
$
42,350,085
(42,141,752)
100,557
(215,977)
(993,529)
16,257,817
(17,230,486)
6,091
(147,406)
387,984
Net cash used in operating activities
32
(900,616)
(726,000)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for intangibles
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from borrowings
Repayment of borrowings
Repayment of lease liabilities
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
14
21
(1,053,428)
(1,984)
(629,211)
-
(1,055,412)
(629,211)
80,000
9,230,085
(8,027,872)
(252,931)
-
3,000,000
(389,096)
(317,318)
1,029,282
2,293,586
(926,746)
7,295,534
(19,921)
938,375
6,241,106
116,053
Cash and cash equivalents at the end of the financial year
9
6,348,867
7,295,534
The above statement of cash flows should be read in conjunction with the accompanying notes
19
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 1. General information
The financial statements cover Rectifier Technologies Ltd as a consolidated entity consisting of Rectifier Technologies Ltd
and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars,
which is Rectifier Technologies Ltd's functional and presentation currency.
Rectifier Technologies Ltd is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
97 Highbury Road
Burwood, VIC 3125
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 28 September 2023. The
directors have the power to amend and reissue the financial statements.
Note 2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these
Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the
consolidated entity.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
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.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in note 3.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 35.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Rectifier Technologies Ltd
('Company' or 'parent entity') as at 30 June 2023 and the results of all subsidiaries for the year ended. Rectifier Technologies
Ltd and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
20
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 2. Significant accounting policies (continued)
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable
to the parent.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained
together with any gain or loss in profit or loss.
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Rectifier Technologies Ltd's functional and presentation
currency.
Foreign currency transactions
Foreign currency transactions are translated into the entity’s functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from
the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange
rates, which approximate the rates at the dates of the transactions for the period. All resulting foreign exchange differences
are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Revenue recognition
The consolidated entity recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected to be entitled
in exchange for transferring goods or services to a customer. For each contract with a customer, the consolidated entity:
identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price
which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to
the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to
be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the
transfer to the customer of the goods or services promised.
21
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 2. Significant accounting policies (continued)
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts,
rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates
are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration
is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues
until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject
to the constraining principle are recognised as a refund liability.
Sale of goods and after sales services
Revenue from the sale of power rectifiers is recognised at the point in time when the consolidated entity satisfies performance
obligations by transferring the promised products, which is generally at the time of delivery and the revenue from related
after-sales services is recognised over time as customer receives and consumes the benefits of the after-sales service
provided. Where contract includes both the sale of the power rectifiers and after-sales service, the transaction price is
allocated to the separate performance obligations based on stand alone selling price.
The consolidated entity 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 consolidated
entity satisfies a performance obligation before it receives the consideration, the consolidated entity 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.
Sale of extended warranties
Revenue from the sale of extended warranties is recognised over the coverage period, aligning with the timing of performance
obligations.
Other income
Other income is recognised when it is received or when the right to receive payment is established.
The refundable research and development tax credit for eligible entities with turnover of less than $20 million ATO threshold
per annum is recognised as other income pursuant to AASB 120 'Accounting for Government Grant and Disclosure of
Government Assistance'. The non-refundable research and development tax offset for eligible entities with turnover of more
than $20 million ATO threshold per annum is recognised as an income tax benefit/offset from income tax expense pursuant
to AASB 112 'Income Taxes'.
Interest
Interest revenue is recognised as interest accrued using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
22
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 2. Significant accounting policies (continued)
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
Rectifier Technologies Ltd (the 'head entity') and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated group
continue to account for their own current and deferred tax amounts. The tax consolidated group has applied the 'separate
taxpayer within group' approach in determining the appropriate amount of taxes to allocate to members of the tax
consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or assets)
and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary in the tax
consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts
receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that the
intercompany charge equals the current tax liability or benefit of each tax consolidated group member, resulting in neither a
contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period, or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period, or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30
days.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Inventories
Raw materials, work in progress and finished goods are stated at the lower of cost and net realisable value on a 'weighted
average' basis. Cost comprises of direct materials and delivery costs, direct labour, import duties and other taxes, an
appropriate proportion of variable and fixed overhead expenditure based on normal operating capacity, and, where
applicable, transfers from cash flow hedging reserves in equity. Costs of purchased inventory are determined after deducting
rebates and discounts received or receivable.
23
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 2. Significant accounting policies (continued)
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.
Property, plant and equipment
Freehold land is stated at historical cost and is not depreciated but is subject to impairment testing if there is any indication
of impairment.
Building and plant and equipment are stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their expected useful lives as follows:
Building
Leasehold improvement
Plant and equipment
Motor vehicle
50 years
10 years
2.5-5 years
5 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets,
whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
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 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 consolidated entity 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.
Intangible assets
Research and development
Research costs are expensed in the period in which they are incurred. Development costs are capitalised when: it is probable
that the project will be a success considering its commercial and technical feasibility; the consolidated entity is able to use
or sell the asset; the consolidated entity has sufficient resources and intent to complete the development; and its costs can
be measured reliably. Capitalised development costs are amortised on a straight-line basis over the period of their expected
benefit, being their finite life of 10 years.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount.
24
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 2. Significant accounting policies (continued)
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to
form a cash-generating unit.
Trade and other payables
Trade and other payables represent liabilities for goods and services provided to the consolidated entity prior to the end of
the financial year and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not
discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
Contract liabilities
Contract liabilities represent the consolidated entity's obligation to transfer goods or services to a customer and are
recognised when a customer pays consideration, or when the consolidated entity recognises a receivable to reflect its
unconditional right to consideration (whichever is earlier) before the consolidated entity has transferred the goods or services
to the customer.
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They
are subsequently measured at amortised cost using the effective interest method.
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.
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; the 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.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in
the period in which they are incurred.
Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past
event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation.
If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The
increase in the provision resulting from the passage of time is recognised as a finance cost.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities
are settled.
25
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 2. Significant accounting policies (continued)
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are
measured at the present value of expected future payments to be made in respect of services provided by employees up to
the reporting date. Consideration is given to expected future wage and salary levels, the experience of employee departures
and periods of service. Expected future payments are discounted using market yields at the reporting date on high-quality
corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Share-based payments
Equity-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value 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, together with non-vesting conditions that do not determine whether the
consolidated entity receives the services that entitle the employees to receive payment. No account is taken of any other
vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity at the vesting
date which is at the grant date. The cumulative charge to profit or loss is calculated based on the grant date fair value of the
award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The
amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts
already recognised in previous periods.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value
of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Rectifier Technologies Ltd, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
26
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 2. Significant accounting policies (continued)
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of additional ordinary shares that would have been outstanding assuming conversion of all dilutive potential
ordinary shares.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred are not
recoverable from the tax authority. In this case, it is recognised as part of the cost of the acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2023. The consolidated
entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
Note 3. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal
the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below.
Provision for impairment of inventories
The provision for impairment of inventories assessment requires a degree of estimation and judgement. The level of the
provision is assessed by taking into account the recent sales experience, the ageing of inventories and other factors that
affect inventory obsolescence.
R & D tax rebate
The consolidated entity has recognised the R&D rebate on an accrual basis. As the return has not yet been submitted, the
consolidated entity has made an estimate of the likely refund amount based on the of eligible research and development
expenditure incurred in relation to the identified research and development activities associated with the R&D application as
at the reporting date.
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required
in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary
course of business for which the ultimate tax determination is uncertain. The consolidated entity recognises liabilities for
anticipated tax audit issues based on the consolidated entity's current understanding of the tax law. Where the final tax
outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax
provisions in the period in which such determination is made.
27
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 3. Critical accounting judgements, estimates and assumptions (continued)
Warranty provision
In determining the level of provision required for warranties the consolidated entity has made judgements in respect of the
expected performance of the products, the number of customers who will actually claim under the warranty and how often,
and the costs of fulfilling the conditions of the warranty. The provision is based on estimates made from historical warranty
data associated with similar products and services.
Note 4. Operating segments
Identification of reportable operating segments
The consolidated entity is organised into 4 operating segments as described below. These operating segments are based
on the internal reports that are reviewed and used by the executive management committee (who are identified as the Chief
Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. The
executive management committee considers the business from both a product and geographic perspective and assesses
performance and allocates resources on this basis. There is no aggregation of operating segments.
Segment
Description
Electronic Components
Industrial Power Supplies
(Electricity generation/
distribution and Defence)
('E&D')
Industrial Power Supplies
(Transport and
Telecommunication) ('T&T')
Industrial Power Supplies
(Electric vehicles) ('EV')
Under this segment, Rectifier Technologies Pacific Pty Ltd and Rectifier Technologies
Malaysia Sdn Bhd which is based in Malaysia manufacture electronic components for a
number of industries.
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.
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.
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.
The CODM reviews earnings before interest, tax, depreciation and amortisation ('EBITDA'). This measure excludes non-
operating expenditures such as restructuring costs, impairments and share-based payments as well as interest revenue and
other items which are considered part of the corporate treasury function. The accounting policies adopted for internal
reporting to the CODM are consistent with those adopted in the financial statements.
The information reported to the CODM is on a monthly basis.
Intersegment transactions
Intersegment transactions were made at market rates. Inter-segment revenue comprises sales between segments which are
on arm's length terms. Intersegment transactions are eliminated on consolidation.
Intersegment receivables, payables and loans
Intersegment loans are initially recognised at the consideration received. Intersegment loans receivable and loans payable
that earn or incur non-market interest are not adjusted to fair value based on market interest rates. Intersegment loans are
eliminated on consolidation.
Major customers
During the year ended 30 June 2023, the revenue of $16,992,761 was derived from one Australian customer which was
allocated to the Industrial Power Supplies (EV) segment (2022: $11,507,584 derived from two Australian customers which
are allocated to the Industrial Power Supplies (EV) and Industrial Power Supplies (E&D) segments). Revenue of $12,149,612
(2022: $1,482,138) was derived from a single customer in Portugal allocated to Industrial Power Supplies (EV) segment
(2022: single customer in Singapore under the Industrial Power Supplies (E&D) segment).
28
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 4. Operating segments (continued)
Operating segment information
Consolidated - 2023
Revenue
Sales to external customers
Intersegment sales
Total revenue
EBITDA
Depreciation and amortisation
Finance costs
Profit/(loss) before income
tax expense
Income tax expense
Profit after income tax
expense
Assets
Segment assets
Total assets
Liabilities
Segment liabilities
Total liabilities
Electronic
components
$
Industrial
power
supplies
(E&D)
$
Industrial
power
supplies
(T&T)
$
Industrial
power
supplies (EV)
$
Eliminations/
Corporate
$
Total
$
218,801
33,027
251,828
5,119,722
1,853,333
6,973,055
1,629,986
783,372
2,413,358
32,800,566
21,193,139
53,993,705
-
(23,862,871)
(23,862,871)
39,769,075
-
39,769,075
61,103
(374,351)
(106,888)
1,430,682
(50,058)
(7,596)
455,202
(5,649)
(656)
9,166,281
(315,534)
(45,878)
(1,451,690)
(1,470)
(54,959)
9,661,578
(747,062)
(215,977)
(420,136)
1,373,028
448,897
8,804,869
(1,508,119)
225,281
5,271,343
1,678,258
33,771,962
(5,757,948)
135,044
3,159,888
1,006,026
20,244,479
(5,360,070)
8,698,539
(2,241,386)
6,457,153
35,188,896
35,188,896
19,185,367
19,185,367
29
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 4. Operating segments (continued)
Consolidated - 2022
Revenue
Sales to external customers
Intersegment sales
Total revenue
EBITDA
Depreciation and amortisation
Finance costs
Profit/(loss) before income
tax expense
Income tax expense
Profit after income tax
expense
Assets
Segment assets
Total assets
Liabilities
Segment liabilities
Total liabilities
Geographical information
Australia
Asia
North America
South America
Europe
Oceania
Electronic
components
$
Industrial
power
supplies
(E&D)
$
Industrial
power
supplies
(T&T)
$
Industrial
power
supplies (EV)
$
Eliminations/
Corporate
$
Total
$
209,004
28,241
237,245
3,305,291
1,629,441
4,934,732
622,739
398,885
1,021,624
10,810,151
8,608,629
19,418,780
-
(10,665,196)
(10,665,196)
14,947,185
-
14,947,185
10,681
(305,349)
(172,100)
168,920
(54,555)
(5,963)
31,826
(8,285)
(765)
552,465
(239,050)
(30,397)
1,228,346
-
56,100
(466,768)
108,402
22,776
283,018
1,284,446
351,462
5,558,200
1,047,201
18,178,424
(2,205,734)
222,148
3,513,169
661,904
11,490,028
(2,312,403)
1,992,238
(607,239)
(153,125)
1,231,874
(739,919)
491,955
22,929,553
22,929,553
13,574,846
13,574,846
Sales to external customers
Geographical non-current
assets
2023
$
2022
$
2023
$
2022
$
19,738,655
2,219,527
4,721,166
64,278
12,684,737
-
12,218,517
1,643,041
553,077
17,353
303,920
25,615
844,325
5,036,298
-
-
-
-
986,901
4,505,020
-
-
-
-
39,428,363
14,761,523
5,880,623
5,491,921
The geographical non-current assets above are exclusive of, where applicable, financial instruments, deferred tax assets,
post-employment benefits assets and rights under insurance contracts.
30
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 5. Revenue
Sale of goods
After sales services
Revenue
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Geographical regions
Australia
Asia
North America
South America
Europe
Oceania
Timing of revenue recognition
Goods transferred at a point in time
Services transferred over time
Note 6. Other income
Research and development tax rebate*
Government grants
Net foreign exchange gain
Other
Other income
Consolidated
2023
$
2022
$
39,385,193
43,170
14,626,210
135,313
39,428,363
14,761,523
Consolidated
2023
$
2022
$
19,738,655
2,219,527
4,721,166
64,278
12,684,737
-
12,218,517
1,643,041
553,077
17,353
303,920
25,615
39,428,363
14,761,523
39,385,193
43,170
14,626,210
135,313
39,428,363
14,761,523
Consolidated
2023
$
2022
$
-
222,726
-
56,951
1,055,657
38,851
392,791
48,655
279,677
1,535,954
*
During the 30 June 2023 financial year, the consolidated entity has exceeded the $20 million ATO threshold to claim
the refundable research and development tax credit, the non-refundable research and development tax credits is
recognised as an income tax benefit/offset from income tax expense (note 8).
31
Consolidated
2023
$
2022
$
8,948
23,627
478,567
2,515
207,964
16,959
6,040
8,801
30,113
316,386
2,284
164,106
72,855
12,694
744,620
607,239
2,441
-
747,061
607,239
177,746
38,231
104,930
48,195
215,977
153,125
798,005
609,388
567,537
627,711
382,318
745,490
738,285
346,926
297,500
375,873
-
215,398
3,061,341
1,235,697
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 7. Expenses
Profit before income tax includes the following specific expenses:
Depreciation
Building
Leasehold improvement
Plant and equipment
Motor vehicle
Building right-of-use assets
Plant and equipment right-of-use assets
Motor vehicle right-of-use assets
Total depreciation
Amortisation
Software
Total depreciation and amortisation
Finance costs
Interest and finance charges paid/payable on borrowings
Interest and finance charges paid/payable on lease liabilities
Finance costs expensed
Superannuation expense
Defined contribution superannuation expense
Other expenses
Premise expense
Handling and forwarding expense
Research and development expense
Foreign exchange loss
Other
32
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 8. Income tax
Income tax expense
Current tax
Deferred tax - origination and reversal of temporary differences
Aggregate income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit before income tax expense
Tax at the statutory tax rate of 25%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Research and development expenditures
Controlled foreign company attributed income
Other non-allowable items
Tax losses
Foreign tax offset
Other non-assessable items
Research and development tax offset*
Difference in overseas tax rates
Income tax expense
Consolidated
2023
$
2022
$
2,590,832
(349,446)
776,974
(37,055)
2,241,386
739,919
8,698,539
1,231,874
2,174,635
307,969
846,529
-
877,849
(36,956)
-
(143,671)
(1,283,761)
6,826
595,198
195,127
-
55,022
(420,223)
-
2,434,625
(193,239)
739,919
-
2,241,386
739,919
*
During the 30 June 2023 financial year, the consolidated entity has exceeded the $20 million ATO threshold to claim
the refundable research and development tax credit, the non-refundable research and development tax credits is
recognised as an income tax benefit/offset from income tax expense.
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit at statutory tax rates
Consolidated
2023
$
2022
$
18,409,592
18,409,592
4,602,398
4,602,398
The above potential tax benefit for tax losses has not been recognised in the statement of financial position as tax losses are
related to prior years' capital losses and can only be offset against future capital gains. These tax losses can only be utilised
in the future if the continuity of ownership test is passed, or failing that, the same business test is passed.
33
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 8. Income tax (continued)
Net deferred tax assets
Net deferred tax assets comprises temporary differences attributable to:
Employee benefits
Accrued expenses
Inventories
Unrealised foreign exchange losses
Property, plant and equipment
Deferred tax asset
Movements:
Opening balance
Credited to profit or loss
Closing balance
Current tax assets
Current tax assets
Current tax liabilities
Current tax liabilities
Note 9. Cash and cash equivalents
Current assets
Cash at bank
34
Consolidated
2023
$
2022
$
233,115
107,737
476,225
65,382
(303,424)
201,832
87,407
146,133
(54,626)
(151,157)
579,035
229,589
229,589
349,446
192,534
37,055
579,035
229,589
Consolidated
2023
$
2022
$
630,655
734,150
Consolidated
2023
$
2022
$
2,296,033
795,256
Consolidated
2023
$
2022
$
6,348,867
7,295,534
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 10. Trade and other receivables
Current assets
Trade receivables
Other receivables
Research and development tax incentives
Prepayments
Consolidated
2023
$
2022
$
2,208,614
891,338
80,786
46,687
-
681,269
681,269
1,035,645
936,547
1,972,192
2,970,669
2,910,217
Allowance for expected credit losses
The consolidated entity has recognised a loss of $nil (2022: $nil) in profit or loss in respect of the expected credit losses for
the year ended 30 June 2023.
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
Consolidated
Not overdue
0 to 3 months overdue
Over 3 months overdue
Carrying amount
2022
2023
$
$
367,473
1,825,797
15,344
868,229
9,900
13,209
2,208,614
891,338
Payment terms on receivables past due but not considered impaired have not been re-negotiated. The consolidated entity
has been in direct contact with the relevant customers and are reasonably satisfied that payment will be received in full. The
consolidated entity estimate of impairment losses is based on the expected credit loss.
Note 11. Inventories
Current assets
Raw materials
Work in progress
Finished goods
Consolidated
2023
$
2022
$
7,733,327
3,902,940
6,812,400
3,574,937
1,166,895
1,136,047
18,448,667
5,877,879
Inventories are recognised net of a provision for obsolescence of $754,168 (2022: $702,984) as at 30 June 2023.
35
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 12. Property, plant and equipment
Non-current assets
Land - at cost
Buildings - at cost
Less: Accumulated depreciation
Leasehold improvements - at cost
Less: Accumulated depreciation
Plant and equipment - at cost
Less: Accumulated depreciation
Motor vehicles - at cost
Less: Accumulated depreciation
Consolidated
2023
$
2022
$
2,159,790
2,207,392
434,809
(44,304)
390,505
235,873
(123,113)
112,760
444,392
(36,393)
407,999
235,873
(99,486)
136,387
4,253,448
(1,624,163)
2,629,285
3,655,901
(1,805,507)
1,850,394
129,635
(129,070)
565
132,494
(129,418)
3,076
5,292,905
4,605,248
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2021
Additions
Disposals
Exchange differences
Transfer from ROUA
Depreciation expense
Balance at 30 June 2022
Additions
Disposals
Exchange differences
Transfer from ROUA
Depreciation expense
Land
$
Building
$
Leasehold
improvement
$
Plant and
equipment Motor vehicle
$
$
Total
$
2,146,230
-
-
61,162
-
-
2,207,392
-
-
(47,602)
-
-
405,337
11,465
-
-
-
(8,801)
408,001
-
-
(8,548)
-
(8,948)
147,043
19,540
(83)
-
-
(30,113)
136,387
-
-
-
-
(23,627)
1,466,936
574,423
(48,060)
44,772
128,708
(316,386)
1,850,393
1,053,428
(31,946)
(51,463)
287,440
(478,567)
5,045
-
-
122
192
(2,284)
3,075
-
-
5
-
(2,515)
4,170,591
605,428
(48,143)
106,056
128,900
(357,584)
4,605,248
1,053,428
(31,946)
(107,608)
287,440
(513,657)
Balance at 30 June 2023
2,159,790
390,505
112,760
2,629,285
565
5,292,905
36
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 13. Right-of-use assets
Non-current assets
Land and buildings - right-of-use
Plant and equipment - right-of-use
Motor vehicles - right-of-use
Consolidated
2023
$
2022
$
591,412
-
1,250
564,576
314,808
7,289
592,662
886,673
The consolidated entity leases land and buildings for its offices and staff accommodations and plant and equipment under
agreements of between 3 to 5 years with, in some cases, options to extend. The leases have various escalation clauses. On
renewal, the terms of the leases are renegotiated.
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2021
Additions
Exchange differences
Transfer to PPE
Depreciation expense
Balance at 30 June 2022
Additions
Exchange differences
Transfer to PPE
Depreciation expense
Balance at 30 June 2023
Building
$
Plant and
equipment Motor vehicle
$
$
Total
$
632,317
100,525
(4,160)
-
(164,106)
564,576
234,943
(143)
-
(207,964)
502,760
-
13,611
(128,708)
(72,855)
314,808
-
(38)
(297,811)
(16,959)
19,737
-
438
(192)
(12,694)
7,289
-
1
-
(6,040)
1,154,814
100,525
9,889
(128,900)
(249,655)
886,673
234,943
(180)
(297,811)
(230,963)
591,412
-
1,250
592,662
For other lease disclosures refer to:
note 7 for interest on lease liabilities
note 18 for lease liabilities; and
consolidated statement of cash flows for repayment of lease liabilities.
Note 14. Intangibles
Non-current assets
Development - at cost
Software - at cost
Less: Accumulated amortisation
37
Consolidated
2023
$
2022
$
94,859
94,859
12,354
(2,441)
9,913
-
-
-
104,772
94,859
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 14. Intangibles (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2021
Additions
Research and development rebate
Balance at 30 June 2022
Additions
Transfers in/(out)
Amortisation expense
Balance at 30 June 2023
Note 15. Trade and other payables
Current liabilities
Trade payables
Sundry creditors and accrued expenses
Refer to note 24 for further information on financial instruments.
Note 16. Contract liabilities
Current liabilities
Contract liabilities
Non-current liabilities
Contract liabilities
Reconciliation
Reconciliation of the written down values at the beginning and end of the current and
previous financial year are set out below:
Opening balance
Payments received in advance
Transfer to revenue
Closing balance
38
Development
cost
$
Software
$
Total
$
106,048
61,844
(73,033)
94,859
-
-
-
94,859
-
-
-
-
1,984
10,370
(2,441)
106,048
61,844
(73,033)
94,859
1,984
10,370
(2,441)
9,913
104,772
Consolidated
2023
$
2022
$
6,027,001
1,250,465
4,463,965
1,085,956
7,277,466
5,549,921
Consolidated
2023
$
2022
$
452,941
442,353
895,294
-
895,294
-
895,294
-
-
-
-
-
-
-
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 16. Contract liabilities (continued)
Unsatisfied performance obligations
The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied in relation to
extended warranties at the end of the reporting period was $895,294 as at 30 June 2023 ($nil as at 30 June 2022) and is
expected to be recognised as revenue in future periods as follows:
Within 12 months
12 to 24 months
Note 17. Borrowings
Current liabilities
Bank loans
Non-current liabilities
Bank loans
Refer to note 24 for further information on financial instruments.
Consolidated
2023
$
2022
$
452,941
442,353
895,294
-
-
-
Consolidated
2023
$
2022
$
952,229
1,122,142
5,523,972
4,151,846
6,476,201
5,273,988
39
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 17. Borrowings (continued)
The bank loans consist of the following:
(i) A loan of MYR 5,460,000 (AUD 1,629,851) from Public Bank Berhad. The term of the loan is 20 years, and the loan
interest is calculated using the Base Lending Rate (Variable Rate) less a discount of 2.20% at the bank’s discretion
from time to time. 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 carrying amount of the loan was MYR 4,408,557
(AUD 1,421,107) as at 30 June 2023 (2022: MYR 4,648,453 (AUD 1,531,464)).
(ii) A loan of MYR 2,730,000 (AUD929,393) from Public Bank Berhad. The term of the loan is 20 years, and the loan interest
is calculated using the Base Lending Rate (Variable Rate) less a discount of 2.20% at the bank’s discretion from time
to time. The monthly repayment includes the payment of loan principal and interest. The first monthly instalment
commenced on 1 December 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 carrying amount of the loan was MYR 2,439,670 (AUD
786,432) as
June 2023 (2022: MYR 2,552,538 (AUD 840,951))
(iii) A loan of MYR 498,800 (AUD 159,780) from Public Bank Berhad. The term of the loan is 10 years, and the loan interest
is calculated using the Base Lending Rate (Variable Rate) less a discount of 2% at the bank’s discretion from time to
time. The monthly repayment includes the payment of loan principal and interest. The first monthly instalment
commenced on 1 October 2020, subsequent instalments are to be paid on or before the 1st of each calendar month
and total repayments are 120 instalments in 120 months. The carrying amount of the loan was MYR 385,631
(AUD124,309) as
June 2023 (2022: MYR 428,740 (AUD141,252)).
(iv) A loan of AUD 3,000,000 from ANZ. The term of the loan is 3 years, and the loan interest is calculated using the
Business Mortgage Index rate (Variable Rate) less a margin of 3.75% at the bank’s discretion from time to time. The
monthly repayment includes the payment of loan principal and interest. The first monthly instalment commenced on 30
April 2022, subsequent instalments are to be paid on or before the 1st of each calendar month and total repayments
are 36 instalments in 36 months. The carrying amount of the loan was $nil as it was fully paid as of 30 June 2023 (2022:
AUD 2,760,321).
(v) A loan of AUD 2,000,000 from WBC. The term of the loan is 5 years, with a variable interest rate of 7.38%. The carrying
amount of the loan was AUD 1,655,445 as of 30 June 2023 (2022: $nil).
(vi) A loan of AUD 3,000,000 from WBC. The term of the loan is 5 years, with a variable interest rate of 7.38%. The carrying
amount of the loan was AUD 2,488,907 as of 30 June 2023 (2022: $nil).
Note 18. Lease liabilities
Current liabilities
Lease liability
Non-current liabilities
Lease liability
Consolidated
2023
$
2022
$
228,492
212,781
423,835
457,534
652,327
670,315
40
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 18. Lease liabilities (continued)
Future minimum lease payments at 30 June were as follows:
2023
Lease Payments
Finance Charges
2022
Lease Payments
Finance Charges
Note 19. Employee benefits
Current liabilities
Annual leave
Long service leave
Non-current liabilities
Long service leave
Note 20. Provisions
Current liabilities
Warranties
Less than 1
year
$
1 – 5 years
$
> 5 years
$
Total
$
258,748
(30,256)
228,492
448,428
(24,593)
423,835
244,812
(32,031)
212,781
499,855
(42,321)
457,534
-
-
-
-
-
-
707,176
(54,849)
652,327
744,667
(74,352)
670,315
Consolidated
2023
$
2022
$
795,265
306,513
636,605
296,968
1,101,778
933,573
50,866
56,389
1,152,644
989,962
Consolidated
2023
$
2022
$
214,737
-
Warranties
The provision represents the estimated warranty claims in respect of products sold which are still under warranty at the
reporting date. The provision is estimated based on historical warranty claim information, sales levels and any recent trends
that may suggest future claims could differ from historical amounts.
41
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 20. Provisions (continued)
Movements in provisions
Movements in each class of provision during the current financial year, other than employee benefits, are set out below:
Consolidated - 2023
Carrying amount at the start of the year
Additional provisions recognised
Exchange differences
Carrying amount at the end of the year
Note 21. Issued capital
Warranties
$
-
220,928
(6,191)
214,737
Consolidated
2023
Shares
2022
Shares
2023
$
2022
$
Ordinary shares - fully paid
1,379,700,602 1,375,700,602
40,072,575
39,992,575
Movements in ordinary share capital
Details
Balance
Date
Shares
Issue price
$
1 July 2021
1,375,700,602
39,992,575
Balance
Issuance of shares on the exercise of options
30 June 2022
9 June 2023
1,375,700,602
4,000,000
$0.020
39,992,575
80,000
Balance
30 June 2023
1,379,700,602
40,072,575
Ordinary shares
Ordinary shares entitle the holder to participate in any dividends declared and any proceeds attributable to shareholders
should the Company be wound up in proportions that consider both the number of shares held and the extent to which those
shares are paid up. The fully paid ordinary shares have no par value and the Company does not have a limited amount of
authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
42
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 21. Issued capital (continued)
The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as
value-adding relative to the current Company's share price at the time of the investment. The consolidated entity is not
actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in
order to maximise synergies.
The consolidated entity is subject to certain financing arrangements covenants and meeting these is given priority in all
capital risk management decisions. There have been no events of default on the financing arrangements during the financial
year.
The capital risk management policy remains unchanged during the current reporting period.
Note 22. Reserves
Foreign currency reserve
Share-based payments reserve
Consolidated
2023
$
2022
$
114,934
-
3,264
510,000
114,934
513,264
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign
operations.
Share-based payments reserve
The reserve is used to recognise the value of options granted under Employee Share Option Plan ('ESOP').
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Balance at 1 July 2021
Foreign currency translation
Lapsed options transferred to accumulated losses
Balance at 30 June 2022
Foreign currency translation
Lapsed options transferred to accumulated losses
Balance at 30 June 2023
Note 23. Dividends
Foreign
currency
reserve
$
Share-based
payments
reserve
$
630,000
-
(120,000)
510,000
-
(510,000)
(163,175)
166,439
-
3,264
111,670
-
114,934
Total
$
466,825
166,439
(120,000)
513,264
111,670
(510,000)
-
114,934
There were no dividends paid, recommended or declared during the current or previous financial year.
43
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 24. Financial instruments
Financial risk management objectives
The Board has overall responsibility for the determination of the consolidated entity 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 consolidated entity 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 policies that seek to reduce risk as far as possible without unduly affecting the
consolidated entity’s competitiveness and flexibility.
Market risk
Foreign currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currency
risk through foreign exchange rate fluctuations.
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
consolidated entity’s exposure to foreign currency risk is primarily its exposure to trade receivables denominated in USD.
The carrying amount of the consolidated entity's foreign currency denominated financial assets and financial liabilities at the
reporting date were as follows:
Consolidated
US dollars
Consolidated - 2023
Assets
Liabilities
Consolidated - 2022
Assets
Liabilities
Assets
Liabilities
2023
$
2022
$
2023
$
2022
$
1,411,324
532,730
1,194,497
651,586
AUD strengthened
AUD weakened
% change
10%
10%
Effect on
profit before
tax
% change
Effect on
profit before
tax
193,518
163,787
357,305
(10%)
(10%)
(236,521)
(200,184)
(436,705)
AUD strengthened
AUD weakened
% change
10%
10%
Effect on
profit before
tax
% change
Effect on
profit before
tax
70,300
85,985
156,285
(10%)
(10%)
(85,923)
(105,093)
(191,016)
Price risk
The consolidated entity is not exposed to any significant price risk.
Interest rate risk
The consolidated entity’s exposure to interest rate risk is limited to cash balances and borrowings, as these are at a floating
rate. Cash balances that are held at call for day to day activities are non-interest bearing.
44
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 24. Financial instruments (continued)
An analysis of remaining contractual maturities is shown in 'liquidity and interest rate risk management' below.
Credit risk
Credit risk arises principally from the consolidated 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 prepayment basis until creditworthiness can be re-established.
The nature of the consolidated entity’s operations means that approximately 92% (2022: 92%) of its sales are made to 5
(2022: 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.
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
Past due analysis of trade receivables by geographic region is as follows:
Consolidated
2023
$
2022
$
196,437
155,926
1,687,094
169,157
702,808
145,385
52,535
(9,390)
2,208,614
891,338
2023
Not past due
Past due 30 days
Past due 60 days
Total
2022
Not past due
Past due 30 days
Past due 60 days
Total
Australia
$
Asia
$
Europe
$
USA
$
Total
$
130,490
50,769
15,178
196,437
667,174
9,900
25,734
702,808
155,881
-
45
155,926
145,385
-
-
145,385
-
1,687,094
-
1,687,094
81,102
87,934
121
169,157
367,473
1,825,797
15,344
2,208,614
52,578
-
(43)
52,535
3,092
-
(12,482)
(9,390)
868,229
9,900
13,209
891,338
Liquidity risk
Liquidity risk arises from the consolidated entity’s management of working capital and the finance charges and principal
repayments on its debt instruments. It is the risk that the consolidated entity will encounter difficulty in meeting its financial
obligations as they fall due. The consolidated entity aims to have sufficient cash to allow it to meet its liabilities when they
become due.
The Board receives cash flow projections monthly as well as information regarding cash balances.
45
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 24. Financial instruments (continued)
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Consolidated - 2023
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Interest-bearing - variable
Bank loans
Lease liability
Total non-derivatives
Consolidated - 2022
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Interest-bearing - variable
Bank loans
Lease liability
Total non-derivatives
6 months or
less
$
Between 6
and 12
months
$
Between 1
and 3 years Over 3 years
$
$
Remaining
contractual
maturities
$
6,027,001
1,250,465
-
-
-
-
-
-
6,027,001
1,250,465
666,622
130,996
8,075,084
666,622
127,752
794,374
2,666,489
422,565
3,089,054
3,964,770
25,863
3,990,633
7,964,503
707,176
15,949,145
6 months or
less
$
Between 6
and 12
months
$
Between 1
and 3 years Over 3 years
$
$
Remaining
contractual
maturities
$
4,463,965
1,085,956
-
-
-
-
-
-
4,463,965
1,085,956
636,349
143,026
6,329,296
636,648
101,786
738,434
2,285,531
329,272
2,614,803
2,502,753
170,583
2,673,336
6,061,281
744,667
12,355,869
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments are a reasonable approximation their fair value.
46
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 25. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by Grant Thornton Audit Pty Ltd, the
auditor of the Company, its network firms and unrelated firms:
Audit services - Grant Thornton Audit Pty Ltd
Audit or review of the financial statements
Audit services - Grant Thornton Audit Pty Ltd network firms
Audit or review of the financial statements
Audit services - unrelated firms
Audit or review of the financial statements
Note 26. Contingent liabilities
The consolidated entity had no contingent liabilities as at 30 June 2023 and 30 June 2022.
Note 27. Commitments
Purchase commitments
Committed at the reporting date but not recognised as liabilities, payable:
Inventories
Property, plant and equipment
Note 28. Key management personnel disclosures
Consolidated
2023
$
2022
$
92,000
79,131
110,723
15,861
-
-
Consolidated
2023
$
2022
$
19,444,442
166,295
10,903,918
97,953
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated entity
is set out below:
Consolidated
2023
$
2022
$
1,769,975
168,215
41,153
1,235,995
115,829
11,951
1,979,343
1,363,775
Short-term employee benefits
Post-employment benefits
Long-term benefits
Note 29. Related party transactions
Parent entity
Rectifier Technologies Ltd is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 30.
47
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 29. Related party transactions (continued)
Key management personnel
Disclosures relating to key management personnel are set out in note 28 and the remuneration report included in the
directors' report.
Transactions with related parties
Transactions between related parties are on normal commercial terms and conditions no more favourable to other parties
unless otherwise stated. There are no other related party transactions outside of the consolidated entity and KMP
remuneration were made.
Note 30. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 2:
Name
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
*
Deregistered in February 2023.
Note 31. Earnings per share
Principal place of business /
Country of incorporation
Australia
Australia
Singapore
USA
Malaysia
Hong Kong
Ownership interest
2022
2023
%
%
-
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Consolidated
2023
$
2022
$
Profit after income tax attributable to the owners of Rectifier Technologies Ltd
6,457,153
491,955
The weighted average number of ordinary shares used in calculating basic earnings per
share
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares
1,379,700,602 1,375,700,602
8,840,000
46,840,000
The weighted average number of ordinary shares used in calculating diluted earnings per
share
1,388,540,602 1,422,540,602
Number
Number
Basic earnings per share
Diluted earnings per share
Cents
Cents
0.47
0.47
0.04
0.03
48
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 32. Reconciliation of profit after income tax to net cash used in operating activities
Profit after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Provision for stock obsolescence
Unrealised currency (gain)/loss
Net loss/(gain) on sale/acquisition of assets
Capitalised interest
Change in operating assets and liabilities:
Increase in trade and other receivables
Increase in inventories
Decrease in income tax refund due
Increase/(decrease) in net deferred tax assets
Increase in trade and other payables
Increase in contract liabilities
Increase in provision for income tax
Increase in employee benefits
Increase in other provisions
Net cash used in operating activities
Note 33. Changes in liabilities arising from financing activities
Consolidated
Balance at 1 July 2021
Net cash from/(used in) financing activities
Finance costs
Other changes
Balance at 30 June 2022
Net cash from/(used in) financing activities
Finance costs
Acquisition of leases
Consolidated
2023
$
2022
$
6,457,153
491,955
747,061
51,184
517,435
31,946
-
607,239
148,622
(86,192)
(34,956)
87,200
(1,344,213)
(12,621,972)
103,495
(349,446)
1,727,545
895,294
2,506,483
162,682
214,737
(1,441,878)
(3,861,912)
-
35,949
2,746,773
-
404,843
176,357
-
(900,616)
(726,000)
Bank loans
$
Lease
liabilities
$
2,594,100
2,505,974
104,930
68,984
5,273,988
1,024,467
177,746
-
883,874
(365,513)
48,195
103,759
670,315
(291,162)
38,231
234,943
Total
$
3,477,974
2,140,461
153,125
172,743
5,944,303
733,305
215,977
234,943
Balance at 30 June 2023
6,476,201
652,327
7,128,528
Note 34. Share-based payments
A share option plan has been established by the consolidated entity and approved by shareholders at a general meeting,
whereby the consolidated entity may, at the discretion of the Board, grant options over ordinary shares in the Company to
certain key management personnel of the consolidated entity. The options are issued for nil consideration and are granted
in accordance with performance guidelines established by the Board.
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 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.
49
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 34. Share-based payments (continued)
2023
Grant date
22/07/2019
01/06/2003
01/11/2003
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
*
**
**
$0.070
$0.020
$0.020
34,000,000
4,480,000
8,360,000
-
-
-
-
(4,000,000)
-
(34,000,000)
-
-
-
480,000
8,360,000
*
**
expiry date is on 13 September 2022.
there is no expiry date for the exercise of the options.
2022
Grant date
22/07/2019
01/06/2003
01/11/2003
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
*
**
**
$0.070
$0.020
$0.020
42,000,000
4,480,000
8,360,000
-
-
-
-
-
-
(8,000,000)
-
-
34,000,000
4,480,000
8,360,000
*
**
expiry date is on 13 September 2022.
there is no expiry date for the exercise of the options.
The weighted average fair value of options during the financial year was $0.015 (2022: $0.015).
The weighted average remaining contractual life of options outstanding at the end of the financial year was nil years (2022:
0.21 years).
Note 35. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Profit/(loss) after income tax
Total comprehensive income
Parent
2023
$
2022
$
(685,359)
229,496
(685,359)
229,496
50
Rectifier Technologies Ltd
Notes to the financial statements
30 June 2023
Note 35. Parent entity information (continued)
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Foreign currency reserve
Share-based payments reserve
Accumulated losses
Total equity
Parent
2023
$
2022
$
2,840,280
2,287,673
16,674,923
3,661,150
3,307,487
2,292,003
15,288,289
1,669,157
40,072,575
50,647
-
(38,736,588)
39,992,575
50,647
510,000
(38,561,229)
1,386,634
1,991,993
a. Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
On 22 August 2022, the parent company provided a guarantee for WBC loan of $2,000,000.00 to Rectifier Technologies
Pacific Pty Ltd. The parent entity had no guarantees in relation to the debts of its subsidiaries for the financial year ended as
at 30 June 2022.
b. Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2023 and 30 June 2022.
c. Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2023 and 30 June 2022.
d. Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 2, except
for the following:
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an
indicator of an impairment of the investment.
Note 36. Events after the reporting period
No matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
51
Rectifier Technologies Ltd
Directors' declaration
30 June 2023
In the directors' opinion:
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 2 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
30 June 2023 and of its performance for the financial year ended on that date; and
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 directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Mr. Yanbin Wang
Director
28 September 2023
Melbourne
52
Grant Thornton Audit Pty Ltd
Level 22 Tower 5
Collins Square
727 Collins Street
Melbourne VIC 3008
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
Independent Auditor’s Report
To the Members of 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 2023, 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 2023 and of its performance for
the year ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
53
w
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Key audit matter
How our audit addressed the key audit matter
Revenue recognition (Note 5)
Revenue recorded from the sale of products and
services to customers amounted to $39,428,363 for the
year ended 30 June 2023.
The Group enters into transactions for the sale of
power rectifiers. The total transaction price for a
contract is based on their relative stand-alone selling
price. Revenue is recognised at a point in time when
the Group satisfies the performance obligations, which
is generally at the point of delivery.
Our procedures included, amongst others:
• Reviewing revenue recognition policies for
appropriateness in accordance with AASB 15
Revenue from Contracts with Customers;
• Testing a sample of revenue transactions during the
year and assessing whether revenue has been
recognised in accordance with AASB 15, including:
− Reviewing the relevant contracts with customers;
This is a key audit matter given the judgement applied
to determine the appropriate recognition of revenue
and the material nature of revenue to the Group’s
overall performance.
− Assessing management’s determination of
performance obligations within contracts and the
allocation of the transaction price to those
obligations;
− Testing the timing of revenue recognition;
• Evaluating sales transactions around reporting date
to assess whether revenue is recognised in the
correct period;
• Performing non-substantive analytical procedures to
assess revenue recognised against known business
factors and investigating variances to our
expectations; and
• Assessing the adequacy of related disclosures in the
financial statements.
Inventory valuation (Note 11)
As at 30 June 2023, the Group holds inventory with a
carrying value of $18,448,667. The Group is required
to carry their inventory at the lower of cost or net
realisable value, in accordance with AASB 102
Inventories.
Determining the value of inventory requires significant
judgement. Specifically, estimating the provision for
inventory obsolescence involves significant
management judgement, including predictions about
market conditions, future sales, and obsolescence.
Our procedures included, amongst others:
• Understanding and documenting management's
process of calculating the inventory provision and
evaluating the Group’s compliance with the
requirements of AASB 102;
• Testing a sample of inventory items to assess the
cost basis and net realisable value of inventories;
• Analysing slow-moving inventory and evaluating
their saleability and obsolescence;
This is a key audit matter due to the materiality of the
inventory balance and the level of management
judgement required to determine the inventory value.
• Considering additional factors that may indicate
inventory items require an adjustment to their
carrying amount, including discontinued lines; and
• Assessing the adequacy of the related disclosures in
the financial statements.
54
Grant Thornton Audit Pty Ltd
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included
in the Group’s annual report for the year ended 30 June 2023, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the Directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf.This
description forms part of our auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 8 to 13 of the Directors’ report for the year
ended 30 June 2023.
In our opinion, the Remuneration Report of Rectifier Technologies Limited, for the year ended 30 June 2023
complies with section 300A of the Corporations Act 2001.
55
Grant Thornton Audit Pty Ltd
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
T S Jackman
Partner – Audit & Assurance
Melbourne, 28 September 2023
56
Grant Thornton Audit Pty Ltd
Rectifier Technologies Ltd
Shareholder information
30 June 2023
The shareholder information set out below was applicable as at 11 September 2023.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Holding less than a marketable parcel*
*
Minimum $500 parcel: 192 holders, being 996,475 units (0.07%)
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 over
Substantial holders
Substantial holders in the Company are set out below:
PUDU INVESTMENT (AUSTRALIA) PTY LTD
YUNG SHING
MR YANBIN WANG
MR MALCOLM ALISTAIR DUNCAN
MR LEI LI
Ordinary shares
% of total
shares
issued
Number
of units
Number
of holders
46
32
235
1,968
662
2,943
-
-
0.01
0.15
5.48
16,101
92,672
2,094,663
75,552,174
94.36 1,301,944,992
100.00 1,379,700,602
-
-
Options
Number of
holders
Options
% of total
options
Options
Number of
options
-
-
-
-
32
32
-
-
-
-
100
-
-
-
-
45,840,000
100
45,840,000
Ordinary shares
Number held
224,643,616
150,000,000
70,000,000
69,187,950
68,460,000
% of total
shares
issued
16.28
10.87
5.07
5.01
4.96
57
Rectifier Technologies Ltd
Shareholder information
30 June 2023
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
PUDU INVESTMENT (AUSTRALIA) PTY LTD
YUNG SHING
MR YANBIN WANG
MR MALCOLM ALISTAIR DUNCAN
MR LEI LI
MR SONGWU LU
MRS ZHENGHUA ZHU
MR WEIGUO XIE
MR MAKRAM HANNA + MRS RITA HANNA
V AND G SUPER PTY LTD
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
BOND STREET CUSTODIANS LIMITED
MR NICHOLAS SENG TET YEOH
MR NIGEL MACHIN
AUSTRALIAN EXPORTS & INDUSTRIALISATION SUPER PTY LTD
TOPAZ INVESTMENTS PTE LTD
GENISTA COURT PTY LTD
MR MAKRAM HANNA
MR RAYMOND ROCKMAN + MR ANTHONY ROCKMAN
MR KANG CHEN
Unquoted equity securities
Unlisted options exercise price $0.02
Unlisted ESOP options exercise price $0.06 expiring 15/08/25
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
Number held
% of total
shares
issued
224,643,616
150,000,000
70,000,000
69,187,950
68,460,000
66,841,260
50,000,000
40,747,642
38,637,542
36,440,000
26,210,156
25,999,605
20,500,000
20,000,000
14,000,000
13,837,650
11,848,272
11,134,134
9,677,106
9,355,000
977,519,933
16.28
10.87
5.07
5.01
4.96
4.84
3.62
2.95
2.80
2.64
1.90
1.88
1.49
1.45
1.01
1.00
0.86
0.81
0.70
0.68
70.82
Number
on issue
Number
of holders
8,840,000
37,000,000
8
24
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
There are no other classes of equity securities.
On market buy-back
There is no current on market buy back
58