UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT
TO
RULE 13a-16 OR 15d-16 OF THE SECURITIES
EXCHANGE ACT OF 1934
For the month of August 2015
Commission File Number: 001-35022
Mission NewEnergy Limited
(Translation of registrant’s name
into English)
Unit B9, 431 Roberts Rd
Subiaco, Western Australia 6008
Australia
(Address of principal executive office)
Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F þ
Form 40-F ¨
Indicate by check mark if the registrant
is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant
is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing
the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to
Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨
No þ
If “Yes” is marked, indicate
below the file number assigned to the registrant in connection with Rule 12g3-2(b):
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
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Mission NewEnergy Limited |
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By: |
/s/ Guy Burnett |
|
Name: |
Guy Burnett |
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Title: |
Chief Financial Officer and Company Secretary |
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Date: August 31, 2015 |
EXHIBIT INDEX
Exhibit Number |
|
Description |
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99.1 |
|
2015 Audited Financial Statements |
Exhibit 99.1
|
Mission NewEnergy Limited
(ACN: 117 065 719)
Tempo Offices, Unit B9
431 Roberts Rd, Subiaco
Western Australia, 6008
Tel: +61(0)8
– 6313 3975 |
ONE
MISSION : ONE ENERGY : NEW ENERGY |
Fax: +61(0)8 – 6270 6339 e-mail: info@missionnewenergy.com |
31st August 2015
Results for announcement to
the market
Preliminary Final Report of
Mission NewEnergy Limited
for the year ended 30 June 2015
ABN 63 117 065 719
This Preliminary Final report
is provided to the Australian Securities Exchange (ASX) under Listing Rule 4.3A.
Current Reporting Period: |
Year ended 30 June 2015 |
|
|
Previous Corresponding Period: |
Year ended 30 June 2014 |
This report should be read in conjunction with the most recent
annual report.
Mission NewEnergy Limited
For the Year Ended 30 June 2015
Revenue and Net Profit/(Loss)
| |
| |
Percentage | | |
| |
Amount | |
| |
| |
Change | | |
| |
$ | |
| |
| |
% | | |
| |
| |
| |
| |
| | |
| |
| |
Revenue from ordinary activities | |
Down | |
| 25 | % | |
to | |
| 7,270,759 | |
| |
| |
| | | |
| |
| | |
EDITDA | |
Up | |
| 41 | % | |
to | |
| 6,010,389 | |
| |
| |
| | | |
| |
| | |
Profit/(loss) from ordinary activities after tax attributable to members | |
Up | |
| 788 | % | |
to | |
| 4,187,192 | |
| |
| |
| | | |
| |
| | |
Net profit/(loss) attributable to members | |
Up | |
| 2,692 | % | |
to | |
| 28,357,244 | |
Net Tangible Assets Per Security | |
2015 $ per share | | |
2014 $ per share | |
| |
| | |
| |
Net tangible asset (deficit)/surplus per security | |
| 0.2 | | |
| (0.4 | ) |
Dividends (Distributions) |
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Franked |
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Amount per |
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amount per |
|
|
security |
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Security |
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|
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Final dividend |
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Nil |
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Nil |
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Interim dividend |
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Nil |
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Nil |
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Record date for determining entitlements to the dividend: |
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N/A |
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N/A |
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Mission NewEnergy Limited
(ACN: 117 065 719)
Tempo Offices, Unit B9
431 Roberts Rd, Subiaco
Western Australia, 6008
Tel: +61(0)8
– 6313 3975 |
ONE MISSION : ONE ENERGY : NEW ENERGY |
Fax: +61(0)8
– 6270 6339
e-mail:
info@missionnewenergy.com |
Brief explanation of Revenue, Net Profit/(Loss) and Dividends
(Distributions)
Summary of results
Sales revenue amounted to $NIL (2014: $NIL)
and other income for the Group amounted to $7,270,759 (2014: $9,683,586). Net cash generated / (used) in operating activities was
$391,464 (2014: $2,945,460 used). The net profit / (loss) of the Group amounted to $28,357,244 (2014: $1,077,231 loss).
Review of Operations
Biodiesel Refining
Mission’s 250,000 tpa refinery
In September 2014 the Company announced
that its Malaysian subsidiary, M2 Capital Sdn Bhd (M2 Capital) has entered into a Joint Venture and Shareholders Agreement with
Felda Global Ventures Downstream Sdn Bhd (“FGVD”), a subsidiary of Felda Global Ventures Holdings Berhad, and Benefuel
International Holdings S.A.R.L (Benefuel) to establish a new joint venture Company, to own and operate the 250,000 tpa refinery
at Kuantan Port belonging to Mission’s Malaysian subsidiary, Mission Biofuels Sdn Bhd (MBSB) to be retrofitted using Benefuel
US proprietary “ENSEL®” technology. Pursuant to the joint venture, Mission’s Malaysian subsidiary,
Mission Biofuels Sdn Bhd (“MBSB”) simultaneously signed a Plant Purchase Agreement to sell its 250,000 tpa biodiesel
refinery to the joint venture Company for a sum of US$22.5 million. The Company, through its subsidiary M2 Capital Sdn Bhd, has
re-invested part of the proceeds for a 20% equity stake in the joint venture company, with the balance of the equity held by FGVD
(60%) and Benefuel (20%).
Reversal of impairment of refinery assets
With the sale of the refinery, the Company
has reversed the previous impairment value to reflect the sale value of the 250,000 tpa refinery.
Downstream Palm Oil Joint Venture Project
The Company’s 85% owned subsidiary,
Oleovest Pte Ltd had registered a request for arbitration with the Indonesian Arbitration Board (BANI) to seek compensation from
the Indonesian government owned palm plantation company, PT Nusantara III (PTPN111) for breach of its material and non-material
obligations under its joint venture agreement (JVA) with Oleovest. BANI awarded US$3,360,000 to Oleovest during the financial period.
Capital Markets and Funding
During the period the Company’s note
holders agreed to the settlement of the entire outstanding amount of convertible notes of approximately A$25 million in exchange
for US$2 million (approximately A$2.3 million) from the proceeds of the Indonesian Arbitration settlement and US$12 million (approximately
A$15.4 million) from the proceeds of the sale of the refinery, 100% of Mission’s ownership in Oleovest Pte Ltd and Mission
Agro Energy Ltd and a contingent claim on any proceeds returned to Mission from contractual deposits held back from the sale of
the refinery.
In one of the final elements of completing
its corporate and financial restructure, the Company has reduced its share capital and historic losses by A$110 million, as per
the Shareholder approval at the AGM in October 2014.
|
Mission NewEnergy Limited
(ACN: 117 065 719)
Tempo Offices, Unit B9
431 Roberts Rd, Subiaco
Western Australia, 6008
Tel: +61(0)8
– 6313 3975 |
ONE MISSION : ONE ENERGY : NEW ENERGY |
Fax: +61(0)8
– 6270 6339
e-mail:
info@missionnewenergy.com |
Discontinued Operations
As part of the convertible note settlement
Oleovest PL and Mission Agro Energy Ltd have been deconsolidated with the results reflected as discontinued operations.
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Information on Audit or Review |
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ASX Append
4E.15 |
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This preliminary final report is based on accounts to which one of the following applies. |
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X |
The accounts have been audited |
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The accounts have been subject to review |
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The accounts are in the process of being audited or subject to review |
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The accounts have not yet been audited or reviewed |
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ASX Append
4E.16 |
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Description of likely dispute or qualification if the accounts have not yet been audited or subjected to review or are in the process of being audited or subjected to review. |
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Not applicable |
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ASX Append
4E.17 |
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Description of dispute or qualification if the accounts have been audited or subjected to review. |
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Not applicable |
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Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
Mission NewEnergy Limited
Financial Report for the Year Ended
30 June 2015
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
DIRECTORS REPORT
1. |
Directors details 3 |
2. |
Advisor to the Board 7 |
3. |
Meetings of Directors 7 |
4. |
Insurance premium paid for Directors and Officers 8 |
5. |
Unissued Shares under option 8 |
6. |
Remuneration Report 8 |
7. |
Principal Activities 15 |
8. |
Operating and Financial Review 15 |
9. |
Review of Operations 15 |
10. |
Financial Position 16 |
11. |
Dividends Paid or Recommended 16 |
12. |
Events subsequent to reporting date 16 |
13. |
Significant Changes in State of Affairs 16 |
14. |
Likely developments, Prospects and Business Strategies 17 |
15. |
Proceedings on behalf of the Company 17 |
16. |
Non audit services 17 |
17. |
Environmental regulations 17 |
18. |
The lead auditor’s independence declaration 18 |
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AUDITORS INDEPENDENCE DECLARATION 19 |
FINANCIAL STATEMENTS 20 |
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
DIRECTORS’ REPORT
Your Directors’ present their report
on the Company and its controlled entities for the year ended 30 June 2015.
The names of Directors’ in office
at any time during or since the end of the year are:
Datuk Mohamed Zain Bin Mohamed Yusuf |
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Chairman (Independent Non-executive) |
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Qualifications |
— |
Bachelor of Economics (Hons.) (University of Western Australia) |
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Experience |
— |
Datuk Zain has over 25 years experience
in Shell Malaysia. From 1986 to 1988, he was seconded to Shell International, United Kingdom and worked as Marketing Consultant
in Shell UK and Shell Caribbean. Upon his return to Malaysia, he was made Marketing Director of Shell Malaysia. He subsequently
served on the Board of Directors of Shell Group Malaysia as Executive Director, with responsibility over a total of 18 group subsidiaries
involved in both the upstream and downstream petrochemical business.
Datuk Zain is a Director of WSA Group of
Companies and Chairman of Malacca Securities Sdn Bhd, past chairman of the Malaysian Australia Business Council and served as a
Director of Airod Sdn Bhd, NADI Bhd, Faber Group Bhd, PJ Bumi Bhd and as chairman of Confoil (Malaysia) Bhd, a Malaysian - Australian
joint venture company in Malaysia.
Board member since 24 January 2006.
Appointed Chairman on 1 July 2014. |
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Special Responsibilities |
— |
Datuk Zain is a member of the Audit and Risk Management Committee and Chairman of the Nomination and Remuneration Committee. |
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Directorships held in other listed entities |
— |
Chairman of Malacca Securities Sdn Bhd (since November 2000), resigned as a Director from Faber Group Bhd in May 2013. |
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Admiral (Ret) Tan Sri Dato’ Sri Mohd Anwar bin Haji Mohd Nor |
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Director (Independent Non-executive) |
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Qualifications |
— |
Master of Science in Engineering Business Management (University of Warwick, U.K) |
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
Experience |
— |
Tan Sri Anwar made history in April 2005
when he became the first naval chief in the Malaysian Armed Forces (MAF) to ascend to its highest military office of the Chief
of Defence Force, commanding workforce strength of nearly 130,000. With nearly 40 years of military experience with the Royal Malaysian
Navy (RMN) and MAF, he has acquired a massive portfolio of achievements.
His outstanding performance extends
to the academic arena as well inclusive of stints at the Naval Staff College (Rhode Island, USA), Navigation and
Direction Course and Principal Warfare Officers Course (HMS DRYAD, United Kingdom). He also holds a Master of Science
in Engineering Business Management from the University of Warwick, United Kingdom. Tan Sri Anwar has received
numerous commendations, awards and accolades in recognition of his talents, and was bestowed the Panglima Mangku
Negara (PMN), which carries the title of Tan Sri, by His Majesty the Yang Di-Pertuan Agong (the King of Malaysia). He has
also received distinguished medals from foreign governments such as the Ordre National De La Legion D'Honneur from France and
the Command of the Legion of Merit from the US. Most recently he was appointed as a Senator to the Upper House of
Malaysia.
Board member since 25 June 2009. |
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|
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Special Responsibilities |
— |
Tan Sri Anwar is Chairman of the Audit and Risk Management Committee and a member of the Nomination and Remuneration Committee. |
|
|
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Directorships held in other listed entities |
— |
Chairman of the armed forces fund and Chairman of Titijaya Land Bhd. |
Mr. Mohd Azlan bin Mohammed |
|
Director (Non-Independent Non-executive) |
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Qualifications |
— |
Bachelor of Arts Degree (Honours) majoring in Accounting and Business. |
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Experience |
— |
Mr Mohd Azlan, is currently the Managing Director of Wasco Oilfield Services Sdn Bhd, which is principally involved in the provision of oil and gas services internationally. Wasco is a subsidiary of Bursa Malaysia listed Wah Seong Corporation Berhad and also sits on the board of its various subsidiaries. |
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
|
|
He is also the Chairman of Indra Technology
Solutions Malaysia Sdn Bhd, a subsidiary of Indra Sistemas, S.A. of Spain.
In May 2015, Mohd Azlan was appointed as
Independent Chairman of Multi-Purpose Generali Insurans Bhd, a leading Malaysian insurance company.
Board member from 15 September 2014. |
|
|
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Special Responsibilities |
— |
Mohd Azlan is a member of the Audit and Risk Management Committee and the Nomination and Remuneration Committee. |
|
|
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Directorships held in other listed entities |
— |
Nil |
|
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Dato’ Nathan Mahalingam |
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Managing Director/Group Chief Executive Officer (Executive) |
|
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Qualifications |
— |
Bachelor of Economics (Hons.) (University of Malaya) and MBA (Murdoch University, Western Australia). |
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Experience |
— |
Mr Mahalingam has over 25 years of management
experience in banking and finance, heavy industries and infrastructure development. He has successfully implemented numerous start-up
manufacturing operations in Malaysia during his tenure of service with a large Malaysian conglomerate. Between 1995 and 2000, he
served as project director in the Westport Group, developers of one of Malaysia's largest privatised port and transhipment facility.
Board member since incorporation of the
Company (17 November 2005). |
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Performance Rights |
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Nil |
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Special Responsibilities |
— |
Managing Director/Group Chief Executive Officer of the company. |
|
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Directorships held in other listed entities |
— |
Nil |
|
|
|
Mr Guy Burnett |
|
Finance Director/Chief Financial Officer (Executive) and Company Secretary. |
|
|
|
Qualifications |
— |
Member of the Institute of Chartered Accountants Australia |
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
Experience |
— |
Mr Burnett, a Chartered Accountant, has
had an impressive career as a Finance Professional in several large corporations. After finishing as a CA trainee and Audit manager,
Mr Burnett joined Umgeni Water, a large corporatised water utility in South Africa, as its Financial Accountant. He was promoted
to the position of Financial Controller in mid 1999. He left Umgeni in 2004 to migrate to Western Australia with his family.
Prior to joining the Company Mr Burnett
was Manager: Corporate Accounting & Tax with Western Power. Prior to this Mr Burnett worked as Acting Financial Accountant
for Water Corporation and served as a Manager with KPMG where he played a key role in assisting KPMG's clients in rolling out their
IFRS accounting implementations. Mr Burnett has also served on the Board of the Sorrento Surf Life Saving Club.
Board member since 6 April 2009. |
|
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Directorships held in other listed entities |
— |
Nil |
|
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Mr James Garton |
|
Executive Director – Corporate Finance |
|
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|
Qualifications |
— |
Bachelor of Business Administration - Finance, Bachelor of Science – Economics and Master of Applied Finance |
|
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Experience |
— |
Mr. Garton has over 15 years experience
in corporate finance, working in investment banking. Prior to his current role, James was has been Head of Corporate Finance and
Mergers and Acquisitions for Mission since 2008. Mr. Garton joined Mission NewEnergy from U.S. investment bank, FBR Capital Markets,
where he was Vice President, Investment Banking. Prior to FBR Capital Markets, he worked in corporate finance and equity capital
markets with Australian firm BBY Limited. Before BBY, Mr. Garton worked in private equity with the Australian advisory firm Investment
Capital Limited.
Board member since 1 July 2014. |
|
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Special Responsibilities |
— |
Nil |
|
|
|
Directorships held in other listed entities |
— |
Nil |
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
On 16th December 2014 the Company
appointed Dato’ Mohamed Nizam bin Abdul Razak as Advisor to the Board. Dato’ Nizam Razak, a Malaysian, was attached
to Bumiputra Merchant Bankers Bhd, an investment bank, from 1981 to 1984 and to PB Securities Sdn Bhd, a stockbroking firm from
1984 to 1998. He is an independent and Non-Executive Director of Yeo Hiap Seng Limited and Mamee-Double Decker (M) Sdn Bhd. He
also serves on the board of several private limited companies engaged in a wide range of activities and is actively involved in
several charitable foundations such as Noah Foundation, Hong Leong Foundation, National Children Welfare Foundation, Yayasan Cemerlang,
Yayasan Rahah and Yayasan Wah Seong. In March 2012, he was appointed Pro-Chancellor of University Tun Abdul Razak and in July 2013,
he was appointed Chancellor of Unitar International University. In the past he has held directorships in companies involved in
a wide range of activities such as banking, insurance, mutual funds, steel, auto parts manufacturing, property development, retail
and food production. Dato’ Nizam graduated in 1980 with a Bachelor of Arts (Oxon) degree in Politics, Philosophy and Economics
from the Oxford University, United Kingdom.
During the financial year, 11 meetings
of Directors (including Board sub committees) were held.
Attendance by each Director during the
year were as follows:
| |
| |
Committee Meetings |
| |
Directors’ Meetings | |
Audit & Risk
Management Committee | |
Nomination &
Remuneration
Committee |
| |
A | |
B | |
A | |
B | |
A | |
B |
Datuk Mohamed Zain Bin Mohamed Yusuf | |
4 | |
4 | |
4 | |
4 | |
3 | |
3 |
Tan Sri Dato’ Sri Mohd Anwar bin Haji Mohd Nor | |
4 | |
4 | |
4 | |
4 | |
3 | |
3 |
Mohd Azlan | |
3 | |
3 | |
3 | |
3 | |
2 | |
2 |
Dato’ Nathan Mahalingam | |
4 | |
4 | |
- | |
- | |
- | |
- |
Mr Guy Burnett | |
4 | |
4 | |
- | |
- | |
- | |
- |
Mr James Garton | |
4 | |
4 | |
- | |
- | |
- | |
- |
A Number eligible to attend |
B Number attended |
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
| 4. | Insurance premium paid for Directors and Officers |
The Company has paid an insurance premium
in respect of a contract insuring each of the Directors of the Company named earlier in this report and the executive officers
of the Company against liabilities and expenses, to the extent permitted by law, arising from claims made against them in their
capacity as Directors and officers of the Company, other than conduct involving a wilful breach of duty in relation to the Company.
Due to confidentiality clauses contained in the insurance policy the Limit of Liability and Premium paid has not
been disclosed.
| 5. | Unissued Shares under option |
There are no unissued ordinary shares of
Mission NewEnergy Ltd under option at the date of this report.
| 6. | Remuneration Report (Audited) |
This report details the nature and amount
of remuneration for each Director of Mission NewEnergy Limited and for the key management personnel.
Remuneration policy
The remuneration policy of Mission NewEnergy
Limited is twofold:
| · | To create a remuneration structure that will allow Mission NewEnergy to attract, reward and retain
qualified Executives and Non-Executive Directors who will lead Mission NewEnergy in achieving its strategic objectives, |
| · | To provide and motivate the Executives and Non-Executive Directors with a balanced and competitive
remuneration. |
The specific objectives of
the Executive Remuneration Policy are as follows:
| · | To motivate executive management to manage and lead the business successfully and to drive strong
long-term organisational growth in line with the Group’s strategy and business objectives, |
| · | To drive successful organisational performance by incorporating an annual performance incentive
and establish longer-term performance objectives, |
| · | To further drive longer-term organisational performance through an equity-based reward structure, |
| · | To make sure that there is transparency and fairness in executive remuneration policy and practices, |
| · | To deliver a balanced solution addressing all elements of total pay [base-pay, incentive pay (cash
and equity) and benefits], |
| · | To make sure appropriate superannuation arrangements are in place for executives, and |
| · | To contribute to appropriate attraction and retention strategies for executives. |
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
The specific objectives of the Non-Executive
Director remuneration policy are as follows:
| · | To attract and retain appropriately qualified and experienced Directors, |
| · | To remunerate Directors fairly having regard to their responsibilities, including providing leadership
and guidance to management, |
| · | To build sustainable shareholder value by encouraging a longer-term strategic perspective, by not
linking fees to the results of the Mission NewEnergy Group of Companies, |
| · | The Non-Executive Directors do not receive performance based pay, and |
| · | The maximum annual aggregate Director’s fee pool limit is $500,000 and was approved by shareholders
at a general meeting on 19 October 2009. |
Base fees (excluding superannuation) | |
1 July 2014 to 30 June 2015 | | |
1 July 2013 to 30 June 2014 | |
Chairman | |
| 42,500 | | |
| 75,000 | |
Deputy chairman | |
| 24,000 | | |
| 56,250 | |
Non-executive Board member | |
| 24,000 | | |
| 37,500 | |
Chairman of the Audit and Risk Committee | |
| NIL | | |
| NIL | |
Chairman of the Nomination and Remuneration Committee | |
| NIL | | |
| NIL | |
The Board of Mission NewEnergy Limited
believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best executives and Directors
to run and manage the Group, as well as create goal congruence between Directors, executives and shareholders.
The Board’s policy for determining
the nature and amount of remuneration for board members and senior executives of the Group is as follows:
Remuneration Governance
The remuneration policy, setting the terms
and conditions for the Executive Directors and other senior executives, was developed by the Nomination and Remuneration Committee
and approved by the Board.
All executives are entitled to receive
a base salary (which is based on factors such as length of service and experience), superannuation, fringe benefits, options and
performance incentives.
The Nomination and Remuneration Committee
review the executive packages annually by reference to the Group’s performance, executive performance and comparable information
from industry sectors.
The Directors and executives receive a
superannuation guarantee contribution (or equivalent) required by the relevant government authority and do not receive any other
retirement benefits.
All remuneration paid to Directors and
executives is valued at the cost to the Company and expensed. Shares given to Directors and executives are valued as the difference
between the market price of those shares and the amount paid by the Director or executive. Options are valued using an appropriate
option pricing methodology.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
In considering the Group’s performance
and benefits for shareholder wealth, the Board have regard to the following indices in respect of the current financial year and
the previous four financial years:
| |
2015 | | |
2014 | | |
2013 | | |
2012 | | |
2011 | |
Revenue ($000) | |
| 7,271 | | |
| 9,684 | | |
| 8,413 | | |
| 38,202 | | |
| 16,426 | |
PBIT before discontinued operations ($000) | |
| 4,187 | | |
| (609 | ) | |
| 10,774 | | |
| (3,427 | ) | |
| (21,225 | ) |
Profit/(loss) after income tax - owners ($000) | |
| 28,357 | | |
| (1,077 | ) | |
| 10,043 | | |
| (6,130 | ) | |
| (21,670 | ) |
Basic earnings/(loss) per share – owners ($) | |
| 0.91 | | |
| (0.08 | ) | |
| 0.96 | | |
| (0.69 | ) | |
| (3.50 | ) |
Dividends | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Share price ($) | |
| 0.04 | | |
| 0.008 | | |
| 0.005 | | |
| 0.15 | | |
| 4.9 | |
Current executive remuneration does not
have a performance element included. A Company retention plan was concluded during the financial year under review.
The board policy is to remunerate Non-Executive
Directors at market rates for time, commitment and responsibilities. The Nomination and Remuneration Committee determines payments
to the Non-Executive Directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent
external advice was not sought during the financial year. 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 and is allocated to each non-executive Director
based on responsibility, which include the Chairman of the Board, Chairman of the Audit and Risk Committee and Chairman of the
Nomination and Remuneration Committee. Fees for non-executive Directors are not linked to the performance of the Group.
Key Management Personnel
The Company has defined the following classes
of people as key management personnel:
| · | Management reporting directly to the Group Chief Executive Officer |
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
Details of remuneration for the year
ended June 2015
The remuneration for the key management
personnel of the group during the year was as follows:
2015
| |
Salary | | |
Non-cash Benefits | | |
Long term Bonus | | |
Share based payments | | |
Post employment Super
Contribution | | |
Total | | |
Proportion of remuneration performance related | |
| |
$ | | |
$ | | |
$ | | |
$ | | |
$ | | |
$ | | |
% | |
Non-Executive Directors | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Datuk Zain Yusuf | |
| 42,500 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 42,500 | | |
| - | |
Admiral (Ret) Tan Sri Dato’ Sri Mohd Anwar bin Haji Mohd Nor | |
| 24,000 | | |
| - | | |
| - | | |
| - | | |
| 184 | | |
| 24,184 | | |
| - | |
Mohd Azlan | |
| 19,000 | | |
| - | | |
| - | | |
| - | | |
| 144 | | |
| 19,144 | | |
| - | |
Total Non-executive Directors | |
| 85,500 | | |
| - | | |
| - | | |
| - | | |
| 328 | | |
| 85,828 | | |
| | |
Dato’ Nathan Mahalingam | |
| 291,625 | | |
| - | | |
| 50,000 | | |
| 50,000 | | |
| - | | |
| 391,625 | | |
| 26 | % |
Mr Guy Burnett | |
| 216,121 | | |
| 3,879 | | |
| 50,000 | | |
| 50,000 | | |
| 20,900 | | |
| 340,900 | | |
| 29 | % |
Mr. James Garton1 | |
| 200,000 | | |
| - | | |
| 50,000 | | |
| 50,000 | | |
| 19,000 | | |
| 319,000 | | |
| 30 | % |
TOTAL KEY MANAGEMENT PERSONNEL | |
| 793,246 | | |
| 3,879 | | |
| 150,000 | | |
| 150,000 | | |
| 40,228 | | |
| 1,137,353 | | |
| | |
1
Mr. Garton was appointed as a Director on 1 July 2014.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
2014
| |
Salary | | |
Non-cash Benefits | | |
Short term Bonus | | |
Share based payments | | |
Post employment Super Contribution | | |
Total | | |
Proportion of remuneration performance related | |
| |
$ | | |
$ | | |
$ | | |
$ | | |
$ | | |
$ | | |
% | |
Non-Executive Directors | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Mr Dario Amara2 | |
| 75,000 | | |
| - | | |
| - | | |
| - | | |
| 6,906 | | |
| 81,906 | | |
| - | |
Datuk Zain Yusuf | |
| 56,250 | | |
| - | | |
| - | | |
| - | | |
| 867 | | |
| 57,117 | | |
| - | |
Mr. Peter Torre3 | |
| 40,875 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 40,875 | | |
| - | |
Admiral (Ret) Tan Sri Dato’ Sri Mohd Anwar bin Haji Mohd Nor | |
| 37,500 | | |
| - | | |
| - | | |
| - | | |
| 607 | | |
| 38,107 | | |
| - | |
Mr Arun Bhatnagar4 | |
| 25,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 25,000 | | |
| - | |
Total Non-executive Directors | |
| 234,625 | | |
| - | | |
| - | | |
| - | | |
| 8,380 | | |
| 243,005 | | |
| - | |
Dato’ Nathan Mahalingam | |
| 292,415 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 292,415 | | |
| - | |
Mr Guy Burnett | |
| 218,000 | | |
| 2,000 | | |
| - | | |
| - | | |
| 20,257 | | |
| 240,257 | | |
| - | |
Total Executive Directors | |
| 510,415 | | |
| 2,000 | | |
| - | | |
| - | | |
| 20,257 | | |
| 532,672 | | |
| - | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Key management personnel | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Mr Samsudeen Ganny5 | |
| 120,608 | | |
| - | | |
| 105,000 | | |
| - | | |
| 14,681 | | |
| 240,289 | | |
| 43.7 | % |
Mr James Garton (Group Head of Corporate Finance) | |
| 200,000 | | |
| - | | |
| - | | |
| - | | |
| 18,500 | | |
| 218,500 | | |
| - | |
TOTAL KEY MANAGEMENT PERSONNEL | |
| 1,065,648 | | |
| 2,000 | | |
| 105,000 | | |
| - | | |
| 61,818 | | |
| 1,234,466 | | |
| - | |
There were no equity settled performance rights
vested or unexercised in the most recent two years.
2Mr.
Amara retired on 1 July 2014.
3Mr.
Torre retired on 1 July 2014.
4Mr.
Bhatnagar resigned on 28 February 2014.
5Mr
Ganny resigned from the group on 30 June 2014.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
Employment contracts of Directors and senior
executives
Non-Executive Directors have no service
contract with Mission NewEnergy Ltd. Their compensation for the year ended 30 June 2015 and future years is based on market-related
compensation and there is no agreement by Mission NewEnergy Ltd to pay a pre-determined compensation during the year ended 30 June
2014 and future financial years. There is also no agreement by Mission NewEnergy Ltd to pay any pre-determined amounts in the event
of termination.
The employment conditions of the Group
Chief Executive Officer, Chief Financial Officer and the Head of Corporate Finance are formalised in contracts of employment, which
the Directors consider to be on reasonable and commercial terms.
The employment agreements contain the following
terms and conditions:
| · | standard leave entitlements; fixed terms of 2 years, with Mission NewEnergy able to terminate the
employment prior to the expiration of the maximum term by giving 2 months’ notice and; |
| - | a payment equivalent to 12 months salary for the Group Chief Executive Officer; and |
| - | a payment equivalent to 3 months’ salary for the Chief Financial Officer and Head of Corporate
Finance, except in the case where termination is as a result of a change in control in the business where it will be 12 months’
salary; |
| · | employee able to do the same by giving 2 months notice; |
| · | rights of summary dismissal are preserved; |
| · | total remuneration is subject to yearly review, but an increase is not guaranteed; |
| · | no provision for automatic bonus payments; |
| · | no probationary periods; and |
| · | cascading post employment restraints. |
| · | a retention plan was approved by the Board in April 2013 where the CEO, CFO and Head of Corporate
Finance will receive, upon continued employment, a proportion of their annual salary based various criteria. At the 2014 Annual
General meeting shareholders approved an amendment to the retention plan amounts whereby a cash value and an issue of company shares
were to be made upon the criteria being met. All criteria were met and the appropriate retention amount paid and shares issued.
At 30 June 2015 there is no retention plan in place. |
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
The following table reflects the key
terms of the employment agreements:
Name |
|
Term of agreement |
|
Base salary
including
superannuation |
|
Termination benefit |
Nathan Mahalingam
Chief Executive Officer |
|
Terminates 30 June 2017 |
|
A$290,000 |
|
12 months salary |
Guy Burnett
Chief Financial Officer |
|
Terminates 30 June 2017 |
|
A$240,900 |
|
3 or 12 months salary (refer to commentary above) |
James Garton
Head of Corporate Finance |
|
Terminates 30 June 2017 |
|
A$219,000 |
|
3 or 12 months salary (refer to commentary above) |
Ordinary shares held by key management
personnel
| |
Balance 01/07/2014 | | |
Acquired | | |
Issued pursuant to retention plan | | |
Disposed | | |
Balance 30/06/2015 | |
Datuk Zain Yusuf | |
| - | | |
| | | |
| - | | |
| - | | |
| - | |
Admiral (Ret) Tan Sri Dato’ Sri Mohd Anwar bin Haji Mohd Nor | |
| - | | |
| | | |
| - | | |
| - | | |
| - | |
Mohd Azlan | |
| - | | |
| 5,000,000 | | |
| - | | |
| - | | |
| 5,000,000 | |
Dato’ Nathan Mahalingam6 | |
| 612,956 | | |
| | | |
| 5,000,000 | | |
| - | | |
| 5,612,956 | |
Guy Burnett7 | |
| 112,001 | | |
| | | |
| 5,000,000 | | |
| - | | |
| 5,112,001 | |
James Garton | |
| 112,051 | | |
| | | |
| 5,000,000 | | |
| - | | |
| 5,112,051 | |
Total | |
| 837,008 | | |
| 5,000,000 | | |
| 15,000,000 | | |
| - | | |
| 20,837,008 | |
No remuneration consultants were used during
the current or previous financial year.
There were no loans to or from key management
personnel during the reporting periods.
Voting and comments made at the company’s
2014 Annual General Meeting
Mission NewEnergy Ltd received more than
99% of “yes” votes on its remuneration report for the 2014 financial year. The Company did not receive any specific
feedback at the AGM on its remuneration report.
End of Audited Remuneration report.
6
Held personally and indirectly through Mission Equities Sdn Bhd, a company that Dato’ Mahalingam has a 34% interest in.
7
Held personally and indirectly through Mkhambathi Trust, a trust that Mr Burnett is a beneficiary of.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
The principal activities of the Group during
the financial year were:
| · | 20 % share in a 250,000 tpa Biodiesel Plant in Malaysia |
| · | Downstream Palm Oil Joint Venture Project |
| - | This venture was undertaken to establish a new downstream palm oil and oleo-chemical complex in
Indonesia. The Group was in Arbitration with the joint venture partner and in July 2014, the Indonesian Arbitration Tribunal handed
down its decision, and awarded Oleovest a sum of US$3.36 million. |
| · | Other than the items mentioned above there were no significant changes in the nature of the principal
activities during the financial year. |
| 8. | Operating and Financial Review |
Sales revenue amounted to $NIL (2014: $NIL)
and other income for the Group amounted to $7,270,759 (2014: $9,683,586). Net cash generated / (used) in operating activities was
$391,464 (2014: $2,945,460 used). The net profit / (loss) of the Group amounted to $28,357,244 (2014: $1,077,231 loss).
Biodiesel Refining
Mission’s 250,000 tpa refinery
In September 2014 the Company announced
that its Malaysian subsidiary, M2 Capital Sdn Bhd (M2 Capital) has entered into a Joint Venture and Shareholders Agreement with
Felda Global Ventures Downstream Sdn Bhd (“FGVD”), a subsidiary of Felda Global Ventures Holdings Berhad, and Benefuel
International Holdings S.A.R.L (Benefuel) to establish a new joint venture Company, to own and operate the 250,000 tpa refinery
at Kuantan Port belonging to Mission’s Malaysian subsidiary, Mission Biofuels Sdn Bhd (MBSB) to be retrofitted using Benefuel
US proprietary “ENSEL®” technology. Pursuant
to the joint venture, Mission’s Malaysian subsidiary, Mission Biofuels Sdn Bhd (“MBSB”) simultaneously signed
a Plant Purchase Agreement to sell its 250,000 tpa biodiesel refinery to the joint venture Company for a sum of US$22.5 million.
The Company, through its subsidiary M2 Capital Sdn Bhd, has re-invested part of the proceeds for a 20% equity stake in the joint
venture company, with the balance of the equity held by FGVD (60%) and Benefuel (20%).
Reversal of impairment of refinery assets
With the sale of the refinery, the Company
has reversed the previous impairment value to reflect the sale value of the 250,000 tpa refinery.
Downstream Palm Oil Joint Venture Project
The Company’s 85% owned subsidiary,
Oleovest Pte Ltd had registered a request for arbitration with the Indonesian Arbitration Board (BANI) to seek compensation from
the Indonesian government owned palm plantation company, PT Nusantara III (PTPN111) for breach of its material and non-material
obligations under its joint venture agreement (JVA) with Oleovest. BANI awarded US$3,360,000 to Oleovest during the financial period.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
Capital Markets and Funding
During the period the Company’s note
holders agreed to the settlement of the entire outstanding amount of convertible notes of approximately A$25 million in exchange
for US$2 million (approximately A$2.3 million) from the proceeds of the Indonesian Arbitration settlement and US$12 million (approximately
A$15.4 million) from the proceeds of the sale of the refinery, 100% of Mission’s ownership in Oleovest Pte Ltd and Mission
Agro Energy Ltd and a contingent claim on any proceeds returned to Mission from contractual deposits held back from the sale of
the refinery.
In one of the final elements of completing
its corporate and financial restructure, the Company has reduced its share capital and historic losses by A$110 million, as per
the Shareholder approval at the AGM in October 2014.
Discontinued Operations
As part of the convertible note settlement
Oleovest PL and Mission Agro Energy Ltd have been deconsolidated with the results reflected as discontinued operations.
The Group realised an operating profit
for the year ended 30 June 2015 of $28,357,244 (2014: $1,077,231 loss), with net cash generated in operating activities of 391,464
(2014: $2,945,460 used). At reporting date, the current assets less current liability surplus were $ 2,999,383 (2014: $3,726,155)
and a net asset surplus of $6,769,556 (2014: $11,351,221 deficiency). The net asset deficiency in 2014 was primarily as a result
of the impairment of the majority of the refinery assets during previous financial years (refer to note 5).
| 11. | Dividends Paid or Recommended |
No dividends have been paid or declared
for payment.
| 12. | Events subsequent to reporting date |
Other than the matters mentioned below,
there have been no significant subsequent events up until the date of signing this Financial Report.
On 5 August 2015 the Company announced
that the ongoing dispute with KNM Process Systems Sdn Bhd (KNM) has been amicably settled. The material terms of the settlement
are that Mission will pay to KNM A$4m, being the amount put aside by Mission upon the sale of Mission’s 250,000 tpa refinery
in February 2015, pursuant to a consent order agreed to by Mission and KNM earlier. Both parties have agreed to withdraw all other
claims and counter claims and will discontinue all legal actions against each other.
| 13. | Significant Changes in State of Affairs |
There have been no significant changes
to the state of affairs up to the date of signing this Financial Report.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
| 14. | Likely developments and expected results of operations |
The Company is focused on maximising stakeholder
value through operation or divestment of assets.
In addition to its interest in the new
Malaysian joint venture Company, the Company will continue to look at other opportunities and projects to enhance shareholder value,
including potential reverse merger opportunities.
| 15. | Proceedings on behalf of the Company |
No person has applied for leave of Court
to bring proceedings on behalf of the Company or 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 any part of those proceedings. The Company was not a party to any such
proceedings during the year.
The Board of Directors, in accordance with
advise from the audit and risk committee, is satisfied that the services disclosed below did not compromise the external auditor’s
independence for the following reasons:
| · | All non-audit services are reviewed and approved by the audit and risk committee prior to commencement
to ensure they do not adversely affect the integrity and objectivity of the auditor, and |
| · | The nature of the services provided does not compromise the general principles relating to auditor
independence in accordance with APES 110: Code of Ethics for professional Accountants set by the Accounting Professional and Ethics
Standards Board. |
The Group’s auditors have not provided
other assurance or non-assurance services during the year. Refer to Note 10 for details of amounts paid to the Group’s auditors
during the year.
| 17. | Environmental regulations |
Mission NewEnergy Ltd operations are not
subject to any particular or significant environmental regulation under a law of the Commonwealth or of a State or Territory in
Australia.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
| 18. | The lead auditor’s independence declaration |
The lead auditor’s independence declaration,
in accordance with S307C of the Corporations Act 2001 for the year ended 30 June 2015 has been received and can be found on page
18 of the Directors’ Report.
Signed in accordance with a resolution
of the Board of Directors.
Dato’ Nathan Mahalingam
Group Chief Executive Officer
Date: 31 August 2015
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
AUDITOR’S INDEPENDENCE DECLARATION
|
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au |
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia |
DECLARATION OF INDEPENDENCE BY WAYNE BASFORD TO THE DIRECTORS
OF MISSION NEWENERGY LIMITED
As lead auditor of Mission NewEnergy Limited for the year ended
30 June 2015, I declare that, to the best of my knowledge and belief, there have been:
| 1. | No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and |
| 2. | No contraventions of any applicable code of professional conduct in relation to the audit. |
This declaration is in respect of Mission NewEnergy Limited
and the entities it controlled during the period.
Wayne Basford
Director
BDO Audit (WA) Pty Ltd
Perth, 31 August 2015
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national
association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited
by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee,
and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional
Standards Legislation other than for the acts or omissions of financial services licensees
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
FINANCIAL STATEMENTS |
|
CONSOLIDATED STATEMENT OF PROFIT OR LOSS |
22 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
24 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
25 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
27 |
CONSOLIDATED STATEMENT OF CASH FLOWS |
29 |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
30 |
1. Nature of operations and general information |
30 |
2. Basis of preparation |
30 |
3. Statement of Significant Accounting Policies |
31 |
4. New standards and interpretations not yet adopted |
38 |
5. Critical Accounting Estimates and Judgments |
39 |
6. Determination of fair value |
40 |
7. Sales Revenue |
41 |
8. Expenses |
41 |
9. Income Tax |
42 |
10. Auditors’ Remuneration |
43 |
11. Earnings per share |
43 |
12. Cash and cash equivalents |
43 |
13. Trade and Other Receivables |
44 |
14. Other Financial Assets |
44 |
15. Investments in subsidiaries, unconsolidated entities and associates |
44 |
16. Property Plant and Equipment |
48 |
17. Other Assets |
50 |
18. Trade and Other Payables |
50 |
19. Provisions |
50 |
20. Financial Liabilities |
51 |
21. Tax |
51 |
22. Issued Capital |
54 |
23. Reserves |
55 |
24. Capital and Leasing Commitments |
56 |
25. Contingent Liabilities and Contingent Assets |
56 |
26. Segment Reporting |
57 |
27. Cash Flow Information |
59 |
28. Related Parties |
60 |
29. Financial Instruments |
60 |
30. Parent entity information |
64 |
31. Events occurring after the reporting period |
64 |
32. Non-current assets held for sale and discontinued operations |
65 |
33. Company Details |
66 |
34. Authorisation of financial statements |
66 |
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
Directors Declaration |
67 |
INDEPENDENT AUDIT REPORT TO MEMBERS OF MISSION NEWENERGY LIMITED |
68 |
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
CONSOLIDATED STATEMENT OF PROFIT OR
LOSS
FOR THE YEAR ENDED 30 JUNE 2015
| |
Note | |
2015 | | |
2014 | |
| |
| |
$ | | |
$ | |
Sales revenue | |
7 | |
| - | | |
| - | |
Other income | |
7 | |
| 7,270,759 | | |
| 9,683,586 | |
Total revenue | |
| |
| 7,270,759 | | |
| 9,683,586 | |
Director and Employee benefits expense | |
8a | |
| (1,574,264 | ) | |
| (1,376,703 | ) |
Net foreign exchange gains/(losses) | |
| |
| 3,240,119 | | |
| (2,402,664 | ) |
Consultants’ expenses | |
| |
| (16,333 | ) | |
| (1,047 | ) |
Impairment reversal / (impairment) | |
5 | |
| (671,660 | ) | |
| (363,232 | ) |
Shareholder expenses | |
| |
| (67,589 | ) | |
| (61,577 | ) |
Travel expenses | |
| |
| (175,320 | ) | |
| (172,842 | ) |
Rental expenses | |
| |
| (10,136 | ) | |
| (1,990 | ) |
Other expenses | |
8b | |
| (1,985,187 | ) | |
| (1,042,388 | ) |
Depreciation and amortisation expenses | |
| |
| (2,874 | ) | |
| (7,412 | ) |
Finance Cost – amortisation | |
| |
| (944,123 | ) | |
| (3,199,884 | ) |
Finance Costs | |
| |
| (870,703 | ) | |
| (1,662,764 | ) |
Profit/(Loss) before income tax | |
| |
| 4,192,689 | | |
| (608,917 | ) |
Income tax (expense)/benefit | |
9 | |
| (5,497 | ) | |
| - | |
Net Profit /(Loss) before non-controlling interest | |
| |
| 4,187,192 | | |
| (608,917 | ) |
Share of net profit of associate accounted for using the equity method | |
15 | |
| 37,510 | | |
| - | |
Gain/(Loss) for the year from discontinued and deconsolidated operations | |
32 | |
| 24,132,542 | | |
| (485,200 | ) |
Profit/(Loss) for the year | |
| |
| 28,357,244 | | |
| (1,094,117 | ) |
Profit/(Loss) is attributable to: | |
| |
| | | |
| | |
Owners of Mission NewEnergy Ltd | |
| |
| 28,357,244 | | |
| (1,077,231 | ) |
Non-controlling interests | |
| |
| - | | |
| (16,886 | ) |
| |
| |
| 28,357,244 | | |
| (1,094,117 | ) |
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
Earnings per share from continuing operations attributable to the ordinary equity holders of the parent: | |
| |
| | | |
| | |
Basic earnings/(loss) per share (dollars) | |
11 | |
| 0.13 | | |
| (0.05 | ) |
Diluted earnings/(loss) per share (dollars) | |
11 | |
| 0.13 | | |
| (0.05 | ) |
| |
| |
| | | |
| | |
Earnings per share from profits attributable to the ordinary equity holders of the parent: | |
| |
| | | |
| | |
Basic earnings/(loss) per share (dollars) | |
11 | |
| 0.91 | | |
| (0.08 | ) |
Diluted earnings/(loss) per share (dollars) | |
11 | |
| 0.91 | | |
| (0.08 | ) |
The above Consolidated Statement of Profit
and Loss should be read in conjunction with the accompanying notes.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 30 JUNE 2015
| |
2015 $ | | |
2014
$ | |
Profit/(Loss) for the period | |
| 28,357,244 | | |
| (1,094,117 | ) |
Other comprehensive income | |
| | | |
| | |
Items that will be realised through profit or loss: | |
| | | |
| | |
Exchange differences on translating foreign operations | |
| (2,485,775 | ) | |
| 3,281,567 | |
Exchange gain on deconsolidation of discontinued operation | |
| - | | |
| (211,580 | ) |
Other comprehensive (loss)/income for the period net of tax | |
| (2,485,775 | ) | |
| 3,069,987 | |
Total comprehensive income for the period | |
| 25,871,469 | | |
| 1,975,870 | |
| |
| | | |
| | |
Attributable to non-controlling equity interests | |
| - | | |
| (16,886 | ) |
Attributable to owners of the parent | |
| 25,871,469 | | |
| 1,958,984 | |
Comprehensive (loss)/income from Continuing Operations | |
| 1,738,927 | | |
| 1,820,016 | |
Comprehensive income from Discontinued Operation | |
| 24,132,542 | | |
| 130,968 | |
The above Consolidated Statement of Comprehensive
Income should be read in conjunction with the accompanying notes.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
AS AT 30 JUNE 2015
| |
Note | |
2015 | | |
2014 | |
| |
| |
$ | | |
$ | |
Current Assets | |
| |
| | | |
| | |
Cash and cash equivalents | |
12 | |
| 3,150,776 | | |
| 451,953 | |
Trade and other receivables | |
13 | |
| 77,340 | | |
| 3,549,702 | |
Other financial assets | |
14 | |
| 5,580,022 | | |
| - | |
Other assets | |
17 | |
| 42,937 | | |
| - | |
Current tax assets | |
21 | |
| - | | |
| - | |
Total current assets | |
| |
| 8,851,075 | | |
| 4,001,655 | |
| |
| |
| | | |
| | |
Non-Current Assets | |
| |
| | | |
| | |
Property, plant and equipment | |
16 | |
| - | | |
| 2,821 | |
Investments accounted for using the equity method | |
15 | |
| 3,770,173 | | |
| - | |
Other Assets | |
17 | |
| - | | |
| 44,789 | |
Total non-current assets | |
| |
| 3,770,173 | | |
| 47,610 | |
Total Assets | |
| |
| 12,621,248 | | |
| 4,049,265 | |
Current Liabilities | |
| |
| | | |
| | |
Trade and other payables | |
18 | |
| 440,013 | | |
| 125,765 | |
Short-term provisions | |
19 | |
| 5,411,679 | | |
| 149,735 | |
Total current liabilities | |
| |
| 5,851,692 | | |
| 275,500 | |
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
AS AT 30 JUNE 2015
| |
Note | |
2015 | | |
2014 | |
| |
| |
$ | | |
$ | |
Non-Current Liabilities | |
| |
| | | |
| | |
Financial liabilities | |
20 | |
| - | | |
| 15,124,986 | |
Deferred tax liabilities | |
21 | |
| - | | |
| - | |
Total non-current liabilities | |
| |
| - | | |
| 15,124,986 | |
Total Liabilities | |
| |
| 5,851,692 | | |
| 15,400,486 | |
Net Assets / (Deficit) | |
| |
| 6,769,556 | | |
| (11,351,221 | ) |
| |
| |
| | | |
| | |
Equity | |
| |
| | | |
| | |
Issued capital | |
22 | |
| 523,197 | | |
| 110,523,197 | |
Reserves | |
23 | |
| 880,544 | | |
| 19,814,057 | |
(Accumulated losses) | |
| |
| 5,365,815 | | |
| (141,617,611 | ) |
Non-controlling Interests | |
15 | |
| - | | |
| (70,864 | ) |
Total Equity/(Deficiency) | |
| |
| 6,769,556 | | |
| (11,351,221 | ) |
The above Consolidated Statement of Financial
Position should be read in conjunction with the accompanying notes.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
FOR THE YEAR ENDED 30 JUNE 2015
| |
Ordinary Share Capital | | |
Retained Earnings
(Accumulated Losses) | | |
Share Based Payments
Reserve | | |
Foreign Currency Translation
Reserve | | |
Convertible Notes
Reserve | | |
Non- controlling
Interests | | |
Total | |
| |
$ | | |
$ | | |
$ | | |
$ | | |
$ | | |
$ | | |
$ | |
Balance as at 30 June 2013 | |
| 110,415,197 | | |
| (136,188,232 | ) | |
| 4,907,496 | | |
| (65,248 | ) | |
| 8,480,845 | | |
| (53,978 | ) | |
| (12,503,920 | ) |
Profit after income tax expense for the year | |
| - | | |
| (1,077,231 | ) | |
| - | | |
| - | | |
| - | | |
| (16,886 | ) | |
| (1,094,117 | ) |
Deconsolidated operations | |
| - | | |
| (211,580 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| (211,580 | ) |
Other Comprehensive income/(loss) for the period | |
| - | | |
| - | | |
| - | | |
| 3,281,567 | | |
| - | | |
| - | | |
| 3,281,567 | |
Total Comprehensive Income | |
| - | | |
| (1,288,811 | ) | |
| - | | |
| 3,281,567 | | |
| - | | |
| (16,886 | ) | |
| 1,975,870 | |
Issue of Shares | |
| 108,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 108,000 | |
Settlement of $7.5m of series 3 con note debt | |
| - | | |
| 1,003,108 | | |
| - | | |
| - | | |
| (1,934,279 | ) | |
| - | | |
| (931,171 | ) |
Settlement of Series 3 Convertible Note8 | |
| - | | |
| (5,143,676 | ) | |
| - | | |
| - | | |
| (6,546,566 | ) | |
| - | | |
| (11,690,242 | ) |
Equity portion of Series 4 Convertible Note | |
| - | | |
| - | | |
| - | | |
| - | | |
| 11,690,242 | | |
| - | | |
| 11,690,242 | |
Balance as at 30 June 2014 | |
| 110,523,197 | | |
| (141,617,611 | ) | |
| 4,907,496 | | |
| 3,216,319 | | |
| 11,690,242 | | |
| (70,864 | ) | |
| (11,351,221 | ) |
8
The Series 3 Convertible notes are deemed to be settled on conversion to Series 4 Convertible notes.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
| |
Ordinary Share Capital | | |
Retained Earnings
(Accumulated Losses) | | |
Share Based Payments
Reserve | | |
Foreign Currency Translation
Reserve | | |
Convertible Notes
Reserve | | |
Non- controlling
Interests | | |
Total | |
| |
$ | | |
$ | | |
$ | | |
$ | | |
$ | | |
$ | | |
$ | |
Profit after income tax expense for the year | |
| | | |
| 4,187,192 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 4,187,192 | |
Share of net profit of associate accounted for using the equity
method | |
| - | | |
| 37,510 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 37,510 | |
Discontinued operations | |
| - | | |
| 24,132,542 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 24,132,542 | |
Discontinued operations - NCI | |
| - | | |
| 70,338 | | |
| - | | |
| - | | |
| - | | |
| (70,338 | ) | |
| - | |
Other Comprehensive income/(loss) for the period | |
| - | | |
| - | | |
| - | | |
| (2,485,775 | ) | |
| - | | |
| - | | |
| (2,485,775 | ) |
Total Comprehensive Income | |
| 110,523,197 | | |
| (113,190,029 | ) | |
| 4,907,496 | | |
| 730,544 | | |
| 11,690,242 | | |
| - | | |
| 14,661,450 | |
Settlement of series 4 con note debt | |
| - | | |
| 3,648,348 | | |
| - | | |
| - | | |
| (11,690,242 | ) | |
| - | | |
| (8,041,894 | ) |
Share capital reduction via accumulated losses offset9 | |
| (110,000,000 | ) | |
| 110,000,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Share based payment | |
| - | | |
| - | | |
| 150,000 | | |
| - | | |
| - | | |
| - | | |
| 150,000 | |
Share based payment reserve cleared | |
| - | | |
| 4,907,496 | | |
| (4,907,496 | ) | |
| - | | |
| - | | |
| - | | |
| - | |
Balance as at 30 June 2015 | |
| 523,197 | | |
| 5,365,815 | | |
| 150,000 | | |
| 730,544 | | |
| - | | |
| - | | |
| 6,769,556 | |
The above Consolidated Statement of Changes
in Equity should be read in conjunction with the accompanying notes.
9
The share capital reduction does not affect the number of fully paid ordinary shares on issue by the Company.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2015
| |
Note | |
2015 $ | | |
2014 $ | |
Cash Flows From Operating Activities | |
| |
| | | |
| | |
Receipts from customers | |
| |
| 3,840,439 | | |
| 666,081 | |
Payments to suppliers and employees | |
| |
| (3,461,059 | ) | |
| (2,500,167 | ) |
Interest received | |
| |
| 17,529 | | |
| 1,231 | |
Finance costs | |
| |
| - | | |
| (1,112,595 | ) |
Income tax paid | |
| |
| (5,445 | ) | |
| (10 | ) |
Net cash generated / (used in) operating activities | |
27 | |
| 391,464 | | |
| (2,945,460 | ) |
| |
| |
| | | |
| | |
Cash Flows From Investing Activities | |
| |
| | | |
| | |
Purchase of property, plant and equipment | |
| |
| - | | |
| (35,211 | ) |
Proceeds and deposit from sale of assets | |
| |
| 28,894,946 | | |
| 11,024,194 | |
Release of performance bond and deposits | |
| |
| 20,843 | | |
| (1,688 | ) |
Amounts placed on deposit for legal dispute | |
| |
| (5,105,051 | ) | |
| - | |
Asset sale retention deposit | |
| |
| (354,610 | ) | |
| - | |
Payments for investment in Associate | |
| |
| (3,731,689 | ) | |
| - | |
Cash balance from deconsolidated operations | |
32 | |
| (32,648 | ) | |
| (6,517 | ) |
Net cash provided from investing activities | |
| |
| 19,691,791 | | |
| 10,980,778 | |
| |
| |
| | | |
| | |
Cash Flows From Financing Activities | |
| |
| | | |
| | |
Proceeds from share issue (net of costs) | |
| |
| - | | |
| 108,000 | |
Proceeds from borrowings | |
| |
| - | | |
| 303,479 | |
Repayments of borrowings | |
| |
| (17,730,983 | ) | |
| (9,371,693 | ) |
Net cash provided / (used by) by financing activities | |
| |
| (17,730,983 | ) | |
| (8,960,214 | ) |
Net Increase (Decrease) In Cash And Cash Equivalents | |
| |
| 2,352,272 | | |
| (924,896 | ) |
Cash and cash equivalents at beginning of the financial year | |
| |
| 451,953 | | |
| 1,419,617 | |
Effects of exchange rate fluctuations of cash held in foreign currencies | |
| |
| 346,551 | | |
| (42,768 | ) |
Cash And Cash Equivalents At End Of Financial Year | |
12 | |
| 3,150,776 | | |
| 451,953 | |
The above Consolidated Statement of Cash
Flows should be read in conjunction with the accompanying notes.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
| 1. | Nature of operations and general information |
Mission NewEnergy Limited is
a company domiciled in Australia (ACN: 117 065 719) and:
| - | listed on the ASX (MBT) with its operations in Malaysia; |
| - | that has a 20% interest in a Joint Venture owning a 250,000 tpa (approx. 75 million gallon p.a.)
biodiesel refinery which will be retrofitted to produce biodiesel from lower cost feedstock. |
Statement of compliance
The financial report is a general purpose
financial report which has been prepared in accordance with Australian Accounting Standards (AASB’s) (including Australian
interpretations) issued by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The consolidated financial
report of the Group complies with International Financial Reporting Standards (IFRSs) and Interpretations issued by the International
Accounting Standards Board (IASB). Mission NewEnergy Limited is a for-profit entity for the purpose of preparing the financial
statements.
Basis of measurement
The financial report has been prepared
on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets
and financial liabilities for which the fair value basis of accounting has been applied. All amounts shown are in Australian dollars
($A) unless otherwise stated.
The financial statements have been prepared
on a going concern basis. The ability of the Group to continue as a going concern and pay its debts as and when they fall due is
dependent on the continued support of its investors, bankers and suppliers.
The Group has applied amendments to the
Corporation Act (2001) that remove the requirement for the Group to lodge parent entity financial statements. Parent entity financial
statements have been replaced by the specific parent entity disclosures in Note 30.
Functional and Presentation currency
The consolidated financial statements are
presented in Australian Dollars. The functional currencies of the operating units are as follows:
| - | Refining operations - Malaysian Ringgit |
| - | Feedstock operations – Indian Rupee |
| - | Other – Australian Dollar. |
The Board of Directors approved this financial
report on 31 August 2015.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
| 3. | Statement of Significant Accounting Policies |
Except where stated, these accounting policies
have been consistently applied by each entity in the Group and are consistent with those of the previous year.
New, revised or amending Accounting
Standards and Interpretations adopted
The Group has applied the following
standards and amendments for the first time for their annual reporting period commencing 1 July 2014:
| · | AASB 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets, |
| · | AASB 2013-4 Amendments to Australian Accounting Standards – Novation of Derivatives and Continuation
of Hedge Accounting, |
| · | Interpretation 21 Accounting for Levies, |
| · | AASB 2014-1 Amendments to Australian Accounting Standards. |
The adoption of AASB 2013-3
had a small impact on the impairment disclosures and AASB 2014-1 has required additional disclosures in our segment note. Other
than that, the adoption of these standards did not have any impact on the current period or any prior period and is not likely
to affect future periods.
The Group also elected to adopt
the following two standards early:
| · | Amendments made to Australian Accounting Standards by AASB 2015-1 (Improvements 2012- 2014 cycle),
and |
| · | Amendments made to AASB 101 by AASB 2015-2 (Disclosure initiative). |
As
these amendments merely clarify the existing requirements, they do not affect the group’s accounting policies or any of
the disclosures.
| a. | Principles of Consolidation |
The consolidated financial statements
comprise the financial statements of Mission NewEnergy Limited and its subsidiaries, as defined in Accounting Standard AASB 127
‘Consolidated and Separate Financial Statements’. These include Mission Biofuels Sdn Bhd, Mission Agro Energy Limited,
and Oleovest PL.
During the current financial
year Mission Agro Energy Limited, and Oleovest PL have been deconsolidated from the Group financials with effect from 1 March 2015
due to an effective change in control as a result of a settlement agreement with convertible note.
A list of controlled, jointly
controlled and associate entities with details of acquisitions and disposals is contained in Note 15 to the financial statements.
All controlled entities have a 30 June financial year-end.
All inter-company balances and
transactions between entities in the Consolidated Group, including any unrealised profits or losses, have been eliminated on consolidation.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies applied by the parent
entity.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
Where controlled entities have
entered or left the Consolidated Group during the year, their operating results have been included/excluded from the date control
was obtained or until the date control ceased.
Non-controlling interests in
the equity and results of the entities that are controlled are shown as a separate item in the consolidated financial report.
The Group applies the acquisition
method in accounting for business combinations. The consideration transferred by the Group to obtain control of a subsidiary is
calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests
issued by the Group, which includes the fair value of any asset or liability arising from a contingent consideration arrangement.
Acquisition costs are expensed as incurred. The Group recognises identifiable assets acquired and liabilities assumed in a business
combination regardless of whether they have been previously recognised in the acquiree's financial statements prior to the acquisition.
Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values. Goodwill is stated after
separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of a) fair value of consideration
transferred, b) the recognised amount of any non-controlling interest in the acquiree and c) acquisition-date fair value of any
existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets. If the fair values
of identifiable net assets exceed the sum calculated above, the excess amount (i.e. gain on a bargain purchase) is recognised in
profit or loss immediately.
The charge for current income
tax expense is based on the profit/(loss) for the year adjusted for any non-assessable or disallowed items. It is calculated using
the tax rates that have been enacted or are substantially enacted by the reporting date.
Deferred tax is accounted for
using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition
of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at
the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited
in the Statement of profit or loss, except where it relates to items that may be credited directly to equity, in which case the
deferred tax is adjusted directly against equity.
Deferred income tax assets are
recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences
can be utilised.
The amount of benefits brought
to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation
legislation and the anticipation that the Group will derive sufficient future assessable income to enable the benefit to be realised
and comply with the conditions of deductibility imposed by the law.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
| d. | Property, Plant and Equipment |
Each class of property, plant
and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses.
The cost of fixed assets constructed
within the Group includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable
overheads.
Subsequent costs are included
in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and
maintenance are charged to the Statement of profit or loss during the financial period in which they are incurred.
The depreciable amount of all
fixed assets including buildings and capitalised leased assets, but excluding freehold land, is depreciated on a straight-line
basis over their useful lives commencing from the time the asset is held ready for use. Leasehold improvements are depreciated
over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.
Class of Fixed Asset |
Depreciation Rate |
Buildings |
5% |
Leasehold improvements |
10% |
Machinery and equipment |
10% |
Biodiesel Plant |
5% |
Computer equipment |
20% - 33% |
Office equipment |
10% |
Leased plant and equipment |
10% |
The assets’ residual values
and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
An asset’s carrying amount
is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable
amount.
Gains and losses on disposals
are determined by comparing proceeds with the carrying amount. These gains and losses are included in the Statement of profit or
loss.
Lease payments for operating
leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which
they are incurred.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
Recognition
Financial instruments are initially
measured at fair value on trade date, which includes transaction costs (except where the instrument is classified as ‘fair
value through profit or loss’ in which case transaction costs are expensed to profit or loss immediately), when the related
contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.
Loans and receivables
Loans and receivables are non-derivative
financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using
the effective interest rate method.
Compound financial instruments
(Convertible Notes)
Compound financial instruments
issued by the Group comprise convertible notes that can be converted to share capital at the option of the holder, and the number
of shares to be issued does not vary with changes in their fair value. The liability component of a compound financial instrument
is recognised initially at the fair value of a similar liability that does not have an equity conversion option. The equity component
is recognised initially at the difference between the fair value of the compound financial instrument as a whole and the fair value
of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in
proportion to their initial carrying amounts. Subsequent to initial recognition, the liability component of a compound financial
instrument is measured at amortised cost using the effective interest method. The equity component of a compound financial instrument
is not remeasured subsequent to initial recognition.
Interest, dividends, losses
and gains relating to the financial liability are recognised in profit or loss. On conversion, the financial liability is reclassified
to equity; no gain or loss is recognised on conversion.
Financial liabilities
Non-derivative financial liabilities
are recognised at amortised cost.
Fair value
Fair value is determined based
on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted
securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.
Impairment of financial assets
At each reporting date, the
Group assesses whether there is objective evidence that a financial instrument has been impaired. Impairment losses are recognised
in the Statement of profit or loss.
Mission NewEnergy Limited
and Controlled Entities
(ABN 63 117 065 719)
| h. | Impairment of non-financial Tangible and Intangible Assets |
At each reporting date, the
Group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those
assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s
fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s
carrying value over its recoverable amount is expensed to the Statement of profit or loss.
Impairment testing is performed
at each reporting date for goodwill and intangible assets with indefinite lives.
Where it is not possible to
estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit
to which the asset belongs.
Goodwill
Goodwill on consolidation is
initially recorded at the amount by which the purchase price for a business or for an ownership interest in a controlled entity
exceeds the fair value attributed to its net assets at date of acquisition. Goodwill is tested annually for impairment and carried
at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill
relating to the entity sold.
| j. | Foreign Currency Transactions and Balances |
Functional and presentation
currency
The functional currency of each
of the Group’s entities is measured using the currency of the primary economic environment in which that entity operates.
The consolidated financial statements are presented in Australian dollars which is the parent entity’s functional and presentation
currency.
Transaction and balances
Foreign currency transactions
are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary
items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the
exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the
date when fair values were determined.
Exchange differences arising
on the translation of monetary items are recognised in the Statement of profit or loss, except where deferred in equity as a qualifying
cash flow or net investment hedge.
Exchange differences arising
on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised
in equity, otherwise the exchange difference is recognised in the Statement of Profit or Loss.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Group companies
The financial results and position
of foreign operations whose functional currency is different from the Group’s presentation currency are translated as follows:
| - | assets
and liabilities are translated at year-end exchange rates prevailing at that reporting
date; |
| - | income
and expenses are translated at average exchange rates for the period where this is not
materially different from the rate at the date of the transaction; and |
| - | retained
earnings are translated at the exchange rates prevailing at the date of the transaction. |
Exchange differences arising
on translation of foreign operations are transferred directly to the Group’s foreign currency translation reserve in the
statement of financial position. These differences are recognised in the Statement of Profit or Loss in the period in which the
operation is disposed.
Provision is made for the Company’s
liability for employee benefits arising from services rendered by employees to reporting date. Employee benefits that are expected
to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related
on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows
to be made for those benefits.
Equity-settled compensation
Equity settled share-based
payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity settled share
share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that
will eventually vest.
| l. | Trade and Other Payables |
Trade payables and other accounts
payable are recognised when the Group becomes obliged to make future payments resulting from the purchase of goods and services.
Provisions are recognised when
the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic
benefits will result and that outflow can be reliably measured.
| n. | Cash and Cash Equivalents |
Cash and cash equivalents include
cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of 3 months
or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of
financial position.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Revenue from the sale of goods
is recognised upon the delivery of goods to customers, when reasonable certainty exists that such revenues will be realised and
the risks and rewards of ownership have been transferred.
Interest revenue is recognised
on a proportional basis taking into account the interest rates applicable to the financial assets.
Dividend revenue is recognised
when the right to receive a dividend has been established. Dividends received from associates and joint venture entities are accounted
for in accordance with the equity method of accounting.
Revenue from the rendering
of a service is recognised upon the delivery of the service to the customers
All revenue is stated net of
the amount of goods and services tax (GST).
Borrowing costs directly attributable
to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is necessary
to complete and prepare the asset for its intended use. Other borrowing costs are expensed in the period in which they are incurred.
| q. | Goods and Services Tax (GST) |
Revenues, expenses and assets
are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office.
In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.
Receivables and payables in the statement of financial position are shown inclusive of GST
Cash flows are presented in
the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed
as operating cash flows
Basic earnings per share are
calculated by dividing the profit attributable to owners of the company, excluding costs of servicing equity other than ordinary
shares, by the weighted average number of ordinary shares outstanding during the financial year.
Diluted earnings per share
adjusts the figures used in the determination of basic earnings per share to take into account the after tax effect of interest
and other financing costs associated with the dilutive potential ordinary shares, and the weighted average number of additional
ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.
Ordinary shares are classified
as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax,
from the proceeds.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
| 4. | New standards and interpretations
not yet adopted |
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 2015. The consolidated entity's assessment of the impact of these new or amended Accounting
Standards and Interpretations, most relevant to the consolidated entity, are set out below.
AASB 9 Financial Instruments and
its consequential amendments
Adoption of AASB 9 is only mandatory for
the year ending 31 December 2018. The entity has not yet made an assessment of the impact of these amendments.
AASB 15 Revenue
Adoption of AASB 9 is only mandatory for
the year ending 1 January 2017. Due to the recent release of this standard, the entity has not yet made a detailed assessment
of the impact of this standard.
AASB 2014-3 (issued August 2014) -
Amendments to Australian Accounting Standards - Accounting for Acquisitions of Interests in Joint Operations
When an entity acquires an interest in
a joint operation whose activities meet the definition of a ‘business’ in AASB 3 Business Combinations, to the extent
of its share of assets, liabilities, revenues and expenses as specified in the contractual arrangement, the entity must apply
all of the principles for business combination accounting in AASB 3, and other IFRSs, to the extent that they do not conflict
with AASB 11 Joint Arrangements. There will be no impact on the financial statements when these amendments are first adopted because
they apply prospectively to acquisitions of interests in joint operations.
AASB 2014-10 (issued December 2014)
Amendments to Australian Accounting Standards - Sale or Contribution of Assets between An Investor and its Associate or Joint
Venture
Removes the inconsistency between AASB
10 Consolidated Financial Statements and AASB 128 Investments in Associates and Joint Ventures in accounting for transactions
where a parent loses control over a subsidiary that is not a business under AASB 3 Business Combinations, by selling part of its
interest to an associate or joint venture, or by selling down part of its interest so that the remaining investment becomes an
associate or joint venture.
There will be no impact on the financial
statements when these amendments are first adopted because they apply prospectively to sales or contributions of assets occurring
after the application date.
AASB 2015-2 (issued January 2015) -
Amendments to Australian Accounting Standards - Disclosure Initiative: Amendments to AASB 101
These amendments affect presentation and
disclosures only. Therefore on first time adoption of these amendments on 1 July 2016, comparatives may need to be restated in
line with presentation and note ordering.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
| 5. | Critical Accounting Estimates
and Judgments |
The preparation of annual financial
reports requires the Board to make judgements, estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets and liabilities, income and expenses. The Board evaluates estimates and judgments
incorporated into the financial report based on historical knowledge and best available current information. Estimates assume
a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and
within the Group. Actual results may differ from these estimates Except as described below, in preparing this consolidated
financial report, the significant judgements made by management in applying the Group’s accounting policies and the key
sources of estimation uncertainty were the same as those that were applied to the consolidated financial report as at end for
the year ended 30 June 2015. During the twelve months ended 30 June 2015 management reassessed its estimates in respect
of:
Impairment of assets
The Group assesses impairment of assets
at each reporting date by evaluating conditions specific to the Group that may lead to impairment. Where an impairment trigger
exists, the recoverable amount of the asset is determined.
Credit risk of receivables
Malaysian operations
Credit risk for receivables at 30 June
2014 in the refining operations resulted from amounts recoverable from an EPCC contractor whereby the Group incurred costs during
commissioning testing which the EPCC contractor was obliged to pay. This receivable has been impaired during the current financial
period as under the terms of the mutually agreed settlement of the dispute between the Company and KNM Process Systems (see Events
Occurring after the Reporting Period, note 31), this amount will not be recovered.
Property, Plant and Equipment
Property, plant and equipment are reviewed
for impairment if there is any indication that the carrying amount may not be recoverable. Where a review for impairment is conducted,
the recoverable amount is assessed by reference to the higher of ‘value in use’ (being the net present value of expected
future cash flows of the relevant cash generating unit) and ‘fair value less costs to sell’.
Impairment of refineries
The Board reviews the carrying value of
its refinery assets at each reporting date.
During the current financial period, an
impairment reversal of the refinery has been reflected due to the sale of the refinery.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
| |
June 2015 | | |
June 2014 | |
| |
$ | | |
$ | |
Impairment of refinery assets | |
| - | | |
| 29,336 | |
Impairment of deconsolidated intercompany loans | |
| - | | |
| 288,216 | |
Impairment of receivable | |
| 671,660 | | |
| | |
Impairment of subsidiary investment | |
| - | | |
| 45,680 | |
Total | |
| 671,660 | | |
| 363,232 | |
Investments in subsidiaries
Investments held by the parent entity,
Mission NewEnergy Limited, are reviewed for impairment if there is any indication that the carrying amount may not be recoverable.
The recoverable amount is assessed by reference to the higher of ‘value in use’ (being the net present value of expected
future cash flows of the relevant cash generating unit) and ‘fair value less costs to sell’.
In line with the impairment of the carrying
value of assets in the subsidiaries, the parent entity has impaired the value of all subsidiaries to zero. This accounting adjustment
has no impact on the cash flows or the Consolidated Financial Statements of the Group. Refer to note 30: Parent Information for
further details.
Investments in associates
Investments in associates held by the
parent entity, Mission NewEnergy Limited, are reviewed for impairment if there is any indication that the carrying amount may
not be recoverable. The recoverable amount is assessed by reference to the higher of ‘value in use’ (being the net
present value of expected future cash flows of the relevant cash generating unit) and ‘fair value less costs to sell’.
The 20% shareholding of Felda Green Energy
Sdn Bhd in Malaysia is carried at cost less the groups share of losses for the reporting period (Refer to note 15).
| 6. | Determination of fair value |
A number of the Groups accounting policies
and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values
have been determined for measurement and/or disclosure purposes based on the following methods.
Share based payment transactions
The fair value of employee share based
payments is measured using the share price on grant date.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
| |
2015 | | |
2014 | |
| |
$ | | |
$ | |
Sales Revenue | |
| - | | |
| - | |
| |
| | | |
| | |
Other Income | |
| | | |
| | |
Interest income | |
| 17,907 | | |
| 1,231 | |
Gain on settlement and restructure of convertible notes | |
| 7,245,011 | | |
| 9,671,893 | |
Sundry income | |
| 7,841 | | |
| 10,462 | |
Total Other Income | |
| 7,270,759 | | |
| 9,683,586 | |
The Company successfully settled the Series
4 Convertible Notes during the period, which resulted in a non-cash gain in the profit and loss.
| |
2015 | | |
2014 | |
| |
$ | | |
$ | |
8a) Employee costs | |
| | | |
| | |
Wages and Salaries | |
| 1,369,926 | | |
| 1,329,564 | |
Contribution to defined contribution plans | |
| 54,338 | | |
| 47,137 | |
Share based payment | |
| 150,000 | | |
| - | |
| |
| 1,574,264 | | |
| 1,376,703 | |
8b) Other expenses: | |
| | | |
| | |
Audit fees | |
| 53,096 | | |
| 80,308 | |
Computer maintenance & consumables | |
| 5,670 | | |
| 3,415 | |
Communication expenses | |
| 40,209 | | |
| 47,462 | |
Insurance costs | |
| 149,578 | | |
| 170,359 | |
Legal fees | |
| 1,372,921 | | |
| 374,356 | |
Plant operating costs | |
| 293,384 | | |
| 290,470 | |
Other administrative costs | |
| 70,329 | | |
| 97,272 | |
Total | |
| 1,985,187 | | |
| 1,042,388 | |
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
| |
| |
| |
2015 | | |
2014 | |
| |
| |
| |
$ | | |
$ | |
a. | |
The components of tax expense comprise | |
| |
| | | |
| | |
| |
Current tax | |
| |
| (5,497 | ) | |
| - | |
| |
Deferred tax | |
21 | |
| - | | |
| - | |
| |
| |
| |
| (5,497 | ) | |
| - | |
b. | |
The prima facie tax on the profit (loss) from ordinary activities before income tax is reconciled to the income tax as follows: | |
| |
| | | |
| | |
| |
Accounting profit/(loss) before tax | |
| |
| 4,192,689 | | |
| (608,917 | ) |
| |
Gain / (Loss) for the year from discontinued operations | |
| |
| 24,306,392 | | |
| (155,634 | ) |
| |
Total Gain / (Loss) for the year | |
| |
| 28,499,081 | | |
| (764,551 | ) |
| |
Prima facie tax (benefit)/expense on profit/ (loss) from ordinary activities before income tax at 30% | |
| |
| 8,549,724 | | |
| (229,365 | ) |
| |
Adjusted for: | |
| |
| | | |
| | |
| |
Tax effect of: | |
| |
| | | |
| | |
| |
- overseas tax rate differential | |
| |
| (1,490,988 | ) | |
| 167,036 | |
| |
- Impairment of non-assessable item | |
| |
| (8,074,474 | ) | |
| 108,970 | |
| |
- other non-assessable items | |
| |
| 1,010,241 | | |
| (46,641 | ) |
| |
| |
| |
| (5,497 | ) | |
| - | |
| |
Add: | |
| |
| | | |
| | |
| |
Over provision for income tax in prior year | |
| |
| - | | |
| - | |
| |
Income tax attributable to entity | |
| |
| - | | |
| - | |
| |
| |
| |
| | | |
| | |
| |
The applicable weighted average effective current tax rate is as follows: | |
| |
| 0 | % | |
| 0 | % |
Deferred tax assets on temporary differences
and losses are not recognised because it is not probable that future taxable profit will be available against which the unused
tax losses can be used. Refer to note 21 for further disclosures on deferred tax assets and liabilities.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
| 10. | Auditors’ Remuneration |
| |
2015 | | |
2014 | |
| |
$ | | |
$ | |
Audit services | |
| | | |
| | |
Remuneration of the auditor of the parent entity for: | |
| | | |
| | |
- auditing or reviewing the financial reports
– BDO Audit (WA) Pty Ltd | |
| 49,725 | | |
| 61,956 | |
a. |
|
|
Reconciliation of earnings to profit
or loss |
|
|
|
|
|
|
|
|
|
Earnings used in calculation
of both ordinary and dilutive EPS |
|
|
28,357,244 |
|
|
|
(1,077,231 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
b |
|
|
Earnings used in calculation
of both ordinary and dilutive EPS for ongoing operations |
|
|
4,187,192 |
|
|
|
(608,917 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
c. |
|
|
Weighted average number of ordinary
shares outstanding during the year used in calculating basic EPS |
|
|
31,253,837 |
|
|
|
13,377,124 |
|
|
|
|
Effect of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary
shares outstanding during the year used in calculating dilutive EPS |
|
|
31,253,837 |
|
|
|
13,377,124 |
|
Diluted earnings per share exclude convertible
notes, performance rights and options that had an exercise price above the average market price during the period they existed.
All the potential ordinary shares were anti-dilutive as they were all below the conversion price. Where a loss is made, all convertible
notes, performance rights and options are excluded as the impact of including them would be to reduce the loss per share.
| 12. | Cash and cash equivalents |
| |
2015 | | |
2014 | |
| |
$ | | |
$ | |
Cash at bank and in hand | |
| 1,033,903 | | |
| 451,953 | |
Short-term bank deposits | |
| 2,116,873 | | |
| - | |
| |
| 3,150,776 | | |
| 451,953 | |
See note 29, Financial Instruments, for information
on risk exposures for cash and cash equivalents.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
| 13. | Trade and Other Receivables |
| |
2015 | | |
2014 | |
| |
$ | | |
$ | |
CURRENT | |
| | | |
| | |
Trade receivables | |
| - | | |
| - | |
Other receivables | |
| 77,340 | | |
| 3,549,702 | |
TOTAL | |
| 77,340 | | |
| 3,549,702 | |
At each reporting date, the Board assesses
the likely timing of recoverability of receivables and bases this assessment on a number of significant assumptions and estimates.
Please refer to note 5, critical accounting estimates and judgements, and note 29 for a detailed discussion around credit risk,
provisioning and age analysis of trade and other receivables.
| 14. | Other Financial Assets |
Current | |
| | |
| |
Sundry financial assets | |
345,961 | | |
- | |
Sundry financial assets (cash held in deposit) | |
| 5,234,061 | | |
| - | |
| |
| 5,580,022 | | |
| - | |
Monies received from the sale of the 250,000
tp refinery, withheld for either settlement of claims, see note 19, or to be settled as deferred consideration on settlement of
convertible notes, see note 20.
| 15. | Investments in subsidiaries,
unconsolidated entities and associates |
(a) Material subsidiaries
The Group’s principal subsidiaries
at 30 June 2015 are set out below. Unless otherwise stated, they have share capital consisting solely of ordinary shares that
are held directly by the Group, and the proportion of ownership interests held equals the voting rights held by the Group. The
country of incorporation or registration is also their principal place of business.
Oleovest PL and Mission Agro Energy Limited
have been deconsolidated from the Group financials with effect from 1 March 2015 pursuant to an agreement with the Groups convertible
note holders whom took effective control on that date.
During the financial period the Company
acquired 100% of M2 Capital Sdn Bhd, a Malaysian registered Company, which in turn owns 20% of FGV Green Energy Sdn, a Malaysian
registered Company formed to own the 250,000 tpa refinery sold by the Group during the financial period.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
A |
Controlled Entities Consolidated |
| |
| |
Country of Incorporation | |
Percentage Owned (%) | | |
Ownership interest held by non- controlling
interests | | |
|
| |
| |
| |
2015 | | |
2014 | | |
2015 | | |
2014 | | |
Principal activities |
| |
Parent Entity: | |
| |
| | | |
| | | |
| | | |
| | | |
|
| |
Mission NewEnergy Limited | |
Australia | |
| | | |
| | | |
| | | |
| | | |
|
| |
| |
| |
| | | |
| | | |
| | | |
| | | |
|
| |
Subsidiaries of Mission NewEnergy Limited: | |
| |
| | | |
| | | |
| | | |
| | | |
|
| |
Mission Biofuels Sdn Bhd | |
Malaysia | |
| 100 | | |
| 100 | | |
| | | |
| | | |
Previously held a biodiesel refinery |
| |
M2 Capital Sdn Bhd | |
Malaysia | |
| 100 | | |
| - | | |
| | | |
| | | |
Holding company for biodiesel refinery investment |
| |
| |
| |
| | | |
| | | |
| | | |
| | | |
|
| |
Mission Agro Energy Limited | |
Mauritius | |
| - | 10 | |
| 100 | | |
| | | |
| | | |
Holding company for India agro business |
| |
Oleovest PL | |
Singapore | |
| - | 11 | |
| 85 | | |
| - | | |
| 15 | | |
Holding company for Indonesia palm oil business |
| |
| |
| |
| | | |
| | | |
| | | |
| | | |
|
B. | |
Unconsolidated entities | |
| |
| | | |
| | | |
| | | |
| | | |
|
| |
PT Sinergi Oleo Nusantara | |
Indonesia | |
| - | | |
| 70 | | |
| - | | |
| 30 | | |
Palm oil processing |
C. | |
Associates | |
| |
| | | |
| | | |
| | | |
| | | |
|
| |
Felda Green Energy Sdn Bhd | |
Malaysia | |
| 20 | | |
| - | | |
| 80 | | |
| - | | |
Biodiesel refining |
10 The results from
operations within this subsidiary have been deconsolidated from 1 March 2015.
11 The results from
operations within this subsidiary have been deconsolidated from 1 March 2015.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
(b) Non controlling interests
Set out below is summarised financial
information for Oleovest PL whom had a non-controlling interests that was material to the Group. The amounts disclosed are before
inter-company eliminations.
Summarised Statement of Financial Position | |
2015 | | |
2014 | |
Current Assets | |
| - | | |
| 2,971,412 | |
Current Liabilities | |
| - | | |
| 2,972,854 | |
Current Net Assets | |
| - | | |
| (1,442 | ) |
Net Assets | |
| - | | |
| (1,442 | ) |
Accumulated NCI loss | |
| - | | |
| (70,864 | ) |
Summarised statement of profit or loss and other comprehensive income | |
| | | |
| | |
Revenue | |
| - | | |
| - | |
Expenses | |
| - | | |
| 79,282 | |
Total comprehensive income | |
| - | | |
| (75,726 | ) |
Net profit/(loss) allocated to NCI | |
| - | | |
| (16,886 | ) |
Dividends paid to NCI | |
| - | | |
| - | |
Summarised cash flows | |
| | | |
| | |
Cash flows from operating activities | |
| - | | |
| (21,879 | ) |
Cash flows from investing activities | |
| - | | |
| 21,835 | |
Cash flows from financing activities | |
| - | | |
| - | |
Net increase/(decrease) in cash | |
| - | | |
| (4 | ) |
(c) Transactions
with non-controlling interests.
The Group has not had any transactions
with non-controlling interests during the current and prior financial year.
(d) Unconsolidated
entities.
PT Sinergi Oleo Nusantara (PTSON)
is an entity in which the Group, through Oleovest Pty Ltd, invested to explore the implementation of a palm oil processing operation.
Shortly after incorporation the minority shareholder defaulted on material contractual terms and at the date of this report the
arbitration proceedings have been concluded and the joint venture partner ordered to return the money invested.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
(e) Associate
entity.
Set out below is the associate
of the group as at 30 June 2015 which, in the opinion of the directors, is material to the group. The entity listed below has
share capital consisting solely of ordinary shares, which are held directly by the group. The country of incorporation or registration
is also their principal place of business, and the proportion of ownership interest is the same as the proportion of voting rights
held.
Name of | |
Country of | | |
Percentage Owned (%) | | |
Nature of | |
Measurement | |
Carrying amount ($) | |
entity | |
Incorporation | | |
2015 | | |
2014 | | |
relationship | |
method | |
2015 | | |
2014 | |
FGV Green Energy Sdn Bhd | |
| Malaysia | | |
| 20 | | |
| - | | |
Associate | |
Equity method | |
| 3,770,173 | | |
| - | |
Summarised statement of | |
FGV
Green Energy Sdn Bhd | |
comprehensive income | |
2015 | | |
2014 | |
Interest income | |
| 351,764 | | |
| - | |
Profit from operations | |
| 187,553 | | |
| - | |
Dividends received | |
| - | | |
| - | |
| |
FGV Green Energy
Sdn Bhd | |
Summarised balance sheet | |
2015 | | |
2014 | |
Cash and cash equivalents | |
| 29,197,747 | | |
| - | |
Other current assets | |
| 337,653 | | |
| - | |
Non-current assets | |
| 33,716,894 | | |
| - | |
Current liabilities | |
| (1,686,587 | ) | |
| - | |
Non-current financial liabilities | |
| (42,940,643 | ) | |
| - | |
Net Assets | |
| 18,625,064 | | |
| - | |
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
| 16. | Property Plant and Equipment |
| |
Land and
Building | | |
Office
Equipment | | |
Computer
Equipment and software | | |
Motor
Vehicle | | |
Asset Under
Construction | | |
Total | |
Cost at 30 June 2013 | |
| 338 | | |
| 147,585 | | |
| 869,503 | | |
| 115,387 | | |
| 45,565,421 | | |
| 46,698,234 | |
Additions | |
| - | | |
| 24,365 | | |
| 10,846 | | |
| - | | |
| - | | |
| 35,211 | |
Foreign Currency Translation | |
| - | | |
| (4,187 | ) | |
| (20,528 | ) | |
| - | | |
| - | | |
| (24,715 | ) |
Transferred to Non-current Assets Held for Sale (Current Asset) | |
| - | | |
| (24,965 | ) | |
| (6,615 | ) | |
| - | | |
| - | | |
| (31,580 | ) |
Disposal | |
| - | | |
| (2,022 | ) | |
| (208 | ) | |
| - | | |
| - | | |
| (2,230 | ) |
Cost at 30 June 2014 | |
| 338 | | |
| 140,776 | | |
| 852,998 | | |
| 115,387 | | |
| 45,565,421 | | |
| 46,674,920 | |
Additions | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Disposal/Impairment | |
| (338 | ) | |
| (140,776 | ) | |
| (840,798 | ) | |
| (115,387 | ) | |
| (45,565,421 | ) | |
| (46,662,720 | ) |
Cost at 30 June
2015 | |
| - | | |
| - | | |
| 12,200 | | |
| - | | |
| - | | |
| 12,200 | |
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Accumulated Depreciation and Impairment | |
| | |
| | |
| | |
| | |
| | |
| |
| |
Land
and Building | | |
Office
Equipment | | |
Computer
Equipment and software | | |
Motor
Vehicle | | |
Asset Under
Construction | | |
Total | |
Accumulated Depreciation
and Impairment at 30 June 2013 | |
| 338 | | |
| 147,585 | | |
| 863,501 | | |
| 115,387 | | |
| 45,565,421 | | |
| 46,692,232 | |
Depreciation for the year (continuing operation) | |
| - | | |
| - | | |
| 7,412 | | |
| - | | |
| - | | |
| 7,412 | |
Impairment – Refer to note 5 | |
| - | | |
| 22,734 | | |
| 6,602 | | |
| - | | |
| - | | |
| 29,336 | |
Foreign Currency Translation | |
| - | | |
| (29,543 | ) | |
| (27,338 | ) | |
| - | | |
| - | | |
| (56,881 | ) |
Accumulated Depreciation and Impairment
at 30 June 2014 | |
| 338 | | |
| 140,776 | | |
| 850,177 | | |
| 115,387 | | |
| 45,565,421 | | |
| 46,672,099 | |
Depreciation for the year (continuing operation) | |
| - | | |
| - | | |
| 2,874 | | |
| - | | |
| - | | |
| - | |
Impairment/Disposal | |
| (338 | ) | |
| (140,776 | ) | |
| (840,851 | ) | |
| (115,387 | ) | |
| (45,565,421 | ) | |
| (46,672,099 | ) |
Accumulated Depreciation
and Impairment at 30 June 2015 | |
| - | | |
| - | | |
| 12,200 | | |
| - | | |
| - | | |
| 12,200 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Carrying Amounts | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
At 30 June 2014 | |
| - | | |
| - | | |
| 2,821 | | |
| - | | |
| - | | |
| 2,821 | |
At 30 June 2015 | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Impairment loss
Refer to note 5, Critical Accounting estimates
for a detailed discussion on the impairment of assets.
Assets under construction
These relate to the second biodiesel plant
(being the 250,000 tpa plant) in Malaysia. At 30 June 2014 the final acceptance of this plant is under dispute and the matter
has been referred to arbitration. See note 24 on capital commitments relating to this plant.
CURRENT | |
| | |
| |
| |
| 2015 | | |
| 2014 | |
Prepayments | |
| - | | |
| 129,475 | |
Security Deposits | |
| 42,937 | | |
| 92,442 | |
| |
| 42,937 | | |
| 221,917 | |
| |
| | | |
| | |
| 18. | Trade and Other Payables |
CURRENT | |
| | | |
| | |
Unsecured liabilities: | |
| | | |
| | |
Trade payables | |
| 182,128 | | |
| 125,765 | |
Sundry payables and accrued expenses | |
| 257,885 | | |
| - | |
| |
| 440,013 | | |
| 125,765 | |
CURRENT | |
| | | |
| | |
Provision for leave | |
| 177,619 | | |
| 149,735 | |
Provision for legal settlements | |
| 5,234,060 | | |
| - | |
| |
| 5,411,679 | | |
| 149,735 | |
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
| |
2015 | | |
2014 | |
| |
$ | | |
$ | |
NON-CURRENT | |
| | | |
| | |
Secured loans | |
| - | | |
| - | |
Convertible Notes (unsecured) | |
| | | |
| | |
- Nominal value (unsecured) | |
| - | | |
| 25,383,760 | |
- Equity portion of convertible note | |
| - | | |
| (11,690,242 | ) |
- Amortisation of equity portion | |
| - | | |
| 669,954 | |
- Accrued Interest | |
| - | | |
| 761,514 | |
| |
| - | | |
| 15,124,986 | |
During the current financial year the
full value of the convertible notes was settled, subject to any deferred payments pending the outcome of claims over cash held
in deposit.
| |
2015 | | |
2014 |
Units 10 | |
| - | | |
390,520 |
Maturity date | |
| - | | |
31 December 2018 |
Interest rate per annum | |
| - | | |
6% |
Convertible into ordinary shares at the option of the Holder or the Company in the circumstances set out in the Terms and Conditions of the Notes. | |
| - | | |
1 note for 433 ordinary shares |
Conversion price | |
| - | | |
$65.00 |
| |
| 2015 | | |
| 2014 | |
| |
| $ | | |
| $ | |
Liabilities | |
| | | |
| | |
CURRENT | |
| | | |
| | |
Current Tax liability / (asset) | |
| - | | |
| - | |
NON-CURRENT | |
| | | |
| | |
Deferred tax liability comprises: | |
| | | |
| | |
Unrealised FX gains | |
| - | | |
| - | |
Accruals | |
| - | | |
| - | |
Other | |
| - | | |
| - | |
Total | |
| - | | |
| - | |
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Assets | |
| | | |
| | |
Deferred tax assets comprise: | |
| | | |
| | |
Provisions | |
| - | | |
| - | |
Transaction costs included in equity | |
| - | | |
| - | |
Other | |
| - | | |
| - | |
| |
| - | | |
| - | |
| |
Reconciliations | |
| | | |
| | |
i. | |
Gross Movements | |
| | | |
| | |
| |
The overall movement in the deferred tax account is as follows: | |
| | | |
| | |
| |
Opening balance | |
| - | | |
| - | |
| |
(Charge)/credit to statement of profit or loss | |
| - | | |
| - | |
| |
Foreign currency translation difference | |
| - | | |
| - | |
| |
Closing balance | |
| - | | |
| - | |
ii. | |
Deferred Tax Liability | |
| | | |
| | |
| |
The movement in deferred tax liability for each temporary difference during the year is as follows: | |
| | | |
| | |
| |
Tax allowances relating to unrealised FX gains: | |
| | | |
| | |
| |
Opening balance | |
| - | | |
| - | |
| |
Charged to the statement of profit or loss | |
| - | | |
| - | |
| |
Closing balance | |
| - | | |
| - | |
| |
Tax allowances relating to accruals: | |
| | | |
| | |
| |
Opening balance | |
| - | | |
| - | |
| |
Charged to the statement of profit or loss | |
| - | | |
| - | |
| |
Closing balance | |
| - | | |
| - | |
Other | |
| | | |
| | |
Opening balance | |
| - | | |
| - | |
Charge to the statement of profit or loss | |
| - | | |
| - | |
Foreign currency translation difference | |
| - | | |
| - | |
Closing Balance | |
| - | | |
| - | |
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
iii. | | |
Deferred tax assets | |
| | | |
| | |
| | |
The movement in deferred tax assets for each temporary difference during the year is as follows: | |
| | | |
| | |
| | |
Provisions: | |
| | | |
| | |
| | |
Opening balance | |
| - | | |
| - | |
| | |
Charged to the statement of profit or loss | |
| - | | |
| - | |
| | |
Closing balance | |
| - | | |
| - | |
| | |
Transactions costs on equity issue: | |
| | | |
| | |
| | |
| |
| | | |
| | |
| | |
Opening balance | |
| - | | |
| - | |
| | |
(Charged)/Credited directly to equity | |
| - | | |
| - | |
| | |
Closing balance | |
| - | | |
| - | |
| | |
| |
| | | |
| | |
|
|
|
Other | |
| | | |
| | |
|
|
|
Opening balance | |
| - | | |
| - | |
|
|
|
Charged/(Credited) to the statement of profit or loss | |
| - | | |
| - | |
|
|
|
Closing balance | |
| - | | |
| - | |
Deferred tax assets on losses to a value
of $1.7 million to date are not brought to account due to not being probable of being recovered. In addition, deferred tax assets
for deductible temporary differences of A$8.3 million and deferred tax liabilities for temporary differences of $NIL million have
not been brought to account.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Fully
paid ordinary shares (Issued and authorised)
| |
2015 | | |
2015 | | |
2014 | | |
2014 | |
| |
Number | | |
$ | | |
Number | | |
$ | |
| |
| | | |
| | | |
| | | |
| | |
At the beginning of reporting period | |
| 25,870,275 | | |
| 110,523,197 | | |
| 10,870,275 | | |
| 110,415,197 | |
Ordinary shares issued | |
| | | |
| | | |
| | | |
| | |
- May 2014 | |
| - | | |
| - | | |
| 15,000,000 | | |
| 108,000 | |
February 2015 - Shares issued pursuant to employee share scheme | |
| 15,000,000 | | |
| - | | |
| - | | |
| - | |
Sub-total | |
| 40,870,275 | | |
| 110,523,197 | | |
| 25,870,275 | | |
| 110,523,197 | |
Shares capital reduction pursuant to Shareholder approval | |
| - | | |
| (110,000,000 | ) | |
| - | | |
| - | |
At reporting date | |
| 40,870,275 | | |
| 523,197 | | |
| 25,870,275 | | |
| 110,523,197 | |
Ordinary shares participate in dividends
and the proceeds on winding up of the parent entity in proportion to the number of shares held.
At the shareholders meetings each ordinary
share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.
There were no warrants and options in
existence at reporting date.
a. Options
and Performance Shares
For information relating to the Mission
NewEnergy Limited option and performance right plans, including details of options and performance shares issued, exercised and
lapsed during the financial year and the options outstanding at year-end, refer to the Remuneration report.
b. Capital
Management
Management controls the capital of the
Group in order to maintain an appropriate debt to equity ratio, provide the shareholders with adequate returns and ensure that
the Group can fund its operations and continue as a going concern. Due to the stage that the business is in, managements preferred
approach is to fund the business with equity, however where equity funding is not available debt funding is considered. Management
reviews historic and forecast cash flows on a regular basis in order to determine funding needs.
The Group has no debt and capital includes
ordinary share capital, supported by financial assets.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
1. Share
based payments reserve
The share based payments reserve arose on
the issue of 150,000 shares to various officers of the Company.
Amounts are transferred out of the reserve
and into issued capital when the options are exercised, or if lapsed, then transferred to retained earnings.
2. Foreign
currency translation reserve
The foreign currency translation reserve
records exchange differences arising on translation of foreign controlled subsidiaries.
3. Convertible
Notes Reserve
The Convertible Notes reserve is used to
record the equity component, less the cost of issue, of the convertible notes. These notes were fully settled during the current
financial year.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
| 24. | Capital and Leasing Commitments |
| |
2015 | | |
2014 | |
| |
$ | | |
$ | |
Operating Lease Commitments | |
| | | |
| | |
- not later than 12
months | |
| 8,303 | | |
| 86,617 | |
- between 12 months and 5 years | |
| - | | |
| 381,546 | |
- greater than 5 years | |
| - | | |
| 988,321 | |
| |
| 8,303 | | |
| 1,456,484 | |
Mission Biofuels Sdn Bhd has entered into
a lease of one office in Kuala Lumpur, Malaysia. The lease expires on 30 April 2016.
Capital Expenditure Commitments
| |
2015 | | |
2014 | |
| |
$ | | |
$ | |
Capital expenditure commitments contracted for: - | |
| | | |
| | |
Acquisition and installation biodiesel
plants12 | |
| - | | |
| 1,829,666 | |
| |
| - | | |
| 1,829,666 | |
| 25. | Contingent Liabilities
and Contingent Assets |
The Group is not aware of any contingent
liabilities or contingent assets as at 30 June 2015.
12 This value was net of late
delivery charges and other costs and counter claims the Group believed was eligible to be offset against the completion payments
of the second biodiesel plant.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Segment Report – 2015 | |
Biodiesel Refining (Continuing Operations) | | |
Corporate | | |
Consolidated (Continuing Operations) | | |
Discontinued Operations | | |
Total (Continuing and Discontinued Operations) | |
| |
2015 | | |
2015 | | |
2015 | | |
2015 | | |
2015 | |
| |
$ | | |
$ | | |
$ | | |
$ | | |
$ | |
Revenue | |
| | | |
| | | |
| | | |
| | | |
| | |
Revenue from external customers | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Interest received | |
| 2,262 | | |
| 15,645 | | |
| 17,907 | | |
| - | | |
| 17,907 | |
Other revenue | |
| 999,195 | | |
| 7,245,011 | | |
| 8,244,206 | | |
| 679,364 | | |
| 8,923,570 | |
Total segment revenue | |
| 1,001,457 | | |
| 7,260,656 | | |
| 8,262,113 | | |
| 679,364 | | |
| 8,941,477 | |
Employee benefits expense | |
| (200,912 | ) | |
| (1,373,352 | ) | |
| (1,574,264 | ) | |
| - | | |
| (1,574,264 | ) |
Impairment reversal | |
| 26,914,912 | | |
| - | | |
| 26,914,912 | | |
| - | | |
| 26,914,912 | |
Depreciation and amortisation | |
| - | | |
| (2,876 | ) | |
| (2,876 | ) | |
| - | | |
| (2,876 | ) |
Finance costs | |
| - | | |
| (1,814,826 | ) | |
| (1,814,826 | ) | |
| - | | |
| (1,814,826 | ) |
Other expenses | |
| (3,533,839 | ) | |
| (691,873 | ) | |
| (4,225,712 | ) | |
| 260,371 | | |
| (3,965,341 | ) |
Share of net profit of associate accounted for using the equity method | |
| 37,510 | | |
| - | | |
| 37,510 | | |
| - | | |
| 37,510 | |
Segment result before tax | |
| 24,219,128 | | |
| 3,377,729 | | |
| 27,596,857 | | |
| 939,735 | | |
| 28,536,592 | |
Income tax expense | |
| | | |
| | | |
| (5,497 | ) | |
| - | | |
| (5,497 | ) |
Net profit before accumulated loss from discontinued operations | |
| | | |
| | | |
| 27,591,360 | | |
| 939,735 | | |
| 28,531,095 | |
Non-controlling interest | |
| | | |
| | | |
| - | | |
| (141,202 | ) | |
| (141,202 | ) |
Net assets written off from discontinued operations | |
| | | |
| | | |
| - | | |
| (32,648 | ) | |
| (32,648 | ) |
Net profit / (loss) for the year | |
| | | |
| | | |
| 27,591,360 | | |
| 765,885 | | |
| 28,357,245 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Non-current Segment assets | |
| 3,769,200 | | |
| 973 | | |
| 3,770,173 | | |
| - | | |
| 3,770,173 | |
Total Segment assets | |
| 9,506,177 | | |
| 3,115,071 | | |
| 12,621,248 | | |
| - | | |
| 12,621,248 | |
Segment liabilities | |
| (5,478,468 | ) | |
| (377,224 | ) | |
| (5,851,692 | ) | |
| - | | |
| (5,851,692 | ) |
Acquisitions of property, plant and equipment | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Segment Reporting - 2014
| |
Biodiesel Refining (Continuing Operations) | | |
Corporate | | |
Consolidated (Continuing Operations) | | |
Jatropha and Power
Generation (India) (Discontinued
Operations) | | |
Refining (Malaysia) (Discontinued Operations) | | |
Total (Continuing and Discontinued Operations) | |
| |
2014 | | |
2014 | | |
2014 | | |
2014 | | |
2014 | | |
2014 | |
| |
$ | | |
$ | | |
$ | | |
$ | | |
$ | | |
$ | |
Revenue | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Revenue from external customers | |
| - | | |
| - | | |
| - | | |
| 140,021 | | |
| - | | |
| 140,021 | |
Interest received | |
| - | | |
| 1,231 | | |
| 1,231 | | |
| - | | |
| - | | |
| 1,231 | |
Other revenue | |
| 4,942 | | |
| 9,677,413 | | |
| 9,682,355 | | |
| - | | |
| 714,411 | | |
| 10,396,766 | |
Total segment revenue | |
| 4,942 | | |
| 9,678,644 | | |
| 9,683,586 | | |
| 140,021 | | |
| 714,411 | | |
| 10,538,018 | |
Employee benefits expense | |
| (175,040 | ) | |
| (1,201,663 | ) | |
| (1,376,703 | ) | |
| - | | |
| (168,289 | ) | |
| (1,544,992 | ) |
Impairment | |
| (255,410 | ) | |
| (107,822 | ) | |
| (363,232 | ) | |
| 114,063 | | |
| 204,152 | | |
| (45,017 | ) |
Depreciation and amortisation | |
| - | | |
| (7,412 | ) | |
| (7,412 | ) | |
| - | | |
| - | | |
| (7,412 | ) |
Finance costs | |
| - | | |
| (4,862,648 | ) | |
| (4,862,648 | ) | |
| (56,044 | ) | |
| - | | |
| (4,918,692 | ) |
Other expenses | |
| (2,748,939 | ) | |
| (933,569 | ) | |
| (3,682,508 | ) | |
| (60,464 | ) | |
| (1,029,956 | ) | |
| (4,772,928 | ) |
Segment result before tax | |
| (3,174,447 | ) | |
| 2,565,530 | | |
| (608,917 | ) | |
| 137,576 | | |
| (279,682 | ) | |
| (751,023 | ) |
Profit/loss from ordinary activities before income tax | |
| | | |
| | | |
| (608,917 | ) | |
| 137,576 | | |
| (279,682 | ) | |
| (751,023 | ) |
Income tax expense | |
| | | |
| | | |
| - | | |
| - | | |
| (13,527 | ) | |
| (13,527 | ) |
Net profit before accumulated loss from discontinued operations | |
| | | |
| | | |
| (608,917 | ) | |
| 137,576 | | |
| (293,209 | ) | |
| (764,550 | ) |
Net assets written off from discontinued operations | |
| | | |
| | | |
| - | | |
| (268,865 | ) | |
| (60,702 | ) | |
| (329,567 | ) |
Net profit / (loss) for the year | |
| | | |
| | | |
| (608,917 | ) | |
| (131,289 | ) | |
| (353,911 | ) | |
| (1,094,117 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Non-current Segment assets | |
| 633,056 | | |
| 3,368,600 | | |
| 4,001,656 | | |
| 155,441 | | |
| 78,608 | | |
| 4,235,705 | |
Non-current Segment assets – Assets held for sale | |
| - | | |
| - | | |
| - | | |
| 1,858,171 | | |
| - | | |
| 1,858,171 | |
Total Segment assets | |
| 677,845 | | |
| 3,371,421 | | |
| 4,049,266 | | |
| 2,015,009 | | |
| 78,608 | | |
| 6,142,883 | |
Segment liabilities | |
| 56,772 | | |
| 15,343,714 | | |
| 15,400,486 | | |
| 1,746,144 | | |
| 17,907 | | |
| 17,164,537 | |
Acquisitions of property, plant and equipment | |
| 35,780 | | |
| 4,231 | | |
| 40,011 | | |
| - | | |
| | | |
| 40,011 | |
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Segment reporting accounting Policies
The Group Chief Executive Officer is the
Chief operating decision maker. The reportable segments presented are in line with the segmental information reported during the
financial year to the Group Chief Executive Officer.
Segment revenues and expenses are those
directly attributable to the segments and include any joint revenue and expenses where a reasonable basis of allocation exists.
Segment assets include all assets used by a segment and consist principally of cash, receivables, inventories, intangibles and
property, plant and equipment, net of allowances and accumulated depreciation and amortisation. Segment liabilities consist principally
of payables, employee benefits, accrued expenses and borrowings. Segment assets and liabilities do not include deferred income
taxes. Segments exclude discontinued operations.
Intersegment Transfers
Segment revenues, expenses and results
exclude transfers between segments.
Business and Geographical Segments
The Group had one key business segment,
being biodiesel, which is located in Malaysia
Reconciliation of Cash Flow from Operations | |
2015 | | |
2014 | |
with Profit (Loss) after Income Tax | |
$ | | |
$ | |
Profit / (Loss) after income tax before non-controlling interests | |
| 4,187,192 | | |
| (608,917 | ) |
Non cash flows in profit / (loss) | |
| | | |
| | |
Depreciation of plant and equipment – continued operations | |
| 2,874 | | |
| 7,412 | |
Interest accrued | |
| 870,703 | | |
| 761,514 | |
Gain on the settlement/restructure of Convertible Note | |
| (7,245,011 | ) | |
| (9,671,893 | ) |
Amortisation of Equity portion of Convertible Note | |
| 944,123 | | |
| 3,199,884 | |
Provision for employee benefits | |
| 27,883 | | |
| 13,555 | |
Impairment of assets | |
| - | | |
| 29,336 | |
Share based payment | |
| 150,000 | | |
| - | |
Impairment of receivables and loans | |
| 672,510 | | |
| 333,896 | |
Net cash (used in) operating activities before change
in assets and liabilities | |
| (389,726 | ) | |
| (5,935,213 | ) |
| |
| | | |
| | |
Change in assets and liabilities | |
| | | |
| | |
Decrease in receivables | |
| 3,123,545 | | |
| - | |
(Increase) / decrease in other assets | |
| (17,268 | ) | |
| 136,959 | |
Decrease / (Increase) in deferred tax and current tax | |
| 52 | | |
| (11 | ) |
Increase in creditors and accruals | |
| 316,172 | | |
| 22,491 | |
Foreign Currency Adjustments | |
| (3,581,046 | ) | |
| 2,398,277 | |
| |
| (158,545 | ) | |
| (3,377,497 | ) |
Cash generated by discontinued operations | |
| 939,735 | | |
| 432,037 | |
Cash generated / (used in) operations | |
| 391,464 | | |
| (2,945,460 | ) |
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Cash flows included above from discontinued
operations (being the Indonesian Palm Oil segment and the Mauritian holding company) are a net operating cash generation of $0.9
million (primarily from the gain on settlement of arbitration proceedings) for the period ended 30 June 2015 ($0.02 million loss
for 30 June 2014).
There were no non-cash investing activities
during the reported periods.
Credit Standby Facilities with Banks
and Funding Sources
| |
2015 | | |
2014 | |
| |
$ | | |
$ | |
Loan facilities | |
| - | | |
| 5,297,171 | |
Amount utilised | |
| - | | |
| - | |
| |
| - | | |
| 5,297,171 | |
There were no transactions with related parties
during the period other than with subsidiaries which were 100% wholly owned.
Financial Risk Management
The Group has a financial risk management
policy in place and the financial risks are overseen by the Board. The Group’s financial instruments consist mainly of deposits
with banks, other financial assets, accounts payable, and loans to and from subsidiaries.
The principal risks the Group is exposed
to through its financial instruments are interest rate risk, foreign currency risk, liquidity risk and credit risk.
The Group does not have any financial
assets carried at fair value therefore no further disclosure in relation to the fair value hierarchy is presented. In addition
the group does not have any financial instruments that are subject to recurring or non-recurring fair value measurements.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Fair value of financial instruments
| |
Carrying amount $ | | |
Fair Value $ | | |
Level 1 | | |
Level 2 | | |
Level 3 | |
Financial assets | |
| | | |
| | | |
| | | |
| | | |
| | |
Cash and cash equivalents | |
| 3,150,776 | | |
| 3,150,776 | | |
| - | | |
| - | | |
| - | |
Receivables (Current) | |
| 77,340 | | |
| 77,340 | | |
| - | | |
| - | | |
| - | |
Financial liabilities | |
| | | |
| | | |
| | | |
| | | |
| | |
Trade and other payables | |
| 440,013 | | |
| 440,013 | | |
| - | | |
| - | | |
| - | |
Current loans | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Non-current loans | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
The fair value measurements are shown
by level of the following fair value measurement hierarchy:
| · | Level
1 - quoted prices (unadjusted) in active markets for identical as-sets or liabilities |
| · | Level
2 - inputs other than quoted prices included within level 1 that are observable for the
asset or liability, either directly or indirectly, and |
| · | Level
3 - inputs for the asset or liability that are not based on observable market data (unobservable
inputs). |
The fair value of cash and cash equivalents,
other financial assets, receivables, trade and other payables and current loans are short-term instruments in nature whose carrying
value is equivalent to fair value.
Interest rate risk
Interest rate risk is managed with floating
rate deposits.
Group sensitivity
At 30 June 2015, if interest rates had
changed by -/+ 25 basis points, with all other variables held constant, the following financial impacts would have been recorded
by the Group;
| - | Effect
on post tax profit – A$ Nil lower/higher (2014: A$ Nil lower/higher) |
| - | Equity
would have been – A$ Nil lower/higher (2014: A$ Nil lower/higher) |
Foreign currency risk
The Group operates internationally through
a number of subsidiaries and is thus exposed to fluctuations in foreign currencies, arising from the foreign currencies held in
its bank accounts, the sale of goods in currencies other than the Group’s measurement currency, and the translation of results
from investments in foreign operations. The foreign exchange exposures are primarily to the Malaysian Ringgit and the US dollar.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Foreign currency risks arising from commitments
in foreign currencies are managed by holding cash in that currency. Foreign currency translation risk is not hedged, with translation
differences being reflected in the foreign currency translation reserve.
Group sensitivity
At 30 June 2015, if foreign currencies
had changed by -/+ 10%, with all other variables held constant, the following financial impacts would have been recorded by the
Group;
Effect on cash and cash equivalent –
A$ 24,563 lower/ A$ 148,500 higher (2014: A$ 38,104 lower/ A$46,571 higher)
Profit and Loss would have been –
A$ 24,563 lower/ A$ 148,500 higher (2014: A$ 38,104 lower / A$ 46,571 higher)
Hedging of Foreign Currency Risk
At financial report date the Group had
no forward exchange contracts in place.
Credit risk
The following table sets out the credit
quality of financial assets:
| |
2015 | | |
2014 | |
| |
$ | | |
$ | |
Cash and Cash Equivalents | |
| | | |
| | |
Counterparties with external credit rating (Standard and Poors) | |
| | | |
| | |
A-1+ | |
| 3,037,914 | | |
| 451,953 | |
P-2 | |
| 112,862 | | |
| - | |
| |
| 3,150,776 | | |
| 451,953 | |
Other financial assets | |
| | | |
| | |
Counterparties with external credit rating (Standard and Poors) | |
| | | |
| | |
A-1+ | |
| - | | |
| - | |
P-2 | |
| 5,580,022 | | |
| - | |
| |
| 5,580,022 | | |
| - | |
Receivables | |
| | | |
| | |
Counterparties without external credit rating | |
| | | |
| | |
Group 1 | |
| 77,340 | | |
| 3,549,653 | |
Group 1 receivables relate receivables
under a cost award where proceeds were received in the following financial year.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Commodity Risk
As there was no inventory held as at 30
June 2015, the Group has no exposure to market prices of input costs into the production of biodiesel.
Liquidity risk
| |
| | |
| | |
Weighted Average Interest Rate | |
| |
2015 | | |
2014 | | |
2015 | | |
2014 | |
| |
$ | | |
$ | | |
% | | |
% | |
Financial Assets: | |
| | | |
| | | |
| | | |
| | |
Cash and cash equivalents | |
| 3,150,776 | | |
| 451,953 | | |
| 2.00 | % | |
| 2.35 | % |
Other financial assets | |
| 5,580,022 | | |
| - | | |
| - | | |
| - | |
Loans and Receivables | |
| 77,340 | | |
| 3,549,653 | | |
| - | | |
| - | |
| |
| 8,808,138 | | |
| 4,001,606 | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
Financial Liabilities summarised by contractual maturity: | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
Floating Interest Rate – less than 6 months | |
| - | | |
| - | | |
| - | | |
| - | |
Floating Interest Rate - 6 to 12 months | |
| - | | |
| - | | |
| - | | |
| - | |
Fixed Interest Rate – 6 to 12 months | |
| - | | |
| - | | |
| - | | |
| - | |
Non Interest Bearing | |
| - | | |
| - | | |
| - | | |
| - | |
Total Current Debt | |
| - | | |
| - | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
Non-current debt | |
| | | |
| | | |
| | | |
| | |
Floating Interest Rate (1 to 3 Years) | |
| - | | |
| - | | |
| | | |
| | |
Floating Interest Rate (4 to 5 Years) | |
| - | | |
| - | | |
| | | |
| | |
Fixed Interest Rate (1 to 3 Years) | |
| - | | |
| 15,124,986 | | |
| - | | |
| 6.0 | % |
Fixed Interest Rate (4 to 5 Years) | |
| - | | |
| - | | |
| | | |
| | |
Total Non-Current Debt | |
| - | | |
| 15,124,986 | | |
| | | |
| | |
The Group manages liquidity risk by monitoring
forecast cash flows and ensuring that adequate cash is maintained.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
| 30. | Parent entity information |
Information relating to Mission NewEnergy | |
2015 | | |
2014 | |
Limited: | |
$ | | |
$ | |
Current assets | |
| 6,845,637 | | |
| 3,362,796 | |
Total assets | |
| 6,846,610 | | |
| 3,365,617 | |
Current liabilities | |
| (377,214 | ) | |
| (218,728 | ) |
Total liabilities | |
| - | | |
| (15,124,987 | ) |
Net asset surplus / (deficit) | |
| 6,469,396 | | |
| (11,978,098 | ) |
Issued capital | |
| 418,635 | | |
| 110,418,635 | |
Opening Retained loss | |
| (138,994,472 | ) | |
| (136,047,883 | ) |
Share based payments reserve | |
| 150,000 | | |
| 4,907,496 | |
Convertible notes reserve | |
| - | | |
| 11,690,242 | |
Total shareholders’ equity | |
| (6,469,396 | ) | |
| (11,978,098 | ) |
Profit / (Loss) of the parent entity | |
| 26,339,390 | | |
| 1,193,978 | |
Total comprehensive income of the parent entity | |
| 26,339,390 | | |
| 1,193,978 | |
| |
| | | |
| | |
Details of any contingent liabilities of the parent entity | |
| - | | |
| - | |
Details of any contractual commitments by the parent entity for the acquisition of property,
plant or equipment. | |
| - | | |
| - | |
The parent entity is not aware of any
other contingent liabilities or contingent assets as at 30 June 2015.
| 31. | Events occurring after
the reporting period |
Other than the matters mentioned below,
there have been no significant subsequent events up until the date of signing this Financial Report.
On 5 August 2015 the Company announced
that the ongoing dispute with KNM Process Systems Sdn Bhd (KNM) has been amicably settled. The material terms of the settlement
are that Mission will pay to KNM A$4m, being the amount put aside by Mission upon the sale of Mission’s 250,000 tpa refinery
in February 2015, pursuant to a consent order agreed to by Mission and KNM earlier. Both parties have agreed to withdraw all other
claims and counter claims and will discontinue all legal actions against each other.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
| 32. | Non-current assets held
for sale and discontinued operations |
During the current financial year Mission
Agro Energy Limited, and Oleovest PL have been deconsolidated from the Group financials with effect from 1 March 2015 due to an
effective change in control as a result of a settlement agreement with convertible note holders. Included in discontinued operations
is the reversal of the asset impairment on sale of the 250,000 tpa refinery, a gain on conclusion of the sale and a provision
raised for legal settlement of matters related to the refinery.
During the previous financial year Mission
Biofuels India PL and Mission Biotechnologies Sdn Bhd were treated as discontinued operations.
The revenue, expenditure and carrying
amount of the assets and liabilities in this disposal group are summarised as follows:
Discontinued operations | |
2015 | | |
2014 | |
| |
$ | | |
$ | |
Revenue | |
| 679,364 | | |
| 854,432 | |
Gain on sale of assets | |
| 991,354 | | |
| - | |
Legal settlement | |
| (5,211,269 | ) | |
| - | |
Impairment reversal – non-current assets | |
| 27,586,572 | | |
| - | |
Net Impairment – current assets | |
| - | | |
| 318,214 | |
Other expenses and FX gains | |
| 260,371 | | |
| (1,258,709 | ) |
Finance Costs | |
| - | | |
| (56,044 | ) |
Income tax expense | |
| - | | |
| (13,527 | ) |
Net assets written off on deconsolidation | |
| (32,648 | ) | |
| (329,566 | ) |
Net gain / (loss) from discontinued operations | |
| 24,273,744 | | |
| (485,200 | ) |
Net gain / (loss) from discontinued operations attributable to non-controlling
interests | |
| (141,202 | ) | |
| - | |
Net gain / (loss) from discontinued operations attributable to members of
the parent | |
| 24,132,542 | | |
| (485,200 | ) |
The assets in this disposal group were deconsolidated
during the current financial period.
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
33. Company Details
The registered office of the company is:
Mission NewEnergy Limited, Unit B9, 431 Roberts Road, Subiaco, WA 6008, Australia.
The principal places of business are:
Australia |
Mission NewEnergy Limited |
|
|
Head Office |
|
|
Unit B9, 431 Roberts Rd, Subiaco, |
|
|
Western Australia, 6008, Australia. |
|
|
|
|
Malaysia |
Mission Biofuels Sdn Bhd |
|
|
A-5-10 Empire Tower |
|
|
SS 16/1 |
|
|
47500 Subang Jaya |
|
|
Selangor, Malaysia |
|
| 34. | Authorisation of financial
statements |
The consolidated financial statements for
the year ended 30 June 2015 (including comparatives) were approved by the Board of Directors on 31 August 2015.
Dato’ Nathan Mahalingam
Director
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Directors Declaration
Mission NewEnergy Limited and Controlled Entities |
(ABN 63 117 065 719) |
1. |
In the opinion of the Directors of Mission NewEnergy Limited (the company): |
|
a. |
The consolidated financial statements and notes are in accordance with the Corporations Act 2001, including: |
|
i |
giving a true and fair view of the financial position of the Group as at 30 June
2015: |
|
ii |
and of it’s performance, for the financial year ended on that date, and |
|
iii |
complying with Australian Accounting Standards (including Australian Accounting Interpretations)
and the Corporations Regulations 2001; and |
|
iv |
The financial report also complies with International Financial Reporting Standards and other
mandatory professional reporting requirements as disclosed in note 2. |
|
b. |
there are reasonable grounds to believe that Mission NewEnergy Ltd will be able to pay its
debts as and when they become due and payable |
2. |
The Directors have been given the declarations required by section 295A of the
Corporations Act 2001 from the Group Chief Executive Officer and Chief Finance Officer for the financial year ended 30 June
2015. |
This declaration is made in accordance with
a resolution of the Board of Directors.
Dato’ Nathan Mahalingam
Group Chief Executive Officer
Dated: 31 August 2015
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
INDEPENDENT AUDIT REPORT TO MEMBERS
OF MISSION NEWENERGY LIMITED
|
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au |
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia |
INDEPENDENT AUDITOR’S REPORT
To the members of Mission NewEnergy Limited
Report on the Financial Report
We have audited the accompanying financial report of Mission
NewEnergy Limited, which comprises the consolidated statement of financial position as at 30 June 2015, the consolidated statement
of profit or loss, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and
other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities
it controlled at the year’s end or from time to time during the financial year.
Directors’ Responsibility 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 Note 2, the directors
also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements
comply with International Financial Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial
report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that
we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable
assurance about whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including
the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives
a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall
presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national
association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited
by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee,
and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional
Standards Legislation other than for the acts or omissions of financial services licensees
Mission New Energy
Limited and Controlled Entities
(ABN 63 117 065 719)
Independent Audit Report To The Members
(Cont’d)
Independence
In conducting our audit, we have complied with the independence
requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations
Act 2001, which has been given to the directors of Mission NewEnergy Limited, would be in the same terms if given to the directors
as at the time of this auditor’s report.
Opinion
In our opinion:
| (a) | the financial report of Mission NewEnergy Limited is in accordance with the Corporations Act 2001, including: |
| (i) | giving a true and fair view of the consolidated entity’s financial position as at 30 June 2015 and of its performance
for the year ended on that date; and |
| (ii) | complying with Australian Accounting Standards and the Corporations Regulations 2001; and |
| (b) | the financial report also complies with International Financial
Reporting Standards as disclosed in Note 2. |
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’
report for the year ended 30 June 2015. 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.
Opinion
In our opinion, the Remuneration Report of Mission NewEnergy
Limited for the year ended 30 June 2015 complies with section 300A of the Corporations Act 2001.
BDO Audit (WA) Pty Ltd
Wayne Basford
Director
Perth, 31 August 2015