ADE NETWORK TECHNOLOGY PTY. LTD.
A.C.N. 006 395 026
AUDITED FINANCIAL STATEMENTS
30 JUNE, 2000
--------------------------------------------------------------------------------
NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
1.1
ADE NETWORK TECHNOLOGY PTY. LTD.
INDEX TO
AUDITED FINANCIAL STATEMENTS
30 JUNE, 2000
Page No.
Directors' Report 1
Auditor's Report 2
Directors' Declaration 3
Profit and Loss Appropriation Account 4
Balance Sheet 5
Statement of Cash Flows 6
Notes to and Forming Part of the Accounts 7
<PAGE>
1.1
ADE NETWORK TECHNOLOGY PTY. LTD.
DIRECTOR'S REPORT
Your directors submit the financial accounts of the company for the year ended
30th June 2000. The names of the directors in office at the date of this report
are:
Wayne Anderson
William Anderson
Philip W Anderson
The principal activities of the company during the financial year were
distribution, servicing and installation of microwave communication systems.
No significant change in the nature of these activities occurred during the
year.
The net profit after providing for income tax amounted to $194,114.
The following dividends were paid or recommended for payment:
29 September, 1999 $23,700
4 February, 2000 $23,700
A review of the operations of the company during the financial year and the
results of those operations are as follows:
Sales increased by over 40% on the prior year, whilst at the same time operating
profit before tax increased by over 60% to $268,604 compared to 1998/1999.
The likely developments in the operation of the company and the expected results
of those operations in financial years subsequent to the year ended 30th June
2000 are as follows:
With the continued growth in the telecommunications industry and the related
wireless infrastructure the directors are expecting a similar rate of growth in
the year ending 30 June, 2001 as achieved in 1999/2000.
No significant change in the state of affairs of the company occurred during the
financial year.
The directors on behalf of the shareholders, and the company have entered into
negotiations with an overseas entity to pursue a possible sale of the business
operated by the company or alternatively the shareholders interest in the
company. Other than this negotiation no matters or circumstances have arisen
since the end of the financial year which significantly affected or may
significantly affect the operations of the company, the results of those
operations or the state of affairs of the company in financial years subsequent
to the financial year ended 30th June 2000.
No options to shares in the company have been granted during the financial year
and there were no options outstanding at the end of the financial year.
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NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
1.2
ADE NETWORK TECHNOLOGY PTY. LTD.
DIRECTOR'S REPORT
No director has received or become entitled to receive, during or since the end
of financial year, a benefit because of a contract made by the company or a
related body corporate with the director, a firm of which a director is a member
or a company in which a director has a substantial financial interest. This
statement excludes a benefit included in the aggregate amount of emoluments
received or due and receivable by directors and related party transactions shown
in the company's accounts, prepared in accordance with Schedule 5 of the
corporations Regulations, or the fixed salary of a full time employee of the
company, controlled entity or related body corporate.
The company has not, during or since the financial year, in respect of any
person who is or has been an officer or auditor of the company or of a related
body corporate:
indemnified or made any relevant agreement for indemnifying against a
liability, including costs and expenses in successfully defending legal
proceedings; or
paid or agreed to pay a premium in respect of a contract insuring against a
liability for the costs or expenses to defend legal proceedings.
Signed in accordance with a resolution of the Board of Directors:
-------------------------------------------------
Wayne Anderson
Director
-------------------------------------------------
William Anderson
Director
27 September, 2000
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NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
2.1
INDEPENDENT AUDITOR'S REPORT
To the Members of ADE Network Technology Pty Ltd.
Scope
We have audited the attached financial report of ADE Network Technology Pty Ltd
for the year ended 30 June 2000, as set out on pages 2 to 7. The company's
directors are responsible for the financial report. We have conducted an
independent audit of the financial report in order to express an opinion on it
to the members of the company.
Our audit has been conducted in accordance with Australian Auditing Standards
and Generally Accepted Auditing Standards as applicable in the United States of
America. Our procedures included examination, on a test basis, of evidence
supporting the amounts and other disclosures in the financial report, and the
evaluation of significant accounting estimates. These procedures have been
undertaken to form an opinion whether, in all material respects, the financial
report is presented fairly in accordance with Accounting standards and other
mandatory professional reporting requirements, so as to present a view which is
consistent with our understanding of the company's financial position, and
performance as represented by the results of its operations and its cash flows.
The audit opinion expressed in this report has been formed on the above basis.
Audit Opinion
In our opinion, the financial report presents fairly in accordance with
applicable Accounting Standards and other mandatory professional reporting
requirements the financial position of ADE Network Technology Pty Ltd as at 30
June, 2000, the results of its operations and its cash flows for the year then
ended. Generally accepted accounting principles in Australia vary in certain
respects from generally accepted accounting principles in the United States. An
explanation of the major differences between the two sets of principles is
presented in note 21 to the financial report.
/s/ Lundstrom Dickson Barbanti
Firm: Lundstrom Dickson Barbanti Address: 21 Ellingworth Parade
Chartered Accountants Box Hill Vic 3128
Partner: /s/ T.J.A. Dickson.
------------------
T J A Dickson
Registered Company Auditor
Date : 23 December, 2000.
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NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
3.1
ADE NETWORK TECHNOLOGY PTY. LTD.
DIRECTORS' DECLARATION
The directors of the company declare that:
1. The financial statements and notes presents fairly the company's financial
position as at 30 June, 2000 and its performance for the year ended on that
date in accordance with Australian Accounting Standards and other mandatory
reporting requirements.
2. In the directors opinion there are reasonable grounds to believe that the
company will be able to pay its debts as and when they fall due.
This declaration is made in accordance with a resolution of the directors.
--------------------------------------------------
Wayne Anderson
Director
--------------------------------------------------
William Anderson
Director
27 September, 2000
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NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
4.1
ADE NETWORK TECHNOLOGY PTY. LTD.
A.C.N. 006 395 026
PROFIT & LOSS ACCOUNT
YEAR ENDED 30TH JUNE 2000
Note 2000 1999
---- ---------- ----------
$ $
Operating profit (loss) before
income tax - 342258 166817
Income Tax Expense 4 148144 36477
---------- ----------
Operating profit (loss) after
income tax 194114 130340
Retained profits (losses) at the
beginning of the year 157845 27505
Adjustments to Retained Earnings (236164) -
---------- ----------
Total available for appropriation 115795 157845
Dividends provided for or paid 5 47400 -
---------- ----------
Retained profits (losses) at end of
financial year 68395 157845
========== ==========
The accompanying notes form part of these financial statements.
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NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
5.1
ADE NETWORK TECHNOLOGY PTY. LTD.
A.C.N. 006 395 026
BALANCE SHEET
30TH JUNE 2000
Note 2000 1999
$ $
---- ---------- ----------
CURRENT ASSETS
Cash 6 9327 500
Receivables 7 1162413 447757
Inventories 8 754877 483623
Other 9 118093 -
---------- ----------
TOTAL CURRENT ASSETS 2044710 931880
---------- ----------
NON-CURRENT ASSETS
Property, plant and equipment 10 504007 240181
Intangibles 11 1889 64389
Other 9 48009 -
---------- ----------
TOTAL NON-CURRENT ASSETS 553905 304570
---------- ----------
TOTAL ASSETS 2598615 1236450
========== ==========
CURRENT LIABILITIES
Creditors and borrowings 12 1283705 539073
Provisions 13 286952 36477
Other 14 347331 -
---------- ----------
TOTAL CURRENT LIABILITIES 1917988 575550
---------- ----------
NON-CURRENT LIABILITIES
Creditors and Borrowings 12 360067 266696
Provisions 13 15806 -
---------- ----------
TOTAL NON-CURRENT LIABILITIES 375873 266696
---------- ----------
TOTAL LIABILITIES 2293861 842246
========== ==========
NET ASSETS (LIABILITIES) 304754 394204
========== ==========
SHAREHOLDERS' EQUITY
Share capital 15 237000 237000
Reserves 16 (641) (641)
Retained profits/(losses) 68395 157845
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 304754 394204
========== ==========
Capital and Leasing Commitments 17
The accompanying notes form part of these financial statements.
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NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
6.1
ADE NETWORK TECHNOLOGY PTY. LTD.
A.C.N. 006 395 026
STATEMENT OF CASH FLOWS
30TH JUNE 2000
2000 1999
$ $
---------- ----------
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from Customers 6965267 5477883
Payments to Suppliers and Employees (6531867) (5259263)
Income from Sale of Assets - 3647
Financing Costs (31974) (30395)
Income Tax Paid (45596) -
---------- ----------
355830 191872
---------- ----------
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of Fixed Assets (465285) (209154)
---------- ----------
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Borrowings 204097 99087
Repayment of Borrowings (32226) (69842)
Dividends Paid (47400) -
---------- ----------
124471 29245
---------- ----------
NET CASH FLOW 15016 11963
Cash at Beginning of Year (59212) (71175)
---------- ----------
Cash at End of Year (44196) (59212)
========== ==========
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NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
7.1
ADE NETWORK TECHNOLOGY PTY. LTD.
A.C.N. 006 395 026
NOTES TO AND FORMING PART OF THE ACCOUNTS
30TH JUNE 2000
1 STATEMENT OF ACCOUNTING POLICIES
This financial report is a general purpose financial report prepared in
accordance with Australian Accounting Standards, Urgent Issues Group
Consensus Views and other authoritative pronouncements of the Australian
Accounting Standards Board. The financial report is also prepared on an
accruals basis and is based on historic costs and does not take into
account changing money values or, except where specifically stated,
current valuations of non-current assets. The following specific
accounting policies, which are consistent with the previous period unless
otherwise stated, have been adopted in the preparation of these
statements.
Inventories
Inventories are measured at the lower of cost and net realisable value.
Plant and Equipment, and Motor Vehicles
Plant and equipment and motor vehicles are carried at cost, less where
applicable any accumulated depreciation or amortisation. All assets are
depreciated over their useful lives to the company.
Goodwill
Goodwill is initially recorded at the amount by which the purchase price
for a business exceeds the fair value attributed to its net assets at the
date of acquisition. The balance is reviewed annually and any balance
representing future benefits the realisation of which is considered to be
no longer probable are written off.
Leases
Leases of fixed assets, where substantially all the risks and benefits
incidental to the ownership of the asset, but not legal ownership, are
transferred to the company are classified as finance leases. Finance
leases are capitalised recording an asset and a liability equal to the
present value of the minimum lease payments, including any guaranteed
residual value. Leased assets are depreciated on a straight line basis
over their estimated useful lives where it is likely that the economic
entity will obtain ownership of the asset or over the term of the lease.
Lease payments are allocated between the reduction of the lease liability
and the lease interest expense for the period. Lease payments under
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.
Employee Entitlements
Provision is made for the company's liability for employee entitlements
arising from services rendered by employees to balance date. Employee
entitlements eligible for payment within one year together with
entitlements arising from wages and salaries, annual leave and long
service leave which will be settled after one year, have been measured at
their nominal amount.
Contributions are made by the company to an employee superannuation fund
and are charged as expenses when incurred.
--------------------------------------------------------------------------------
NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
7.2
ADE NETWORK TECHNOLOGY PTY. LTD.A.C.N. 006 395 026
NOTES TO AND FORMING PART OF THE ACCOUNTS
30TH JUNE 2000
Changes in Accounting Policy
(a) The company changed its accounting policy in regard to employee
entitlements in order to comply with Australian Accounting Standard AAS
30. The financial effect of this change in accounting policy has been to
recognise $138,929 as expense in the operating profit for the year.
Opening retained earnings have not been adjusted and comparatives have
not been restated as the directors believe that compiling such
information is impracticable.
(b) The company has changed its accounting policy in regard to finance leases
in order to comply with Australian Accounting Standard AAS 17. The
financial effect of this change in accounting policy has been to
recognise $1,809 as revenue in the operating profit for the year. Opening
retained earnings have not been adjusted and comparatives have not been
restated as the directors believe that compiling such information is
impracticable.
(c) The company has changed its accounting policy in regard to maintenance
contract income in order to comply with Australian Accounting Standard
AASB 1004. In prior years this income was brought to account in the year
invoiced. For the year ended 30 June 2000 and future periods the income
is brought to account over the term of the contract. The financial effect
of this change in accounting policy has been to increase the amount of
revenue in the operating profit for the year by $45,163. Opening retained
earnings have been reduced by $392,494 and a liability for deferred
income has been taken up at 30 June 2000 amounting to $347,331. The
income tax effect of this adjustment is reflected in a future income tax
benefit of $118,093 which has been brought to account at 30 June 2000 and
is disclosed as an increase in this year's tax expense of $23,205 and a
tax expense reduction in retained earnings of $141,298. Comparative
figures have not been restated as the directors believe that compiling
such information is impracticable.
(d) The company has changed its accounting policy in regard to foreign
currency translation gains or losses in order to comply with Australian
Accounting Standard AASB 1004. The financial effect of this change of
policy has been to recognise $23,300 as revenue in the operating profit
for the year. Opening retained earnings have been increased by $15,032.
Comparative figures have not been restated as the directors believe that
compiling such information is impracticable.
2000 1999
$ $
2 OPERATING PROFIT
(a) Operating profit before abnormal items and income tax has been
determined after charging as expense:
Borrowing Costs:
Interest 31974 30395
Finance Lease Charges 12825 -
Depreciation:
Plant and Equipment and Motor Vehicles 125821 36177
Amortisation:
Goodwill 45000 -
Leased Equipment and Motor Vehicles 45871 -
Rental Expense on Operating Lease:
Property 93181 86347
Other 33188 83886
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NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
7.3
ADE NETWORK TECHNOLOGY PTY. LTD.
A.C.N. 006 395 026
NOTES TO AND FORMING PART OF THE ACCOUNTS
2000 1999
$ $
---------- ----------
3 OPERATING REVENUE
Operating activities of the entity:
Sale of Goods and Services 7567933 5341160
Commissions 122854 82475
Sundry Income 6450 3647
Unrealised Foreign Exchange Gains 23300 -
---------- ----------
7720537 5427282
========== ==========
4 INCOME TAX EXPENSE
The prima facie tax payable on operating profit is reconciled to the income
tax provided in the accounts as follows:
Prima facie tax payable on operating
profit & extraordinary items at 36% 123213 60054
---------- ----------
123213 60054
Add tax effect of:
Accounting Depreciation 45296 -
Amortisation of Goodwill 16200 -
Amortisation of Leases 16514 -
Entertainment 7535 1494
Fines 174 8
Finance Lease Charges 4617 -
Leave Provisions 50014 -
---------- ----------
263563 61556
Less tax effect of:
Deferred Income not Subject to
Income Tax 16259 -
Foreign Currency Exchange Profit not
Subject to Income Tax 8388 -
Recoupment of Prior Years Tax Losses - 25079
Depreciation for Tax Purposes 44477 -
Deductible Lease Payments 21491 -
---------- ----------
Income Tax Payable 172948 36477
========== ==========
--------------------------------------------------------------------------------
NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
7.4
ADE NETWORK TECHNOLOGY PTY. LTD.
A.C.N. 006 395 026
NOTES TO AND FORMING PART OF THE ACCOUNTS
2000 1999
$ $
---------- ----------
The income tax expense comprises amounts
set aside as:
Provision for income tax
attributable to current year:
Income tax payable on operating
profit 172948 36477
Provision for income tax attributable to
future years:
Future income tax benefit (24804) -
---------- ----------
148144 36477
========== ==========
5 DIVIDENDS PROVIDED FOR OR PAID
Dividends Paid
Fully Franked 47400 -
========== ==========
6 CASH
Cash on Hand 650 500
Bank - NAB A1 8677 -
---------- ----------
9327 500
========== ==========
7 RECEIVABLES
CURRENT
Trade Debtors 1112115 431758
Deposits 17794 11894
Other Debtors 32504 4105
---------- ----------
1162413 447757
========== ==========
8 INVENTORIES
CURRENT
Finished Goods 754877 483623
========== ==========
9 OTHER ASSETS
CURRENT
Future Income Tax Benefit 118093 -
========== ==========
NON-CURRENT
Future Income Tax Benefit 48009 -
========== ==========
--------------------------------------------------------------------------------
NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
7.5
ADE NETWORK TECHNOLOGY PTY. LTD.
A.C.N. 006 395 026
NOTES TO AND FORMING PART OF THE ACCOUNTS
30TH JUNE 2000
2000 1999
$ $
---------- ----------
10 PROPERTY, PLANT & EQUIPMENT
Computer Systems - at cost 248428 188515
Less: Accumulated Depreciation (174037) (133667)
Office Equipment - at cost 83730 60905
Less: Accumulated Depreciation (50575) (39902)
Office Furniture - at cost 35016 27682
Less: Accumulated Depreciation (24589) (20348)
---------- ----------
117973 83185
---------- ----------
Floor Coverings - at cost 3976 3976
Less: Accumulated Depreciation 2974 2863
---------- ----------
1002 1113
---------- ----------
Shelving - at cost 1907 1907
Less: Accumulated Depreciation 1907 1120
---------- ----------
- 787
---------- ----------
Motor Vehicles - at cost 140825 140825
Less: Accumulated Depreciation 16733 2651
---------- ----------
124092 138174
---------- ----------
Equipment - Pinnacle 17500 -
Less: Accumulated Depreciation 17500 -
---------- ----------
- -
---------- ----------
Engineering Equipment - at cost 131419 59316
Less: Accumulated Depreciation 80451 42545
---------- ----------
50968 16771
---------- ----------
Equipment - Training Room - at cost 1118 1118
Less: Accumulated Depreciation 1118 967
---------- ----------
- 151
---------- ----------
Motor Vehicle under Lease 285610 -
Less: Accumulated Amortisation 75638 -
---------- ----------
209972 -
---------- ----------
Total property, plant & equipment 504007 240181
========== ==========
--------------------------------------------------------------------------------
NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
7.6
ADE NETWORK TECHNOLOGY PTY. LTD.
A.C.N. 006 395 026
NOTES TO AND FORMING PART OF THE ACCOUNTS
30TH JUNE 2000
2000 1999
$ $
---------- ----------
11 INTANGIBLES
Formation Expenses 1889 1889
Goodwill - at Cost 62500 62500
Reclassification to Fixed Assets (17500) -
Amortisation of Goodwill (45000) -
---------- ----------
- 62500
---------- ----------
1889 64389
========== ==========
12 CREDITORS & BORROWINGS
INCLUDED IN CURRENT CREDITORS &
BORROWINGS:
Hire Purchase Liability 27086 20617
Less: Unexpired Interest (6566) (8241)
Lease Liability 70356 -
Other Creditors and Accruals 214410 59038
Trade Creditors 889778 407797
GST Payable 35117 -
Bank Overdraft 53524 59862
---------- ----------
1283705 539073
========== ==========
NON-CURRENT
Hire Purchase Liability 75527 87737
Lease Liability 137807 -
Bank Loans - unsecured 146733 175782
Other Loans - unsecured - 3177
---------- ----------
360067 266696
========== ==========
13 PROVISIONS
CURRENT
Provision for Annual Leave 56400 -
Provision for Long Service Leave 66723 -
Provision for Income Tax 163829 36477
---------- ----------
286952 36477
========== ==========
NON-CURRENT
Provision for Long Service Leave 15806 -
========== ==========
Aggregate employee entitlement
liability 138929 -
========== ==========
--------------------------------------------------------------------------------
NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
7.7
ADE NETWORK TECHNOLOGY PTY. LTD.
A.C.N. 006 395 026
NOTES TO AND FORMING PART OF THE ACCOUNTS
30TH JUNE 2000
2000 1999
$ $
---------- ----------
14 OTHER LIABILITIES
CURRENT
Fees Billed in Advance 347331 -
========== ==========
15 SHARE CAPITAL
Authorised Capital:
500,000 Ordinary Shares of $1 Each 500000 500000
========== ==========
Issued & Paid Up Capital:
237,000 Ordinary Shares of $1 Each 237000 237000
========== ==========
16 RESERVES
Capital Profit/(Loss) Reserve (641) (641)
========== ==========
17 CAPITAL & LEASING COMMITMENTS
(a) FINANCE LEASE COMMITMENTS
Not longer than one year 87141 -
Longer than one year but not longer
than five years 152329 -
---------- ----------
Minimum Lease Payments 239470 -
Less: Future Finance Charges 31307 -
---------- ----------
208163 -
========== ==========
(b) OPERATING LEASE COMMITMENTS
Non cancellable operating leases
contracted for but not capitalised
in the financial statements.
Payable:
Not longer than one year 127193 62100
Longer than one year but not longer
than five years 132445 160425
---------- ----------
259638 222525
========== ==========
This commitment arises from non cancellable property leases over various
terms. There are contingent liabilities relating to future rental increases
arising from CPI adjustments under the terms of the lease agreements.
--------------------------------------------------------------------------------
NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
7.8
ADE NETWORK TECHNOLOGY PTY. LTD.
A.C.N. 006 395 026
NOTES TO AND FORMING PART OF THE ACCOUNTS
30TH JUNE 2000
2000 1999
$ $
18 REMUNERATION AND RETIREMENT BENEFITS
(a) Remuneration of Directors:
Remuneration received or receivable
by all directors of the company:
- from the company or any related
party in connection with the
management of the company
175000 137259
- from the company in connection
with the management of a related
party
- -
Directors:
The names of directors who have held
office during the financial year are:
Wayne Anderson
William Anderson
Philip W Anderson
(b) Retirement Benefits:
Amounts paid to a superannuation
plan for the provision of retirement
benefits by:
- the company or any related party
for directors of the company
140271 138136
- the company for directors of any
related party
- -
19 RELATED PARTY TRANSACTIONS
A company controlled by Philip and Wayne
Anderson, directors, sold product and
services to the company and sub-leased
premises to the company under normal
commercial terms and conditions.
Sales 12954 3606
Lease Rental 6583 -
The direct, indirect and beneficial
shareholdings of directors and their
related entities in the shares of the
company as at 30 June 2000 was:
237,000 (1999 - 237,000)
fully paid ordinary shares.
--------------------------------------------------------------------------------
NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
7.9
ADE NETWORK TECHNOLOGY PTY. LTD.
A.C.N. 006 395 026
NOTES TO AND FORMING PART OF THE ACCOUNTS
30TH JUNE 2000
2000 1999
$ $
20 SEGMENT REPORTING
The company operates in the product distribution and service sector
where it designs, installs and services microwave communication systems
throughout Australia.
21 RECONCILIATION TO UNITED STATES OF AMERICA GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES
This financial report is a general purpose financial report prepared in
accordance with Australian Accounting Standards, Urgent Issues Group Consensus
Views and other authoritative pronouncements of the Australian Accounting
Standards Board. If this financial report were to be prepared in accordance with
United States Generally Accepted Accounting Principles ("US GAAP"), the
following changes would be required:
1. Certain changes made in these financial statements to apply Australian
Accounting Standards for the first time have been recorded in the current
year. Under US GAAP, these changes would be considered errors and would be
required to be shown in the year actually incurred, resulting in prior
period adjustments.
2. US GAAP requires a different reporting format including the inclusion of a
Statement of Income (Loss) which discloses the specific components that
make up the operating profit (loss) before taxes. Such additional
disclosure would be shown as follows:
Unaudited
2000 1999
$ $
Gross Revenue 3 7,720,537 5,427,282
Cost of Goods Sold 4,267,725 3,274,443
---------------------------
Gross Margin 3,452,812 2,152,839
---------------------------
Expenditure :
Administration, general and selling 2,893,862 1,949,850
Research and development - -
Depreciation and amortisation 2 216,692 36,172
---------------------------
3,110,554 1,986,022
---------------------------
Operating Profit before income tax 342,258 166,817
---------------------------
--------------------------------------------------------------------------------
NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
RESOLUTIONS OF DIRECTORS OF
ADE NETWORK TECHNOLOGY PTY. LTD.
PASSED ON 27 SEPTEMBER, 2000
ACCOUNTS: It was noted that the accounts have been prepared as a special
purpose financial report in accordance with the accounting
policies outlined in Note 1 to the accounts.
It was resolved that the company is a non-reporting entity and
to the best of the knowledge and belief of the directors would
remain so in the current financial year.
DIRECTORS The declaration by directors in respect of the year ended 30
DECLARATION : June, 2000 was tabled and it was resolved that the statement
be approved and signed by the two directors indicated thereon.
CONFIRMATION: We, the undersigned, being all the directors of the company
hereby approve the above as a correct record of the
resolutions of directors passed on this date.
------------------------------------------
Wayne Anderson
Director
------------------------------------------
William Anderson
Director
------------------------------------------
Philip W Anderson
Director
--------------------------------------------------------------------------------
NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
RESOLUTIONS OF DIRECTORS OF
ADE NETWORK TECHNOLOGY PTY. LTD.
PASSED ON 24 SEPTEMBER, 1999
DIVIDEND : It was resolved that the following fully franked Class C
final dividend be declared out of profits of the year ended 30
June, 1999, hereby and forthwith payable to the members whose
names appear on the register of members as holders of the
undermentioned shares on 24 September, 1999:
- 237000 Ordinary Shares at the rate of $0.10 per share.
DISTRIBUTION: Based on the present holdings of shares, the distribution of
the above fully franked dividend would be as follows:
Name No. of Shares Dividend Imputation Credit
(Tax Rate 36%)
Maureen Anderson 200000 $20000.00 $11250.00
Philip Anderson 12000 $1200.00 $675.00
Wayne Anderson 25000 $2500.00 $1406.25
LOAN ACCOUNTS: It was resolved that the above dividend be paid in cash or
credited to the loan accounts of the respective shareholders.
CONFIRMATION: We, the undersigned, being all the directors of the company
entitled to receive notice of meetings of directors hereby
approve the above as a correct record of the resolutions of
directors passed on 24 September, 1999.
------------------------------------------
Wayne Anderson
Director
------------------------------------------
William Anderson
Director
------------------------------------------
Philip W Anderson
Director
--------------------------------------------------------------------------------
NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
<PAGE>
RESOLUTIONS OF DIRECTORS OF
ADE NETWORK TECHNOLOGY PTY. LTD.
PASSED ON 4 FEBRUARY, 2000
DIVIDEND : It was resolved that the following fully franked Class C
interim dividend be declared out of profits of the year ended
30 June 2000, hereby and forthwith payable to the members
whose names appear on the register of members as holders of
the undermentioned shares on 4 February, 2000:
- 237000 Ordinary Shares at the rate of $0.10 per share.
DISTRIBUTION: Based on the present holdings of shares, the distribution of
the above fully franked dividend would be as follows:
Name No. of Shares Dividend Imputation Credit
(Tax Rate 36%)
Maureen Anderson 200000 $20000.00 $11250.00
Philip Anderson 12000 $1200.00 $675.00
Wayne Anderson 25000 $2500.00 $1406.25
LOAN ACCOUNTS: It was resolved that the above dividend be paid in cash or
credited to the loan accounts of the respective shareholders.
CONFIRMATION: We, the undersigned, being all the directors of the company
entitled to receive notice of meetings of directors hereby
approve the above as a correct record of the resolutions of
directors passed on 4 February, 2000.
----------------------------------------
Wayne Anderson
Director
----------------------------------------
William Anderson
Director
----------------------------------------
Philip W Anderson
Director
--------------------------------------------------------------------------------
NOTE - ADE NETWORK TECHNOLOGY PTY LTD AUDITED FINANCIAL STATEMENTS ARE PRESENTED
IN AUSTRALIAN DOLLARS.
