To the shareholders of Orion Health Group Limited Report on the Financial Statements
We have audited the Group financial statements of Orion Health Group Limited (“the Company”) on pages 46 to 81, which comprise the balance sheet as at 31 March 2015, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended and the notes to the financial statements that include a summary of significant accounting policies and other explanatory information for the Group. The Group comprises the Company and the entities it controlled at 31 March 2015 or from time to time during the financial year.
Directors’ Responsibility for the Financial Statements
The Directors are responsible for the preparation and fair
presentation of these financial statements in accordance with New Zealand Equivalents to International Financial Reporting Standards and International Financial Reporting Standards and for such internal controls as the Directors determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing (New Zealand) and International Standards on Auditing. These standards require that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider the internal controls relevant to the Company’s preparation and fair presentation of the financial statements 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, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
We are independent of the Group. Our firm carries out other services for the Group in the areas of other assurance and advisory services. The provision of these other services has not impaired our independence.
Opinion
In our opinion, the financial statements on pages 46 to 81 present fairly, in all material respects, the financial position of the Group as at 31 March 2015 and its financial performance and cash flows for the year then ended in accordance with New Zealand Equivalents to International Financial Reporting Standards and International Financial Reporting Standards.
Restriction on Use of our Report
This report is made solely to the Company’s shareholders, as a body, in accordance with the Companies Act 1993. Our audit work has been undertaken so that we might state those matters which we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our audit work, for this report or for the opinions we have formed.
Chartered Accountants Auckland 25 May 2015
9: Independent
Auditors’ Report
10:
Financial
Statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARS ENDED 31 MARCH Note NZ$’0002015 NZ$’0002014 Operating revenue 4 164,072 152,992 Other income 5 5,095 10,168 Total income 169,167 163,160 Expenses
Direct operating costs and expenses (33,193) (27,344)
Employee benefits expense (150,837) (109,159)
Promotional expenses (2,344) (2,387)
Administration and other expenses (18,978) (11,920)
Occupancy expenses (10,404) (8,897)
Depreciation and amortisation expense (5,348) (3,710)
Net foreign exchange gains/(losses) 1,894 (1,518)
Other operating gains/(losses) (1,964) (319)
6 (221,174) (165,254)
Operating loss (52,007) (2,094)
Finance income 7 1,664 333
Finance costs 7 (395) (117)
Finance income – net 1,269 216
Share of profit of investments accounted for using the equity method 13 - 145
Loss before income tax (50,738) (1,733)
Income tax (expense)/credit 8 (10,077) 596
Loss for the year attributable to equity holders of the Parent (60,815) (1,137)
Other comprehensive income for items that may be reclassified subsequently to profit or loss
Currency translation differences 811 (954)
Total other comprehensive income/(loss) 811 (954)
Total comprehensive loss attributable to equity holders of the Parent (60,004) (2,091)
Loss per share
Basic and diluted loss per share (cents) 22 (42.3) (0.9)
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH
The accompanying notes form an integral part of these financial statements For and on behalf of the Board, 25 May 2015
Note NZ$’0002015 NZ$’0002014 ASSETS
Current assets
Cash and cash equivalents 9 30,944 12,655
Term deposits 9 64,200 -
Trade and other receivables 10 58,680 52,781
Accrued revenue 11 20,025 16,921
Current income tax asset 2,469 66
176,318 82,423
Non-current assets
Accrued revenue 11 6,870 4,026
Deferred tax assets 8 930 9,970
Property, plant and equipment 14 13,028 11,700
Intangible assets 15 4,145 1,100 24,973 26,796 TOTAL ASSETS 201,291 109,219 LIABILITIES Current liabilities Bank overdraft 9 - 13,583
Trade and other payables 16 14,024 11,902
Current income tax payable 199 1,186
Employee benefits 17 15,388 10,992
Revenue in advance 19 50,899 37,322
Provisions for other liabilities 18 2,437 1,241
82,947 76,226
Non-current liabilities
Trade and other payables 16 1,595 -
Revenue in advance 19 2,431 3,232
Provisions for other liabilities 18 656 579
Deferred tax liabilities 8 880 -
5,562 3,811 TOTAL LIABILITIES 88,509 80,037 NET ASSETS 112,782 29,182 EQUITY Share capital 20 159,752 14,777 Treasury shares 21 (4,388) (2,069)
Share-based payment reserve 21 1,257 309
(Accumulated losses)/retained earnings (42,797) 18,018
Foreign currency translation reserve (1,042) (1,853)
TOTAL EQUITY ATTRIBUTABLE TO THE OWNERS OF THE PARENT 112,782 29,182