Plukka Limited

ABN 91 106 854 175

Annual Report

For the year ended 30 June 2017

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Contents

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CONTENTSCorporateDirectory 3Directors’Report 4Auditor’sIndependenceDeclaration 18ConsolidatedStatementofProfitorLossandOtherComprehensiveIncome 19ConsolidatedStatementofFinancialPosition 20ConsolidatedStatementofChangesinEquity 21ConsolidatedStatementofCashFlows 22NotestotheConsolidatedFinancialStatements 23Directors’Declaration 46IndependentAuditor’sReport 47ASXAdditionalInformation 51

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CorporateDirectory

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CORPORATEDIRECTORY

Directors AndrewWorland,ChairmanNataliaObolensky,ManagingDirectorCharlyDuffy,Non-executiveNiravMehta,Non-executive

CompanySecretary CharlyDuffy

RegisteredOffice Coghlan,Duffy&CoLevel42RialtoSouthTower525CollinsStreetMelbourneVictoria3000

ShareRegistry AutomicRegistryServicesLevel2,267StGeorgesTerracePERTHWA6000

Auditor RSMAustraliaPartnersLevel32ExchangeTower,2EsplanadePerthWA6000

SecuritiesExchangeListing AustralianSecuritiesExchangeLimited(ASX:PKA)

Website www.plukka.com

Placeofincorporation Australia

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DIRECTORS’REPORTTheDirectorsofPlukkaLimited(“Plukka”orthe“Company”)presenttheirreporttogetherwiththefinancialstatementsoftheconsolidatedentity,beingPlukkaanditscontrolledentities(the“Group”or“consolidatedentity”)fortheyearended30June2017.

Directors’DetailsThefollowingpersonswereDirectorsofPlukkaduringorsincetheendofthefinancialyear:

Director AndrewWorland

Appointment Chairman31January2017Non-executivedirectorsince8March2012

Qualifications B.Commerce(UWA),FellowofAustralianInstituteofCorporateGovernance

Biography MrWorlandhasover20yearsexperienceinexecutivecorporateandfinancialrolesinASXandTSXlistedcompaniesincludingentitiesthatweregrownfrominitialpublicofferingstosignificantoperatingbusinessescapitalisedinthe100’sofmillionsofdollars.

Othercurrentlistedcompanydirectorships -

Formerlistedpubliccompanydirectorships(lastthreeyears)

-

Interestinordinaryshares 1,453,638

Interestinoptions/performancerights 875,000optionsexercisableat$0.20pershareexpiring1December2018

Director NataliaObolensky

Appointment ManagingDirectorAppointed29April2016

Qualifications MBA(Insead)

Biography MsObolenskywasappointedChiefOperatingOfficerofPlukkainJanuary2016andManagingDirectorinApril2016.NataliahasastronghistoryinbusinesscreationingrowthmarketshavingspentoverfiveyearswithglobalmanagementconsultancyfirmBain&Cowheresheadvisedoncorporate,finance,marketing,businessdevelopmentandorganisationalchangeformulti-nationalclients.MostrecentlyNataliawasthefounderandCEOofCitySwishinLondon–anondemandbeautyservicebusinessthatwassoldtoacompetitorinearly2016.

Othercurrentlistedcompanydirectorships -

Formerlistedpubliccompanydirectorships(lastthreeyears)

-

Interestordinaryshares 3,244,374

Interestinoptions/performancerights 9,660,518performancerights

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Director CharlyDuffy

Appointment Non-executivedirector,CompanySecretaryAppointed2December2015

Qualifications BachelorofLaws

Biography MsDuffyisaqualifiedandpractisingcorporateandcommerciallawyerwithtenyearsofprivatepracticeexperienceinequitycapitalmarkets,mergersandacquisitions,corporategovernance,IPO,secondarycapitalraisings,businessandsharesaletransactions,takeovers,financing,ASICandASXcomplianceandallaspectsofgeneralcorporateandcommerciallaw.CharlyisthedirectorandprincipalofcdPlusCorporateServicesPtyLtdandCoghlanDuffy&CoPtyLtd.

Othercurrentlistedcompanydirectorships -

Formerlistedpubliccompanydirectorships(lastthreeyears)

ZyberHoldingsLimited,1February2016–25November2016

Interestinordinaryshares 100,000

Interestinoptions/performancerights -

Director NiravMehta

Appointment Non-executivedirector

Appointed6March2017

Qualifications BSFinance

Biography MrMehtaisCEOofTrelissWorldwideInc,oneoftheworld’slargestdiamondandfinejewellerymanufacturersanddistributors.Itformspartofaglobalnetworkthatemploysover1,200peopleandhasanannualturnoverofseveralhundredmillionUSD.Niravhasover15yearsofexperienceacrossvariousindustriessuchasbanking,pharmaceuticalanddiamondandjewellerymanufacturing.Hebringssignificantglobalindustryexpertiseandknowledgearoundthesourcingandpolishingofdiamonds,manufacturingofjewellery,brandstrategyanddistribution.PriortohisinvolvementintheTrelissgroup,Niravworkedininvestmentbankingandsubsequentlywaspartoftwosuccessfulstart-upsinthethebiotech/pharmaceuticalindustry.

Othercurrentlistedcompanydirectorships Nil

Formerlistedpubliccompanydirectorships(lastthreeyears)

Nil

Interestinordinaryshares(indirect) 20,963,531

Interestinoptions/performancerights Nil

On31January2017MrFrancisGoutenresignedasChairmanoftheboardofdirectors.FranciswasappointedChairmanon3December2015andhasover35yearsofexperienceintheluxurygoodsbusinessbeingformerlythemarketingmanagerwithCartierInternational,CEOofCartierAsiaandGeneralManagerofCartierFrance.AtthedateofhisdepartureFrancis

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owned1,500,000optionsinPlukkaexercisableat$0.20pershareonorbefore1December2018.Asaresultofhisdeparture1,000,000ofthoseoptionswerecancelledpursuanttovestingconditionsnotbeingmet.

On3September2016MsJoanneOoiresignedasanexecutivedirectorofPlukka.JoannewasafounderofPlukka.AtthedateofherdepartureJoanneowned10,357,340ordinarysharesinPlukkaand9,000,000performancerightssubjecttocertainperformancemilestones.

CompanySecretaryCharlyDuffywasappointedCompanySecretaryon3December2015.

PrincipalActivitiesPlukkaisaninternationalomnichannelfinejewelleryretailerofcreativefinejewelleryofferingexclusiveandproprietarypiecesthroughitsonlineplatformatwww.plukka.com,offlineevents,andpartnershipsandHongKongflagshiplocations.

ReviewofOperationsandFinancialResultsTheCompany’snetlossafterincometaxwas$4,510,981(2016:$9,468,973).

Salesincomeforthefinancialyear,inAustraliandollars,was$1,736K,downfrom2016of$1,880KandconsistedofonlinesalesofUS$260KandeventssalesofUS$770KwithboutiquesalesintheUK,HongKongandNYCmakinguptheremainder.TheonlinesalesperformanceforthefinancialyearendingJune2017,representingthescalablepartofPlukka’sbusiness,representsanincreaseof~30%overonlinesalesduringthepriorfinancialyear.Onlineperformancein2017steadilyimprovedwithimprovementstothePlukkawebsite,asimplifiedandmorecuratedproductoffering,moreattractivepricingthroughfocusonPlukkabrandedproductandcontinuedtechnicalimprovementsinSEO,digitalmarketingandoptimisedpaidsearch.TheseimprovementsareexpectedtocontinueandacceleratewiththelaunchofanewlyoptimisedwebsiteinSeptember2017.

Overthepasttwelvemonths,managementhasimprovedthePlukkabusinessmodelbyembracinga‘minetomarket’strategythatallowsPlukkatohavemorecontroloveritssupplychain,improvingqualityassurance,enablingittoreactfastertomarkettrendsandsignificantlycuttingcosts.InMarch2017Plukkaannouncedthesigningofatwo-yearUSD$1MrevolvinginventoryfacilityagreementwithNYCbasedjewellerymanufacturer,TrelissWorldwideInc.(Treliss).ThefacilityprovidesPlukkawithcapabilityofexpandingitsrevenuebasesignificantlyquickerthanitwouldotherwisebecapableofbyallowingPlukkatotakecontrolofitssupplychainwithoutincurringsignificantinvestmentsininventory,focusingonbuildingexclusivepositionsinthemarketplace,andexpandingitsdistributiontothirdparties.

InpartnershipwithTreliss,Plukkahasfocussedonestablishingvariousnewdistributionchannels,includingawholesalebusinessmodelthat,ifsuccessful,wouldincreasethetopandbottom-linefinancials,driverevenuesintheretailbusinessandalsodecreasethebusiness’scurrentdependenceonevents-basedrevenue.

Plukkacontinuestotakemeasurestoreduceitsspendingwhilstexploringwaysinwhichitcangrowtheonlinebusinessandsteerawayfromeventsbasedrevenueandofflineboutiques.Asuccessfulwholesalebusinessmodelcouldconstituteasignificantportionofrevenues,andreinforcethedirect-to-consumerofferingthroughtheretailboutiquesandthee-commerceplatform.Thisstrategyisinlinewiththeongoingnegotiationswithindividualdesigners,whowouldfeaturealongsidePlukka’sown-brandproductinthewholesalecontracts.ThesedesignerswillensurethePlukkaproductofferingremainsbothdiversebutrelevanttotheconsumerbase,andallowsPlukkatoreachouttodifferentdistributorsgloballywithindividuallytailoredpackages.

Thelossfromordinaryactivitiesattributabletomembersof$4,384,986(2016:$9,321,106)ismadeupof:

• Grossmarginonsalesrevenueof$602,068(2016:$756,267).• Otherincomeof$7,608(2016:$1,509,052).Theprioryearcomparativeincludedaoneoffdebtforgivenessof

$1,473,663owedbyTCHtoValueTrainInvestmentsLimitedthatwasforgivenoncompletionoftheacquisitionofTCHbyPlukka.

• Marketing,operations,administrationandcorporateoverheadexpensesof$3,882,135(2016:$5,254,240)reflectstheoperatingcostsassociatedwithmanagingthePlukkabusinessandincludesallmarketingexpensesassociatedwithonlineandofflinesalesrevenue,salariesandwagesandAustralianlistingoverheads,depreciationchargesandimpairmentstothevalueofplantandequipment.Thesubstantialdecreaseinthecurrentfinancialyearreflectsthebusinessrestructurechangesimplementedbymanagementtoreducepersonnelcosts,reduceofflineboutiqueoperatingcostsandimprovethenatureofmarketingexpenditure.

• Restructuringexpensesof$(96,202)(2016:$464,931).TheprioryearcomparativeincludedtheopeningoftheChaterHouseboutiqueinHongKong,terminationoftheplannedPeninsulaHotelboutiqueinKowloon.

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• Relistingexpensestotalling$nil(2016:$2,771,474).TheprioryearcomparativerepresentedtheexcessofconsiderationpaidbyTCH(astheaccountingacquirer)overthefairvalueofthenetassetsacquiredfromPlukka(previouslyContinuationInvestmentsLimited).

• Sharebasedpaymentsexpenseof$642,056(2016:$2,441,637)representsthevalueattributabletotheissueto,andtheconversionof,performancerightsbyemployeesduringthecurrentfinancialyear.Theprioryearcomparativeincludes$2,215,800incurredaspartoftheissueofPlukkasecuritiesontheacquisitionofTCHandfurthersharebasedpaymentsexpensestonewemployeessubsequenttotheacquisition.

• Borrowingfeesof$545,052(2016:$nil)representingtheaccountingoftheissueofsharestoTrelissduringthefinancialyear.

TheCompanyincurred$125,995(2016:$147,867)inforeigncurrencylossesrelatingtothefinancialpositionoftheentitiesestablishedintheUSA,UKandHongKong.Thisrepresentstheunrealisedgainsandlossesofthemonetaryassetsandliabilitiesatthereportingdate.

SignificantChangesintheStateofAffairsSignificantchangesinthestateofaffairsoftheCompanyarediscussedunderReviewofOperationsandFinancialResultsabove.

DividendsNodividendswerepaidordeclaredsincethestartofthefinancialperiod.Norecommendationforpaymentofdividendshasbeenmade.

EventsArisingSincetheEndoftheReportingPeriodNonenoted.

LikelyDevelopment,BusinessStrategiesandProspects1Theluxurygoodsmarketforjewellerysawslowinggrowthdownto1.5-2%in2016,atrendwhichhascontinuedinthefirsthalfof2017,isexpectedtocontinueduring2017.andhasdisproportionatelyaffectedthehigherendretailersaccordingtoluxuryreportsfrombothMcKinseyandBain&Company.Thiswasdrivenbya2%declineintheglobalpersonalluxurygoodsmarketinChina,3%declineintherestofAsiaand3%declineintheAmericas.GiventhattheChineseconsumerhasbeentheuniquemarketgrowthdriversince2012,thereductioninChinesespendinghasledtostagnationandcontractionin2016.Inthelongerterm,jewelleryisstillexpectedtoincreaseinrelativeimportanceattheexpenseofclothing,asurbanconsumers(particularlyasmorehighincomehouseholdsappearinChinaandIndia)areabletoredirectshare-of-walletfrombasicneedstodiscretionaryitemssuchasjewellery.Similarly,onlineanddigitalconsumptionhasnowreached7%penetrationacrossluxurygoodsandnowconstitutingoneofthelargestmarketsintheworldaftertheUSA.

DespitethesignificantimprovementsinthePlukkabusinessmodelinthepasttwelvemonths,2017/2018revenuegrowthforecastsremainmodest.InAugust2017,theCompanyannounceditsintentiontoconsideradivestmentofamajorityinterestintheoperatingbusiness.TheCompanycontinuestotakemeasurestoreducespending,includingbyreducingpersonnel,whilstgrowingtheonlinebusinessandsteeringawayfromeventsbasedrevenueandofflineboutiques.PlukkaintendsclosingtheBurlingtonArcadeboutiqueinLondonduringSeptember2017.

Directors’MeetingsThenumberofDirectorsMeetings(includingmeetingsofCommitteesofDirectors)heldduringtheyearandthenumberofmeetingsattendedbyeachDirectorisasfollows:

1ReferMcKinseyReport,“TheStateofFashion”,2017andAltagammaandBain,WorldWideLuxuryMarketsMonitor(October2016)

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Directorsname Attended EntitledtoAttend

AndrewWorland 17 17

NataliaObolensky 17 17

CharlyDuffy 16 17

NiravMehta 4 4

FrancisGouten 9 9

JoanneOoi 3 5

ThefunctionsoftheAuditandRiskCommitteeandRemunerationandNominationCommitteearecarriedoutbythefullboardofdirectors.

UnissuedSharesUnderOptionUnissuedordinarysharesofPlukkaunderoptionatthedateofthisreportare:

Dateoptionsgranted Expirydate Exercisepriceofshares($) Numberofoptions

25November2015 4December2018 0.20 10,000,000

28January2016 28January2019 0.20 540,000

Atotalof10,540,000optionsareonissueatthedateofthisreport.Duringthefinancialyear1,000,000optionsissuedtoadirectorlapseduponhisresignationfromtheBoardofDirectors.Nooptionswereissued,exercisedorlapsedduringtheyearorsubsequenttoyearend.

PerformanceRightsAtotalof29,195,518performancerightsareonissueatthedateofthisreport.

Duringthefinancialyear2,162,916performancerightswereexercisedinto2,162,916ordinarysharesinPlukkaandafurther6,005,994performancerightswereissued.Subsequenttoyearendandtothedateofthisreportafurther1,582,458performancerightswereexercisedwhilst5,504,994performancerightslapsed.

Holder Numberonissueat

beginningofyear

Issuedtoemployees

Exercised Lapsed Numberonissueatthedateofthis

report

NataliaObolensky

12,904,892 - (3,244,374) - 9,660,518

JoanneOoi 9,000,000 - - - 9,000,000

Other 10,535,000 - - - 10,535,000

Employees - 6,005,994 (501,000) (5,504,994) -

32,439,892 6,005,994 (3,745,374) (5,504,994) 29,195,518

Performancerightsonissueatthedateofthisreportaredetailedbelow:For

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PerformanceRights

Grantdate ExpiryDate ConditionsofExercise NumberofPerformanceRights

Tranche1 25November2015

4December2017

AchievementofsalesrevenueduringanythreemonthreportingperiodthatendsonorpriortothedatetwoyearsaftercompletionofthetransactionthatequalsorexceedsAU$2.5million.

7,000,000

3March2016 4December2017

2,138,714

Tranche2 25November2015

4December2017

20-dayvolumeweightedaveragepriceofPlukkasharesontheASXequalsorexceedsAU$0.50atanytimewithintwoyearsfromthedateofcompletionofthetransaction.

6,267,500

3March2016 4December2017

2,138,714

Tranche3 25November2015

4December2017

AchievementofconsolidatedEBITbytheCompanyduringanythreemonthreportingperiodthatendsonorpriortothedatethreeyearsaftercompletionofthetransactionthatequalsorexceedsA$1.25million.

6,267,500

3March2016 4December2017

2,138,714

Timebasedperformancerights

3March2016 3March2019 Oneachthreemonthanniversarycommencing14April2016,540,729timebasedperformancerightsvestandareconvertibleintosharesintheCompany.

3,244,376

29,195,518

RemunerationReport(Audited)TheDirectorsoftheGrouppresenttheRemunerationReportfornon-executivedirectors,executivedirectorsandotherKeyManagementPersonnel(“KMP”),preparedinaccordancewiththeCorporationsAct2001andtheCorporationsRegulations2001.NopersonsoutsidethedirectorswereconsideredKMPduringthefinancialyear.

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TheRemunerationReportissetoutunderthefollowingmainheadings:

a. Principlesusedtodeterminethenatureandamountofremunerationb. Detailsofremunerationc. Serviceagreementsd. Share-basedremuneration;e. Bonusesincludedinremuneration;andf. Otherinformation

a. Principlesusedtodeterminethenatureandamountofremuneration

Theobjectiveoftheconsolidatedentity'sexecutiverewardframeworkistoensurerewardforperformanceiscompetitiveandappropriatefortheresultsdelivered.Theframeworkalignsexecutiverewardwiththeachievementofstrategicobjectivesandthecreationofvalueforshareholders,anditisconsideredtoconformtothemarketbestpracticeforthedeliveryofreward.TheBoardofDirectors('theBoard')ensuresthatexecutiverewardsatisfiesthefollowingkeycriteriaforgoodrewardgovernancepractices:

• competitivenessandreasonableness;• acceptabilitytoshareholders;• performancelinkage/alignmentofexecutivecompensation;• transparency

TheBoardisresponsiblefordeterminingandreviewingremunerationarrangementsforitsdirectorsandexecutives.Theperformanceoftheconsolidatedentitydependsonthequalityofitsdirectorsandexecutives.Theremunerationphilosophyistoattract,motivateandretainhighperformanceandhighqualitypersonnel.TheBoardhasstructuredanexecutiveremunerationframeworkthatismarketcompetitiveandcomplementarytotherewardstrategyoftheconsolidatedentity.

Theremunerationframeworkisdesignedtoalignexecutiverewardtoshareholders'interests.TheBoardconsidersthatitshouldseektoenhanceshareholders'interestsby:

• implementingcoherentremunerationpoliciesandpracticestoattract,motivateandretainexecutivesanddirectorswhowillcreatevalueforshareholdersandwhoareappropriatelyskilledanddiverse;

• observingthoseremunerationpoliciesandpractices;• fairlyandresponsiblyrewardsexecutiveshavingregardtoGroupandindividualperformance,theperformance

oftheexecutivesandthegeneralexternalpayenvironment;and• integratinghumancapitalandorganisationalissuesintoitsoverallbusinessstrategy.

Additionally,theremunerationframeworkmustrefertothefollowingprincipleswhendevelopingrecommendationstotheBoardregardingexecutiveremuneration:

• motivatingmanagementtopursuetheGroup'slong-termgrowthandsuccess;• demonstratingaclearrelationshipbetweentheGroup'soverallperformanceandtheperformanceofindividuals;

and• complyingwithallrelevantlegalandregulatoryprovisions.

Inaccordancewithbestpracticecorporategovernance,thestructureofnon-executivedirectorandexecutivedirectorremunerationisseparate.

Executiveremuneration

Theconsolidatedentityaimstorewardexecutivesbasedontheirpositionandresponsibility,withalevelandmixofremunerationwhichmayhavebothfixedandvariablecomponents.Inrespectofexecutiveremuneration,remunerationpackagesshouldincludeanappropriatebalanceoffixedandperformance-basedremunerationandmaycontainanyorallofthefollowing:

Fixedremuneration

Anyfixedremunerationcomponentshould:

• bereasonableandfair;• takeintoaccounttheGroup'slegalandindustrialobligationsandlabourmarketconditions;• berelativetothescaleoftheGroup'sbusiness;and• reflectcoreperformancerequirementsandexpectations;

Performance-basedremuneration

Anyperformance-basedremunerationshould:

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• takeintoaccountindividualandcorporateperformance;and• belinkedtoclearly-specifiedperformancetargets,whichshouldbe:• alignedtotheGroup'sshortandlong-termperformanceobjectives;and• appropriatetoitscircumstances,goalsandriskappetite;

Equity-basedremuneration

Equity-basedremunerationcanincludeoptionsorperformancerightsorsharesandisespeciallyeffectivewhenlinkedtohurdlesthatarealignedtotheGroup’slonger-termperformanceobjectives.However,theyshouldbedesignedsothattheydonotleadto‘short-termism’onthepartofseniorexecutivesorthetakingofunduerisks.TheBoardisoftheopinionthattheadoptionofperformance-basedcompensationforexecutivesisnecessarytorewardexecutivesconsistentwithincreasesinshareholderreturns.

Terminationpayments

Terminationpaymentsshouldbeagreedinadvance,andanyagreementshouldclearlyaddresswhatwillhappeninthecaseofearlytermination.Thereshouldbenopaymentforremovalformisconduct.

Non-executivedirectorsremuneration

Feesandpaymentstonon-executivedirectorsreflectthedemandsandresponsibilitiesoftheirrole.Non-executivedirectors’feesandpaymentsarereviewedannuallybytheBoard.TheBoardmay,fromtimetotime,receiveadvicefromindependentremunerationconsultantstoensurenon-executivedirectors’feesandpaymentsareappropriateandinlinewiththemarket.

Inrespectofnon-executivedirectorremuneration,remunerationpackagescouldcontaincashfees,superannuationcontributionsandnon-cashbenefitsinlieuoffees(suchassalarysacrificeintosuperannuationorequity)andmaycontainanyorallofthefollowing:

• fixedremuneration–thisshouldreflectthetimecommitmentandresponsibilitiesoftherole;• performance-basedremuneration–non-executivedirectorsshouldnotreceiveperformance-based

remunerationasitmayleadtobiasintheirdecision-makingandcompromisetheirindependence;• equity-basedremuneration–non-executivedirectorscanreceiveaninitialallocationoffully-paidordinary

securitiesifshareholdershaveapprovedsuchanallocationinaccordancewiththeASXListingRules.However,non-executivedirectorsgenerallyshouldnotreceiveperformancesharesaspartoftheirremunerationasitmayleadtobiasintheirdecision-makingandcompromisetheirindependence;and

• terminationpayments–non-executivedirectorsshouldnotbeprovidedwithretirementbenefitsotherthansuperannuation.

ASXListingRulesrequiretheaggregatenon-executivedirectors’remunerationbedeterminedperiodicallybyageneralmeeting.Themaximumaggregateremunerationpayabletonon-executivedirectorscurrentlystandsat$500,000perannum.

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b. Detailsofremuneration

DetailsofthenatureandamountofeachelementoftheremunerationofeachKMPofPlukkaareshowninthetablebelow:

Shorttermbenefits Postemploymentbenefits

Long-termbenefits Share-basedpayments

DirectorandotherKMP Year Cashsalaryandfees

Otherfees Non-monetarybenefits

Super Longserviceleave

Terminationbenefits

Options/Performance

Rights/Shares

Total Performancebased%of

remuneration

ExecutiveDirectors

NataliaObolensky2 2017

2016

282,691

22,780

-

-

19,204

-

3,073

797

-

-

-

-

603,461

169,0861

908,429

192,663

66%

87%

JoanneOoi3 2017

2016

61,451

113,280

-

14,160

-

-

1,536

1,859

-

-

-

-

-

-

62,987

129,299

-

-

Sub-total 2017 344,142 - 19,204 4,609 - - 603,461 971,416

2016 136,060 14,160 - 2,656 - - 169,086 321,962

Non-ExecutiveDirectors

AndrewWorland

2017

2016

24,000

31,000

-

-

-

-

2,280

1,995

-

-

-

-

-

175,000

26,280

207,995

-

84%

CharlyDuffy 2017

2016

26,000

14,000

-

-

-

-

2,470

1,330

-

-

-

-

-

-

28,470

15,330

-

-

NiravMehta4 2017

2016

4,000

-

-

-

-

-

-

-

-

-

-

-

- 4,000

-

-

-

FrancisGouten5 2017

2016

12,000

21,000

-

-

-

-

-

-

-

-

-

-

-

300,000

12,000

321,000

-

93%

1PriortoherappointmentasaDirector,NataliaObolenskywaspaidadditionalremuneration,includingtheissueof12,904,892PerformanceRights,pursuanttoherinitialemploymentcontractrelatingtoherroleasCOO.2AppointedManagingDirectoron29April2016.EquityissuedtoMsObolenskyistimebasedandwasvaluedatthedateofawardinMarch2016basedontheCompany’sASXtradingvaluesatthattimeincludingasharepriceof$0.17pershare.3Terminated2September20164Appointed6March20175Resigned31January2017

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Shorttermbenefits Postemploymentbenefits

Long-termbenefits Share-basedpayments

DirectorandotherKMP Year Cashsalaryandfees

Otherfees Non-monetarybenefits

Super Longserviceleave

Terminationbenefits

Options/Performance

Rights/Shares

Total Performancebased%of

remuneration

JeremyKing 2016 5,000 - - - - - 250,000 255,000 98%

DavidChurch 2016 25,000 - - - - - 175,000 200,000 88%

Sub-total 2017 66,000 - - 4,750 - - 70,750 70,750

2016 96,000 - - 3,325 - - 900,000 999,325

Total 2017 410,142 - 19,204 9,359 - - 603,461 1,042,166

2016 232,060 14,160 - 5,981 - - 1,069,086 1,321,287

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TherelativeproportionsofremunerationforcurrentdirectorsandotherKMPthatarelinkedtoperformanceandthose

thatarefixedareasfollows:

DirectorandotherKMP Fixedremunerationperyearperservice

agreement$

Atrisk:ShortTermIncentives(STI)$

Atrisk:options/performancerights/

shares

ExecutiveDirectors

NataliaObolensky 315,000 - 603,461

Non-ExecutiveDirectors -

AndrewWorland 24,000 - -

CharlyDuffy 24,000 - -

NiravMehta 12,000 - -

Sincethelong-termincentiveshavebeenprovidedexclusivelybywayofoptionsorperformancerights,thepercentages

disclosedalsoreflectthevalueofremunerationconsistingofoptionsorperformancerightsbasedonthevalueofoptions

orperformancerightsexpensedduringtheyear.

c. Serviceagreements

Non-executiveDirectorsareengagedpursuanttostandardnon-executivecontracts.

TheCompany’sManagingDirectorNataliaObolenskyhasenteredanexecutiveservicesagreementwiththeCompany

whichwasmodifiedbydeedinJanuary2017.Keytermsofheremploymentare:

• Remuneration:US$20,000(HK$156,000)permonth(plusminimumcontributionstoMandatoryProvidentFund

SchemeinaccordancewithHKregulations).

• Bonus:Subjecttothecompletionofoneyears’service(whichcommencedon3March2016asChiefOperating

Officer),anamountequaltoonemonths’salarywillbepaidonChineseNewYeareachyear.

• Termination:reciprocal3monthsnoticeorimmediateterminationforcause.

• Annualleave:MsObolenskyisentitledto25daysofannualleaveperyearinadditiontoHongKongpublic

holidays.

• PerformanceRights:theprovisionsofMsObolensky’spriorservicesagreementrelatingtothePerformance

Rightsissuedtoheron3March2016surviveterminationofthatagreement.

• Redundancy:intheeventofredundancy,MsObolenskywillbeentitledtotheconversionofsuchTimeBased

Rightsaspro-ratedtotheendofthemonthinwhichMsObolenskyisnotifiedofherredundancy.

d. Share-basedremuneration

TherehavebeennooptionsorperformancerightsgrantedtoanyDirectorsorotherKMPduringthefinancialyear,other

thanthecontinuationoftheamortisationoftheperformancerightsissuedinprioryeartotheManagingDirector.

e. Otherinformation

ThenumberofordinarysharesintheCompanyheldbyeachoftheDirector’sandotherKMPduringthe2017reporting

period,includingtheirrelatedparties,issetoutbelow:

Balanceatstartofyear/

dateofappointment

Grantedasremuneration

Sharesissuedonexerciseof

options/performance

rights

Onmarkettransactions

Otherchanges

Balanceatdateofreport

/dateofresignationortermination

Directors

Andrew

Worland

1,267,388 - - 186,250 - 1,453,638

Natalia

Obolensky

- - 2,162,916 - 2,162,916

CharlyDuffy - - - 100,000 - 100,000

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Balanceatstartofyear/

dateofappointment

Grantedasremuneration

Sharesissuedonexerciseof

options/performance

rights

Onmarkettransactions

Otherchanges

Balanceatdateofreport

/dateofresignationortermination

NiravMehta - - - - -

FrancisGouten - - - - -

JoanneOoi 10,357,340 - - - 10,357,340

ThenumberofoptionsintheCompanyheldbyeachoftheDirectorsandotherKMPduringthe2017reportingperiod,

includingtheirrelatedparties,issetoutbelow:

Balanceatstartofyear/date

ofappointment

Grantedasremuneration

Exercised Lapsed Balanceatdateofreport/dateofresignationortermination

Directors

AndrewWorland 875,000 - - - 875,000

NataliaObolensky - - - - -

CharlyDuffy - - - - -

NiravMehta - - - - -

FrancisGouten 1,500,000 - - (1,000,000) 500,000

JoanneOoi - - - - -

ThenumberofperformancerightsintheCompanyheldbyeachoftheDirectorsandotherKMPduringthe2017reporting

period,includingtheirrelatedparties,issetoutbelow:

Balanceatstartofyear/date

ofappointment

Grantedasremuneration

Exercised Lapsed Balanceatdateofreport/dateofresignationortermination

Directors

AndrewWorland - - - - -

NataliaObolensky 12,904,892 - (2,162,916) - 10,741,976

CharlyDuffy - - - - -

NiravMehta - - - - -

FrancisGouten - - - - -

JoanneOoi 9,000,000 - - - 9,000,000

OthertransactionswithDirectorsorotherKMPTheCompanyhasnotmadeanyloanstoDirectorsorotherKMPduringthefinancialyearorpriorfinancialyear.

Effective1March2017GlosterCapitalPtyLtd,acompanyassociatedwithAndrewWorland,agreedtoprovidefinancial

reportingservicestotheGrouponamonthlyretainerof$3,000.Totaltransactionsduringtheyearamountedto$12,000.

Attheendofthefinancialyear$9,000remainsoutstanding.

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DuringthefinancialyearcdPlusCorporateServices,acompanyassociatedwithCharlyDuffy,providedongoingcompany

secretarialservicestotheCompanyunderamonthlyretainerof$4,000(2016:$4,000),legalservicesassociatedwiththe

companysecretarialservicesatadiscountedhourlyrateandincurredassociatedlegalexpenseswiththirdpartylegalfirms

totalling$57,700(2016:$2,490)ofwhich$6,662remainsoutstandingatyearend(2016:$nil).

DuringthefinancialyearCoghlan&Co,acompanyassociatedwithCharlyDuffy,providedcorporateandcommerciallegal

servicestotheGroupamountingto$37,579(2016:$nil)ofwhich$niloutstandingatyearend(2016:$nil).

Directorsfeestotalling$4,000owingtoMrMehtaremainoutstandingatyearend(2016:$nil).

InMarch2017Plukkaannouncedthesigningofatwo-yearUSD$1MrevolvinginventoryfacilityagreementwithNYCbased

jewellerymanufacturer,TrelissWorldwideInc.(Treliss),acompanyassociatedwithMrMehta.ThefacilityprovidedPlukka

withcapabilityofexpandingitsrevenuebasesignificantlyquickerthanitwouldotherwisebecapableofbyallowingPlukka

totakecontrolofitssupplychainwithoutincurringsignificantinvestmentsininventory,focusingonbuildingexclusive

positionsinthemarketplace,andexpandingitsdistributiontothirdparties.Asconsiderationforthesebenefitsandthe

benefitofnothavingtomanufactureandstoreinventoryPlukkaissuedTreliss20,963,531newordinarysharesinthe

CompanyandappointedMrNiravMehtaadirector.Asat30June2017theCompanyhadutilised$279,000ofthefacility.

Attheendofthefinancialyear$40,513remainsoutstanding.

VotingandcommentsmadeattheCompany’s2016AnnualGeneralMeeting(AGM)Atthe2016AGM,99.8%ofthevotesreceivedsupportedtheadoptionoftheremunerationreportfortheyearended30

June2016.TheCompanydidnotreceiveanyspecificfeedbackattheAGMregardingitsremunerationpractices.

AdditionalinformationTheearningsoftheconsolidatedentityforthelastthreeyearsto30June2017aresummarisedbelow:

2017$ 2016$ 2015$

Salesrevenue 1,736,077 1,879,951 1,355,571

EBITDA (4,249,667) (9,233,319) (1,513,400)

EBIT (4,384,986) (9,298,926) (1,553,697)

Lossafterincometax (4,384,986) (9,321,106) (1,561,462)

Thefactorsthatareconsideredtoaffecttotalshareholdersreturn(‘TSR’)aresummarisedbelow:

2017 2016 2015

Sharepriceatfinancialyearend($) 0.007 0.037 0.086

Totaldividendsdeclared(centspershare) - - -

Basicearningspershare(centspershare) (2.77) (9.61) (9.89)

Noauditedinformationexistspriortothe2015financialyearduetothechangesinthecontrolledentitiesasaresultofthe

reverseacquisitionthatoccurredinthe2016financialyear.

ThisconcludestheRemunerationReport,whichhasbeenaudited.

EnvironmentalLegislation

TheCompany'soperationsarenotsubjecttoanysignificantenvironmentalregulations.Totheextentthatany

environmentalregulationsmayhaveanincidentalimpactontheCompany'soperations,theDirectorsoftheCompanyare

notawareofanybreachbytheCompanyofthoseregulations.

IndemnitiesGivento,andInsurancePremiumsPaidfor,AuditorsandOfficersTotheextentpermittedbylaw,theCompanyhasindemnified(fullyinsured)eachdirectorandthesecretaryofthe

Companyforapremium.Theliabilitiesinsuredincludecostsandexpensesthatmaybeincurredindefendingcivilor

criminalproceedings(thatmaybebrought)againsttheofficersintheircapacityasofficersoftheCompanyorarelated

body,andanyotherpaymentsarisingfromliabilitiesincurredbytheofficersinconnectionwithsuchproceedings,other

thanwheresuchliabilitiesariseoutofconductinvolvingawilfulbreachofdutybytheofficersortheimproperusebythe

officersoftheirpositionorofinformationtogainadvantageforthemselvesorsomeoneelseortocausedetrimenttothe

Company.

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NoindemnityhasbeengrantedtoanauditoroftheGroupintheircapacityasauditorsoftheGroup.

Non-auditServicesDetailsoftheamountspaidorpayabletotheauditorfornon-auditservicesprovidedduringthefinancialyearbythe

auditorareoutlinedinNote19tothefinancialstatements.

Thedirectorsaresatisfiedthattheprovisionofnon-auditservicesduringthefinancialyear,bytheauditor(orbyanother

personorfirmontheauditor'sbehalf),iscompatiblewiththegeneralstandardofindependenceforauditorsimposedby

theCorporationsAct2001.

ThedirectorsareoftheopinionthattheservicesasdisclosedinNote19tothefinancialstatementsdonotcompromise

theexternalauditor'sindependencerequirementsoftheCorporationsAct2001forthefollowingreasons:

• allnon-auditserviceshavebeenreviewedandapprovedtoensurethattheydonotimpacttheintegrityand

objectivityoftheauditor;and

• noneoftheservicesunderminethegeneralprinciplesrelatingtoauditorindependenceassetoutinAPES110

CodeofEthicsforProfessionalAccountantsissuedbytheAccountingProfessionalandEthicalStandardsBoard,

includingreviewingorauditingtheauditor'sownwork,actinginamanagementordecision-makingcapacityfor

theCompany,actingasadvocateforthecompanyorjointlysharingeconomicrisksandrewards.

Auditor'sindependencedeclarationTheauditor’sindependencedeclarationfortheyearended30June2017asrequiredundersection307Cofthe

CorporationsAct2001hasbeenreceivedandcanbefoundafterthisdirectors’report.

ProceedingsonBehalfofCompanyAtthedateofthisreporttherewerenoleaveapplicationsorproceedingsbroughtonbehalfoftheCompanyunder

section237oftheCorporationsAct2001.

SignedinaccordancewitharesolutionoftheDirectors

________________________

AndrewWorland

Chairman

29September2017

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THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING RSM Aust ralia Partners is a member of the RSM network and trades as RSM. RSM is the t rading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consult ing firm which pract ices in its own right . The RSM network is not itself a separate legal ent ity in any jurisdict ion. RSM Aust ralia Partners ABN 36 965 185 036

Liability limited by a scheme approved under Professional Standards Legislat ion

RSM Australia Partners

Level 32, Exchange Tower 2 The Esplanade Perth WA 6000 GPO Box R1253 Perth WA 6844

T +61 (0) 8 9261 9100 F +61 (0) 8 9261 9111

www.rsm.com.au

AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of the financial report of Plukka Limited for the year ended 30 June 2017, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit.

RSM AUSTRALIA PARTNERS

Perth, WA TUTU PHONG Dated: 29 September 2017 Partner

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ConsolidatedStatementofProfitorLossandOtherComprehensiveIncome

19

CONSOLIDATEDSTATEMENTOFPROFITORLOSSANDOTHERCOMPREHENSIVEINCOMEFORTHEYEARENDED30JUNE2017

Consolidated

Note 2017$ 2016$

Revenue

Salesincome 5(a) 1,736,077 1,879,951

Costofgoodssold (1,134,009) (1,123,684)

Grossmargin 602,068 756,267

Otherincome 5(a) 7,608 1,509,052

Expenses

Marketing,operations,administrationandcorporate

overhead

5(b)

(3,882,135) (5,254,240)

Writeoffofreceivables 5(b) (7,778) (182,744)

Restructureexpenses 5(b) 96,202 (464,931)

Relistingexpenses - (2,771,474)

Sharebasedpaymentsexpense 13 (642,056) (2,441,637)

Borrowingfees 15 (545,052) -

Financecosts - (21,768)

Other 5(b) (13,843) (449,219)

Totalexpenses (4,994,662) (11,586,013)

Lossbeforeincometaxexpense (4,384,986) (9,320,694)

Incometaxbenefit - (412)

Lossfortheyear (4,384,986) (9,321,106)

Othercomprehensivelossfortheyearnetoftax

Itemsthatmaybereclassifiedsubsequentlytoprofitorloss

Foreigncurrencytranslation (125,995) (147,867)

Othercomprehensivelossfortheyearnetoftax (125,995) (147,867)

Totalcomprehensivelossfortheyear (4,510,981) (9,468,973)

Basicanddilutedlosspersharefromcontinuingoperations

(centspershare)

7 (2.77) (9.61)

Theaboveconsolidatedstatementofprofitorlossandothercomprehensiveincomeshouldbereadinconjunctionwith

theaccompanyingnotes.

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ConsolidatedStatementofFinancialPosition

20

CONSOLIDATEDSTATEMENTOFFINANCIALPOSITIONASAT30JUNE2017

Consolidated

Note 2017$ 2016$

CURRENTASSETS

Cashandcashequivalents 8 1,969,435 4,952,570

Tradeandotherreceivables 9 223,341 218,789

Inventory 10 248,722 346,232

Othercurrentassets 11 217,679 532,563

Totalcurrentassets 2,659,177 6,050,154

NON-CURRENTASSETS

Plantandequipment 12 - 453,754

Totalnon-currentassets - 453,754

Totalassets 2,659,177 6,503,908

CURRENTLIABILITIES

Tradeandotherpayables 14 291,326 826,603

Provisions 14,420 -

Totalcurrentliabilities 305,746 826,603

Totalliabilities 305,746 826,603

Netassets 2,353,431 5,677,305

EQUITY

Issuedcapital 15 21,414,394 20,501,646

Reserves 16 1,769,596 1,495,237

Foreigncurrencytranslationreserve 16 (423,037) (297,042)

Accumulatedlosses (20,407,522) (16,022,536)

EquityattributabletoownersoftheCompany 2,353,431 5,677,305

Totalequity 2,353,431 5,677,305

Theaboveconsolidatedstatementoffinancialpositionshouldbereadinconjunctionwiththeaccompanyingnotes.

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21

CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY

FORTHEYEARENDED30JUNE2017

Consolidated2017$ Consolidated2016$

Issuedcapital

Options&Rights

ValuationReserve

ForeignCurrency

Translation

Accumulatedlosses

Total Issuedcapital$

Options&Rights

ValuationReserve$

ForeignCurrency

Translation

Accumulatedlosses

Attributabletoownersoftheparent

Balanceatthebeginningoftheyear

20,501,646 1,495,237 (297,042) (16,022,536) 5,677,305 5,391,420 - (149,175) (6,701,430) (1,459,185)

Lossafterincometaxexpensefortheyear

- - - (4,384,986) (4,384,986) - - - (9,321,106) (9,321,106)

Othercomprehensivelossfortheyear

- - (125,995) - (125,995) - - (147,867) - (147,867)

Totalcomprehensivelossoftheyear

- - (125,995) (4,384,986) (4,510,981) - - (147,867) (9,321,106) (9,468,973)

Issueofshares - - - - - 16,312,176 - - - 16,312,176

Shareissuecosts - - - - (740,350) - - - (740,350)

Conversionofperformancerights

367,696 - - - 367,696 - - - - -

Sharebasedpayments

545,052 274,359 - - 819,411 (461,600) 1,495,237 - - 1,033,637

912,748 274,359 - - 1,187,107 15,110,226 1,495,237 - - 16,605,463

Balanceattheendoftheyear

21,414,394 1,769,596 (423,037) (20,407,522) 2,353,431 20,501,646 1,495,237 (297,042) (16,022,536) 5,677,305

Theaboveconsolidatedstatementofchangesinequityshouldbereadinconjunctionwiththeaccompanyingnotes.

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CONSOLIDATEDSTATEMENTOFCASHFLOWSFORTHEYEARENDED30JUNE2017

Consolidated

Note 2017$ 2016$

Cashflowsfromoperatingactivities

Receiptsfromcustomers 1,696,074 1,879,951

Paymentstosuppliersandemployees (4,530,532) (6,032,812)

Interestreceived 724 868

Interestandotherfinancecosts - (21,768)

Incometaxespaid - (412)

Netcashusedinoperatingactivities 8 (2,833,734) (4,174,173)

Cashflowsfrominvestingactivities

Proceedsfromsaleofplantandequipment 4,008 13,000

Purchaseofplantandequipment (3,987) (475,434)

Acquisitionofsubsidiarynetofcashacquired - 412,328

Netcashprovidedby/(usedin)investingactivities 21 (50,106)

Cashflowsfromfinancingactivities

Proceedsfromissueofshares 458,441 10,000,000

Shareissuetransactioncosts - (740,350)

Netcashprovidedbyfinancingactivities 458,441 9,259,650

Net(decrease)/increaseincashandcashequivalents (2,375,272) 5,035,371

Cashatthebeginningofthefinancialyear 4,952,570 494,701

Effectsofexchangeratechangesoncashandcash

equivalents

(607,863) (577,502)

Cashattheendofthefinancialyear 8 1,969,435 4,952,570

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NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTSFORTHEYEARENDED30JUNE2017

1. StatementofSignificantAccountingPolicies

Theprincipalaccountingpoliciesadoptedinthepreparationoftheseconsolidatedfinancialstatementsaresetoutbelow.

Thesepolicieshavebeenconsistentlyappliedtoalltheyearspresented,unlessotherwisestated.Thefinancialstatements

arefortheconsolidatedentityconsistingofPlukkaLimitedanditssubsidiaries(“theconsolidatedentity”or“Group”).

1.1. Basisofpreparation

ThesegeneralpurposefinancialstatementshavebeenpreparedinaccordancewithAustralianAccountingStandardsand

InterpretationsissuedbytheAustralianAccountingStandardsBoardandtheCorporationsAct2001,asappropriateforfor-

profitorientatedentities.

CompliancewithIFRS

TheconsolidatedfinancialstatementscomplywithAustralianAccountingStandards.CompliancewithAustralian

AccountingStandardsensuresthattheconsolidatedfinancialstatementsandnotesofPlukkaLimitedcomplywith

InternationalFinancialReportingStandardsasissuedbytheInternationalAccountingStandardsBoard.

Historicalcostconvention

Thesefinancialstatementshavebeenpreparedunderthehistoricalcostconvention.

New,revisedoramendingAccountingStandardsandInterpretationsadopted

Standardsadoptedforthefirsttime:

Theconsolidatedentityhasadoptedallofthenew,revisedoramendingAccountingStandardsandInterpretationsissued

bytheAustralianAccountingStandardsBoardthataremandatoryforthecurrentreportingperiod.Theadoptionofthese

AccountingStandardsandInterpretationsdidnothaveanysignificantimpactontheconsolidatedentity’sfinancial

performanceorposition.

Anynew,revisedoramendingAccountingStandardsorInterpretationsthatarenotyetmandatoryhavenotbeenearly

adopted.

Criticalaccountingestimates

ThepreparationoffinancialstatementsinconformitywithAustralianAccountingStandardsrequirestheuseofcertain

criticalaccountingestimates.Italsorequiresmanagementtoexerciseitsjudgementintheprocessofapplyingthe

consolidatedentity’saccountingpolicies.Theareasinvolvingahigherdegreeofjudgementorcomplexity,orareaswhere

assumptionsandestimatesaresignificanttothefinancialstatements,aredisclosedinNote3.

Parententityinformation

InaccordancewiththeCorporationsAct2001,thesefinancialstatementspresenttheresultsoftheconsolidatedentity

only.SupplementaryinformationabouttheparententityisdisclosedinNote24.

Goingconcernbasisofpreparation

Thefinancialstatementshavebeenpreparedonthebasisofgoingconcernwhichcontemplatescontinuityofnormal

businessactivitiesandtherealisationofassetsandsettlementofliabilitiesintheordinarycourseofbusiness.

Currentandnon-currentclassification

Assetsandliabilitiesarepresentedinthestatementoffinancialpositionbasedoncurrentandnon-currentclassification.

Anassetisclassifiedascurrentwhen:itiseitherexpectedtoberealisedorintendedtobesoldorconsumedinnormal

operatingcycle;itisheldprimarilyforthepurposeoftrading;itisexpectedtoberealisedwithin12monthsafterthe

reportingperiod;ortheassetiscashorcashequivalentunlessrestrictedfrombeingexchangedorusedtosettlealiability

foratleast12monthsafterthereportingperiod.Allotherassetsareclassifiedasnon-current.

Aliabilityisclassifiedascurrentwhen:itiseitherexpectedtobesettledinnormaloperatingcycle;itisheldprimarilyfor

thepurposeoftrading;itisduetobesettledwithin12monthsafterthereportingperiod;orthereisnounconditionalright

todeferthesettlementoftheliabilityforatleast12monthsafterthereportingperiod.Allotherliabilitiesareclassifiedas

non-current.Deferredtaxassetsandliabilitiesarealwaysclassifiedasnon-current.

Reverseassetacquisition

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On4December2015,theCompanyacquired100%ofTCHfortheissueof72.735million(postconsolidation)ordinaryfully

paidsharesinPlukka.InconjunctionwiththeTransaction,PlukkaLimitedundertookashareconsolidationona3-for-4

basisandacapitalraisingofuptoA$10,000,000atA$0.20pershare(postConsolidation).

TheacquisitionhasbeenaccountedforusingtheprinciplesforreverseacquisitionsinAASB3BusinessCombinations

because,asaresultoftheAcquisition,theformershareholdersofTCH(thelegalsubsidiary)obtainedaccountingcontrolof

PlukkaLimited(thelegalparent).

TheacquisitiondidnotmeetthedefinitionofabusinesscombinationinaccordancewithAASB3BusinessCombinationsas

Plukkawasdeemednottobeabusinessforaccountingpurposesand,therefore,thetransactionwasnotabusiness

combinationwithinthescopeofAASB3.Insteadtheacquisitionhasbeenaccountedforasashare-basedpayment

transactionusingtheprinciplesofsharebasedpaymenttransactionsinAASB2,andinparticulartheguidanceinAASB2

thatanydifferenceinthefairvalueofthesharesissuedbytheaccountingacquirer(TCH)andthefairvalueofthe

accountingacquiree’s(PlukkaLimited)identifiablenetassetsrepresentsaservicereceivedbyTCH,includingpaymentfora

serviceofanASXstockexchangelisting.

AccordinglytheconsolidatedfinancialreportofPlukkaLimitedfortheperiod1July2015hasbeenpreparedasa

continuationofthebusinessandoperationsofTCH.Asthedeemedaccountingacquirer,TCHhasaccountedforthe

acquisitionfrom4December2015.Toalignwiththeconsolidationgroup,TCHchangeditsyearendto30June2016,

thereforetheperiodreportedisfortwelvemonths.

Theimpactofthereverseassetacquisitiononeachoftheprimarystatementsisasfollows:

ConsolidatedStatementofProfitorLossandOtherComprehensiveIncome:

Thestatementofprofitorlossandothercomprehensiveincomefortheyearended30June2016comprisestwelve

monthsofTCHandtheperiodsince4December2015ofPlukkaLimited.

Thecomparativestatementofprofitorlossandothercomprehensiveincomefortheyearended30June2015comprises

twelvemonthsofTCH.

ConsolidatedStatementofFinancialPosition:

Thestatementoffinancialpositionasat30June2016representsbothPlukkaLimitedandTCH.

ConsolidatedStatementofChangesinEquity:

Thestatementofchangesinequityfortheyearended30June2016comprisesTCH’sequitybalanceat1July2015,itsloss

fortheperiodandtransactionswithequityholdersforthetwelvemonths.ItalsocomprisesPlukkaLimited’stransactions

withequityholderssincethe4December2015acquisitiondateandtheequitybalancesofPlukkaLimitedandTCHasat30

June2016.

ConsolidatedStatementofCashFlows:

Thestatementofcashflowsfortheyearended30June2016comprisestwelvemonthsofTCHandtheperiodfromthe

acquisitiondate4December2015ofPlukkaLimited.

Referencesthroughoutthefinancialstatementsto“reverseassetacquisition”areinreferencetotheaboveaccounting

treatment.

1.2. Principleofconsolidation

TheconsolidatedfinancialstatementsincorporatestheassetsandliabilitiesofallsubsidiariesofPlukkaLimited

(“Company”or“ParentEntity”)asat30June2017andtheresultsofallsubsidiariesfortheyearthenended.Plukka

Limitedanditssubsidiariestogetherarereferredtointhesefinancialstatementsasthe“consolidatedentity”.

TheconsolidatedfinancialstatementsincorporatethefinancialstatementsoftheCompanyandentitiescontrolledbythe

Companyanditssubsidiaries.ControlisachievedwhentheCompany:

Haspoweroveritsinvestee;

• Isexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeinvestee;and

• Hastheabilitytouseitspowerstoaffectitsreturns.

TheCompanyreassesseswhetherornotitcontrolsaninvesteeiffactsandcircumstancesindicatethattherearechanges

tooneormoreofthethreeelementsofcontrollistedabove.TheCompanyconsidersallrelevantfactsandcircumstances

inassessingwhetherornottheCompany'svotingrightsinaninvesteearesufficienttogiveitpower,including:

• thesizeoftheCompany'sholdingofvotingrightsrelativetothesizeanddispersionofholdingsoftheothervote

holders;

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• potentialvotingrightsheldbytheCompany,othervoteholdersorotherparties;rightsarisingfromother

contractualarrangements;and

• anyadditionalfactsandcircumstancesthatindicatethattheCompanyhas,ordoesnothave,thecurrentabilityto

directtherelevantactivitiesatthetimethatdecisionsneedtobemade,includingvotingpatternsatprevious

shareholders'meetings.

ConsolidationofasubsidiarybeginswhentheCompanyobtainscontroloverthesubsidiaryandceaseswhentheCompany

losescontrolofthesubsidiary.Specifically,incomeandexpensesofasubsidiaryacquiredordisposedofduringtheyearare

includedintheconsolidatedstatementofcomprehensiveincomefromthedatetheCompanygainscontroluntilthedate

whentheCompanyceasestocontrolthesubsidiary.

Whennecessary,adjustmentsaremadetothefinancialstatementsofsubsidiariestobringtheiraccountingpoliciesinto

linewiththeconsolidatedentity'saccountingpolicies.Allintragroupassetsandliabilities,equity,income,expensesand

cashflowsrelatingtotransactionsbetweenmembersoftheconsolidatedentityareeliminatedinfullonconsolidation.

1.3. Foreigncurrencytranslation

Presentationcurrency

TheconsolidatedfinancialstatementsarepresentedinAustraliandollars.

Functionalcurrency

Theindividualfinancialstatementsofeachentityintheconsolidatedentityarepresentedinthecurrencyoftheprimary

economicenvironmentinwhichtheentityoperates(itsfunctionalcurrency).Forthepurposeofthesefinancialstatements,

theresultsandfinancialpositionoftheconsolidatedentityareexpressedinAustraliandollars,whichisthefunctional

currencyoftheCompanyandthepresentationcurrencyfortheconsolidatedfinancialstatements.

Inpreparingthefinancialstatements,transactionsincurrenciesotherthantheentity’sfunctionalcurrency(foreign

currencies)arerecognisedattheratesofexchangeprevailingatthedatesofthetransactions.Attheendofeachreporting

period,monetaryitemsdenominatedinforeigncurrenciesareretranslatedattheratesprevailingatthatdate.Non-

monetaryitemscarriedatfairvaluethataredenominatedinforeigncurrenciesareretranslatedattheratesprevailingat

thedatewhenthefairvaluewasdetermined.Non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeign

currencyarenotretranslated.Exchangevariationsresultingfromthetranslationarerecognisedintheforeigncurrency

translationreserveinequity.

1.4. Revenuerecognition

Revenueisrecognisedwhenitisprobablethattheeconomicbenefitwillflowtotheconsolidatedentityandtherevenue

canbereliablymeasured.Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivable.

Saleofgoods

Saleofgoodsrevenueisrecognisedatthepointofsale,whichiswherethecustomerhastakendeliveryofthegoods,the

risksandrewardsaretransferredtothecustomerandthereisavalidsalescontract.Amountsdisclosedasrevenuearenet

ofsalesreturnsandtradediscounts.

Interestincome

Interestincomeisrecognisedusingtheeffectiveinterestmethod.

Otherrevenue

Otherrevenueisrecognisedwhenitisreceivedorwhentherighttoreceivepaymentisestablished.

1.5. Incometax

Currenttax

Theincometaxexpenseorbenefitfortheperiodisthetaxpayableonthatperiod'staxableincomebasedontheapplicable

incometaxrateforeachjurisdiction,adjustedbythechangesindeferredtaxassetsandliabilitiesattributabletotemporary

differences,unusedtaxlossesandtheadjustmentrecognisedforpriorperiods,whereapplicable.

Deferredtax

Deferredtaxassetsandliabilitiesarerecognisedfortemporarydifferencesatthetaxratesexpectedtobeappliedwhenthe

assetsarerecoveredorliabilitiesaresettled,basedonthosetaxratesthatareenactedorsubstantivelyenacted,exceptfor

whenthedeferredincometaxassetorliabilityarisesfromtheinitialrecognitionofgoodwilloranassetorliabilityina

transactionthatisnotabusinesscombinationandthat,atthetimeofthetransaction,affectsneithertheaccountingnor

taxableprofits.

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Deferredtaxassetsarerecognisedfordeductibletemporarydifferencesandunusedtaxlossesonlyifitisprobablethat

futuretaxableamountswillbeavailabletoutilisethosetemporarydifferencesandlosses.

Thecarryingamountofrecognisedandunrecogniseddeferredtaxassetsarereviewedateachreportingdate.Deferredtax

assetsrecognisedarereducedtotheextentthatitisnolongerprobablethatfuturetaxableprofitswillbeavailableforthe

carryingamounttoberecovered.Previouslyunrecogniseddeferredtaxassetsarerecognisedtotheextentthatitis

probablethattherearefuturetaxableprofitsavailabletorecovertheasset.

Deferredtaxassetsandliabilitiesareoffsetonlywherethereisalegallyenforceablerighttooffsetcurrenttaxassets

againstcurrenttaxliabilitiesanddeferredtaxassetsagainstdeferredtaxliabilities;andtheyrelatetothesametaxable

authorityoneitherthesametaxableentityordifferenttaxableentitieswhichintendtosettlesimultaneously.

1.6. Cashandcashequivalents

Cashandcashequivalentscomprisescashonhand,demanddepositsandshort-terminvestmentswhicharereadily

convertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangeinvalue.Bankoverdraftsare

shownwithinborrowingsincurrentliabilitiesonthestatementoffinancialposition.

1.7. Tradereceivables

Tradereceivables,whichgenerallyhave30-90dayterms,areinitiallyrecognisedatfairvalueandaresubsequentlycarried

atamortisedcostamountlessanallowanceforanyuncollectibleamounts.

Anestimatefordoubtfuldebtsismadewhencollectionofthefullamountisnolongerprobable.Baddebtsarewrittenoff

whenidentified.

1.8. Inventories

Finishedgoodsarestatedatthelowerofcostandnetrealisablevalue.

Costiscalculatedonspecificidentificationbasisasappropriateandcomprisesallcostsofpurchase,costsofconversionand

othercostsincurredinbringingtheinventoriestotheirpresentlocationandcondition.

Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletion

andtheestimatedcostsnecessarytomakethesale.

Wheninventoriesaresold,thecarryingamountofthoseinventoriesisrecognisedasanexpenseintheperiodinwhichthe

relatedrevenueisrecognised.Theamountofanywrite-downofinventoriestonetrealisablevalueandalllossesof

inventoriesarerecognisedasanexpenseintheyearthewrite-downorlossoccurs.

1.9. Plantandequipment

Plantandequipmentisstatedathistoricalcostlessaccumulateddepreciationandimpairment.Historicalcostincludes

expenditurethatisdirectlyattributabletotheacquisitionoftheitems.

Subsequentcostsareincludedintheasset’scarryingamountorrecognisedasaseparateasset,asappropriate,onlywhenit

isprobablethatthefutureeconomicbenefitsassociatedwiththeitemwillflowtotheconsolidatedentityandthecostof

theitemcanbemeasuredreliably.Allotherrepairsandmaintenancearechargedtoprofitorlossduringthefinancial

periodinwhichtheyareincurred.

Plantandequipmentaredepreciatedoramortisedonareducingbalanceorstraightlinebasisatratesbasedupontheir

expectedusefullivesasfollows:

• Leaseholdimprovements–overtheleaseterm

• Furniture,fixturesandequipment–4–5years

• Computerequipment–3years

Leaseholdimprovementsunderleasearedepreciatedovertheunexpiredperiodoftheleaseorestimatedusefullifeofthe

assets,whicheverisshorter.

Depreciationisrecognisedsoastowriteoffthecostlesstheirresidualvaluesovertheirusefullives.Theestimatedresidual

valueofplantandequipmenthasbeenassessedtobezero.Thedepreciationmethodisreviewedattheendofeach

reportingperiod,withtheeffectofanychangeinestimateaccountedforonaprospectivebasis.

Depreciationrateandmethodsshallbereviewedatleastannuallyand,wherechanged,shallbeaccountedforasachange

inaccountingestimate.Wheredepreciationratesormethodsarechanged,thenetwrittendownvalueoftheassetis

depreciatedfromthedateofthechangeinaccordancewiththenewdepreciationrateormethod.Depreciationrecognised

inpriorfinancialyearsshallnotbechanged,thatis,thechangeindepreciationrateormethodshallbeaccountedforona

“prospective”basis.

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Theassets’residualvaluesandusefullivesarereviewed,andadjustedifappropriate,ateachreportingdate.Anasset’s

carryingamountiswrittendownimmediatelytoitsrecoverableamountiftheasset’scarryingamountisgreaterthanits

estimatedrecoverableamount.Animpairmentlossisrecognisedfortheamountbywhichtheassetscarryingamount

exceedsitsrecoverableamount.Therecoverableamountisthehigherofanassetsfairvaluelesscostsofdisposalandvalue

inuse.Gainsandlossesondisposalsaredeterminedbycomparingproceedswithcarryingamount.

Theamountrecognisedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationat

reportingdate,takingintoaccounttherisksanduncertaintiessurroundingtheobligation.

1.10. Leases

Thedeterminationofwhetheranarrangementisorcontainsaleaseisbasedonthesubstanceofthearrangementand

requiresanassessmentofwhetherthefulfilmentofthearrangementisdependentontheuseofaspecificassetorassets

andthearrangementconveysarighttousetheasset.

1.11. Operatingleases

Operatingleasespayments,netofanyincentivesreceivedfromthelessor,underwhichthelessoreffectivelyretains

substantiallyallsuchrisksandbenefits,arechargedtoprofitorlossonastraight-linebasisoverthetermofthelease.

1.12. Tradepayables

Theseamountsrepresentliabilitiesforgoodsandservicesprovidedtotheconsolidatedentitypriortotheendoffinancial

yearwhichareunpaid.Theamountsareunsecuredandareusuallypaidwithin30daysofrecognition.

1.13. Goodsandservicestax(GST)

Revenues,expensesandassetsarerecognisednetoftheamountofGST,exceptwheretheamountofGSTincurredisnot

recoverablefromtheAustralianTaxationOffice(ATO).

ReceivablesandpayablesarestatedinclusiveoftheamountofGSTreceivableorpayable.ThenetamountofGST

recoverablefrom,orpayableto,theATOisincludedwithotherreceivablesorpayablesinthestatementoffinancial

position.

Cashflowsarepresentedonagrossbasis.TheGSTcomponentsofcashflowsarisingfrominvestingorfinancingactivities

whicharerecoverablefrom,orpayableto,theATOarepresentedasoperatingcashflowsincludedinreceiptsfrom

customersorpaymentstosuppliers.

1.14. Borrowings

Loansandborrowingsareinitiallyrecognisedatthefairvalueoftheconsiderationreceived,netoftransactioncosts.They

aresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.

1.15. Provisions

Provisionsarerecognisedwhentheconsolidatedentityhasapresentobligation(legalorconstructive)asaresultofapast

event,itisprobablethattheconsolidatedentitywillberequiredtosettletheobligation,andareliableestimatecanbe

madeoftheamountoftheobligation.

1.16. Impairmentofnon-financialassets

Assetsthathavefiniteusefullivesarereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethat

thecarryingamountmaynotberecoverable.Theconsolidatedentityconductsanannualinternalreviewofassetvalues,

whichisusedasasourceofinformationtoassessforanyindicatorsofimpairment.Externalfactorssuchaschangesin

technologyandeconomicconditionsarealsomonitoredtoassessforindicatorsofimpairment.Ifanyindicationof

impairmentexists,anestimateoftheassetsrecoverableamountiscalculated.Animpairmentlossisrecognisedforthe

amountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigherofthe

asset’sfairvaluelesscostofdisposalandvalueinuse.

1.17. Employeebenefits

Short-termobligations

ProvisionismadefortheCompany'sliabilityforemployeebenefitsarisingfromservicesrenderedbyemployeestotheend

ofthereportingperiod.Employeebenefitsthatareexpectedtobesettledwithinoneyearhavebeenmeasuredatthe

amountsexpectedtobepaidwhentheliabilityissettled.

Long-termemployeebenefitobligations

Employeebenefitsexpectedtobesettledmorethantwelvemonthsaftertheendofthereportingperiodhavebeen

measuredatthepresentvalueoftheestimatedfuturecashoutflowstobemadeforthosebenefits.Indeterminingthe

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liability,considerationisgiventofutureemployeewageincreasesandtheprobabilitythattheemployeemaysatisfyvesting

requirements.Cashflowsarediscountedusingmarketyieldsonhighqualitycorporatebondswithtermstomaturitythat

matchtheexpectedtimingofcashflows.Changesinthemeasurementoftheliabilityarerecognisedinprofitorloss.

Share-basedpayments

Share-basedcompensationbenefitsareprovidedtoemployees.

Thefairvalueofoptionsandperformancerightsgrantedisrecognisedasanemployeebenefitsexpensewitha

correspondingincreaseinequity.Thetotalamounttobeexpensedisdeterminedbyreferencetothefairvalueofthe

optionsandperformancerightsgranted.

Thetotalexpenseisrecognisedoverthevestingperiod,whichistheperiodoverwhichallofthespecifiedvestingconditions

aretobesatisfied.Attheendofeachperiod,theentityrevisesitsestimatesofthenumberofoptionsorperformancerights

thatareexpectedtovestbasedonthevestingconditions.Itrecognisestheimpactoftherevisiontooriginalestimates,if

any,inprofitorloss,withacorrespondingadjustmenttoequity.

Thefairvalueatgrantdateisdeterminedusinganoptionpricingmodelthattakesintoaccounttheexerciseprice,theterm

oftheoption,thevestingandperformancecriteria,theimpactofdilution,thenon-tradeablenatureoftheoption,the

sharepriceatgrantdateandexpectedpricevolatilityoftheunderlyingshare,theexpecteddividedyieldandtherisk-free

interestrateforthetermoftheoption.Themarketbasedrightshavebeenvaluedusingahybridemployeeshareoption

modeltakingintoconsiderationtheaboveinputsinadditiontothestatisticallikelihoodofthemarketbasedhurdlebeing

achievedwithintherequiredperiod.

1.18. Contributedequity

Ordinarysharesareclassifiedasequity.Incrementalcostsdirectlyattributabletotheissueofnewsharesoroptionsare

showninequityasadeduction,netoftax,fromtheproceeds.

1.19. Dividends

Dividendsarerecognisedwhendeclaredduringthefinancialyearandnolongeratthediscretionofthecompany.

1.20. Earningspershare

Basicearningspershare

BasicearningspershareiscalculatedbydividingtheprofitattributabletotheownersofPlukkaLimited,excludinganycosts

ofservicingequityotherthanordinaryshares,bytheweightedaveragenumberofordinarysharesoutstandingduringthe

financialyear,adjustedforbonuselementsinordinarysharesissuedduringthefinancialyear.

Dilutedearningspershare

Dilutedearningspershareadjuststhefiguresusedinthedeterminationofbasicearningspersharetotakeintoaccountthe

afterincometaxeffectofinterestandotherfinancingcostsassociatedwithdilutivepotentialordinarysharesandthe

weightedaveragenumberofsharesassumedtohavebeenissuedfornoconsiderationinrelationtodilutivepotential

ordinaryshares.

2. ChangesinAccountingPolicies

AustralianAccountingStandardsandInterpretationsthathaverecentlybeenissuedoramendedbutarenotyetmandatory,

havenotbeenearlyadoptedbytheconsolidatedentityfortheannualreportingperiodended30June2017.The

consolidatedentity'sassessmentoftheimpactoftheseneworamendedAccountingStandardsandInterpretations,most

relevanttotheconsolidatedentity,aresetoutbelow.

AASB9FinancialInstruments

Thisstandardisapplicabletoannualreportingperiodsbeginningonorafter1January2018.Thestandardreplacesall

previousversionsofAASB9andcompletestheprojecttoreplaceIAS39'FinancialInstruments:Recognitionand

Measurement'.AASB9introducesnewclassificationandmeasurementmodelsforfinancialassets.Afinancialassetshall

bemeasuredatamortisedcost,ifitisheldwithinabusinessmodelwhoseobjectiveistoholdassetsinordertocollect

contractualcashflows,whichariseonspecifieddatesandsolelyprincipalandinterest.Allotherfinancialinstrumentassets

aretobeclassifiedandmeasuredatfairvaluethroughprofitorlossunlesstheentitymakesanirrevocableelectionon

initialrecognitiontopresentgainsandlossesonequityinstruments(thatarenotheld-for-trading)inothercomprehensive

income('OCI').Forfinancialliabilities,thestandardrequirestheportionofthechangeinfairvaluethatrelatestothe

entity'sowncreditrisktobepresentedinOCI(unlessitwouldcreateanaccountingmismatch).Newsimplerhedge

accountingrequirementsareintendedtomorecloselyaligntheaccountingtreatmentwiththeriskmanagementactivities

oftheentity.Newimpairmentrequirementswillusean'expectedcreditloss'('ECL')modeltorecogniseanallowance.

Impairmentwillbemeasuredundera12-monthECLmethodunlessthecreditriskonafinancialinstrumenthasincreased

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significantlysinceinitialrecognitioninwhichcasethelifetimeECLmethodisadopted.Thestandardintroducesadditional

newdisclosures.

Theconsolidatedentitywilladoptthisstandardfrom1July2018.Theconsolidatedentityisyettoundertakeadetailed

assessmentoftheimpactofAASB9.However,basedontheentity’spreliminaryassessment,theStandardisnotexpected

tohaveamaterialimpactonthetransactionsandbalancesrecognisedinthefinancialstatements.

AASB15RevenuefromContractswithCustomers

Thisstandardisapplicabletoannualreportingperiodsbeginningonorafter1January2018.Thestandardprovidesasingle

standardforrevenuerecognition.Thecoreprincipleofthestandardisthatanentitywillrecogniserevenuetodepictthe

transferofpromisedgoodsorservicestocustomersinanamountthatreflectstheconsiderationtowhichtheentity

expectstobeentitledinexchangeforthosegoodsorservices.Thestandardwillrequire:contracts(eitherwritten,verbal

orimplied)tobeidentified,togetherwiththeseparateperformanceobligationswithinthecontract;determinethe

transactionprice,adjustedforthetimevalueofmoneyexcludingcreditrisk;allocationofthetransactionpricetothe

separateperformanceobligationsonabasisofrelativestand-alonesellingpriceofeachdistinctgoodorservice,or

estimationapproachifnodistinctobservablepricesexist;andrecognitionofrevenuewheneachperformanceobligationis

satisfied.Creditriskwillbepresentedseparatelyasanexpenseratherthanadjustedtorevenue.Forgoods,the

performanceobligationwouldbesatisfiedwhenthecustomerobtainscontrolofthegoods.Forservices,theperformance

obligationissatisfiedwhentheservicehasbeenprovided,typicallyforpromisestotransferservicestocustomers.For

performanceobligationssatisfiedovertime,anentitywouldselectanappropriatemeasureofprogresstodeterminehow

muchrevenueshouldberecognisedastheperformanceobligationissatisfied.Contractswithcustomerswillbepresented

inanentity'sstatementoffinancialpositionasacontractliability,acontractasset,orareceivable,dependingonthe

relationshipbetweentheentity'sperformanceandthecustomer'spayment.Sufficientquantitativeandqualitative

disclosureisrequiredtoenableuserstounderstandthecontractswithcustomers;thesignificantjudgmentsmadein

applyingtheguidancetothosecontracts;andanyassetsrecognisedfromthecoststoobtainorfulfilacontractwitha

customer.

Theconsolidatedentitywilladoptthisstandardfrom1July2018.Theconsolidatedentitydoesnotbelievethenew

standardwillhaveamaterialimpactinthefinancialstatementsastheconsolidatedentity’srevenueisforprovisionof

goodswhichdeterminationoftheperformanceobligationisexpectedtobestraightforward.

AASB16Leases

Thisstandardisapplicabletoannualreportingperiodsbeginningonorafter1January2019.ThestandardreplacesAASB

117'Leases'andforlesseeswilleliminatetheclassificationsofoperatingleasesandfinanceleases.Subjecttoexceptions,a

'right-of-use'assetwillbecapitalisedinthestatementoffinancialposition,measuredasthepresentvalueofthe

unavoidablefutureleasepaymentstobemadeovertheleaseterm.Theexceptionsrelatetoshort-termleasesof12

monthsorlessandleasesoflow-valueassets(suchaspersonalcomputersandsmallofficefurniture)whereanaccounting

policychoiceexistswherebyeithera'right-of-use'assetisrecognisedorleasepaymentsareexpensedtoprofitorlossas

incurred.Aliabilitycorrespondingtothecapitalisedleasewillalsoberecognised,adjustedforleaseprepayments,lease

incentivesreceived,initialdirectcostsincurredandanestimateofanyfuturerestoration,removalordismantlingcosts.

Straight-lineoperatingleaseexpenserecognitionwillbereplacedwithadepreciationchargefortheleasedasset(included

inoperatingcosts)andaninterestexpenseontherecognisedleaseliability(includedinfinancecosts).Intheearlier

periodsofthelease,theexpensesassociatedwiththeleaseunderAASB16willbehigherwhencomparedtolease

expensesunderAASB117.HoweverEBITDA(EarningsBeforeInterest,Tax,DepreciationandAmortisation)resultswillbe

improvedastheoperatingexpenseisreplacedbyinterestexpenseanddepreciationinprofitorlossunderAASB16.For

classificationwithinthestatementofcashflows,theleasepaymentswillbeseparatedintobothaprincipal(financing

activities)andinterest(eitheroperatingorfinancingactivities)component.Forlessoraccounting,thestandarddoesnot

substantiallychangehowalessoraccountsforleases.

Theconsolidatedentitywilladoptthisstandardfrom1July2019.Theconsolidatedentitydoesnotrecogniseanyoperating

leasesotherthantheleaseoftheofficeandphotocopierwhichisonashorttermofthreemonthsandassuchwouldnot

berequiredtorecogniseasafinancelease.Thereforetheconsolidatedentitydoesnotbelievethestandardwillhavea

materialimpactinthefinancialstatements.

3. CriticalAccountingEstimatesandJudgements

Estimatesandjudgementsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,including

expectationoffutureeventsthatmayhaveafinancialimpactontheentityandthatarebelievedtobereasonableunder

thecircumstances.

Share-basedpaymenttransactions

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Theconsolidatedentitymeasuresthecostofequity-settledtransactionswithemployeesbyreferencetothefairvalueof

theequityinstrumentsatthedateatwhichtheyaregranted.Thefairvalueisdeterminedbyusinganappropriate

valuationmodeltakingintoaccountthetermsandconditionsuponwhichtheinstrumentsweregranted.Theaccounting

estimatesandassumptionsrelatingtoequity-settledshare-basedpaymentswouldhavenoimpactonthecarrying

amountsofassetsandliabilitieswithinthenextannualreportingperiodbutmayimpactprofitorlossandequity.

Provisionforimpairmentofreceivables

Theprovisionforimpairmentofreceivablesassessmentrequiresadegreeofestimationandjudgement.Thelevelofthe

provisionisassessedbytakingintoaccounttherecentsalesexperience,theageingofreceivables,historicalcollection

ratesandspecificknowledgeoftheindividualdebtor’sfinancialposition.

Provisionforimpairmentofinventories

Theprovisionforimpairmentofinventoriesassessmentrequiresadegreeofestimationandjudgement.Thelevelofthe

provisionisassessedbytakingintoaccounttherecentsalesexperience,theageingofinventoriesandotherfactorsthat

affectinventoryobsolescence.

4. Segmentreporting

TheDirectorshaveconsideredtherequirementsofAASB8–OperatingSegmentsandtheinternalreportsthatare

reviewedbytheChiefOperatingDecisionMaker(theBoard)inallocatingresourcesandhaveconcludedthatatthistime

therearenoseparatelyidentifiablesegments.FollowingtheadoptionofAASB8,theidentificationoftheCompany’s

reportablesegmentshasnotchanged.Duringtheperiod,theCompany’sconsidersthatithasonlyoperatedinone

segment,beingoperatingamulti-brand,omni-channelfinejewelleryretailbusiness.TheCompanyisdomiciledin

Australia.Revenuefromexternalcustomersisgeneratedglobally.AssetsarelocatedinUnitedKingdom,USAandHong

Kong.

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5. Revenueandexpenses

Consolidated

2017$ 2016$

(a) Revenue

Salesincome 1,736,077 1,879,951

Interestrevenue 724 868

Otherrevenue 6,884 34,521

Debtforgiveness - 1,473,663

Totalrevenue 1,743,685 3,389,003

(b) Marketing,operations,administrationandcorporateoverheadexpenses

Marketingexpenses 781,212 1,669,568

Employeerelatedcosts 1,242,102 1,178,402

Professionalfees 266,791 870,487

Operationssupport 259,488 499,643

Informationtechnologyexpenses 123,904 343,185

Depreciation 135,319 65,607

Corporateoverheadandotheradministration 782,861 627,348

Writeoffofplantandequipment 290,458 -

Totalmarketing,operations,administrationandcorporateoverheadexpenses

3,882,135 5,254,240

Restructureexpenses1

(96,202) 464,931

Relistingexpenses2

- 2,771,474

Writeoffofreceivable3

7,778 182,744

Otherexpenses:

Foreignexchangelosses 13,843 429,635

Lossonsaleofassets - 19,584

13,843 449,219

130June2017:Balancerelatedtothereversalofthepayableamountrecognisedin30June2016fortheterminationof

theleaseattheplannedPeninsulaHotelboutiqueinKowloon.30June2016:Restructuringexpensesof$464,931forthe

openingoftheChaterHouseboutiqueinHongKong,terminationoftheplannedPeninsulaHotelboutiqueinKowloonand

employeeandconsultantsterminationcostassociatedwithdownsizingoftheoperatingcoststructureinHongKong.

230June2016:ThecostsoftheacquisitionrelativetothefairvalueoftheissuedsharesofPlukkaimmediatelypriortothe

acquisitionisrecognisedasRelistingexpensesof$2,771,474(Note21).

330June2016:BalancerelatedtowriteoffofTheBiofusionaryCorporationPromissoryNotebalance.30June2017:

Balancerelatedtowriteoffofmultiplelowvalueandlongoutstandingtradereceivablebalances.

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6. Incometaxexpense

Themajorcomponentsofincometaxexpenseare:

Consolidated

2017$ 2016$

Incometaxexpense

Currenttax - 412

Incometaxexpense - 412

Areconciliationbetweentaxexpenseandtheproductofaccountingprofit

beforeincometaxmultipliedbytheGroup’sapplicableincometaxrateisas

follows

Accountinglossbeforeincometax (4,384,986) (9,320,694)

AttheGroup’sstatutoryincometaxrateof27.5%(2016:30%) (1,205,871) (2,796,208)

Non-taxableincome - (245,077)

Non-deductibleexpenses - 306,499

Unrecognisedtemporarydifferences (184,613) (588,698)

Effectofdifferenttaxratesincountriesinwhichtheconsolidatedentity

operates299,200 1,077,730

Sharebasedpayments 176,565 732,491

Taxlossescarriedforwardnotbroughttoaccount 674,630 626,998

Impairmentandwritedowns 90,199 54,823

Borrowingfees 149,890 -

Relistingexpenses - 831,442

Sundryitems - 412

Totalincometaxexpense - 412

TheGrouphastaxlossesarisinginAustraliaof$12,151,943(2016:

$11,477,313)thatareavailableindefinitely(subjecttocertainconditions)for

offsetagainstfuturetaxableprofitsofthecompaniesinwhichthelosses

arose.

Openingtaxlossesat1July 11,477,313 6,471,174

Currentyeartaxloss 674,630 5,006,139

Closingtaxlossesat30June 12,151,943 11,477,313

Carryforwardtaxlosseshavenotbeenrecognisedbecauseitispresentlynot

consideredprobablethatfuturetaxableprofitwillbeavailableagainstwhich

theCompanycanutilisethebenefitstherein.In30June2016,thecarry

forwardlossesintheCompanypriortotheAcquisitionDatehavenotbeen

carriedforwardduetothechangeintheownershipandbusinessactivityof

theCompany.

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7. Losspershare

Thefollowingreflectstheincomeandsharedatausedinthebasicanddilutedlosspersharecomputations:

Consolidated

2017$ 2016$

NetlossattributabletoordinaryequityholdersoftheCompany (4,384,986) (9,468,973)

Weightedaveragenumberofordinarysharesforbasicearningspershare 158,114,079 98,523,762

Losspershare(centspershare) 2.77 9.61

Dilutedearningspershareisequivalenttobasicearningspershare.Optionsandperformancerightsonissuearenot

consideredtobedilutiveastheCompanyhasmadealossfortheyear.

8. Cashandcashequivalents

Consolidated

2017$ 2016$

Cashatbankandinhand 1,969,435 4,952,570

Shorttermdeposits - -

1,969,435 4,952,570

Cashatbankearnsinterestatfloatingratesbasedondailybankdepositrates.Short-termdepositsaremadeforvarying

periodsofbetweenonedayandsixmonths,dependingontheimmediatecashrequirementsoftheCompany,andearn

interestattherespectiveshort-termdepositrates.ThecreditriskoftheCompanytocashisthecarryingamountandany

unpaidinterest.RefertoNote22.

Consolidated

2017$ 2016$

Reconciliationofnetlossaftertaxtonetcashflowsfromoperations

Netloss (4,384,986) (9,321,106)

Adjustmentsfornon-cashitems:

Depreciation 135,319 65,607

Write-offofplantandequipment 290,458 -

Writeoffofreceivables 7,778 182,744

Lossonsaleofassets - 19,584

Sharebasedpaymentexpense 642,056 2,441,637

Relistingexpenses - 2,771,474

Gainonforgivenessofdebt - (1,473,663)

Impairmentofinventory 29,762 182,651

Borrowingfees 545,052 -

Exchangeloss 13,842 429,635

Changesinassetsandliabilities

Tradeandotherreceivables (4,552) 91

Prepayments 314,884 638,459

Inventory 97,510 (474,149)

Tradeandotherpayables (535,277) 362,863

Employeeprovisions 14,420 -

(2,833,734) (4,174,173)

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9. Tradeandotherreceivables

Consolidated

2017$ 2016$

Tradereceivables* 61,512 86,958

Goodsandservicestaxreceivables 161,829 131,831

223,341 218,789

* Anallowancefordoubtfuldebtsismadewhenthereisobjectiveevidencethatatradereceivableisimpaired.Asat30June

2017theCompanydidnothaveanytradereceivableswhichwereoutsidenormaltradingterms(pastduebutnotimpaired).

10. Inventories

Consolidated

2017$ 2016$

Finishedgoods 435,384 528,883

Less:Provisionforimpairment (186,662) (182,651)

248,722 346,232

11. OtherAssets

Consolidated

2017$ 2016$

Securitydeposits 184,171 255,697

Prepayments 33,508 276,866

217,679 532,563

12. Plantandequipment

Consolidated

2017$ 2016$

Leaseholdimprovement–atcost - 417,803

Less:Accumulateddepreciation - (38,124)

- 379,679

Furniture,fixturesandequipment–atcost - 91,218

Less:Accumulateddepreciation - (40,006)

- 51,212

Computerequipment–atcost - 73,733

Less:Accumulateddepreciation - (50,870)

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12. Plantandequipment(Continued)

Consolidated

Leaseholdimprovements$$

Furniture,fixturesandequipment$

Computersequipment$

Total$

Balanceat1July2015 37,371 29,294 9,923 76,588

Additions 426,115 12,273 22,240 460,628

Disposals (140,808) - - (140,808)

Written-backondisposals 121,647 - - 121,647

Reclassification (19,452) 19,452 - -

Depreciationexpense (47,172) (9,654) (8,781) (65,607)

Translation 1,978 (153) (519) 1,306

Balanceat30June2016 379,679 51,212 22,863 453,754

Additions - - 3,989 3,989

Disposals - (1,828) (3,133) (4,961)

Writtenoff (245,839) (32,019) (12,600) (290,458)

Depreciationexpense (109,013) (15,798) (10,508) (135,319)

Translation (24,827) (1,567) (611) (27,005)

Balanceat30June2017 - - - -

13. Sharebasedpayments

EmployeeShareOptionPlan(ESOP)

TheCompanyhasanestablishedESOPandasummaryoftherulesoftheESOParesetoutbelow:

• Allemployees(fullandparttime)willbeeligibletoparticipateintheESOPafteraqualifyingperiodof12months

employmentbyamemberoftheCompany,althoughtheBoardmaywaivethisrequirement;

• OptionsaregrantedundertheESOPatthediscretionoftheBoardandifpermittedbytheBoard,maybeissuedtoan

employee’snominee;

• EachoptionistosubscribeforonefullypaidordinaryshareintheCompanyandwillexpireinaccordancewiththe

respectiveexpirydate.Anoptionisexercisableatanytimefromitsdateofissuesubjecttoanyvestingorescrow

conditionsapplicable;

• TheexercisepriceofoptionswillbedeterminedbytheBoard,subjecttoaminimumpriceequaltothemarketvalue

oftheCompany’ssharesatthetimetheBoardresolvestoofferthoseoptions.Thetotalnumberofsharesthesubject

ofoptionsissuedundertheESOP,whenaggregatedwithissuesduringtheprevious5yearspursuanttotheESOPand

anyotheremployeeshareESOP,mustnotexceed5%oftheCompany’sissuedsharecapital;

• If,priortotheexpirydateofoptions,apersonceasestobeanemployeeofaGroupCompanyforanyreasonother

thanretirementatage60ormore(orsuchearlierageastheBoardpermits),permanentdisability,redundancyor

death,theoptionsheldbythatperson(orthatperson’snominee)automaticallylapseonthefirsttooccurofa)the

expiryoftheperiodofonemonthfromthedateofsuchoccurrence,andb)theexpirydate.Ifapersondies,the

optionsheldbythatpersonwillbeexercisablebythatperson’slegalpersonalrepresentative;

• Optionscannotbetransferredotherthantothelegalpersonalrepresentativeofadeceasedoptionholder;

• TheCompanywillnotapplyforofficialquotationofanyoptions;

• SharesissuedasaresultoftheexerciseofoptionswillrankequallywiththeCompany’spreviouslyissuedshares;

• Optionholdersmayonlyparticipateinnewissuesofsecuritiesbyfirstexercisingtheiroptions.

TheBoardmayamendtherulesoftheESOPsubjecttotherequirementsoftheAustralianSecuritiesExchangeListing

Rules.

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NooptionswereissuedundertheESOPduringtheyear.Thefollowingtableillustratesthenumberandweightedaverage

exercisepricesandmovementsinshareoptions:

2017Number

2017Weightedaverage

exerciseprice

2016Number

2016Weightedaverage

exerciseprice

Outstandingatthebeginningoftheyear 11,540,000 $0.20 2,250,000 $0.20

Grantedduringtheyear - - 11,540,000 $0.20

Lapsed/expiredduringtheyear (1,000,000) $0.20 (2,250,000) $0.20

Outstandingattheendoftheyear 10,540,000 $0.20 11,540,000 $0.20

Exercisableattheendoftheyear 10,540,000 $0.20 11,040,000 $0.20

Theweightedaverageremainingcontractuallifefortheshareoptionsoutstandingasat30June2017is17.5months

(2016:29.5months).Alloptionsonissueareexercisableat$0.20pershare.

Thefairvalueoftheequity-settledshareoptionsgrantedundertheoptionplanisestimatedasatthedateofgrantusinga

Black-Scholesmodeltakingintoaccountthetermsandconditionsuponwhichtheoptionsweregranted.

Theexpectedlifeoftheoptionsisbasedonhistoricaldataandisnotnecessarilyindicativeofexercisepatternsthatmay

occur.Theexpectedvolatilityreflectstheassumptionthatthehistoricalvolatilityisindicativeoffuturetrends,whichmay

alsonotnecessarilybetheactualoutcome.

ManagementPerformanceRights

TheCompanyhasissuedPerformanceRightstovariousemployees.Performancerightshavealsobeenissuedtovendorsof

PlukkapursuanttothereversetakeoverthatcompletedinDecember2015(referNote21).TheCompanyhasnot

establishedaManagementPerformanceRightsPlan.

SharesissuedasaresultofthevestingofperformancerightswillrankequallywiththeCompany’spreviouslyissued

shares.

At30June2017therewere36,282,970performancerightsonissue(2016:33,942,892).

ThefairvalueoftheperformancerightsgrantedtodatehavebeencalculatedusingtheCompany’ssharepriceatgrant

dateandthenapplyingaprobabilityfactorofthevestingconditionsbeingmet.

Duringthefinancialyear2,162,916performancerightswereconvertedtoordinarysharesupontheirvestingconditions

beingmet(2016:nil).

Sharebasedpaymentexpensechargedtotheprofitandlossisreconciledasfollows:

2017$ 2016$

Timebasedperformancerightsconvertedduringtheyear 367,696 -

Amortisationofperformancerights 268,634 -

Issueof7,000,000optionsexercisableat$0.20pershareonorbefore30

November2018

- 807,800

Issueof540,000optionsexercisableat$0.20pershareonorbefore28

November2019

- 55,158

Issueof7,040,000facilitationshares - 1,408,000

Issueofperformancerights* 5,726 170,679

642,056 2,441,637

*Timebasedperformancerightsissuedtoemployeesbasedonemploymentserviceperiodvaluedat$0.04per

performanceright.

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14. Tradeandotherpayables

Consolidated

2017$ 2016$

Tradecreditorsandaccruals 67,205 42,298

Otherpayables 224,121 784,305

291,326 826,603

Tradecreditorsarenon-interestbearingandarenormallysettledon30-dayterms.Otherpayablesarenon-interestbearing

andarenormallysettledwithin30–90days.Otherpayablesincludesunpresentedchequesfrompastdistributionswhich

arehelduntiltheyareclaimedorpassedtotherelevantauthorities,afteranappropriateperiod,asunclaimedmonies.

InformationregardingthecreditriskofcurrentpayablesissetoutinNote22.

15. Issuedcapital

Ordinaryshares Consolidated

2017 2016

Number $ Number $

Balanceatthebeginningoftheyear 150,299,129 20,501,646 14,193,334 5,391,420

Performancerightsexercised–September2016 1,081,458 183,848 - -

IssueofsharestoTreliss* 20,963,531 545,052 - -

Performancerightsexercised–March2017 1,081,458 183,848 - -

Sharesissuedforcapitalraising - - 50,000,000 10,000,000

Sharesissuedforconvertiblenotes - - 2,100,105 799,369

SharesissuedtoacquireTCH - - 72,734,997 4,104,807

EliminationofexistingTCHshares - - (16,293,439) -

ExistingPlukkasharesonacquisitionofTCH - - 20,524,132 -

Issueoffacilitationshares - - 7,040,000 1,408,000

Capitalraisingcosts-optionsissued - - - (461,600)

Capitalraisingcosts - - - (740,350)

Balanceattheendoftheyear 173,425,576 21,414,394 150,299,129 20,501,646

*IssueofsharestoTrelissWorldwideInc.(“Treliss”),amanufactureroffinejewelleryandcutterandpolisherofdiamonds,

asconsiderationfortheprovisionofarevolvinginventorycreditfacilityofalimitofUSD$1,000,000inaccordancewiththe

ManufacturingAgreement.Valueofsharesisbasedonfairvalueofthesharesonthegrantdateof3March2017.

Thereisnocurrenton-marketsharebuy-backschemeinplace.

Fullypaidordinarysharescarryonevotepershareandcarrytherighttodividends.Thereisnocurrentsharebuy-back

schemeinplace.

16. Reserves

Totalreserves Consolidated

2017$ 2016$

Optionreserve(i) 1,324,558 1,324,558

Performancerightsreserve(ii) 445,038 170,679

1,769,596 1,495,237

Foreigncurrencytranslationreserve(iii) (423,037) (297,042)

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(i) Movementsinoptionreserve Consolidated2017 Consolidated2016

No.ofshares $ No.ofshares $

Balanceatthebeginningoftheyear 11,540,000 1,324,558 - -

Optionsissuedfortransactionfacilitationexpense

withexercisepriceof$0.20

- - 7,000,000 807,800

Optionsissuedfortransactionfacilitationcapital

raisingcostswithexercisepriceof$0.20

- - 4,000,000 461,600

Optionsissuedforconsultationserviceswithexercise

priceof$0.20

- - 540,000 55,158

Optionsexpiredunexercised (1,000,000) - - -

Balanceattheendoftheyear 10,540,000 1,324,558 11,540,000 1,324,558

(ii) Movements in performance rightsreserve

Consolidated

2017Number

2017$ 2016Number

2016$

Balanceatthebeginningoftheyear 33,942,892 170,679 - -

Tranche1performancerights–Nov2015 - - 7,000,000 -

Tranche2performancerights–Nov2015 - - 6,267,500 -

Tranche3performancerights–Nov2015 - - 6,267,500 -

Tranche1performancebasedperformancerights–

Mar2016*

- - 2,138,714 -

Tranche2performancebasedperformancerights–

Mar2016*

- - 2,138,714 -

Tranche3performancebasedperformancerights–

Mar2016*

- - 2,138,714 -

Timebasedperformancerights–Mar2016 - - 6,488,750 169,086

Performancebasedperformancerights–Jul2016* 1,502,994 - - -

Timebasedperformancerights–Jul2016 - - 1,503,000 1,593

Conversiontoshare–Sep2016 (1,081,458) (14,762) - -

Conversiontoshare–Mar2017 (1,081,458) (183,848) - -

Timebasedperformancerights–May2017 3,000,000 5,726 - -

Performancerightsamortised - 467,243 - -

Balanceattheendoftheyear 36,282,970 445,038 33,942,892 170,679*Performancebasedperformancerightsissuedin2016and2017toemployeeswillvestsubjecttosatisfactionofthe

termsandconditionsasapprovedon15September2015attheGeneralmeeting.In2016and2017,theperformance

rightswerevaluedatnilastheprobabilityofperformancehurdlesbeingmetwasassessedaslessthanprobable.

Thenatureandpurposeoftheoptionandrightsreserveistorecordvaluesofoptionsandperformancerightsprovidedto

directors,employeesandthirdpartiesaspartofremunerationorothertransactionsconsideration.For

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(iii) Movementsinforeigncurrencytranslationreserve Consolidated

2017$ 2016$

Balanceatthebeginningoftheyear (297,042) (149,175)

Changeinreserve (125,995) (147,867)

Balanceattheendoftheyear (423,037) (297,042)

Theforeigncurrencytranslationreserveisusedtorecogniseexchangedifferencesarisingfromthetranslationofthe

financialstatementsofforeignoperationstoAustraliandollars.

17. Accumulatedlosses

Consolidated

2017$ 2016$

Balanceatthebeginningoftheyear (16,022,536) (6,701,430)

Lossfortheyear (4,384,986) (9,321,106)

Balanceattheendoftheyear (20,407,522) (16,022,536)

18. Commitments

TheGrouphasvariousofficeleasesundernon-cancellableoperatingleasearrangementsexpiringwithinuptotwoyears.

Commitmentsforminimumleasepaymentsinrelationtonon-cancellableoperatingleasesareasfollows:

Operatingleases Consolidated

2017$ 2016$

Withinoneyear 46,990 98,447

Laterthanoneyearbutnotlaterthanfiveyears 18,353 47,185

Greaterthanfiveyears - -

65,343 145,632

19. Auditorsremuneration

Consolidated

2017$ 2016$

TheauditorsofPlukkaLimitedisRSMAustraliaPartners.Remunerationfor

theauditor:

Auditandreviewofthefinancialstatements 55,000 49,000

Independentlimitedassurancereport - 14,000

TheauditorforTreasureCastleHoldingsLimitedin2016andforagreedupon

proceduresin2017wasNexiaCharlesMarFunLimited.Remunerationforthe

auditor:

Auditandreviewofthefinancialstatements 14,338 78,056

Agreeduponprocedures 2,452 -

71,790 141,056

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20. Controlledentities

Incorporation Principalactivities

Ownershipinterest

2017 2016

Parententity

PlukkaLimited Australia Parent

Nameofcontrolledentity

TreasureCastleHoldingsLimited HongKong Holding

company

100% 100%

Plukka(HK)Inc HongKong Finejewellery

retailer

100% 100%

Plukka(UK)Limited UK Finejewellery

retailer

100% 100%

Plukka(USA)Inc USA Finejewellery

retailerand

marketing

100% 100%

21. Reverseacquisitionaccounting

On4December2015,Plukka,thelegalparentandlegalacquirer,completedtheacquisitionofTCH.Theacquisitiondidnot

meetthedefinitionofabusinesscombinationinaccordancewithAASB3BusinessCombinations.Insteadtheacquisition

hasbeentreatedasagrouprecapitalisation,usingtheprinciplesofreverseacquisitionaccountinginAASB3Business

CombinationsgiventhesubstanceofthetransactionisthatTCHhaseffectivelybeenrecapitalised.Accordingly,the

consolidatedfinancialstatementshavebeenpreparedasifTCHhadacquiredPlukka,andnotviceversaasrepresentedby

thelegalposition.Therecapitalisationismeasuredatthefairvalueoftheequityinstrumentsthatwouldhavebeengiven

byTCHtohaveexactlythesamepercentageholdinginthenewstructureatthedateofthetransaction.Accordingly,the

statementofprofitorlossandothercomprehensiveincomefor2016reflectsthetwelvemonthsoftradingofTCHandthe

tradingofPlukka,theparentcompanyandlegalacquirerofTCH,from4December2015.

AstheactivitiesofPlukkawouldnotconstituteabusinessbasedontherequirementsofAASB3,thetransactionhasbeen

accountedforasasharebasedpaymentunderAASB2.Theexcessofthedeemedconsiderationoverthefairvalueof

Plukka,ascalculatedinaccordancewiththereverseacquisitionaccountingprinciplesandwithAASB2,isconsideredtobe

apaymentforagrouprestructureandhasbeenexpensed.

Plukkaacquired100%oftheissuedcapitalofTCHon4December2015.ToeffecttheacquisitiontheCompanyissued

129,774,997sharesasfollows:

• 72,734,997shareswereissuedtoshareholdersofTCHtoacquire100%ofTCH.

• 7,040,000wereissuedasfacilitationsharestomanagementofTCHandadvisorsinrelationtotheacquisitionof

TCHofwhich1,270,000wereissuedtoMsJoanneOoi,ManagingDirectorofTCHatthedateofacquisition.

• 50,000,000shareswereissuedatanissuepriceof$0.20persharetoraise$10,000,000beforecosts.

Inaddition19,535,000PerformanceRightswereissuedtoexecutivesandadvisersofTCHasalongtermincentivein

connectionwiththeirappointmentandservicesprovidedinconnectionwiththePlukkabusiness.EachPerformanceRight

isconvertibleintooneordinaryshareinPlukkauponthefollowingtermsandconditions:

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PerformanceRights

Grantdate NumberofPerformanceRights

ExpiryDate ConditionsofExercise

Tranche1 25November

2015

7,000,000 4December

2017

Achievementofsalesrevenueduringany

threemonthreportingperiodthatends

onorpriortothedatetwoyearsafter

completionofthetransactionthatequals

orexceedsAU$2.5million.

Tranche2 25November

2015

6,267,500 4December

2017

20-dayvolumeweightedaveragepriceof

PlukkasharesontheASXequalsor

exceedsAU$0.50atanytimewithintwo

yearsfromthedateofcompletionofthe

transaction.

Tranche3 25November

2015

6,267,500 4December

2017

AchievementofconsolidatedEBITbythe

Companyduringanythreemonth

reportingperiodthatendsonorpriorto

thedatethreeyearsaftercompletionof

thetransactionthatequalsorexceeds

A$1.25million.

ThefairvalueoftheseperformancerightshasbeenincludedaspartoftheconsiderationfortheacquisitionofTCH.As

PlukkaLimitedisdeemedtobetheacquireeforaccountingpurposes,thecarryingvaluesofitsassetsandliabilitiesare

requiredtoberecordedatfairvalueforthepurposesoftheacquisition.Noadjustmentswererequiredtothehistorical

valuestoeffectthischange.

$

Consideration

72,734,997fullypaidordinarysharestothevendor 4,104,807

19,535,000performancerights* -

Totalvalueofconsideration 4,104,807

FairvalueofPlukkaLimitedatacquisition

Cash 412,328

Tradeandotherreceivables 984,772

Tradeandotherpayables (63,767)

Fairvalueofnetassets 1,333,333

Excessofconsiderationprovidedoverthefairvalueofnetassetsatthedateofacquisitionexpensed,beinggrouprestructuringandrelistingcosts

2,771,474

*Performancerightswereissuedasadditionalconsideration,valuedatnil,astheprobabilityofperformancehurdlesbeing

metwasassessedaslessthanprobableonthedateofacquisition. For

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22. Financialinstruments

Financialriskmanagementpolicies

TheBoardofDirectorsareresponsibleformonitoringandmanagingfinancialriskexposuresoftheGroup.

Categoriesoffinancialinstruments

TheGroup’sfinancialinstrumentsconsistmainlyofdepositswithbanks,accountsreceivableandpayableandleases.

Thetotalsforeachcategoryoffinancialinstrumentsareasfollows:

Consolidated

2017$ 2016$

FinancialAssets

Cashandcashequivalents 1,969,435 4,952,570

Tradeandotherreceivables 223,341 218,789

Otherassets 217,679 532,563

TotalFinancialAssets 2,410,455 5,703,922

FinancialLiabilities

Tradeandotherpayables 291,326 826,603

Provisions 14,420 -

TotalFinancialLiabilities 305,746 826,603

Creditriskmanagement

Creditriskreferstotheriskthatacounterpartywilldefaultonitscontractualobligationsresultinginfinanciallosstothe

Group.TheGrouphasadoptedapolicyofonlydealingwithcreditworthycounterpartiesasameansofmitigatingtherisk

offinanciallossfromactivities.

TheGroupdoesnothaveanysignificantcreditriskexposuretoanysinglecounterpartyoranyGroupofcounterparties

havingsimilarcharacteristics.Thecreditriskonliquidfundsislimitedbecausethecounterpartiesarebankswithhigh

credit-ratingsassignedbyinternationalcredit-ratingagencies.

Thecarryingamountoffinancialassetsrecordedinthefinancialstatements,netofanyallowancesforlosses,represents

theGroup’smaximumexposuretocreditrisk.

Capitalriskmanagement

TheGroupmanagesitscapitaltoensurethatentitiesintheGroupwillbeabletocontinueasagoingconcernwhile

maximisingthereturntostakeholders.

ThecapitalstructureoftheGroupconsistsofcashandcashequivalents,borrowingsandequityattributabletoequity

holdersoftheparent,comprisingissuedcapital,reservesandaccumulatedlossesasdisclosedinthestatementofchanges

inequity.

Liquidityriskmanagement

UltimateresponsibilityforliquidityriskmanagementrestswiththeBoardofdirectors,whohavebuiltanappropriate

liquidityriskmanagementframeworkforthemanagementoftheGroup’sshort,mediumandlong-termfundingand

liquiditymanagementrequirements.TheGroupmanagesliquidityriskbymaintainingadequatereservesandinvesting

surpluscashonlyinmajorfinancialinstitutions.

Foreignexchangerisk

Theconsolidatedentityhastransactionalcurrencyexposures.Suchexposurearisesfromsalesorpurchasesbyan

operatingentityincurrenciesotherthanthefunctionalcurrency.

Atreportingdate,theconsolidatedentityhadthefollowingexposuretoforeigncurrenciesthatarenotdesignatedincash

flowhedges:

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Consolidated

2017$ 2016$

UnitedStatesDollars

FinancialAssets

Cashandcashequivalents 1,781,886 176,949

Othercurrentassets 111,262 14,762

FinancialLiabilities

Tradeandotherpayables (6,402) (5,361)

Netexposure 1,886,746 186,350

HongKongDollars

FinancialAssets

Cashandcashequivalents 64,681 4,606,437

Tradeandotherreceivables 61,688 31,319

Othercurrentassets 83,284 246,267

FinancialLiabilities

Tradeandotherpayables (128,882) (518,383)

Provision (14,420) -

Netexposure 66,351 4,365,640

GreatBritainPounds

FinancialAssets

Cashandcashequivalents 3,600 489

Tradeandotherreceivables 54,169 -

Othercurrentassets 9,590 314,893

FinancialLiabilities

Tradeandotherpayables (17,230) -

Otherfinancialliabilities - (128,774)

Netexposure 50,129 186,608

Thefollowingtablesummarisesthesensitivityofthenetexposureheldatreportingdatetomovementintheexchange

rateoftheAustraliandollartotheforeigncurrencywithallothervariablesheldconstant.Thesensitivityisbasedon

reasonablypossiblechanges,overafinancialyear,usingtheobservedrangeofactualhistoricalratesforthepreceding5

periods.

Consolidated

2017$ 2016$

UnitedStatesDollars

Post-taxgain/(loss)andothercomponentsofequity

+5% (94,337) (9,318)

-5% 94,337 9,318

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Consolidated

2017$ 2016$

HongKongDollars

Post-taxgain/(loss)andothercomponentsofequity

+5% (3,318) (218,282)

-5% 3,318 218,282

GreatBritainPounds

Post-taxgain/(loss)andothercomponentsofequity

+5% (2,506) (9,330)

-5% 2,506 9,330

23. RelatedpartydisclosuresandKMPremuneration

DetailsofdirectorandotherKMPremunerationcanbefoundintheRemunerationReportwithintheDirector’sReport.A

summaryofremunerationdisclosuresisasfollows:

Consolidated

2017$ 2016$

Basesalary/earnings 410,142 232,060

Shorttermemployeebenefits 19,204 14,160

Postemployeebenefits 9,359 5,981

Sharebasedpayments 603,461 1,069,086

1,042,166 1,321,287

DetailsoftheownershipinterestsbetweenPlukkaandtheentitieswithintheGroupareoutlinedinNote20.

TransactionsbetweenPlukkaanditssubsidiariesduringtheyearconsistedofloansadvancedbyPlukkatofundoperations.

TheclosingvalueofallloanstowhollyownedmembersoftheGroupiscontainedwithinthestatementoffinancial

positionundernon-currentassetsatNote24.

TheCompanyhasnotmadeanyloanstoDirectorsorotherKMPduringthefinancialyearorpriorfinancialyear.

Effective1March2017GlosterCapitalPtyLtd,acompanyassociatedwithAndrewWorland,agreedtoprovidefinancial

reportingservicestotheGrouponamonthlyretainerof$3,000.Totaltransactionsduringtheyearamountedto$12,000.

Attheendofthefinancialyear$9,000remainsoutstanding.

DuringthefinancialyearcdPlusCorporateServices,acompanyassociatedwithCharlyDuffy,providedongoingcompany

secretarialservicestotheCompanyunderamonthlyretainerof$4,000(2016:$4,000),legalservicesassociatedwiththe

companysecretarialservicesatadiscountedhourlyrateandincurredassociatedlegalexpenseswiththirdpartylegalfirms

totalling$57,700(2016:$2,490)ofwhich$6,662remainsoutstandingatyearend(2016:$nil).

DuringthefinancialyearCoghlan&Co,acompanyassociatedwithCharlyDuffy,providedcorporateandcommerciallegal

servicestotheGroupamountingto$37,579(2016:$nil)ofwhich$niloutstandingatyearend(2016:$nil).

InMarch2017Plukkaannouncedthesigningofatwo-yearUSD$1MrevolvinginventoryfacilityagreementwithNYCbased

jewellerymanufacturer,TrelissWorldwideInc.(Treliss),acompanyassociatedwithMrMehta.ThefacilityprovidedPlukka

withcapabilityofexpandingitsrevenuebasesignificantlyquickerthanitwouldotherwisebecapableofbyallowingPlukka

totakecontrolofitssupplychainwithoutincurringsignificantinvestmentsininventory,focusingonbuildingexclusive

positionsinthemarketplace,andexpandingitsdistributiontothirdparties.Asconsiderationforthesebenefitsandthe

benefitofnothavingtomanufactureandstoreinventoryPlukkaissuedTreliss20,963,531newordinarysharesinthe

CompanyandappointedMrNiravMehtaadirector.Asat30June2017theCompanyhadutilised$279,000ofthefacility.

Attheendofthefinancialyear$40,513remainsoutstanding.

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24. Parententityinformation

FinancialstatementsandnotesforPlukkaLimited,thelegalparententity,areprovidedbelow:

Parent

2017$ 2016$

Financialposition

Currentassets 240,300 242,050

Non-currentassets 2,636,467 9,947,817

Totalassets 2,876,767 10,189,867

Currentliabilities 152,201 41,052

Non-currentliabilities 371,135 -

Totalliabilities 523,336 41,052

Shareholdersequity

Issuedcapital 15,255,804 14,343,057

Reserves 1,769,597 1,495,237

Accumulatedlosses (14,671,970) (5,689,479)

Totalequity 2,353,431 10,148,815

Financialperformance

Lossfortheyear (8,982,491) (5,836,171)

Othercomprehensiveincome/(loss) - -

Totalcomprehensiveloss (8,982,491) (5,836,171)

GuaranteesenteredintobytheParentEntity

Theparententityhasnotenteredintoanyguaranteesasat30June2017(2016:Nil).

ContingentliabilitiesoftheParentEntity

Theparententitydidnothaveanycontingentliabilitiesasat30June2017(2016:Nil).

Contractualcommitmentsfortheacquisitionofproperty,plantorequipment

Theparententitydidnothaveanycontractualcommitmentsfortheacquisitionofproperty,plantorequipmentat30June

2017(2016:Nil).

25. Contingentliabilities

Thedirectorsarenotawareofanypotentialliabilitiesorclaimsagainsttheconsolidatedentityasatthedateofthe

Directors’Report.

26. Eventsafterthereportingdate

Therehavebeennoothermattersorcircumstancesthathavearisensincetheendofthefinancialyearthathave

significantlyaffected,ormaysignificantlyaffect,theoperationsoftheconsolidatedentity,theresultsofthoseoperations,

orthestateofaffairsoftheconsolidatedentityinfuturefinancialyears.

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46

DIRECTORS’DECLARATIONInaccordancewitharesolutionofthedirectorsofPlukkaLimited:

1. IntheopinionofthedirectorsofPlukkaLimited:

a. ThefinancialstatementsandnotesoftheconsolidatedentityareinaccordancewiththeCorporationsAct2001,including:

i. Givingatrueandfairviewofitsfinancialpositionasat30June2017andofitsperformanceforthefinancial

yearendedonthatdate;and

ii. ComplyingwithAccountingStandards(includingtheAustralianAccountingInterpretations)andCorporationsRegulations2001andalsocomplyingwithInternationalFinancialReportingStandards;and

b. TherearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasandwhentheybecome

dueandpayable.

2. ThedirectorshavebeengivendeclarationsrequiredbySection295AoftheCorporationsAct2001forthefinancialyearended30June2017.

SignedinaccordancewitharesolutionoftheDirectors.

_____________________

AndrewWorland

Chairman

Signedthis29September2017

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THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING RSM Aust ralia Partners is a member of the RSM network and t rades as RSM. RSM is the t rading name used by the members of the RSM network. Each memb er of the RSM network is an independent accounting and consult ing firm which pract ices in its own right . The RSM network is not i tself a separate legal ent ity in any jurisdict ion. RSM Aust ralia Partners ABN 36 965 185 036

Liability limited by a scheme approved under Professional Standards Legislat ion

RSM Australia Partners

Level 32, Exchange Tower 2 The Esplanade Perth WA 6000 GPO Box R1253 Perth WA 6844

T +61 (0) 8 9261 9100 F +61 (0) 8 9261 9111

www.rsm.com.au

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

PLUKKA LIMITED Opinion We have audited the financial report of Plukka Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2017, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (i) Giving a true and fair view of the Group's financial position as at 30 June 2017 and of its financial

performance for the year then ended; and (ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matter How our audit addressed this matter Share based payments – valuation of shares issued Refer to Note 15 in the financial statements

In March 2017, 20,963,531 shares were issued to Treliss Worldwide Inc. (“Treliss”), as consideration for the provision of a revolving inventory credit facility with a limit of USD$1,000,000 in accordance with the Manufacturing Agreement.

Management were unable to determine the fair value of the service provided, and therefore have performed a valuation of the shares issued on the grant date. This amount was recognised in profit or loss as a borrowing fee expense.

We considered the valuation of these shares to be a key audit matter as it involved management’s judgement in determining the grant date and the appropriate share price to use in the valuation on that date.

Our audit procedures in relation to the valuation of the shares included:

x Reviewing the Manufacturing Agreement for the key terms and conditions of the transaction;

x Assessing management’s determination that the fair value of the service could not be estimated reliably, and therefore it was appropriate to measure the transaction based on the fair value of the shares issued, in accordance with AASB 2 Share Based Payments

x Evaluating management’s determination of the grant date and share price on grant date; and

x Reviewing the adequacy and accuracy of the relevant disclosures in the financial statements.

Other Information The directors are responsible for the other information. The other information comprises the information included in the Group's annual report for the year ended 30 June 2017, but does not include the financial report and the auditor's report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

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Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar2.pdf. This description forms part of our auditor's report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included within the directors' report for the year ended 30 June 2017. In our opinion, the Remuneration Report of Plukka Limited, for the year ended 30 June 2017, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

RSM AUSTRALIA PARTNERS

Perth, WA TUTU PHONG Dated: 29 September 2017 Partner

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ASXADDITIONALINFORMATIONThefollowinginformationiscurrentasat29September2017.

CorporateGovernanceStatement

The URL where the Company’s Corporate Governance Statement is located is https://www.plukka.com/about-

plukka/investor.

SubstantialShareholders

The following holders are registered by the Company as a substantial holder, having declared a relevant interest in

accordancewiththeCorporationsAct2001(Cth),inthevotingsharesbelow:

SubstantialHolderName

Dateofinterest

Numberofordinaryshares1

%ofissuedcapital2

Currentnumberofordinary

shares3

%ofcurrentissuedcapital4

MrJasonPeterson 04/06/2015 3,061,420 11.18% - 0.00%

BushwoodNominees

PtyLtdACN149835

665andJeremyPhilip

King

27/05/2014 1,800,021 9.06% 1,876,530 1.07%

MrDavidSamuel

Church04/06/2015 1,944,872 7.10% 1,458,654 0.83%

MrAndrewWorland

andBadlandsSuper

PtyLtdACN239866

339

03/09/2012 1,314,850 6.6% 1,453,638 0.83%

DMXCorporation

LimitedACN009140

550

31/01/2014 463,006 2.33% - 0.00%

JaiWaney5 04/12/2015 27,262,028 18.14% 27,262,028 15.58%

SinoPortfolio

InternationalLimited5

04/12/2015 12,238,984 8.14% 12,238,984 6.99%

JoanneOoi5 04/12/2015 10,357,340 6.89% 10,357,340 5.92%

1AsdisclosedinthelastnoticelodgedwiththeASXbythesubstantialshareholder.

2ThepercentagesetoutinthenoticelodgedwiththeASXisbasedonthetotalissuedcapitaloftheCompanyatthedate

ofinterest.

3Thenumberofordinarysharesthatthesubstantialholderholdsasat29September2017asstatedintherecordsheldby

theCompany’sshareregistry.

4ThepercentagebasedonthetotalissuedcapitaloftheCompanyasat29September2017.

5ListedasasubstantialholderintheProspectuslodgedwithASICon21October2015.Thedateofinterestisthedatethat

PlukkaofficiallylistedontheASX.

PlukkaLimited isalsodeemedtohavea relevant interest in23,676,076shares (13.53%)asa resultofvoluntaryescrow

restrictionsimposedonthosesharesuntil6March2019.

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Numberofsecurityholders

Securities Numberofholders

OrdinaryShares 422

UnlistedOptions 8

Performancerights 5

VotingRights

Securities VotingRights

OrdinaryShares

Subject to any rights or restrictions for the time being attached to any class or classes, at

generalmeetingsofshareholdersorclassesofshareholders:

(a) each shareholder is entitled to voteandmayvote inpersonorbyproxy, attorneyor

representative;

(b) onashowofhands,everypersonpresentwhoisashareholderoraproxy,attorneyor

representativeofashareholderhasonevote;and

onapoll,everypersonpresentwhoisashareholderoraproxy,attorneyorrepresentativeof

ashareholdershall, inrespectofeachfullypaidshareheld,or inrespectofwhichhe/sheis

appointedaproxy,attorneyorrepresentative,haveonevoteforeachshare,butinrespectof

partlypaidshares,shallhavesuchnumberofvotesbeingequivalenttotheproportionwhich

theamountpaid(notcredited) isofthetotalamountspaidandpayable inrespectofthose

shares(excludingamountscredited).meetingsofshareholdersorclassesofshareholders:

(c) each shareholder is entitled to voteandmayvote inpersonorbyproxy, attorneyor

representative;

(d) onashowofhands,everypersonpresentwhoisashareholderoraproxy,attorneyor

representativeofashareholderhasonevote;and

onapoll,everypersonpresentwhoisashareholderoraproxy,attorneyorrepresentativeof

ashareholdershall,inrespectofeachfullypaidshareheld,orinrespectofwhichhe/sheis

appointedaproxy,attorneyorrepresentative,haveonevoteforeachshare,butinrespectof

partlypaidshares,shallhavesuchnumberofvotesbeingequivalenttotheproportionwhich

theamountpaid(notcredited)isofthetotalamountspaidandpayableinrespectofthose

shares(excludingamountscredited).

UnlistedOptions TheOptionsdonotcarryanyvotingrights.

PerformanceandTime

basedRightsThePerformanceRightsdonotcarryanyvotingrights.

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DistributionSchedule

Categories Shares Options PerformanceRights

Holders Securities %ofissuedcapital

Holders Securities %ofissuedcapital

Holders Securities %ofissuedcapital

1–1,000 48 6,986 0.004 - - - - - -

1,001–5,000 127 325,294 0.186 - - - - - -

5,001-10,000 77 658,412 0.376 - - - - - -

10,001–100,000

80 3,931,489 2.247 - - - - - -

100,001andover

90 170,085,853 97.188 8 10,540,000 100.0 5 29,195,518 100.0

Totals 422 175,008,034 100.000 9 10,540,000 100.0 5 29,195,518 100.0

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HoldersofNon-MarketableParcels

Thereareatotalof323holdersofunmarketableparcelsat$0.005pershare.

Top20ShareholdersThetop20largestfullypaidordinaryshareholderstogetherhold75.26%ofthesecuritiesinthisclassandarelistedbelow:

1 JAIWANEY 27,262,028 15.58%

2 TRELISSWORLDWIDEINC 20,963,531 11.98%

3 CITICORPNOMINEESPTYLIMITED 13,016,360 7.44%

4 SINOPORTFOLIOINTERNATIONALLIMIITED 12,238,984 6.99%

5 JOANNEOOI 9,087,340 5.19%

6 HSBCCUSTODYNOMINEES(AUSTRALIA)LIMITED 6,314,161 3.61%

7 JAY-VINC 4,500,000 2.57%

8 CRINVESTMENTSPTYLTD 4,000,000 2.29%

9 MRBENJAMINPHILLIPEGRENIER 3,902,897 2.23%

10 JUNGHWASHIN 3,500,000 2.00%

11 NATALIAOBOLENSKY 3,244,374 1.85%

12 EQUITASNOMINEESPTYLIMITED<3069550A/C> 3,125,003 1.79%

13 SUNSETCAPITALMANAGEMENTPTYLTD<SUNSETSUPERFUNDA/C> 2,706,065 1.55%

14 BNPPARIBASNOMINEESPTYLTD<IBAUNOMSRETAILCLIENTDRP> 2,690,914 1.54%

15 MRJOHNANASSIS 2,503,750 1.43%

16 EQUITASNOMINEESPTYLIMITED<3179767A/C> 2,250,002 1.29%

17 GOLDRESOURCESLIMITED 2,232,033 1.28%

18 LILLYSUSANHILL 2,232,033 1.28%

19 MERRILLLYNCH(AUSTRALIA)NOMINEESPTYLIMITED 2,139,320 1.22%

MRHAKANBASAGAC 1,853,226 1.06%

Total 129,762,021 74.16%

Totalremainingholders 45,246,013 25.84%

Companydetails

RegisteredAddress:CoghlanDuffy&Co,Level42,RialtoSouthTower,525CollinsStreet,MelbourneVIC3000

Telephone:0396142444

Addressforwheretheregisteriskept:AutomicPtyLtd,Level12,575BourkeStreet,MelbourneVIC3000

Telephoneofwheretheregisteriskept:1300288664

Otherstockexchangewheretheentity’sequitysecuritiesarequoted:N/A

RestrictedsecuritiesThefollowingsecuritiesaresubjecttovoluntaryescrowrestrictions:

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Class Dateofexpiry NumberofShares

Ordinarysharessubjecttoescrow 6March2019 23,676,076ThefollowingsecuritiesaresubjecttomandatoryescrowrestrictionsunderASXListingRulesChapter9:

Class Dateofexpiry NumberofShares

Ordinarysharessubjecttoescrow(24months) 4December2017 48,365,671

Ordinarysharessubjecttoescrow(24months) 4December2017 7,040,000

55,405,671

UnquotedSecurities

Thefollowingunquotedoptionsoverunissuedordinaryshares(Options)areonissue:

ClassDateofIssue DateofExpiry ExercisePrice

NumberofOptions

Numberofholders

UnlistedOptions 01/12/2015 01/12/2018 $0.20 10,000,000 7

UnlistedOptions 28/01/2016 28/01/2019 $0.20 540,000 1

10,540,000 8

Thefollowingholderholdsmorethan20%ofOptionsintheCompany:

Class Number %ofOptions

JaiWaney 2,500,000 23.72%

Thefollowingperformancerightsareonissue:

Class Dateofissue Number Numberofholders

PerformanceRights(subjecttoperformance-basedvestingconditions) 03/06/2016 6,416,142 1

PerformanceRights(subjecttoperformance-basedvestingconditions) 25/12/15 7,000,000 3

PerformanceRights(subjecttoperformance-basedvestingconditions) 25/12/2015 6,267,500 4

PerformanceRights(subjecttoperformance-basedvestingconditions) 25/12/2015 6,267,500 4

PerformanceRights(subjecttotime-basedvestingconditions) 03/06/2016 3,244,376 1

29,195,518 13

Thefollowingholdersholdmorethan20%ofperformancerightsintheCompany:

Class Number %ofOptions

NataliaObolensky 9,660,518 33.09%

JoanneOoi 9,000,000 30.83%

The following unquoted ordinary shares which are subject to mandatory escrow restrictions until 4 December 2017(EscrowedShares)areonissue:

Class Dateofissue Number Numberofholders

PerformanceRights(subjecttoperformance-basedvestingconditions) 04/12/2015 48,365,671 14

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PerformanceRights(subjecttoperformance-basedvestingconditions) 04/12/2015 7,040,000 3

55,405,671 17

Thefollowingholderholdsmorethan20%oftheEscrowedSharesintheCompany:

Class Number %ofOptions

JaiWaney 26,712399 48.21%

Sharebuy-backs

Thereisnocurrenton-marketbuy-backscheme.

BusinessObjectives

Forthewholeofthereportingperiod,theCompanyhasusedcashandcashequivalentsheldatthetimeofreinstatementtoquotationinawayconsistentwithitsstatedbusinessobjectives.

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