McConnell Dowell Group Annual Review 2021 39 The consolidated entity is subject to various environmental and safety regulations under either Commonwealth, State or other international legislation. The Board believes the consolidated entity has adequate systems in place for the management of its environmental and safety risks and is not aware of any material breach of these requirements as they apply to the consolidated entity other than those already disclosed in this report. Likely developments and expected results of consolidated entity In the opinion of the directors, it would prejudice the interests of the consolidated entity if any further information on likely reasonable and material developments in the operations of the consolidated entity and the expected results of operations were included herein, and the omission of such information is hereby disclosed. Events subsequent to balance date No significant events have occurred subsequent to balance date. Rounding The amounts contained in this report and in the financial report have been rounded to the nearest thousand dollars (where rounding is applicable) and where noted ($’000’s) under the option available to the company under ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191. The company is an entity to which the Corporations Instrument applies. Non-audit services The following non-audit services as disclosed in note 26 Auditors remuneration were provided by the entity’s auditor, Ernst & Young Australia. The directors are satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The nature and scope of each type of non-audit service provided means that auditor independence was not compromised. Ernst & Young Australia has not received or are not due to receive the any amounts for the provision of non-audit services. Auditor independence declaration The company has obtained an Auditor’s Independence Declaration from Ernst & Young Australia. The Auditor’s Independence Declaration is located on the following page. The annual financial statements which appear on pages 41 to 95 were approved by the directors by resolution dated 30th August 2021 and are signed on their behalf. Going concern and liquidity In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider whether the Group can continue in operational existence for the foreseeable future. The Company enters FY22 with increased levels of work in hand of $1.87 billion following significant project wins in Australia and South East Asia. At the date of this report, the company also has more than $1.7 billion of opportunities (based on current contract value) that are in sole source negotiations or in Early Contractor Involvement stage and therefore it is probable these will be converted into contracted projects. In addition, there are a further $1.8 billion of other outstanding tenders and a further $7 billion tenders expected in FY22 which will provide a solid base for future growth. The Directors have reviewed business plans and detailed financial budgets for the year ending 30 June 2022 and beyond which indicate significant construction opportunities ahead. With additional government investment likely to be injected into infrastructure projects the construction markets of Australia, New Zealand and South East Asia remain healthy, and the Company expects to continue winning work in the coming years to further grow the order book. The detailed financial budgets and business plans that are being implemented by management indicate that the Group will have sufficient liquidity resources for the foreseeable future. The Company has met its banking covenants for 30 June 2021 and current forecasts do not indicate any breaches in the upcoming financial quarters. The Group retains the support of its lenders, guarantee providers, and insurance bonding providers. The Directors have considered the business plans and detailed financial budgets, including all available information, and whilst significant estimates and judgements including the impacts of the wider economic environment (including COVID-19 specifically) are always and will continue to be required, the Directors are of the opinion that the going concern assumption is appropriate in the preparation of the financial statements. S. V. Cummins Director 30th August 2021 D. J. Morrison Director 30th August 2021
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