Annual Report 2022

2022 NRL GRAND FINAL HIGHLIGHTS

RECORD MEMBERSHIP FOR PARRA LEAGUES

58,747 MEMBERS

Across Grand Final week we welcomed a total of 22,300 VISITS FROM OUR MEMBERS and guests. This included 1,615 NEW MEMBERS

FINALS SERIES EVENTS at Parra Leagues attracted record post COVID attendances across the two live site events

Parra Leagues welcomed numerous media crews and live crosses from Channel 7 and 9 morning shows interviewing passionate Parramatta Eels fans

2022 NRL GRAND FINAL HIGHLIGHTS

LARGEST CLUB MEMBERSHIP RECORD WITH

34,264 EELS MEMBERS

Maintained a constant position in the TOP EIGHT FOR OVER FOUR YEARS

PRODUCED THE MOST ORIGIN AND INTERNATIONAL REPRESENTATIVES FOR THE EELS IN OVER A DECADE

NINE OUT OF THE 2022 STARTING 17 MADE THEIR NRL DEBUT AT THE EELS

BOTH THE NRL AND NRLW TEAMS QUALIFIED FOR THE GRAND FINAL

CLUB EXPANSION

Following on from the Board of Directors commitment in 2021 to accelerate the redevelopment of the Club’s facilities, throughout 2022 the Club has made significant advancements to a host of projects within the club.

PARRA LEAGUES

Eels Lane has undergone a series of redesigns to ensure we are delivering an alfresco wine and cocktail bar with a dining area our Members will be proud of. Phase 1 of this project is the makeover of our Legends Bar and Kitchen. The newly refurbished Legends Cafe and Lounge will host additional lounge seating for club patrons to enjoy a drink and light meal.

Work has begun on the alfresco wine and cocktail bar and will feature a new 150 seat, contemporary bar with a professional mixologist and a modern food menu designed to be shared.

Throughout 2023 you can expect to see these areas operational including the undercover walkway connecting the club entrance to the carpark and Eels Walk of Fame.

VIKINGS SPORTS

The Vikings Sports Club has established itself as a friendly family club and hosts many of our community groups. Vikings is always buzzing with weekly activities, entertainment and a new menu to attract families from the Dundas area.

As promised in the previous year, we completed an extensive and much-needed refurbishment to provide new carpet, flooring and furniture. The community have been extremely complimentary with the result.

In late 2022, we appointed a new General Manager, who previously worked within the Parra Leagues business, to take Vikings Sports Club into the next chapter.

DURAL COUNTRY CLUB

Dural Country Club has a rich history in the Hills District, providing the community with a warm and welcoming atmosphere for over 60 years. Amalgamation into the Parra Leagues Group was overwhelmingly supported by Members of both Clubs. This is a major milestone for the Parra Leagues Group and will serve to provide even greater benefits for our Members to enjoy. The final steps of the amalgamation process will begin immediately, and the transition will be completed in the coming months. Capital investment has been set aside to renovate the premises, upgrade and provide a modern, comfortable venue with additional large functions space, bowling greens and Bocce courts for our Members and their guests. We look forward to offering additional facilities to our Members and welcoming the many sub- clubs and Dural Country Club Members to the Parra Leagues family.

MEMBERSHIP AT A GLANCE

This year we enjoyed over 243,000 visits from our Members and guests and we welcomed a net increase of 3,659 NEW MEMBERS TO THE PARRA LEAGUES FAMILY IN 2022

MEET THE BOARD

GREG MONAGHAN (PRESIDENT)

The President of the Board. He holds a Bachelor of Economics degree, Graduate Diploma of Marketing and is a Fellow of the Australian Institute of Company Directors, the highest level, reflecting his extensive experience as a Director, including; CricketNSW, Cystic Fibrosis Australia, Customers Limited (ASX 300 listed) and Bankcard Australia to name a few. Greg is ex officio on all Board Committees.

PHIL SIM

Phil is the Chief Executive Officer of the MediaConnect Group, a media and technology business he founded and has grown into a multinational business. His professional expertise encompasses business strategy and management, technology, data, media, marketing, and communications.

Phil chairs the Community Committee leading the Clubs’ vital Community interface and is a member of the Risk and Audit Committees providing valuable insights to member and community perceptions, social media and IT.

SUE COLEMAN

Sue has extensive senior management, governance and leadership experience gained over nearly 30 years in local government including 12 years as an executive at City of Parramatta and earlier with the not-for-profit sector. She has also held a number of previous Board positions including as a Director of the Parramatta National Rugby League Club and currently serves on the Western Sydney Local Health District Board.

Sue is a member of the Community and Risk Committees where her public sector experience and strong community networks are invaluable to the Club’s future developments.

DARREN ADAM

Darren is a Chartered Accountant and holds a Bachelor of Commerce degree, a Master of Laws and is a member of the Australian Institute of Company Directors. His professional experience spans over 30 years and has included senior executive roles in finance, operations and strategy at Foxtel, Telstra and Optus. Darren is currently Finance Director for the NRMA, Australia’s largest member organisation and a Director of the children’s charity The Fair Fight Foundation.

Darren chairs the Audit Committee and is a member of the Risk Committee where his financial expertise and deep commercial experience in evaluating development opportunities is invaluable.

JOY CUSACK

Joy is a graduate of the Company Directors Course of the Australian Institute of Company Directors, a Fellow of the Governance Institute of Australia and member of Women on Boards. She is an experienced chair and non-executive Director with more than 20 years’ experience in the corporate and not-forprofit areas, in particular social enterprise businesses. Her recent community emphasis has been on social impact measurement.

Joy chairs the Governance Committee and is a member of the Audit Committee where her broad experience contributes to the Club members relying on sound governance including latest trends in membership and social impact.

RICHARD FODA

Richard holds a Bachelor of Economics and is a Graduate of the Australian Institute of Company Directors. He has held senior executive roles for financial services companies in Australia, Asia and America for 30 years and he is currently the Australasian Chief Risk Officer for Swiss Reinsurance. Richard chairs the Risk Committee where his expertise is vital to the Club’s license to operate in the challenging area of gaming. Richard is also a member of the Audit and Community Committees, and on the Board of the Parramatta National Rugby League Club.

MARK JENKINS, APM

Mark is a former Assistant Commissioner of the New South Wales Police Force having retired in August 2019. Mark was awarded the Australian Police Medal in the Australian Day Honours 2008. In addition to senior leadership and crisis management roles, he is experienced in licensing and regulatory issues, anti-money laundering and cyber security. He holds a Master’s degree in Public Policy (Charles Sturt University) and is a member of the Australian Institute of Company Directors.

Mark chairs the Digital Transformation Steering Committee and is a member of the Governance Committee utilising his expertise in the areas of money laundering and cyber security. Mark is one of two nominated Directors on the Board of the Parramatta National Rugby League Club.

Pictured from Left to Right: Richard Foda, Darren Adam, Joy Cusack, Greg Monaghan, Mark Jenkins, Sue Coleman, Phil Sim

PRESIDENT’S REPORT

DEAR MEMBERS

2022 has been a great year for Parra Leagues, Vikings and the Parra Eels! Your Club has bounced back from the COVID era with excellent results in Club Operations, Strategic Development and Community Focus. Some of this year’s highlights include:

CLUB OPERATIONS

• A full year without COVID restrictions enabling a return to full service

• A healthy financial result

• Refurbishing Vikings, recognising its outstanding growth

• Setting a new record for Club Membership of almost 59,000 which when combined with Eels record membership of 34,000 gives a combined total of over 90,000 members

• Investing in people – our 200 staff undertook over 8,400 training hours

STRATEGIC DEVELOPMENT

• Winning the hotly contested tender to amalgamate with Dural Country Club. Dural Members voted unanimously in favour. Amalgamating with Dural will enable us to enhance our service to all our members, including the thousands of Parra Leagues and Eels members living in the Hills

• Converting Pablo’s to Jacks, with an excellent a la carte menu

• Commencing the conversion of Legends back to a café, due to complete in early 2023

• Commencing the alfresco restaurant in Eels Lane, with completion targeted for mid-2023

COMMUNITY FOCUS

• Donating over $1.2 million to community projects

• $300,000 going to the Parramatta District Rugby League competition, helping 4,985 boys & girls to play the game we love

• Launching “Community Connect” whereby Parra Leagues staff gave 263 hours of voluntary community service across a variety of organisations, including Guide Dogs Australia, SuperTee, and Ronald McDonald House GWS

PARRA EELS

Our Mighty Parramatta Eels became just the second team to reach Grand Finals in both Men’s and Women’s in the same year.

Congratulations to Coaches Brad Arthur and Dean Widders and all the Eels Management and staff, led by Chair Sean McElduff and CEO Jim Sarantinos. Together they led the Eels to success on and off field, with record Eels memberships, a growing sponsorship base, and profitable financial performance to consolidate the Eels’ position as one of the NRL’s pre-eminent Clubs.

All this against a backdrop of severe labour shortages right across Australia.

The leadership of our senior staff who rolled their sleeves up and got back to pulling beers and picking up glasses whenever needed, and the great efforts of all staff working extra hours to look after Members, has allowed the club to thrive.

At time of writing, Clubs are under pressure in the lead up to the coming State election. Our Club supports Members’ rights to be able to choose how they spend their own money, cash or digital. We oppose criminal behaviour and do all we can to protect our members from harm. Parra Leagues and Vikings takes all practical steps to implement these values.

We record with sadness the passing of Club Patron Don Ritchie aged 96. With the sadness comes gratitude, for his amazing contribution to Parra. Don held roles as a Board Director, Deputy Chairman of the Eels and Leagues Club for over 20 years. He was a Life Member and Patron of both Clubs until his passing. We also acknowledge the passing of Kevin Ingram OAM a Life Member of the Rugby League Club and imposing figure in the Club Industry. More detail on the lives of these giants of our Club may be found on our website.

On behalf of all Members and Directors, we thank CEO Chris Dimou and his team for their dedication to the Club and their strong performance over the past 12 months. I thank our Board of Directors for their tireless efforts as we build on the platform for success created this year. Their commercial acumen, collegiate approach and commitment to Parra is outstanding.

In closing, we look forward to a fantastic 2022/23, with the opening of new facilities for members, the addition of a new Club to our Group and another great year from the Eels.

On behalf of the Directors, Darren Adam, Sue Coleman, Joy Cusack, Richard Foda, Mark Jenkins and Phil Sim

Go Parra!

GREG MONAGHAN President Parramatta Leagues Club

PARRAMATTA LEAGUES CEO REPORT

DEAR MEMBERS

It gives me immense pleasure to report on another positive year for Parramatta Leagues. After two years of uncertainty I’m proud to say that our clubs have produced admirable results under challenging circumstances and performed strongly in all facets of our business, including our community support, strategic planning and expansion initiatives.

Although we were able to bounce back strongly and welcome our Members back with open arms, the previous 2 years provided us with many challenges. One of our biggest challenges during this time was staff shortages, a problem not unique to us but experienced by the entire global economy. Ever-changing COVID policies impacting staff wellbeing, availability, as well as general staff shortages throughout the hospitality industry all played a role in how we managed our venues and served our Members. Fortunately, our Members have been overwhelmingly supportive and patient during the year, understanding the unique situation and challenges being faced.

With the support of the Board of Directors, one employee initiative we were able to proceed with and assist staff retention was an early adoption of the minimum award wage increase of 4.6% from 1 August 2022, rather than the legislated 1 October 2022 increase.

During this time, we also appointed some skilled personnel to key roles in our management team including a General Manger of People and Culture, Governance Risk & Compliance Manager, Community Relations Manager, Membership Manager, and Procurement Manager. These dedicated roles provide the Club with a level of expertise in areas that are critical to the future success of the business.

We are proud to have been able to continue to maximise wellbeing, happiness and pride in our community with over $1.2 million dollars donated in community support. Through our Community Connect program, our employees have volunteered over 263 hours of their own time, enriching our community and supporting local causes. I also thank and congratulate our dedicated and hardworking Board of Directors led by President Greg Monaghan, who have also volunteered their time to assist several community partners and initiatives throughout the year.

Our strategic planning and execution is well underway with construction in progress at Parramatta Leagues to deliver a refreshed club for Members to enjoy. The Legends Café transformation is underway, which will be open shortly to provide Members with a space to relax and socialise. The covered walkway which will connect the multistorey carpark to the club, providing vital amenity to Members especially during inclement weather, will also be completed shortly, whilst the alfresco wine and cocktail bar is next in line to be completed in 2023.

Vikings Sports has also completed phase one of the renovation that was committed to last year, which involved an uplift of décor and refurbishment of the Bistro dining area and kids play area. There are further improvements planned this year which I am sure our Members will be delighted with.

Parramatta Leagues recently won selection to amalgamate with Dural Country Club against a strong field of candidates. I am excited about this opportunity and its great potential, given the rich history of the Club and its prime location in the fast-growing Hills District. This is another great step towards our strategic goal of providing a network of premium hospitality venues within the heartland of the Parramatta Leagues Group.

The Hills district remains an important piece of our long-term future, and along with the Eels, look forward to making it part of our home.

Parramatta Leagues has a proud history as the spiritual home of the Eels, and this rang true in 2022. Evidenced by all the activity in and around the club on game days; such as food trucks, face painting and rides, among other initiatives to engage and entertain Members. Post-game, we hosted interviews with Eels Legends in Jacks Bar and Grill, listening to their assessment and insights of the game that was just played.

“Congratulations to both our Mens and Womens teams for making the Grand Final.” Our Clubhouse was adorned Blue and Gold, and was truly transformed into “the home of the Eels” for our Members to cheer on our teams.

2022 was also a strong financial year for the Parramatta Leagues group. The strong financial position achieved is a testament to both PLC and PNRL Boards and respective management teams. Our consolidated Group EBITDA grew from $11.6 million in 2021, to $18.4 million this year. The Licensed Clubs’ EBITDA increased from $9.7 million in 2021 to $15.8 million this year, an increase of $6.1 million or 61%. Consolidated Group Net Profit increased by $6.7 million to $10.5 million this year. The Licensed Clubs’ net profit grew from $2.0 million in 2021, up to $8.9 million this year, an increase of $6.9 million.

Our Balance Sheet remains strong and shows total assets have increased from $124.2 million last year to $129.6 million. Total Members’ funds have increased from $74.8 million last year to $85.3 million, an increase of 14%. Of particular note is our zero net-debt position, a result of $6.9 million debt reduction through the year and our strong cash position.

In closing I’d like to thank our Board of Directors, employees and our leadership team for their support, hard work and dedication to our wonderful club throughout the year. 2023 is shaping up to be a massive year for the Club as we continue to deliver a premium hospitality offering to our Members and increase our support of the local community. Thank you to all our members for your continued support and patronage, I look forward to a great year ahead.

CHRIS DIMOU Chief Executive Officer & Company Secretary Parramatta Leagues Club

PARRAMATTA EELS CEO REPORT

DEAR MEMBERS, SUPPORTERS AND FRIENDS,

I am pleased to present my CEO report for the 2022 financial year for the Parramatta Eels, a momentous year for the Club as we commemorated our 75th anniversary, launched our Elite Women’s program and saw both our NRL and NRLW teams play on the game’s biggest stage.

Everyone involved in our organisation should be immensely proud of the Club’s performance on and off the field in 2022. It was a great experience for the Club and our fans to have both NRL and NRLW teams in the 2022 Grand Final.

While we didn’t achieve the ultimate success, the activation of the city and our region during the final two weeks of the season was fantastic for us as a Club and importantly rugby league in Western Sydney.

The NRL team Grand Final appearance has been building for the last few seasons. We have been consistently in the Top 8 since 2019 and this season saw us finish in the Top 4 and then reach the Grand Final after a memorable Preliminary Final win in Townsville.

Our NRLW team was the youngest in the competition and showed great resilience and determination to make the Grand Final in only its second season. It was a tremendously proud moment for our Club to see our women’s team play on the game’s biggest stage.

Off the field, our Club recorded an EBITDA operating profit of $1.499m for the year ended 31 October 2022 ($1.661m profit after depreciation and grants, inclusive of Federal government funding for the Community facility), a continuation of our commitment to building a strong and sustainable financial platform for our organisation.

For the third year running, the football Club was again financially independent from any leagues club funding while ensuring increased investment in our football, Gameday experience and community programs. Some of the key highlights for the Club off the field included: -

• Breaking our membership record for the 9th consecutive season, finishing the year with 34,264 members;

• Continued strong commercial support with a three year extension of our partnership with NT Government and further new agreements with McDonalds, Taubmans and Carroll & O’Dea Lawyers;

• Ranked 2nd overall for attendance in the NRL and No.1 in NSW with an average home crowd of 20,015 - the highest since 1999.

• Continued a strong relationship with Parramatta Leagues Club to provide much needed support to our community partners but also improve our game day experience with several joint event activations culminating in the live sites for Eels Preliminary Final and Grand Final.

It’s important to highlight that as an organisation we have grown our commercial revenue by over 51 percent since 2019 across sponsorship and everything related to our core business areas including membership, ticketing, hospitality and merchandise.

Importantly we have reinvested this revenue back into our core football programs to ensure they have all the resources they need to drive performance and excellence from our Elite Pathways all the way through to NRL and NRLW.

In a major milestone for the Club, we secured $33m in State Government funding and received development approval for Australia’s largest community rugby league precinct at Kellyville Park.

This world class facility will house our NRL, NRLW, and Elite Pathways teams within the one precinct and will enhance involvement across all levels of rugby league for boys and girls. The new facilities will help grow our community engagement in one of the fastest growing regions in Australia. Construction is scheduled to begin in mid-2023 for completion by late 2024.

In 2022, the Club conducted two major reviews into the Parramatta Junior League and our Elite Pathways system. Both were important for the Club and a number of the recommendations including increased investment and staffing are already in place or currently being implemented in time for 2023. This is another example of the commitment we have within our organisation to continuous improvement as we strive for the ultimate success.

The Football Club is grateful for the close working relationship we have with Parramatta Leagues Club President Greg Monaghan, CEO Chris Dimou, and the respective Board and management group. Both our organisations are growing responsibly and with a clear eye on the future thanks to the stability at the board and management levels. We should never take for granted the importance of good governance and business management in delivering the strong progress we are making in both organisations.

Finally, I’d like to thank our members, corporate partners, and stakeholders for helping the Eels have another successful year. The 2022 season left us with an even greater hunger for the ultimate success and I look forward to sharing season 2023 with you all.

GO THE EELS JIM SARANTINOS Chief Executive Officer

Parramatta National Rugby League Club

PARRAMATTA EELS

2022 was a historic year for our Club’s football programs with the NRL and NRLW teams qualifying for the Grand Final.

Even though we fell short on the day, this was the first Grand Final appearance by our NRL team in 13 years and in only their second season, the first ever Grand Final for our NRLW team.

It’s important to highlight that our football program has recently produced a level of consistency that many NRL clubs are envious of. This includes:

• Maintaining a ladder position in the NRL Top 8 for four years straight

• Being one of just three clubs during the past five years to reach the finals four times in a row

• Producing more Origin and international representatives for the Eels than at any point in the past ten years

• Nine of the 2022 season starting 17 players made their NRL debut for the Eels, highlighting our ability in player development

With 16 wins during the regular season and a strong finish to the minor premiership, our NRL team secured a Top 4 finish. The team showed resilience in bouncing back from various challenges during the year. This was personified by the preliminary final win against the Cowboys in Townsville where we trailed 20 – 12 after 55 minutes.

Our NRLW team was the youngest in the competition and narrowly missed the finals in their inaugural season in February/March. In their second season in August/September 2022, the team delivered consistency in nearly all the preliminary games, without getting the break through win until the final round. In their best performance of the

year, they powered to a commanding semi-final win against the Sydney Roosters to make it a double Eels Grand Final appearance.

REPRESENTATIVE HONOURS AND AWARDS

From an individual honours perspective, Junior Paulo, Reagan Campbell-Gillard and Ryan Matterson were selected for State of Origin. Shaun Lane had a career best year taking out the Ken Thornett Medal for our Player of the Year as well as the Nathan Hindmarsh Players’ Player award with Mitchell Moses receiving the NRL Coaches award. In the inaugural year of our NRLW program, Tiana Penitani and Simaima Taufa were selected for the NSW Women’s State of Origin team. Botille Vette-Welsh won the inaugural NRLW Player of the Year in April with Simaima Taufa and Kennedy Cherrington jointly winning the Player of the Year for the 2022 season. Kennedy also received the prestigious Veronica White Medal as the leading NRLW player contributing to the community for her work with Heart Kids Charity.

We are very proud that a total of 18 Eels players from across our Men’s and Women’s program in 2022 made the trip to England for the Rugby League World Cup. Junior Paulo (Samoa), Mitchell Moses (Lebanon) and Nathan Brown (Italy) were all named captain’s for their national team for the tournament. Four Eels featured in the Men’s and Women’s World Cup Finals, with Reagan CampbellGillard, Simaima Taufa and Kennedy Cherrington part of the winning Australian teams and Junior Paulo proudly captaining Samoa in their first ever World Cup Final.

We value the dedication of our NRL and NRLW head coaches Brad Arthur and Dean Widders, our NRL and NRLW captains Clint Gutherson,

FOOTBALL UPDATE

Junior Paulo, Tiana Penitani and Simaima Taufa, and all of our staff and players during a tremendous year for our Club.

LOOKING AHEAD

In 2023, one of the best hookers in the game Josh Hodgson has joined our Club. His leadership and experience will be a huge asset for the playing group both on and off the field. J’maine Hopgood, Jack Murchie, Jirah Momoisea, and former Eels junior Matt Doorey have also joined the 2023 NRL team to inject further talent into a very strong squad.

In our NRL program we have appointed Trent Barrett and Steve Antonelli to join Head Coach Brad Arthur and current Assistant Coach Steve Murphy as part of an expanded coaching structure in 2023. Former Eels captain Nathan Cayless will also be a part of the NRL coaching team as Head Coach of our NSW Cup team, which will see him bring his passion for the Club back into the wider NRL program.

In the NRLW, we already have Tiana Penitani signed for 2023 as our marquee player, however due to the delay in Collective Bargaining Agreement for the women’s game we have not been able to make any additional signings for 2023. Importantly, the Club has maintained strong relationships with our 2022 squad and we are confident of building a strong roster for the upcoming season.

In preparation for the 2023 season, we have made a major investment in the NRLW program with the appointment of Kate Parkinson and Kate Mullaly to full time roles within our women’s football program. Andy Patmore will continue his role as NRLW Program Manager and Dean Widders will return as NRLW Head Coach. Kellyville Park will soon have some of the best facilities in Australia for Women’s High Performance of any sport and this will be a major factor in the growth of the program going forward.

JUNIOR ELITE PATHWAYS

Importantly for the future of the Club, 2022 saw representative honours for a number of Eels Pathways players. In the U19 State of Origin Larry Muagututia represented NSW in their victory over QLD with Petesa Lio, Rosemarie Beckett, RubyJean Kennard and Tahleisha Maeva also tasting victory for NSW in the U19 Women’s match. Blaize Talagi and Sam Tuivaiti were selected for the 2022 Australian Schoolboys team with Tallara Bamblett being picked for the inaugural Australian Schoolgirl team.

Our philosophy of continuous improvement means we will always have a focus on improving all areas of our football program and our people. The Club undertook a review into our Elite Pathways which resulted in further investments into our junior development system. James Shepherd was appointed as Head of Elite Pathways and brings extensive experience from his time at the Sharks, Dragons and Knights. Former NRL Coach Nathan Brown has also joined the Club as the Director of Coaching to further bolster the expertise in our pathways area. Nathan has coached over 250 NRL games and to have someone with his credentials in our Elite Pathways is incredibly valuable.

We believe that with the increased resources and committed staff dedicated to the program, we will provide our players the best opportunity to progress to NRL/NRLW.

THANK YOU

On a final note we would like to say thank you to all our staff, players, parents and volunteers who have provided our talent the opportunity to pursue their NRL and NRLW dreams. Their tireless efforts are greatly appreciated by everyone at the Eels. The Club is dedicated to delivering success for all our football initiatives with our development Club philosophy. We look forward to sharing that success with our members and fans in the seasons ahead.

PEOPLE & CULTURE

GROWING AND RECOGNISING OUR PEOPLE

We have a strong focus on our people and recognise the value in investing and rewarding them through learning and development opportunities, rewards and recognition and a range of employment benefits.

Bouncing back after COVID lockdowns we are pleased to report our staffing levels are back to prepandemic levels. Our teams have worked hard to attract a high calibre of applicants to re-build our great teams.

Our aim is to continually grow and recognise our people, promoting from within and recognising years of service. We celebrate employees with 10+ years of service annually. Earlier in 2022 we held staff functions to recognise these employees. Staff were treated to a game of NRL in the Parra Leagues Corporate Suite and awards for years of service were presented by members of the Board and Management.

STAFF GROWTH

At Parra Leagues we are proud of recognising great talent and supporting these individuals to their desired career path. Mitchell is a perfect example of just this. Mitchell started with Parra Leagues as a customer service attendant and has been supported and now promoted to a supervisor at our Vikings Sports Club. We are excited to see where Mitchell’s career will take him.

MITCHELL MURPHY Vikings Sports ClubSupervisor

SERVICE RECOGNITION

We are passionate in looking after our loyal staff members that have served our Members for over 20 years. There are many that have grown with the club.

Earlier this year we celebrated the wonderful anniversary of Greg Halsall and his 40 years of service with the club. Such an amazing achievement! We wish Greg all the best on his well deserved retirement.

GREG HALSALL 40 Yrs Service

COMMUNITY IMPACT

Over the last 6 years Parra Leagues has donated over $5.5m to local community groups within the Parramatta region, being a mixture of cash donations and in-kind support through Parra Leagues and Vikings Sports Club. Approximately $1.8m of this went directly to support grassroots Rugby League.

In 2022 we embarked on our journey to more effectively measure and, over time, maximise the impact of our support to the community. This will have two key outcomes:

• To work with our community partners to build capacity and strengthen organisations to effectively measure and demonstrate the impacts they make

• Optimise the social return on investment through our activities over the long term

To do this we have selected 5 key focus areas as defined in the chart below and have identified how our funding was allocated in 2022.

EXPENDITURE IN IDENTIFIED STRATEGIC PRIORITIES

Sports Participation (Rugby League)

Sports Participation (Other sport)

Education

Health & Wellbeing

Other Community Activity

2022 GRANTS, DONATIONS & SUPPORT

Parra Leagues contributed $1.2 million into community projects in 2022 and we estimate in real wages our community partners volunteers worked another $1.2 million in paid hours to make it all happen. Truly a team effort on all counts and one we are immensely proud of. This support is vital as it makes an enormous contribution to the vast array of critically important programs and services that community groups deliver in the local area.

From Parra Leagues direct support the below figures represent the impact we have made to our community partners and their volunteers.

100 COMMUNITY PARTNERS RECEIVED SUPPORT

41,000 COMMUNITY PARTNER RECIPIENTS THROUGH APPROVED CLUBGRANTS

$1.2M ESTIMATED VALUE OF COMMUNITY VOLUNTEERS SUPPORTED

2,100 COMMUNITY PARTNER VOLUNTEERS SUPPORTED

Parra Leagues is the largest contributor to the annual Parramatta LGA Grants program. Below are the grant recipients with City of Parramatta Lord Mayor Donna Davis, Board Members - Sue Coleman and Joy Cusack.

COMMUNITY CONNECT VOLUNTEER PROGRAM

In May 2022, we launched our staff volunteer program called ‘Çommunity Connect’ for all full-time and part-time staff. This program provides up to a full days paid leave to volunteer for a range of Community organisations.

Throughout FY22 our employees volunteered 263 hours of their time. Community groups supported include: Supertee, Miracle Babies, St Johns 1800’s Grave restoration in Parramatta, Guide Dogs and many others.

In FY23 our staff will aim to contribute over 500 hours of their valuable time to local community groups.

Enabling our employees to volunteer their time provides rewarding experiences to connect with the community and build great relationships.

CREATING SUPERHEROES

Bringing together Supertee and Ronald McDonald House Charities, Greater Western Sydney

Parra Leagues hosted a ‘Supertee’ packing event for the second year. The packing event was in addition to a ClubGrant to provide a cleverly designed medical garment disguised as a superhero costume in helping children battling life threatening conditions.

Through our Community Connect volunteering program, members of our leadership team and staff gave their time to participate in the day with members of our Board. 220 packs were assembled with a handwritten card from Parra Leagues and delivered to one of our other partners – Ronald McDonald House Charities, Greater Western Sydney and were greeted by very excited families and the RMHC team. It was great to bring together a number of our partners for this initiative – Supertee, RMHC, Alive 90.5 FM and The Cumberland Throw.

The Parramatta Eels and Parra Leagues are very proud in continuing to support RMHC after 28 years with star players Dylan Brown and Regan Campbell-Gillard remaining ambassadors for 2022. The Parramatta Eels Squad visit the House twice a year to provide support to the young children and their families who are facing time away from home receiving treatment in Sydney.

Parramatta Eels player Dylan Brown is a regular favourite and was awarded the 2022 NRL Community award for donating a recent appearance fee from Fox Sports directly to Ronald McDonald House as a personal donation.

PARRAMATTA MISSION

Festival of Christmas

Parra Leagues are long standing supporters of Parramatta Mission and their festival of Christmas. In December 2021 we provided funding for services and essentials to those in need in the lead up to Christmas. With the pressures of the past couple of years due to COVID and rising cost of living there are more individuals and families who are struggling. Through our support we enabled Parramatta Mission to provide food, gifts and services such as haircuts, podiatry, hearing services and financial aid. Guests were also given essential vouchers and opal cards to allow them to celebrate Christmas with family and friends. Members of our staff and Board of Directors donated their time to volunteer over these two weeks and connect with some of the vulnerable members in our community.

The Festival of Christmas was an opportunity for Parramatta Mission to explore partnerships with services and assess the value that add to the lives of their guests. The relationships formed during the Festival have been maintained and built on since the event and Parramatta Mission have regular attendance of some of these services in their regular Meals Plus program.

PCYC

Parramatta Eels and Parramatta Leagues Club are proud to support PCYC participants within our local catchment to focus on Physical Activity/Nutrition and Mental Health through the RISEUP Fit For Life Program and Growth-mindset, Resilience, Intervention for Teenagers (GRIT) Mental Health Program.

PCYC provides children and young adults with positive role models, structure and discipline to make better choices for themselves. As a regular participant of PCYC programs and none more impressive than young Reza, a passionate Parramatta Eels supporter!

Reza and his family fled remote Afghanistan six years ago to start a new life in Australia. After a period of time and some adjusting to his new environment, Reza found himself falling in with the wrong crowd. PCYC become involved and engaged him in boxing with positive role models and he has not looked back, losing significant weight through training, hard work and dedication. Reza hasn’t finished yet, he has just completed his HSC and is now boxing competitively. Parra Leagues and Parramatta Eels would like to congratute Reza and PCYC for making these positive changes.

Eels star prop, Junior Paulo, has been an active ambassador and advocate of PCYC since the inception of our partnership 12 months ago.

MIRACLE BABIES

Throughout 2022 Parra Leagues staff and members raised over $12,000 by fundraising and taking part in the Miracle Babies annual Moonwalk around Sydney Harbour on the 26th March 2022.

We were awarded the highest fundraising team on the evening and were able to support Miracle Mum’s like Lisa, who shares her story below on little Conor.

“After suffering from endometriosis, Miracle Mum Lisa was advised she may struggle with falling pregnant. However, after 11 long years, she fell pregnant.

At week 23, she was told her baby would need to be born early and at 24 weeks and 4 days he was born breach and weighed 720 grams. Straight from delivery, he was rushed away to have breathing inserted.

As Lisa describes – ‘To say it was love at first sight is not what I felt. I was scared, there in front of me lay a baby with paper-thin skin that you see through, tubes & wires that covered him from head to toe, glasses over his eyes protecting him from the humidity lights, and a beanie on his tiny head. All I could do was pray for a miracle.”

After 2 days they were advised their son had a level 2 brain bleed. After 127 days at three different hospitals, their son was able to come home.

Their story will always be incredible to look back on and see just how strong their son is.

Lisa says she owes everything to all the medical staff and professionals that were involved. She says their life and world have forever been blessed from all the hard work everyone put into giving their son the best medical help. She says she will never ever be able to thank Miracle Babies enough.

Our support to Miracle Babies enables babies like Conor to receive the support they need.

SUPPORTING OUR TARSHA GALE PLAYERS

Parramatta Leagues funded three Parramatta Eels Tarsha Gale players - Tallara Bamblett, Kasey Quye and Alysha Bell to attend the U18’s NSW/ACT School Girls Team in the Australian Secondary School Rugby League Competition in Brisbane on 8th July 2022.

The funding covered their on and off the field travel kit, flights, transfers and accommodation.

Without this funding they would not have been able to attend or would have needed to pay for themselves.

The girls were most grateful and even though they didn’t win the competition they benefited from the experience. This support demonstrates our commitment to women and grassroots sport

PARRAMATTA JUNIOR LEAGUE

Due to the long and rich history in Parramatta and the formation of the Parramatta Junior Rugby League in November 1946, it is our focus to support the Parramatta District Junior League competition and the 28 clubs within it.

The 2022 season saw most teams return after the COVID shutdown of sport in 2021 with good participation numbers. The year started with a gala day at CommBank stadium for our Under 6’s where they experienced the thrill of game day in the players dressing rooms and were able to run out onto the main field through the players tunnel.

Parra Leagues funds in excess of $300k annually to cover insurance, referee fees and administration costs. This assists in reducing registration fees for the 4,985 players aged 6-18 years old, made up of 4,336 males and 649 female players.

JUNIOR RUGBY LEAGUE CLUBS 28

Over 4,985 6-18 years olds in the Parramatta Junior Rugby League Competition

DIRECTORS’ REPORT

Your directors submit their report on Parramatta Leagues’ Club Ltd (the “Company”) and the entities it controlled (collectively, the “Group”) for the year ended 31 October 2022.

DIRECTORS

The names of the Group’s directors in office during the financial year and until the date of this report are set out below. The directors were in office for this entire period.

Gregory Monaghan Susan Coleman Richard Foda Philip Sim

Darren Adam Joy Cusack Mark Jenkins

DIVIDENDS

The Group is limited by guarantee and is prevented by its constitution from paying dividends (2021: $nil).

PRINCIPAL ACTIVITIES

The principal activities of the Group during the course of the financial year consisted of the conduct and promotion of licensed social clubs for members of the club and promotion of rugby league football within the Parramatta district.

There were no significant changes in the nature of the Group’s activities during the year.

OVERALL OBJECTIVES

To ensure Parramatta Leagues’ Club Ltd is the most professional and progressive multipurpose hospitality venue in Greater Western Sydney, by providing excellence in service and amenities for all members; and to foster, encourage, promote and control the development, playing and interests of rugby league football within the area of the geographical boundaries of Parramatta National Rugby League Club Pty Limited, a subsidiary within the Group, as defined from time to time in the by-laws of the league’s governing body.

The short term objectives of the Group are to focus on member satisfaction through the refresh of the Clubhouses and new development opportunities, while operating within a robust governance and compliance framework.

The long term objectives of the Group are to:

• Bring together our community and support local causes, sport and the Eels to promote wellbeing happiness and pride;

• Provide a network of premium hospitality, entertainment, sporting and complementary businesses and services for the benefit of our community; and

• Ensure our long term financial viability by the diversification of our business within our catchment area.

The Group measures success by focusing on the following key areas:

• Improved facilities for our members;

• Increasing clubs engaged membership;

• Engaged and well trained employees;

• Focus on governance, risk and compliance initiatives; and

• Sound financial management and performance monitoring.

OPERATING RESULTS FOR THE YEAR

The net profit after tax of the Group for the year ended 31 October 2022 was $10,519,325 (2021: $3,025,066).

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There have been no significant changes in the state of affairs of the Group during the year.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

The Group has committed to capital expenditure of $49,560,000 for the construction of the Parramatta Eels Centre of Excellence. Located at Kellyville Park in North Western Sydney, the new development will provide state of the art facilities for all forms of the game for men and women at the community and elite level and enhances the Eel’s commitment to grow participation in Rugby League. Expected completion date is 2025. The centre was made possible due to combined Federal, State and Local Government grants of $49,560,000.

The Group has entered an MOU with Dural Country Club for amalgamation on 7 November 2022.

On 18 January 2023, members of the club voted to amalgamate with Dural Country club following the approval of Dural club members on 29 November 2022. The amalgamation is subject to approval by office of liquor and gaming.

There have been no other significant events occurring after the reporting period which may affect either the Group’s operations or results of those operations or the Group’s state of affairs.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS

Likely developments in the operations of the Group and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the Group.

ENVIRONMENTAL REGULATION

The Group is not subject to any particular or significant environmental regulation under laws of the Commonwealth or of a State or Territory.

MEETINGS OF DIRECTORS

The number of meetings the Company’s directors held during the year ended 31 October 2022 and the number of meetings attended by the directors was: A = Number of meetings attended B = Number of meetings held during the time the directors held office during the period.

DIRECTORS’ REPORT (CONTINUED)

COMMITTEE MEMBERSHIP

Members acting on the committees of the board during the year were:

Audit Risk Governance Property & Development* Community & Club Grants

Darren Adam Chairman Member - Member

Gregory Monaghan Ex-Officio Ex-Officio Ex-Officio Chairman Ex-Officio

Joy Cusack Member - Chairman

Mark Jenkins

Member Member Member

Philip Sim Member Member

Richard Foda Member Chairman

Chairman

Member

Susan Coleman - Member - Member Member

*The Property and development committee was dissolved in June 2022, with the committee achieving its core objectives of reviewing the property portfolio and assisting with property development projects.

INSURANCE OF DIRECTORS AND OFFICERS

During the financial year, Parramatta Leagues’ Club Ltd held a management liability insurance policy under the directors and officers liability cover.

The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the directors and officers in their capacity as officers of the Company, and any other payments arising from liabilities incurred by the directors and officers in connection with such proceedings. This does not include such liabilities that arise from conduct involving a wilful breach of duty by the directors and officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else or to cause detriment to the company. It is not possible to apportion the premium between amounts relating to the insurance against legal costs and those relating to other liabilities.

INDEMNIFICATION OF AUDITOR

To the extent permitted by law, the Company has agreed to indemnify its auditor, Ernst & Young (Australia), as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young (Australia) during or since the financial year.

MEMBERSHIP

The Company is a company limited by guarantee and is without share capital. The number of members as at 31 October 2022 was 58,747 (2021: 55,088).

MEMBERS’ LIMITED LIABILITY

In accordance with the Constitution of the Company, every member of the Company undertakes to contribute an amount limited to $4 per member in the event of the winding up of the Company during the time that he or she is a member or within one year thereafter.

DIRECTORS’ REPORT (CONTINUED)

AUDITOR’S INDEPENDENCE DECLARATION

The directors have received a declaration from the auditor of Parramatta Leagues’ Club Ltd. This has been included on page 5.

Ernst & Young (Australia) was appointed as auditor in accordance with Section 327 of the Corporations Act 2001.

Signed in accordance with a resolution of the directors.

GREG MONAGHAN

Director

Sydney

19 January 2023

Auditor’s Independence Declaration to the Directors of Parramatta Leagues Club Limited and its controlled entities

As lead auditor for the audit of the financial report of Parramatta Leagues Club Limited for the financial year ended 31 October 2022, I declare to the best of my knowledge and belief, there have been:

a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit;

b. No contraventions of any appl icable code of professional conduct in relation to the audit; and

c. No non-audit services provided that contravene any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Parramatta Leagues Club Limited and the entities it controlled during the financial year.

Ernst & Young Daniel Cunningham Partner

19 January 2023

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 OCTOBER 2022

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 OCTOBER 2022

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 OCTOBER 2022

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 OCTOBER 2022

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

1. CORPORATE INFORMATION

The consolidated financial statements of Parramatta Leagues’ Club Ltd (the “Company”) and its subsidiaries (collectively, the “Group”) for the year ended 31 October 2022 were authorised for issue in accordance with a resolution of the directors on 19 January 2023.

Parramatta Leagues’ Club Ltd is a not-for-profit entity limited by guarantee, incorporated and domiciled in Australia.

The Company’s registered office and principal place of business is 1 Eels Place, Parramatta, NSW 2150.

The nature and operations and principal activities of the Group are described in the directors’ report. Information on other related party relationships of the Group is provided in Note 23.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE

These general purpose consolidated financial statements have been prepared in compliance with the requirements of the (Corporations Act 2001 and Australian Accounting Standards - Simplified Disclosures). The Group is a not-for-profit entity for the purposes of preparing these consolidated financial statements.

The financial report has been prepared on a historical cost basis and is presented in Australian dollars and all values are rounded to the nearest dollar ($).

2.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES New and amended standards and interpretations

The new and amended Australian Accounting Standards and Interpretations that apply for the first time in 2022 do not materially impact the consolidated financial statements of the Group.

Accounting Standards and Interpretations issued but not yet effective

Certain Australian Accounting Standards and Interpretations have recently been issued or amended but are not yet effective and have not been adopted by the Group for the annual reporting year ended 31 October 2022. The directors have not early adopted any of these new or amended standards or interpretations. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.

2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at 31 October 2022. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Group has:

• Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

a. Basis of consolidation (CONTINUED)

• Exposure, or rights, to variable returns from its involvement with the investee

• The ability to use its power over the investee to affect its returns

Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

• The contractual arrangement(s) with the other vote holders of the investee

• Rights arising from other contractual arrangements

• The Group’s voting rights and potential voting rights

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

If the Group loses control over a subsidiary, it derecognises the related assets, liabilities and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value.

b. Current versus non-current classification

The Group presents assets and liabilities in the consolidated statement of financial position based on current/non-current classification. An asset is current when it is:

• Expected to be realised or intended to be sold or consumed in the normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

b. Current versus non-current classification (CONTINUED)

A liability is current when:

• It is expected to be settled in the normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Group classifies all other liabilities as non-current.

c. Revenue recognition

The Group is in the business of providing sporting, social and entertainment activities and amenities to their members and guests. Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. The Group has generally concluded that it is the principal in its revenue arrangements, because it typically controls the goods or services before transferring them to the customer.

Revenue is recognised for the major business activities as follows:

i. Sale of goods

Revenue from the sale of goods comprises revenue earned from the provision of food, beverage and other goods and is recognised (net of rebates, returns, discounts and other allowances) at the point of sale or delivery as this corresponds to the transfer of control of the goods.

ii. Rendering of services

Revenue from rendering of services comprises revenue from gaming facilities together with other services to members and other patrons of the club. Revenue from rendering of services is recognised when the services are provided and is measured at the fair value of the consideration received or receivable.

iii. Sponsorship

Revenue from sponsorship is recognised over a period when the Group satisfies a performance obligation by transferring a promised good or service to a customer. Revenue is measured at the fair value of the consideration received or receivable.

iv. Membership income

Revenue from membership subscription and future ticket purchases by the members are deferred as unearned income and are brought to account evenly over the course of the membership period in accordance with contractual performance obligations.

v. Grants income

Government grants received to fund specific programmes arise from an agreement which is enforceable and contains specific performance obligations. Revenue is recognised as income when the performance obligations of the contract are satisfied. Each performance obligation is considered to ensure that the revenue recognition reflects the transfer of a control, there may be some performance obligation where controls transfers at a point in time and others which have continues transfer of control over the life of the contract. Where control is transferred over time, generally input method of cost is deemed to be the most appropriate method to reflect the transfer of the benefit. Any income received where the performance obligation is not yet satisfied as at reporting date, is recorded as grant in advance

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

c. Revenue Recognition (CONTINUED)

vi. National Rugby League (“NRL”) distribution grant

Grants from the National Rugby League are recognised as revenue in the period in which the funding relates to the extent that expenditure has been incurred in accordance with the terms and conditions attached to these grants.

vii. Rental income

Revenue from rental receipts is recognised in the period the rental relates to and is recorded in accordance with the rental agreement.

vii. Gate receipts

Revenue from gate takings is recognised when the match takes place or when services are provided.

ix. Interest income

Interest income is recognised using the effective interest rate (EIR) method.

x. Jobsaver and JobKeeper subsidy income

Jobsaver and JobKeeper subsidy income is a government grant which relates to wages and salaries. It is recognised as income on a systematic basis over the period that the related costs, for which it is intended to compensate, are expensed.

Classification and measurement of revenue

Revenue is recognised over time if:

• the customer simultaneously receives and consumes the benefits as the entity performs,

• the customer controls the asset as the entity creates or enhances it; or

• the seller’s performance does not create an asset for which the seller has an alternative use and there is a right to payment for performance to date. Where the above criteria are not met, revenue is recognised at a point in time.

CONTRACT BALANCES

Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Group performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

Contract liabilities

The Group’s contract liabilities represent membership income in advance. A contract liability is the obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Group transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Group performs under the contract.

d. Finance income

Interest income is recorded using the EIR. The EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset. Interest income is included in finance income in the consolidated statement of profit or loss and other comprehensive income.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

e. Finance costs

Finance costs are expensed in the period in which they occur. Finance costs consist of interest and other costs that the Group incurs and are calculated using the EIR method.

f. Cash and cash equivalents

Cash and cash equivalents in the consolidated statement of financial position comprise cash at bank and on hand.

For the purpose of the consolidated statement of cash flows, cash and cash equivalents include cash at bank and on hand.

g. Trade and other receivables

A receivable represents the Group’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). They are generally due for settlement within 30 days and therefore are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components when they are recognised at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the EIR method.

For trade receivables, the Group applies a simplified approach in calculating expectedcredit losses (ECLs). Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

h. Inventories

Inventories are valued at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. Costs are assigned on the basis of weighted average costs.

i. Property, plant and equipment

Capital work in progress is stated at cost, net of accumulated impairment losses, if any. Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to consolidated profit or loss during the reporting period in which they are incurred.

Depreciation on assets is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives or, in the case of leasehold improvements, the shorter reporting period. Lease terms as follows:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

i. Property, plant and equipment (CONTINUED)

The assets’ residual values of useful lives are reviewed and adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. (Note 2.3(l)).

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the consolidated statement of profit or loss and other comprehensive income.

j. Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or losses when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of profit or loss and other comprehensive income.

Purchased poker machine entitlements

Purchased poker machine entitlements are not amortised. Instead, purchased poker machine entitlements are tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired, and are carried at cost less accumulated impairment losses.

k. Leases

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Group as a lessee

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

(CONTINUED)

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

i. Right-of-use assets

The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

Car park

Building

Motor vehicles

Other equipments

79 years

2 years

3 to 4 years

2 to 5 years

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment. Refer to the accounting policies in Note 2.3(l) Impairment of assets.

ii. Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

iii. Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

(CONTINUED)

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Group as a lessor

Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the consolidated statement of profit or loss and other comprehensive income due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

l. Impairment of assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

m. Investment properties

Investment properties, principally comprising freehold buildings, are held for longterm rental yields and are not occupied by the Group. Investment properties are carried at fair value and are based on the directors’ valuation which in turn is subject to third party verification once every three years. The valuations prepared by the external valuer and directors are based on the information that is available at 31 October 2022 (refer to Note 3).

n. Asset held for sale

The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the classification. Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale.

Assets and liabilities classified as held for sale are presented separately as current items in the statement of financial position.

o. Trade and other payables

These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

p. Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. After initial recognition, borrowings are subsequently measured at amortised cost

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

p. Borrowings (CONTINUED)

using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the consolidated statement of profit or loss and other comprehensive income. For more information, refer to Note 16.

Borrowings are removed from the consolidated statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs. Borrowing costs are expensed as incurred.

q. Employee benefit liabilities

Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months after the end of each reporting period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liability for annual leave is recognised in the provision for employee benefits. All other short-term employee benefit obligations are presented as payables.

Other long-term employee benefit obligations

The liability for long service leave and annual leave which is not expected to be settled within 12 months after the end of the reporting period in which the employees render the related service is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the end of the reporting period on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Superannuation plan

The Group contributes to several defined contribution superannuation plans. Contributions are recognised as an expense as they are made. The Group has no legal or constructive obligation to fund any deficit.

Termination benefits

Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or to providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

r. Taxes

Current income tax

The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

• When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

• In respect of taxable temporary differences associated with investments in subsidiaries, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:

• When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

• In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Parramatta Leagues’ Club Ltd and its wholly owned Australian controlled entities have implemented the tax consolidation legislation. As a consequence, these entities are taxed as a single entity and the deferred tax assets and liabilities of these entities are set off in the consolidated financial statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

r. Taxes (continued)

Deferred tax (continued)

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Tax consolidation legislation

Parramatta Leagues’ Club Ltd and its wholly-owned Australian controlled entities implemented the tax consolidation legislation as of 1 January 2004.

The head entity, Parramatta Leagues’ Club Ltd in the tax consolidated group account for their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated group continues to be a standalone taxpayer in its own right.

Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except:

• When the GST incurred on a sale or purchase of assets or services is not payable to or recoverable from the taxation authority, in which case the GST is recognised as part of the revenue or the expense item or as part of the cost of acquisition of the asset, as applicable

• When receivables and payables are stated with the amount of GST included

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the consolidated statement of financial position. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

Cash flows are included in the consolidated statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority is classified as part of operating cash flows.

s. Parent entity financial information

The financial information for the parent entity, Parramatta Leagues’ Club Ltd, is disclosed in Note 26 and has been prepared on the same basis as the consolidated financial statements, except as set out below.

Investments in subsidiaries

Investments in subsidiaries are accounted for at cost less impairment in the financial statements of Parramatta Leagues’ Club Ltd.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

t. Comparatives

Where necessary, comparative figures have been reclassified to conform with changes in presentation in the current year.

3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

Estimated fair values of investment properties

The Group carries its investment properties at fair value with changes in the fair values recognised in profit or loss. It obtains independent valuations at least once every three years. The fair value of each property is updated by taking into account the most recent independent valuations. External valuation of all investment properties has been made as at 31 October 2022 by Ray White (Valuations). The key assumptions used in this determination are set out in Note 14(a).

As at 31 October 2022, an independent valuation was performed on all 23 properties. These independent valuations were conducted by Ray White. The valuations were based on the fair value. The critical assumptions adopted in determining the valuations included the impact of the pandemic on the property market and the demand for property in the area, as well as rapidly rising interest rates together with the associated impact on investment, financial and credit markets. This means that the value may change significantly and unexpectedly over a relatively short period of time.

Given the market conditions at balance date, the valuations are prepared on the basis of the existence of ‘material valuation uncertainty’, noting that less certainty, and a higher degree of caution, should be attached to the valuations than would normally be the case. The current response to the COVID-19 pandemic and increasing in interest rate means that Parramatta Leagues’ Club Ltd has faced an unprecedented set of circumstances on which to base a judgement.

Provision for expected credit losses of trade receivables and contract assets

The Group uses a provision matrix to calculate expected credit losses (ECLs) for financial assets, specifically trade receivables. The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography, product type, customer type and rating, and coverage by letters of credit and other forms of credit insurance).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (CONTINUED)

Provision

for expected credit losses of trade receivables and contract assets

(continued)

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Group’s historical credit loss experience and forecast of economic conditions may also not be representative of customer’s actual default in the future.

Leases - Estimating the incremental borrowing rate

The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Group ‘would have to pay’, which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary’s functional currency). The Group estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating).

4. REVENUE FROM CONTRACTS WITH CUSTOMERS

Set out below is the disaggregation of the Group’s revenue from contracts with customers:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

7. INCOME TAX

The major components of income tax expense for the years ended 31 October 2022 and 2021 are:

Consolidated profit or loss and other comprehensive income

Current income tax charge:

Current income tax charge

Deferred tax: - -

Relating to the origination and reversal of temporary differences - -

Income tax expense reported in the consolidated statement of profit or loss and other comprehensive income - -

Reconciliation of tax expense and the accounting profit multiplied by Australia’s domestic tax rate for 2022 and 2021:

The Group has not recognised deferred tax assets in respect of tax losses that arose in Australia of $11,532,029 (2021: $13,113,256) that are available indefinitely for offsetting against future taxable profits.

8. CASH AND CASH

For the purpose of the consolidated statement of cash flows, cash and cash equivalents comprise the above.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

9. TRADE AND OTHER RECEIVABLES

(CONTINUED)

Set out below is the movement in the allowance for expected credit losses of trade receivables.

10. ASSETS HELD FOR SALE

In 2021, management reclassified the 20 Wandella Avenue, Northmead, NSW 2152 and Unit 1, 50 - 52 Ross St Parramatta NSW 2150 properties as assets held for sale in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operation

Following the year ended 31 October 2021, these properties was sold and $1.4 million was disposed from assets held for sale in 2022.

Management have applied the exception to AASB 5 whereby investment property recorded in accordance with AASB 140 Investment Property to carry property at fair value until the date of disposal and therefore have not recognised costs to sell.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR

THE YEAR ENDED 31 OCTOBER 2022

11. PROPERTY, PLANT AND EQUIPMENT

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

12. INTANGIBLE ASSETS

At 1 November 2021 and 31 October 2022

Accumulated amortisation and impairment

At 1 November 2021 and 31 October 2022 -

13. LEASES Group as a lessee

The Group has lease contracts for car park, building, motor vehicles and other equipments used in its operations. Leases of motor vehicles generally have lease terms between 3 and 4 years, while other equipments generally have lease terms of 2 and 5 years. The car park and part of the Group’s premises are situated on land leased from the Parramatta Regional Park Trust. The lease is for a term of 79 years from 5 March 1999 with a 49 year option at its expiration. The lease rental is subject to review annually for CPI and a review every five years.

The Group’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Group is restricted from assigning and subleasing the leased assets and some contracts require the Group to maintain certain financial ratios. There are several lease contracts that include extension and termination options and variable lease payments.

The Group also has certain leases of plant and equipment with lease terms of 12 months or less or with low value less than $5,000. The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

13. LEASES (CONTINUED)

Group as a lessee (continued)

Set out below are the carrying amounts of right-of-use assets recognised and the movements during the year:

Presented below is a maturity analysis of future lease payments:

The amount of expense relating to short-term leases and leases of low-value assets recognised in profit or loss during the year ended 31 October 2022 was $250,405 (2020: $137,460).

Group as a lessor

Some of the investment properties are leased to tenants under long-term operating leases with rentals receivable monthly. Minimum lease payments receivable on leases of investment properties are as follows:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

14. INVESTMENT PROPERTIES

(CONTINUED)

a. Valuation basis

As at 31 October 2022, the fair values of the properties are based on valuations performed by an accredited independent valuer.

For 2021, the directors determined the fair value of each property by taking into account the previous independent valuation and market conditions.

The best evidence of fair value is current prices in an active market for similar investment properties. Where such information is not available, the directors consider information from a variety of sources including:

i. current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences

ii. discounted cash flow projections based on reliable estimates of future cash flows

iii. capitalised income projections based upon a property’s estimated net market income, and a capitalisation rate derived from an analysis of market evidence.

b. Non-current assets pledged as security

Refer to Note 16 for information on non-current assets pledged as security by the Group.

c. Leasing arrangements

Please refer to Note 13 for details relating to leasing arrangements of the Group as a lessor.

The following are core properties:

• 13 - 15 O’Connell Street, Parramatta NSW 2150

• 35 Quarry Road, Dundas NSW 2117

The following are non-core properties:

• 6 - 8 Grose Street, Parramatta NSW 2150

• 2 Eels Place, Parramatta NSW 2150

• 10 - 12 Grose Street, Parramatta NSW 2150

• 50 O’Connell Street, Parramatta NSW 2150 (Ground Floor)

• 3C Trott Street, Parramatta NSW 2150

• Units 1, 2, 3, 4, 5, 8, 9, 10 and 11 at 19 - 21 O’Connell Street, Parramatta NSW 2150

• Units 1,2,3,4 and 5 at 17 O’Connell Street, Parramatta NSW 2150

• Units 3 and 4 at 50 - 52 Ross Street, Parramatta NSW 2150

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

15. TRADE AND OTHER PAYABLES

(CONTINUED)

16. BORROWINGS

Secured liabilities and assets pledged as security

The total secured liabilities (current and non-current) are as follows:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

16. BORROWINGS (CONTINUED)

i. NAB loan facility

The NAB loan facilities include $16.1 million ($14.7 million drawn) Corporate Markets Loans funding capital projects, $5.5 million ($nil drawn), $2.0 ($0.2 million drawn) master asset finance facility and $0.4 million ($0.18m drawn) in other NAB facilities.

There are also $0.3 million ($0.3m drawn) other non-NAB unsecured facilities. All assets are secured against NAB loan facility.

The terms and conditions of the above facilities are as follows: NAB loan facilities rate for corporate markets loan were 4.8363% (including 0.90% facility fee) at 31 October 2022 with a maturity date of 30 November 2025.

Master asset finance facility rate is 3.90% with maturity date of 15 January 2023 and 14 February 2023.

17. GRANT IN ADVANCE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

18. EMPLOYEE BENEFIT LIABILITIES

The present value of employee benefits not expected to be settled within 12 months of reporting date have been calculated using the following weighted averages:

19. CONTRACT LIABILITIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

20. COMMITMENTS AND CONTINGENCIES

20. 1 CAPITAL COMMITMENTS

Post year end, the Group has committed to capital expenditure of $49,560,000 for the construction of the Parramatta Eels Centre of Excellence. Located at Kellyville Park in North Western Sydney, the new development will provide state of the art facilities for all forms of the game for men and women at the community and elite level and enhances the Eel’s commitment to grow participation in Rugby League. Expected completion date is 2025.

The centre was made possible due to combined Federal, State and Local Government grants of $49,560,000.

20. 2 LEASE COMMITMENTS: GROUP AS A LESSEE

The Group had commitments of $nil (2021: $37,022) as at 31 October 2022 in respect of purchases of motor vehicles under finance lease arrangements on 30 November 2022.

The Group has no other lease contracts that have not yet commenced as at 31 October 2022 (2021: none).

20. 3 CONTINGENT LIABILITIES

A claim was lodged against Parramatta National Rugby League Club Pty Limited, a subsidiary of Parramatta Leagues’ Club Ltd, by the Liquidator of a former supplier in May 2021. The directors have obtained legal advice with respect to this matter. After considering the advice, the directors do not believe that Parramatta National Rugby League Club Pty Limited has any further obligations in relation to this matter.

The Group had no other contingent liabilities at 31 October 2022 (2021: none).

20.4 REMUNERATION COMMITMENTS

Significant capital expenditures contracted for at the end of the reporting period but not recognised as liabilities are as follows: 2022 2021

$ $

The Group has entered into contracts with players with respect to subsequent seasons, whereby certain minimum amounts are payable. The minimum amounts payable are as follows:

Within one year

10,280,100 9,672,000

Amounts contracted beyond one year are cancellable under certain conditions and therefore not reflected. Match payments are payable in varying circumstances, in addition to the above amounts.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

21. BANK GUARANTEES

The Group maintains a credit facility amounting to $100,000 (2021: $350,000) with National Australia Bank (NAB), maturing on 28 February 2023. This facility bears a weighted average interest rate of nil% (2021: nil%) and the unused facility is $nil (2021: $250,000).

22. SUBSIDIARIES

The consolidated financial statements of the Group include the following subsidiaries:

Name

Parramatta National Rugby League Club Pty Limited

Parramatta Power Soccer Club Limited

Principle activities

To compete in the National Rugby League competition and to encourage, promote and control the development, playing and interests of rugby league football.

The Club does not trade and hasn’t had any activity since 2006

23. RELATED PARTY DISCLOSURES

The parent and ultimate parent entity within the Group is Parramatta Leagues’ Club Ltd.

a. Board of Directors

During the year, the Company paid the directors an amount of $163,370 (2021: $134,489) which includes superannuation as remuneration for services provided in their roles as the Board of Directors.

Apart from the remuneration outlined above, the Company did not enter into any further contract with the Board of Directors, nor were there any transactions entered into between the Company and a related party of the Board of Directors.

b. Key management personnel compensation

Compensation expense of key management personnel amounted to $3,056,064 during the year ended 31 October 2022 (2021: $3,457,735).

The amount includes payments made to key management personnel for the services performed in their capacity as CEO, CFO, COO, CCO, General Manager of Football and Head Coach during the year ended 31 October 2022.

i. Transactions with key management personnel

From time to time key management personnel of the Company, or their related entities, may sell goods or provide services to the Group. The Group makes these purchases on the same terms and conditions as other non-key management personnel related transactions.

The are no outstanding balances from the above transactions entered into with key management personnel or their related parties.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

24. EVENTS AFTER THE REPORTING PERIOD

The Group has entered an MOU with Dural Country Club for amalgamation on 7 November 2022.

On 18 January 2023, members of the club voted to amalgamate with Dural Country club following the approval of Dural club members on 29 November 2022. The amalgamation is subject to approval by office of liquor and gaming.

There have been no other significant events occurring after the reporting period which may affect either the Group’s operations or results of those operations or the Group’s state of affairs.

25. AUDITOR’S REMUNERATION

The auditor of Parramatta Leagues’ Club Ltd is Ernst & Young (Australia)

by Ernst & Young (Australia) for:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2022

26.INFORMATION RELATING TO THE PARRAMATTA LEAGUES’ CLUB LTD (THE PARENT)

a. Summary financial information

The individual financial statements for the parents entity show the following aggregrate amounts:

b. Guarantees entered into by the parent entity

The Company has not entered in to any guarantee contracts during the current financial year (2021: $nil)

c. Contractual commitments for acquisition of property, plant or equipment

The Company has entered into contracts totalling $1,191,040 for the renovation and upgrade of the Legends Kitchen facilities and the replacement of the external ACP Cladding at the Parramatta Leagues Club venue (2021: $nil).

DIRECTORS’ DECLARATION

In accordance with a resolution of the directors of Parramatta Leagues’ Club Ltd. I state that In the opinion of the directors:

a. the consolidated financial statements and notes set out on pages 6 to 34 are in accordance with the Corporations Act 2001, including:

i. giving a true and fair view of the Group’s financial position as at 31 October 2022 and its performance for the financial year ended on that date; and

ii. complying with Australian Accounting Standards - Simplified Disclosures, to the extent described in Note 2.1 to the financial statements and complying with the Corporations Regulations 2001;

b. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

On behalf of the board

GREGORY MONAGHAN

Director

Sydney

19 January 2023

Independent auditor’s report to the members of Parramatta Leagues Club Limited and its subsidiaries

Opinion

We have audited the financial report of Parramatta Leagues Club Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 31 October 2022, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consoli dated statement of cash flows for the year then ended, 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 accordanc e with the Corporations Act 2001, including:

a. Giving a true and fair view of the consolidated financial position of the Group as at 31 October 2022 and of its consolidated financial performance for the year ended on that date; and

b. Complying with Australian Accounting Standards – Simplified Disclosures 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 (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilitie s in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Information other than the financial report and auditor’s report thereon

The directors are responsible fo r the other information. The other information is the directors’ report accompanying the financial report.

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 o r 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 – Simplified Disclosures 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 Group ’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors eithe r intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

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 econom ic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

► Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion . The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

► Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

► Evaluate the appropriate ness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

► Conclude on the appropriateness of the directors ’ use of the going concern basis of accounting and, based on the audit evidence o btained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group ’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor ’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

► Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions an d events in a manner that achieves fair presentation.

► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Ernst & Young

Daniel Cunningham Partner

Sydney

19 January 2023