Castle Hill RSL Club Limited
ABN 35 001 043 910
General Purpose (SD) Financial Report for the year ended 30 June 2024
Directors'report
YourdirectorssubmittheirreportofCastleHillRSLClubLimited(the"Company/Club'')andits controlledentities(collectivelyreferredtoasthe"Group")fortheyearended30June2024.
Directors
ThenamesoftheCompany'sdirectorsinofficeduringthefinancialyearanduntilthedateofthisreport areasfollows:
DirectorAppointedDate Experience/Qualifications
JohnRichardPayne (President) (Appointed:25October2016)RetiredBankingProfessional.BBus,FFin, MAICD,JP
MichaelYeo (Vice-President) (Appointed:25October2016)RetiredBusinessEntrepreneur.RFD, GAICD,GradDipApplSci
RickAnthony Cumming (Appointed:29November 1995) RetiredTrainingManager(RTO),Ex DefenceForce(RAN).MAICD,JP
DavidBruceWood(Appointed:27April1994)RetiredCivilEngineeringInspector. MAICD
JohnJamesMason(Appointed:6October2021)ManagingConsultant,ManagingDirector, CompanySecretary.GAICD
DavidWilliamHand(Appointed:25October2022)HSEQProfessional,SeniorManager.Dip, BAdmin
DavidAndrewElliott(Appointed:6April2024)CEO,RetiredCabinetMinister.BA,MA, GradCertPublicPolicy
MichelleRofe(Appointed:6April2024)RetiredAccounting/AuditProfessional, FormerCharteredAccountant.BBus Accounting,MAICD
PaulBryan(Appointed:31July2024)RetiredBankingProfessional,Executive Management.GAICD
ThenamesoftheCompany'sdirectorsinofficeduringthefinancialyearbutresignedpriortothedate ofthisreportareasfollows:
AnnemarieKateChristie(Appointed:25October2016;Resigned:8November2023)
JohnRichardHopwood(Appointed:27October2020;Resigned:4April2024)
ShubhadaGandhi(Appointed:19January2022;Resigned:27July2024)
Directors'meetings
ThenumberofmeetingsoftheBoardofDirectors(theBoard)andofeachboardcommittee meetingheldduringtheyearended30June2024,andthenumberofmeetingsattendedbyeach directorwere:
TheGroupincludescompanieslimitedbyguaranteeandarewithoutsharecapital.Thenumberof membersasof30June2024andthecomparisonwithlastyearisasfollows:
*MembersofCastleHillBowlingClubarerequiredtojoinCastleHillRSLClubLimitedandareincluded aboveasCategory2members.
Directorsreport(continued)
Memberslimitedliability
CastleHillRSLClubLtdisincorporatedanddomiciledinAustralia.TheClubisanot-for-profitentity.In accordancewiththeConstitutionoftheCompany,everymemberoftheClubundertakestocontribute anamountlimitedto$5.50permemberintheeventofthewindingupoftheCompanyduringthetime thathe/sheisamemberorwithinoneyearthereafter.Theregisteredofficeandtheprincipalplaceof businessoftheClubis:77CastleStreet,CastleHillNSW2154.
Principalactivities
TheprincipalactivitiesoftheGroupduringtheyearweretoprovidesporting,socialandentertainment activities,andamenitiestothemembersoftheGroupandguestsfromconductingthebusinessofa licensedsocialclub.TheGroup'sactivitiesenhance,support,andcontinuetodevelopandpromotea rangeofsportingandsocialactivitiesthathaveassistedthegeneralclubmembershipandbroader community.Theseactivitieshavenotbeenlimitedtotheprovisionofsportinginfrastructurebutalsoto thedevelopmentandpromotionofawiderangeofactivitiesincludingallformsofsportfromnoviceto anelitelevel.
Operatingresult
Thenetprofitaftertaxforthefinancialyearamountedto$4,270,050comparedwith$21,378,122net profitaftertaxfortheprioryear,adecreaseof$17,108,072(80%).Thisresultwasachievedafter recognisingagainondisposalofassetsof$45,371(2023:$15,922,792gainondisposalof7Macquarie Street,Parramatta),including$12,782,577(2023:$10,287,633)fordepreciationandamortisation, $3,126,481(2023:$2,359,088)forfinancecostsand$3,186,162(2023:$2,460,383)fordonations.The othercomprehensiveincomeofthegroupduringtheyearwasNIL(2023:$6,845,190gainon amalgamationwithCastleHillBowlingClub).Theoveralltotalcomprehensiveincomeoftheyearwas $4,270,050(2023:$28,223,312).
RevenueandOtheroperatingincome,excludinggainon disposalofClubParramattaCarPark
86,252,40876,305,931 Operatingexpenses (62,932,509)(55,331,978)
Earningsbeforeothercomprehensiveincome, depreciationandamortisation,financecosts,income taxexpense,donations(EBITDAD),excludinggainon disposalofClubParramattaCarPark 23,319,89920,973,953
Gainondisposalofassets
45,37115,922,792 Impairmentexpense -(411,519) Depreciationandamortisation (12,782,577)(10,287,633) Financecosts (3,126,481)(2,359,088) Donations (3,186,162)(2,460,383)
Profit/(loss)beforeincometaxexpense 4,270,05021,378,122
Gainonamalgamation -6,845,190
Totalcomprehensiveincomefortheyearattributableto members 4,270,05028,223,312
Directorsreport(continued)
Performancemeasurementandkeyperformanceindicator(KPIs)
TheClubshavedepartmentalandorganisationalbusinessplansandcorporatestrategicplansandthe documentedKPlsarereviewedbyexecutivemanagementandtheBoardofDirectorsatmonthly meetings.
TheseKPlsarereviewedonaregularbasistoensurerelevanceatanypointintime.Businessactivities arereviewedandalteredtoadheretothesedocuments.
Earningsbeforeinterest,tax,depreciationandamortisationand donations(EBITDAD)percentageConsolidatedRevenueand OtherIncome,excludinggainondisposalofClubParramattaCar
Earningsbeforeinterest,tax,depreciationandamortisation (EBITDA)percentageConsolidatedRevenueandOtherIncome, excludinggainondisposalofClubParramattaCarPark
"Earningsbeforedepreciationandamortisation,financecosts,incometaxexpense,donations" (EBITDAD)isanon-lFRSmeasure.Areconciliationtothestatutoryprofitbeforetaxisincludedinthe abovetable.
Objectives
TheGrouphort-termandlong-termobjectivesandstrategy
ThestrategicobjectiveoftheGroupistoconductitsbusinessaffairsinasoundandresponsiblemanner ensuringrelevancetothemembershipandcommunity.Providingpremiumhospitality,sportsand leisurefacilitiesandserviceswhilstmaintainingtheobjectivesoftheClubandRSLmovement.The Clubcontinuesitslong-termstrategyofsolidfinancialinvestmentinthebuildinginfrastructure, operations,andbusinessinvestmentanddiversificationdrivingtheClubforwardforthelong-term viabilityandprosperityoftheGroupbyreducingtherelianceongaming.
TheCluboperatesastructuredlocalcommunitysupportprogramfocusingontheneedsofthe communitiesinwhichweoperate,sport,arts,disability,youth,seniorsandveteranservices.Thisisand willcontinuetobeanimportantpartofourshortandlongtermstrategy.
Significantchangesinthestateofaffairs
InFY24wecontinuedtoreviewandrestructureourbusiness,makingchangestoourreportinglinesof authority,venuemanagement,majorcapitalimprovementsandfacilitiesupgrades.Wehavecontinued ourproactiveupgradingandrefurbishmentstrategiesandduringtheyearwehaveseenseveralareas renovatedandrepositionedtomeetthechangingneedsofourmembersandcommunity.Wehave rejuvenatedthephysicalpremisesandreplacedaconsiderableamountofplantandequipmentat CastleHillRSLClub,LynwoodCountryClub,CastleHillBowlingClubandCastleHillFitnessand AquaticCentre.Theupgradessawtheseassetsrejuvenatedwithoutaneedforsignificantexpenditure forseveralyears.
Asignificantprojectwastheinstallationofsolaracrosseachofoursites,thisgreeninitiativeispredicted toreduceourgreenhouseemissionsandreduceourcarbonfootprint.CastleHillRSLClubLimited(the tiativesovertheyearsandsustainabilityisanextremely importantpartofourstrategicdirection.
Directorsreport(continued)
Significantchangesinthestateofaffairs(continued)
TheClubhasrecentlyatthebeginningofFY25,receivedunanimousapprovalfromStatePlanning PanelandtheHillsShireCouncilfortheconstructionofa860spacemulti-storeyenvironmentally sympatheticabovegroundcarparkforthemembersandcommunityattheCastleHillsite.This developmentwillprovidemembersandthecommunitywithasafeandsecurepurpose-builtfacility providingprotectionfromtheelementsservicingtheClubandSportsandAquaticCentre,reducingthe impactonneighboursfromthecurrentexpansiveongradeparkingfacilities.
receivedDevelopmentApprovaltoconstructanall-weatherawningovertheBowlingGreenatCastle HillBowlingClubandtheconstructionofanewsyntheticchampionshipgreen.Thiscapitalexpenditure alongwithourinvestment/commitmenttothesportofbowlswillensurethelongevityofbowlsinthe Hillsfortheyearstocome.ThisplusthecompletioninearlyFY25ofstate-of-the-artMiniGolfFacility atLynwoodfurtherenhancesourcommitmenttothesecommunitiesandsport.
TheBoardofDirectorsandManagementareplanningtodayfortomorrowandthefutureopportunities areextremelyexciting.Eachofourfacilitiesaresituatedinsignificantgrowthdevelopmentareaswith marketdemographicsthatareevolvingrapidly.Wearecontinuingtoexamineopportunitiestodevelop andpromotesportwithinourlocalcommunitiesandarecontinuallydevelopingstrategiesinrelationto this,including,butnotlimitedtoamalgamationswithothersportingrelatedclubs.
Duringthepastcoupleofdecades,wehavedevelopedanextremelystrongassetbase,andweare verywellplacedtorealisethevalueoftheseassetsbuildingaverystrongfuturefortheClub.
Eventsafterthereportingperiod
Therehasnotarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportany item,transactionoreventofamaterialandunusualnaturelikely,intheopinionofthedirectorsofthe Group,toaffectsignificantlytheoperationsoftheGroup,theresultsofthoseoperations,orthestateof affairsoftheGroup,infuturefinancialyears.
Indemnificationandinsuranceofdirectorsandofficers
Duringtheyearended30June2024,aninsurancepremiumhasbeenpaidbyCastleHillRSLClub LimitedonbehalfoftheGroupinrespectofacontractinsuringallthedirectors,secretariesand tiesandexpensesarisingasaresultofwork performedintheirrespectivecapacities,totheextentpermittedbylaw.Thetermsofthatpolicyprohibit disclosureofthepremiumpaidorthemonetarylimitofthisindemnity.
Auditorindemnification
Totheextentpermittedbylaw,theCompanyhasagreedtoindemnifyitsauditors,Ernst&Young Australia,aspartofthetermsofitsauditengagementagreementagainstclaimsbythirdpartiesarising fromtheaudit(foranunspecifiedamount).NopaymenthasbeenmadetoindemnifyErnst&Young duringorsincethefinancialyear.
Directorsreport(continued)
Auditor'sindependence
ThedirectorshavereceivedadeclarationfromtheauditorofCastleHillRSLClubLimited.Thishas beenincludedonpage7ofthereport.
Signedinaccordancewitharesolutionofthedirectors.
JohnRichardPayne Director
CastleHill,25September2024
MichaelYeo Director
CastleHill,25September2024
Tel: +61 2 9248 5555 Fax: +61 2 9248 5959
Auditor’s independence declaration to the directors of Castle Hill RSL Club Limited
As lead auditor for the audit of the financial report of Castle Hill RSL Club Limited for the financial year ended 30 June 2024, 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 applicable 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 Castle Hill RSL Club Limited and the entities it controlled during the financial year.
Ernst & Young
Daniel Cunningham Partner
25 September 2024
Fortheyearended30June2024
(3,186,162)(2,460,383)
Theaboveconsolidatedstatementofprofitorlossandothercomprehensiveincomeshouldbereadin conjunctionwiththeaccompanyingnotes
Asat30June2024
Theaboveconsolidatedstatementoffinancialpositionshouldbereadinconjunctionwiththe accompanyingnotes.
Consolidatedstatementofchangesinequity
Fortheyearended30June2024
Theaboveconsolidatedstatementofchangesinequityshouldbereadinconjunctionwiththe accompanyingnotes.
Consolidatedstatementofcashflows
Fortheyearended30June2024
Operatingactivities
1,840,0391,692,652
Investingactivities
Financingactivities
Hirepurchaserepayments (1,226,757)(990,240) Paymentofprincipalportionofleaseliabilities (64,925)(76,579)
(5,086,673)(27,681,303) Netcashflowsfromfinancingactivities (3,012,137)(20,406,425) Netincrease/(decrease)incashandcash equivalents 136,018(6,820,043)
Theaboveconsolidatedstatementofcashflowsshouldbereadinconjunctionwiththeaccompanying notes.
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
1.Corporateinformation
TheconsolidatedfinancialreportforCastleHillRSLClubLimited(the"Company/Club")andits controlledentities(the"Group")fortheyearended30June2024wereauthorisedforissuein accordancewitharesolutionofthedirectorson25September2024.
CastleHillRSLClubLimitedisanot-for-profitcompanylimitedbyguarantee,incorporatedand domiciledinAustralia.
TheGroup'sregisteredofficeandprincipalplaceofbusinessis77CastleStreet,CastleHill,NSW, 2154.ThenatureoftheoperationsandprincipalactivitiesoftheGrouparedescribedinthedirectors' report.
2.Summaryofmaterialaccountingpolicies
2.1BasisofpreparationStatementofcompliance
Thefinancialreportisageneralpurposefinancialreport,whichhasbeenpreparedinaccordancewith therequirementsoftheCorporationsAct2001,AustralianAccountingStandardsSimplified DisclosuresmadebytheAustralianAccountingStandardsBoard,andtheGamingMachineTaxAct 2001.
ThisfinancialreportisageneralpurposefinancialreportpreparedinaccordancewithAustralian AccountingStandards-SimplifiedDisclosures.Thefinancialreporthasbeenpreparedonahistorical costbasis,unlessotherwisestated.BoththefunctionalandpresentationcurrencyisAustraliandollars (A$).
Parententityinformation
InaccordancewiththeCorporationsAct2001,thesefinancialstatementspresenttheresultsofthe Grouponly.Supplementaryinformationabouttheparententityisdisclosedinnote25.
Goingconcern
Thefinancialreporthasbeenpreparedonagoingconcernbasis,whichcontemplatescontinuityof normalbusinessactivitiesandrealisationofassetsandsettlementofliabilitiesintheordinarycourseof business.
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
2.Summaryofmaterialaccountingpolicies(continued)
Changesinaccountingpolicy,disclosures,standardsandinterpretations
(i)Newandamendedstandardsandinterpretations
ThenewandamendedAustralianAccountingstandardsandInterpretationsthatapplyforthefirsttime in2024donotmateriallyimpactthefinancialstatementsofthegroup.
(ii)AccountingStandardsandInterpretationsissuedbutnotyeteffective
CertainAustralianAccountingStandardsandInterpretationshaverecentlybeenissuedoramended butarenotyeteffectiveandhavenotbeenadoptedbytheGroupfortheannualreportingperiodended 30June2024.
TheGroupintendstoadoptthesenewandamendedstandardsandinterpretationswhentheybecome effective.
Basisofconsolidation
Theconsolidatedfinancialstatementsincorporatetheassetsandliabilitiesofallentitiescontrolledby CastleHillRSLClubLimitedasat30June2024andtheresultsofallcontrolledentitiesfortheyear thenended.CastleHillRSLClubLimitedanditscontrolledentitiestogetherarereferredtointhese financialstatementsasthe'Group'
ControlledentitiesareallthoseentitiesoverwhichtheCompanyhascontrol.TheCompanycontrolsan entitywhenitisexposedto,orhasrightsto,variablereturnsfromitsinvolvementwiththeentityand hastheabilitytoaffectthosereturnsthroughitspowertodirecttheactivitiesoftheentity.Controlled entitiesarefullyconsolidatedfromthedateonwhichcontrolistransferredtotheCompany.Theyare de-consolidatedfromthedatethatcontrolceases.
ThenameofthecontrolledentityisReltsacPtyLimitedwith100%ownershipinterestheldbythe Company.ThecontrolledentityisadormantcompanyincorporatedinAustralia.
Allinter-groupbalancesandtransactionsbetweenentitiesintheGroup,includinganyunrealisedprofits orlosses,havebeeneliminatedonconsolidation.
a)Currentversusnon-currentclassification
TheGrouppresentsassetsandliabilitiesintheconsolidatedstatementoffinancialpositionbasedon current/non-currentclassificationAnassetiscurrentwhenitis:
Expectedtoberealisedorintendedtobesoldorconsumedinthenormaloperatingcycleheld primarilyforthepurposeoftrading
Expectedtoberealisedwithintwelvemonthsafterthereportingperiod,or
Cashorcashequivalentunlessrestrictedfrombeingexchangedorusedtosettlealiabilityforat leasttwelvemonthsafterthereportingperiod
Allotherassetsareclassifiedasnon-current.
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
2.Summaryofmaterialaccountingpolicies(continued)
a)Currentversusnon-currentclassification(continued)
Aliabilityiscurrentwhen:
ItisexpectedtobesettledinthenormaloperatingcycleItisheldprimarilyforthepurposeoftrading Itisduetobesettledwithintwelvemonthsafterthereportingperiod,or Thereisnounconditionalrighttodeferthesettlementoftheliabilityforatleasttwelvemonthsafter thereportingperiod
TheGroupclassifiesallotherliabilitiesasnon-current.
b)Cashandshort-termdeposits
Cashandshort-termdepositsintheconsolidatedstatementoffinancialpositioncomprisecashatbanks andonhandandshort-termdepositswithamaturityofthreemonthsorless,whicharesubjecttoan insignificantriskofchangesinvalue.
Forthepurposeoftheconsolidatedstatementofcashflows,cashandcashequivalentsconsistofcash andshort-termdeposits,asdefinedabove.
c)Businessamalgamationsandgoodwill
ClubamalgamationsareaccountedforinaccordancewithAASB3BusinessCombinationsusingthe acquisitionmethod,withtransactioncostsdirectlyattributabletotheamalgamationformingpartofthe amalgamationrelatedcosts
Thismethodinvolvesrecognisingthefairvaluesoftheidentifiableassetsacquiredandliabilities assumed.Thedifferencebetweentheaboveitemsandthefairvalueoftheconsiderationrepresents eithergoodwillorgainonamalgamationinothercomprehensiveincome.
d)Tradeandotherreceivables
AreceivablerepresentstheGroup'srighttoanamountofconsiderationthatisunconditional(i.e.,only thepassageoftimeisrequiredbeforepaymentoftheconsiderationisdue).Theyaregenerallyduefor settlementwithin30- receivablesare recognisedinitiallyattheamountofconsiderationthatisunconditional.TheGroupholdsthetrade subsequentlyatamortisedcostusingtheeffectiveinterestrate(EIR)method.
Fortradereceivablesandother,theGroup losses(ECLs).Therefore,theGroupdoesnottrackchangesincreditrisk,butinsteadrecognisesaloss allowancebasedonlifetimeECLsateachreportingdate.TheGrouphasestablishedaprovisionmatrix thatisbasedonitshistoricalcreditlossexperience,adjustedforforward-lookingfactorsspecifictothe debtorsandtheeconomicenvironment.
e)Inventories
Inventoriesaremeasuredatcost.Costshavebeenassignedtoinventoryquantitiesonhandatbalance dateusingtheweightedaveragecostbasis.
f)Financialinstrumentsinitialrecognitionandsubsequentmeasurement
Afinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancial liabilityorequityinstrumentofanotherentity.
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
2.Summaryofmaterialaccountingpolicies(continued)
f)Financialinstrumentsinitialrecognitionandsubsequentmeasurement(continued)
i)Financialassets
Initialrecognitionandmeasurement
Financialassetsareclassified,atinitialrecognition,assubsequentlymeasuredatamortisedcost,fair valuethroughothercomprehensiveincome(OCI),andfairvaluethroughprofitorloss.
tradereceivablesthatdonotcontainasignificantfinancingcomponentorforwhichtheGrouphas appliedthepracticalexpedient,theGroupinitiallymeasuresafinancialassetatitsfairvalueplus,in thecaseofafinancialassetnotatfairvaluethroughprofitorloss,transactioncosts.
Subsequentmeasurement
Forpurposesofsubsequentmeasurement,financialassetsareclassifiedinfourcategories:
Financialassetsatamortisedcost(debtinstruments)
FinancialassetsatfairvaluethroughOCIwithrecyclingofcumulativegainsandlosses(debt instruments)
FinancialassetsdesignatedatfairvaluethroughOCIwithnorecyclingofcumulativegainsand lossesuponderecognition(equityinstruments)
Financialassetsatfairvaluethroughprofitorloss
Financialassetsatamortisedcost(debtinstruments).
ThiscategoryisthemostrelevanttotheGroup.TheGroupmeasuresfinancialassetsatamortisedcost ifbothofthefollowingconditionsaremet:
Thefinancialassetisheldwithinabusinessmodelwiththeobjectivetoholdfinancialassetsin ordertocollectcontractualcashflows;and
Thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolely paymentsofprincipalandinterestontheprincipalamountoutstanding
Financialassetsatamortisedcostaresubsequentlymeasuredusingtheeffectiveinterest(EIR)method andaresubjecttoimpairment.Gainsandlossesarerecognisedinprofitorlosswhentheassetis derecognised,modifiedorimpaired.
FinancialassetsdesignatedatfairvaluethroughOCI(equityinstruments)
Uponinitialrecognition,theGroupcanelecttoclassifyirrevocablyitsequityinvestmentsasequity instrumentsdesignatedatfairvaluethroughOCIwhentheymeetthedefinitionofequityunder AASB132FinancialInstruments:Presentationandarenotheldfortrading.Theclassificationis determinedonaninstrument-by-instrumentbasis.
Financialassetsatfairvaluethroughprofitorloss
Financialassetsatfairvaluethroughprofitorlossincludefinancialassetsheldfortrading,financial assetsdesignateduponinitialrecognitionatfairvaluethroughprofitorloss,orfinancialassets mandatorilyrequiredtobemeasuredatfairvalue.Financialassetsareclassifiedasheldfortradingif theyareacquiredforthepurposeofsellingorrepurchasinginthenearterm.
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
2.Summaryofmaterialaccountingpolicies(continued)
f)Financialinstrumentsinitialrecognitionandsubsequentmeasurement(continued)
Financialassetsatfairvaluethroughprofitorlossarecarriedinthestatementoffinancialpositionat fairvaluewithnetchangesinfairvaluerecognisedinthestatementofprofitorloss.
ThiscategoryincludesderivativeinstrumentsandlistedequityinvestmentswhichtheGrouphadnot irrevocablyelectedtoclassifyatfairvaluethroughOCI.
Derecognition
Afinancialasset(or,whereapplicable,apartofafinancialassetorpartofagroupofsimilarfinancial position)when:
Therightstoreceivecashflowsfromtheassethaveexpired,OR
TheGrouphastransferreditsrightstoreceivecashflowsfromtheassetorhasassumedan
TheGrouphastransferredsubstantiallyalltherisksandrewardsoftheasset,or
TheGrouphasneithertransferrednorretainedsubstantiallyalltherisksandrewardsoftheasset, buthastransferredcontroloftheasset
Impairmentoffinancialassets
TheGrouprecognisesanallowanceforexpectedcreditlossesECLsforalldebtinstrumentsnotheld atfairvaluethroughprofitorloss.ECLsarebasedonthedifferencebetweenthecontractualcashflows dueinaccordancewiththecontractandallthecashflowsthattheGroupexpectstoreceive,discounted atanapproximationoftheoriginaleffectiveinterestrate.Theexpectedcashflowswillincludecash flowsfromthesaleofcollateralheldorothercreditenhancementsthatareintegraltothecontractual terms.
Fortradereceivablesandcontractassets,theGroupappliesasimplifiedapproachincalculating expectedcreditlosses(ECLs).Therefore,theGroupdoesnottrackchangesincreditrisk,butinstead recognisesalossallowancebasedonlifetimeECLsateachreportingdate.TheGrouphasestablished aprovisionmatrixthatisbasedonitshistoricalcreditlossexperience,adjustedforforward-looking factorsspecifictothedebtorsandtheeconomicenvironment
ii)Financialliabilities
Initialrecognitionandmeasurement
Financialliabilitiesareclassified,atinitialrecognition,asfinancialliabilitiesatfairvaluethroughprofit orloss,loansandborrowings,payables,orasderivativesdesignatedashedginginstrumentsinan effectivehedge,asappropriate.
Allfinancialliabilitiesarerecognisedinitiallyatfairvalueand,inthecaseofloansandborrowingsand payables,netofdirectlyattributabletransactioncosts. overdrafts.
Loansandborrowings
ThisisthecategorymostrelevanttotheGroup.Afterinitialrecognition,interest-bearingloansand borrowingsaresubsequentlymeasuredatamortisedcostusingtheEIRmethod.Gainsandlossesare recognisedinprofitorlosswhentheliabilitiesarederecognisedaswellasthroughtheEIRamortisation process.
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
2.Summaryofmaterialaccountingpolicies(continued)
f)Financialinstrumentsinitialrecognitionandsubsequentmeasurement(continued)
Amortisedcostiscalculatedbytakingintoaccountanydiscountorpremiumonacquisitionandfeesor coststhatareanintegralpartoftheEIR.TheEIRamortisationisincludedasfinancecostsinthe statementofprofitorloss.
Thiscategorygenerallyappliestointerest-bearingloansandborrowings.Formoreinformation,refer toNote14.
Derecognition
Afinancialliabilityisderecognisedwhentheobligationundertheliabilityisdischargedorcancelledor expires.Whenanexistingfinancialliabilityisreplacedbyanotherfromthesamelenderonsubstantially differentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchanexchangeor modificationistreatedasthederecognitionoftheoriginalliabilityandtherecognitionofanewliability. Thedifferenceintherespectivecarryingamountsisrecognisedinthestatementofprofitorloss.
g)Property,plantandequipment
Capitalworkinprogress,plantandequipmentarestatedatcost,netofaccumulateddepreciationand accumulatedimpairmentlosses,ifany.Suchcostincludesthecostsofreplacingpartoftheplantand equipmentandborrowingcostformajorcapitaldevelopmentiftherecognitioncriteriaaremet.When significantpartsofplantandequipmentarerequiredtobereplacedatintervals,theGroupdepreciates themseparatelybasedontheirspecificusefullives.Likewise,whenamajorinspectionisperformed, itscostisrecognisedinthecarryingamountoftheplantandequipmentasareplacementifthe recognitioncriteriaaresatisfied.Allotherrepairandmaintenancecostsarerecognisedinprofitorloss asincurred.
Freeholdlandandbuildingsareshownathistoricalcostlessaccumulateddepreciationforbuildings andaccumulatedimpairmentlossesforlandandbuildings.
Thedepreciationratesusedforeachclassofdepreciableassetsare:
Anitemofproperty,plantandequipmentandanysignificantpartinitiallyrecognisedisderecognised upondisposalorwhennofutureeconomicbenefitsareexpectedfromitsuseordisposal.Anygainor lossarisingonderecognitionoftheasset(calculatedasthedifferencebetweenthenetdisposal proceedsandthecarryingamountoftheasset)isincludedintheconsolidatedstatementofprofitor lossandothercomprehensiveincomewhentheassetisderecognised.Theresidualvalues,usefullives andmethodsofdepreciationofproperty,plantandequipmentarereviewedateachfinancialyearend andadjustedprospectively,ifappropriate.
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
2.Summaryofmaterialaccountingpolicies(continued) h)Leases
TheGroupassessesatcontractinceptionwhetheracontractis,orcontains,alease.Thatis,ifthe contractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftimeinexchangefor consideration.
Groupasalessee
TheGroupappliesasinglerecognitionandmeasurementapproachforallleases,exceptforshort-term leasesandleasesoflow-valueassets.TheGrouprecognisesleaseliabilitiestomakeleasepayments andright-of-useassetsrepresentingtherighttousetheunderlyingassets.
TheGroupassessesatcontractinceptionwhetheracontractis,orcontains,alease.Thatis,ifthe contractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftimeinexchangefor consideration.
Groupasalessee
TheGroupappliesasinglerecognitionandmeasurementapproachforallleases,exceptforshort-term leasesandleasesoflow-valueassets.TheGrouprecognisesleaseliabilitiestomakeleasepayments andright-of-useassetsrepresentingtherighttousetheunderlyingassets.
(i)Right-of-useassets
TheGrouprecognisesright-of-useassetsatthecommencementdateofthelease(i.e.,thedatethe underlyingassetisavailableforuse).Right-of-useassetsaremeasuredatcost,lessanyaccumulated depreciationandimpairmentlosses,andadjustedforanyremeasurementofleaseliabilities.Thecost ofright-of-useassetsincludestheamountofleaseliabilitiesrecognised,initialdirectcostsincurred, andleasepaymentsmadeatorbeforethecommencementdatelessanyleaseincentivesreceived. Right-of-useassetsaredepreciatedonastraight-linebasisovertheshorteroftheleasetermandthe estimatedusefullivesoftheassets,asfollows:
Equipment3to5years
IfownershipoftheleasedassettransferstotheGroupattheendoftheleasetermorthecostreflects theexerciseofapurchaseoption,depreciationiscalculatedusingtheestimatedusefullifeoftheasset.
Theright-of-useassetsarealsosubjecttoimpairment.Refertotheaccountingpoliciesinsection(j) Impairmentofnon-financialassets.
(ii)Leaseliabilities
Atthecommencementdateofthelease,theGrouprecognisesleaseliabilitiesmeasuredatthepresent valueofleasepaymentstobemadeovertheleaseterm.Theleasepaymentsincludefixedpayments (includingin-substancefixedpayments)lessanyleaseincentivesreceivable,variableleasepayments thatdependonanindexorarate,andamountsexpectedtobepaidunderresidualvalueguarantees. Theleasepaymentsalsoincludetheexercisepriceofapurchaseoptionreasonablycertaintobe exercisedbytheGroupandpaymentsofpenaltiesforterminatingthelease,iftheleasetermreflects theGroupexercisingtheoptiontoterminate.Variableleasepaymentsthatdonotdependonanindex oraratearerecognisedasexpenses(unlesstheyareincurredtoproduceinventories)intheperiodin whichtheeventorconditionthattriggersthepaymentoccurs.
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
2.Summaryofmaterialaccountingpolicies(continued)
h)Leases(continued)
Incalculatingthepresentvalueofleasepayments,theGroupusesitsincrementalborrowingrateat theleasecommencementdatebecausetheinterestrateimplicitintheleaseisnotreadilydeterminable. Afterthecommencementdate,theamountofleaseliabilitiesisincreasedtoreflecttheaccretionof interestandreducedfortheleasepaymentsmade.Inaddition,thecarryingamountofleaseliabilities isremeasuredifthereisamodification,achangeintheleaseterm,achangeintheleasepayments (e.g.,changestofuturepaymentsresultingfromachangeinanindexorrateusedtodeterminesuch leasepayments)orachangeintheassessmentofanoptiontopurchasetheunderlyingasset.
(iii)Shorttermleasesandleasesoflow-valueassets
TheGroupappliestheshort-termleaserecognitionexemptiontoitsshort-termleases(i.e.,thoseleases thathavealeasetermof12monthsorlessfromthecommencementdateanddonotcontaina purchaseoption).Italsoappliestheleaseoflow-valueassetsrecognitionexemptiontoleasesof equipmentthatareconsideredtobelowvalue.Leasepaymentsonshort-termleasesandleasesof low-valueassetsarerecognisedasexpenseonastraight-linebasisovertheleaseterm.
i)Assetsheldforsale
Assetsareclassifiedasheldforsaleiftheircarryingamountwillberecoveredprincipallythroughasale transactionratherthanthroughcontinuinguse.Thisconditionisregardedasmetonlywhentheasset isavailableforimmediatesaleinitspresentconditionsubjectonlytotermsthatareusualandcustomary forsalesforsuchassetanditssaleishighlyprobable.Assetsclassifiedasheldforsalearemeasured attheirpreviouscarryingamount.
j)Impairmentofnon-financialassets
Non-financialassetsarereviewedforimpairmentwhenevereventsorchangesincircumstances indicatethatthecarryingamountmaynotberecoverableAnimpairmentlossisrecognisedforthe amountbywhichtheasset'scarryingamountexceedsitsrecoverableamount.Recoverableamountis thehigherofanasset'sfairvaluelesscoststosellandvalue-in-use.Thevalue-in-useisthepresent valueoftheestimatedfuturecashflowsrelatingtotheassetusingapre-taxdiscountratespecificto theassetorcash-generatingunit(CGU)towhichtheassetbelongsAssetsthatdonothave independentcashflowsaregroupedtogethertoformaCGU.
k)Intangibleassets
Pokermachineentitlements
Pokermachineentitlementsarenotamortisedandhavebeendeterminedtohaveindefiniteusefullives Instead,pokermachineentitlementsaretestedforimpairmentannuallyormorefrequentlyifeventsor changesincircumstancesindicatethatitmightbeimpairedandarecarriedatcostlessaccumulated impairmentlosses.
Waterlicenses
WaterusagelicensesarenotamortisedandhavebeendeterminedtohaveindefiniteusefullivesThey aretestedforimpairmentannuallyormorefrequentlyifeventsorchangesincircumstancesindicate thatitmightbeimpairedandarecarriedatcostlessaccumulatedimpairmentlosses.
l)Interest-bearingloansandborrowings
Allloansandborrowingsareinitiallyrecognisedatthefairvalueoftheconsiderationreceivedless directlyattributabletransactioncosts.
Afterinitialrecognition,interest-bearingloansandborrowingsaresubsequentlymeasuredatamortised costusingtheeffectiveinterestratemethodFeespaidontheestablishmentofloanfacilitiesthatare yieldrelatedareincludedaspartofthecarryingamountoftheloansandborrowings.
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
2.Summaryofmaterialaccountingpolicies(continued)
l)Interestbearingloansandborrowings(continued)
BorrowingsareclassifiedascurrentliabilitiesunlesstheGrouphasanunconditionalrighttodefer settlementoftheliabilityforaleast12monthsafterthereportingdate
m)Borrowingcosts
Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofanassetthat necessarilytakesasubstantialperiodoftimetogetreadyforitsintendeduseorsalearecapitalisedas partofthecostoftheasset.Allotherborrowingcostsareexpensedintheperiodinwhichtheyoccur. BorrowingcostsconsistofinterestandothercoststhattheGroupincursinconnectionwiththe borrowingoffunds
n)Provisionsandemployeebenefitliabilities
General
ProvisionsarerecognisedwhentheGrouphasapresentobligation(legalorconstructive)asaresult ofapastevent,itisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequired tosettletheobligationandareliableestimatecanbemadeoftheamountoftheobligation.Whenthe Groupexpectssomeorallofaprovisiontobereimbursed,forexample,underaninsurancecontract, thereimbursementisrecognisedasaseparateasset,butonlywhenthereimbursementisvirtually certain.Theexpenserelatingtoaprovisionispresentedintheconsolidatedstatementofprofitorloss andothercomprehensiveincomenetofanyreimbursement.
Wagesandsalaries
Liabilitiesforwagesandsalaries,includingnon-monetarybenefits,whichareexpectedtobesettled within12monthsofthereportingdatearerecognisedinrespectofemployees'servicesuptothe reportingdate.Theyaremeasuredattheamountsexpectedtobepaidwhentheliabilitiesaresettled.
Longserviceleaveandannualleave
TheGroupdoesnotexpectitslongserviceleaveorannualleavebenefitstobesettledwhollywithin12 monthsofeachreportingdate.TheGrouprecognisesaliabilityforlongserviceleaveandannualleave measuredasthepresentvalueofexpectedfuturepaymentstobemadeinrespectofservicesprovided byemployeesuptothereportingdateusingtheprojectedunitcreditmethod.Considerationisgivento expectedfuturewageandsalarylevels,experienceofemployeedepartures,andperiodsofservice. Expectedfuturepaymentsarediscountedusingmarketyieldsatthereportingdateonnational governmentbondswithtermstomaturityandcurrenciesthatmatch,ascloselyaspossible,the estimatedfuturecashoutflows.
o)Revenuefromcontractswithcustomers
Revenuefromcontractswithcustomersisrecognisedwhencontrolofthegoodsorservicesare transferredtothecustomeratanamountthatreflectstheconsiderationtowhichtheGroupexpectsto beentitledinexchangeforthosegoodsorservices.TheGrouphasgenerallyconcludedthatitisthe principalinitsrevenuearrangementsandthatittypicallycontrolsthegoodsorservicesbeforerevenue transferringthemtothecustomer.
Contractliabilities
AcontractliabilityistheobligationtotransfergoodsorservicestoacustomerforwhichtheGrouphas receivedconsideration(oranamountofconsiderationisdue)fromthecustomer.Ifacustomerpays considerationbeforetheGrouptransfersgoodsandservicestothecustomer,acontractliabilityis recognisedwhenthepaymentismadeorthepaymentisdue(whicheverisearlier).Contractliabilities arerecognisedasrevenuewhentheGroupperformsunderthecontract.
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
2.Summaryofmaterialaccountingpolicies(continued)
o)Revenuefromcontractwithcustomers(continued)
Interestincome
InterestincomeisrecordedusingtheeffectiveinterestrateInterestincomeisincludedinotherincome intheconsolidatedstatementofprofitorlossandothercomprehensiveincome
Rentalincome
Rentalincomearisingfromoperatingleasesisaccountedforonastraight-linebasisoverthelease termsandisincludedinrevenueduetoitsoperatingnature
p)Taxes
NochargehasbeenmadeforanincometaxexpenseastheCompanyreceivedanexemptionfrom IncomeTaxunderSection50-45oftheIncomeTaxAssessmentAct(1997)
Goodsandservicestax(GST)
Revenues,expensesandassetsarerecognisednetoftheamountofGST,except:
WhentheGSTincurredonasaleorpurchaseofassetsorservicesisnotpayabletoorrecoverable fromthetaxationauthority,inwhichcasetheGSTisrecognisedaspartoftherevenueorthe expenseitemoraspartofthecostofacquisitionoftheasset,asapplicable
WhenreceivablesandpayablesarestatedwiththeamountofGSTincluded
ThenetamountofGSTrecoverablefrom,orpayableto,thetaxationauthorityisincludedaspartof receivablesorpayablesintheconsolidatedstatementoffinancialpositionCommitmentsand contingencies,ifany,aredisclosednetoftheamountofGSTrecoverablefrom,orpayableto,the taxationauthority
CashflowsareincludedintheconsolidatedstatementofcashflowsonagrossbasisandtheGST componentofcashflowsarisingfrominvestingandfinancingactivities,whichisrecoverablefrom,or payableto,thetaxationauthorityisclassifiedaspartofoperatingcashflows
q)Comparatives
Certainnumbersoftheprioryearhavebeenreclassifiedtobeconsistentwithcurrentyear'sdisclosure presentation.
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
3.Significantaccountingjudgements,estimatesandassumptions
ThepreparationoftheGroup'sconsolidatedfinancialstatementsrequiresmanagementtomake judgements,estimatesandassumptionsthataffectthereportedamountsofrevenues,expenses, assetsandliabilities,andtheaccompanyingdisclosures,andthedisclosureofcontingentliabilities. Uncertaintyabouttheseassumptionsandestimatescouldresultinoutcomesthatrequireamaterial adjustmenttothecarryingamountofassetsorliabilitiesaffectedinfutureperiods.
Estimatesandassumptions
Thekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyatthe reportingdate,thathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsof assetsandliabilitieswithinthenextfinancialyear,aredescribedbelow.TheGroupbasedits assumptionsandestimatesonparametersavailablewhentheconsolidatedfinancialstatementswere preparedExistingcircumstancesandassumptionsaboutfuturedevelopments,however,maychange duetomarketchangesorcircumstancesarisingthatarebeyondthecontroloftheGroupSuchchanges arereflectedintheassumptionswhentheyoccur.
Estimationofusefullivesofassets
TheGroupdeterminestheestimatedusefullivesandrelateddepreciationandamortisationchargesfor itsproperty,plantandequipmentandfinitelifeintangibleassets.Theusefullivescouldchange significantlyasaresultoftechnicalinnovationsorsomeotherevent.Thedepreciationandamortisation chargewillincreasewheretheusefullivesarelessthanpreviouslyestimatedlives,ortechnically obsoleteornon-strategicassetsthathavebeenabandonedorsoldwillbewrittenofforwrittendown
Impairmentofnon-financialassets
AnimpairmentexistswhenthecarryingvalueofanassetorCGUexceedsitsrecoverableamount, whichisthehigherofitsfairvaluelesscostsofdisposalanditsvalueinuseThefairvaluelesscosts ofdisposalcalculationisbasedonavailabledatafrombindingsalestransactions,conductedatarm's length,forsimilarassetsorobservablemarketpriceslessincrementalcostsfordisposingoftheasset. Thevalueinusecalculationisbasedonadiscountedcashflow(DCF)model.Thecashflowsare derivedfromthebudgetforthenextfiveyearsanddonotincluderestructuringactivitiesthattheGroup isnotyetcommittedtoorsignificantfutureinvestmentsthatwillenhancetheasset'sperformanceof theCGUbeingtested.TherecoverableamountismostsensitivetothediscountrateusedfortheDCF modelaswellastheexpectedfuturecash-inflowsandthegrowthrateusedforextrapolationpurposes.
Intangibleassets
Asdiscussedabove,impairmentofpokermachineentitlementsisrecognisedbasedonavalueinuse calculationsandismeasuredatthepresentvalueoftheestimatedfuturecashinflowsavailabletothe Groupfromtheuseoftheselicenses.Indeterminingthepresentvalueofthecashinflowsgrowthrate andappropriatediscountfactorhavebeenconsideredWaterusagelicensesaretestedforimpairment annuallyormorefrequentlyifeventsorchangesincircumstancesindicatethatitmightbeimpairedand arecarriedatcostlessaccumulatedimpairmentlosses.
Customerloyaltyprogram
TheGrouphasaloyaltypointsprogramwhichallowscustomerstoaccumulatepointsthatcanbe redeemedforfreeproducts.Theloyaltypointsgiverisetoaseparateperformanceobligationasthey provideamaterialrighttothecustomer.Aportionofthetransactionpriceisallocatedtotheloyalty pointsawardedtocustomersbasedonrelativestand-alonesellingpriceandrecognisedasan unearnedrevenueuntilthepointsareredeemed.Revenueisrecogniseduponredemptionofproducts bythecustomer.Whenestimatingthestand-alonesellingpriceoftheloyaltypoints,theGroup considersthelikelihoodthatthecustomerwillredeemthepoints.TheGroupupdatesitsestimatesof thepointsthatwillberedeemedandanyadjustmentstothedeferredincomeinadvancearecharged againstrevenue.
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
4.Amalgamations
Amalgamationsin2023
On3February2023,theGroupacquiredtheassetsandliabilitiesofCastleHillBowlingClubthrough amalgamation.CastleHillBowlingClubisbasedinCastleHill,NSW.TheGroupisdeemedtobe 'mutualentities'(asopposedto'investorowned')withCastleHillBowlingClub.Therefore,asacquirer inthecombinationofmutualentities,theGrouprecognisesthedifferencebetweenanyconsideration paidandthenetassetsacquiredatfairvalueasadirectadditiontoequityinconsolidatedstatementof financialposition.TheconsiderationpaidfortheAmalgamationwasnil.
Assetsacquiredandliabilitiesassumed-CastleHillBowlingClub
ThefairvaluesoftheidentifiableassetsandliabilitiesofCastleHillBowlingClubasatthedateof amalgamationwere:
Fortheyearended30June2024 5.Revenue
5.1Disaggregatedrevenueinformation
AllrevenuesfromcontractswithcustomersareearnedwithinNewSouthWales,Australia 5.2Otherincome
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
6.Expenses Profitbeforeincometaxincludesthefollowingspecific expenses:
7.Cashandshort-termdeposits
Non-cashinvestingactivities
Duringtheyearended30June2024,property,plantandequipmentamountingto$973,259(2023: $393,800)wasacquiredbythewayofhirepurchasetransactionsThesetransactionsarenotreflected intheconsolidatedstatementofcashflows.
8.Tradeandotherreceivables
Tradereceivablesarenon-interestbearingandarenormallysettledwithin30days
9.Inventories
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
10.Property,Plantandequipment
At1July202320,150,000149,835,69365,664,96724,215,125314,00115,661,5295,725,522281,566,837 Additions -1,239,7212,107,6152,558,40421,776973,2596,722,67413,623,449 Disposals -----(123,878)-(123,878) CapitalisationfromCWIP-355,5231,530,895128,83758,291-(2,073,547)At30June202420,150,000151,430,93769,303,47726,902,366394,06816,510,91010,374,649295,066,408
Depreciation
At1July2023 -38,012,90845,911,35020,004,650186,81411,537,266-115,652,988 Depreciationexpense-5,480,2834,230,8291,728,60034,5931,217,645-12,691,950 Depreciationondisposals-----(120,881)-(120,881)
Netbookvalue
At30June202320,150,000111,822,78519,753,6174,210,475127,1874,124,2635,725,522165,913,849
At30June202420,150,000107,937,74619,161,2985,169,116172,6613,876,88110,374,649166,842,351
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
10.Property,plantandequipment(continued)
RefertoNote14fordetailsofsecurityoverproperty,plantandequipment.
Hirepurchasecontracts
Thecarryingvalueofequipmentheldunderhirepurchasecontractsat30June2024was$3,876,881 (2023:$4,124,263).Additionsduringtheyearwere$973,259(2023:$393,800)underhirepurchase contracts.Leasedassetsunderhirepurchasecontractsarepledgedassecurityfortherelatedhire purchaseliabilities.
Capitalisedborrowingcosts
Duringtheprioryear,constructionofthenewcarparkontheClubParramattasitecompleted.This constructionwasbeingfundedbyacommercialbillfacility.Theamountofborrowingcostscapitalised duringtheyearended30June2024wasNil(2023:$486,335).
Assetsclassifiedasheldforsale
InJune2019,theGroupenteredintoaPutandCallOptionDeedforthesaleoftheClubParramatta CarParkwhichwasheldatavalueof$6,808,252at30June2022.Thecalloptionfeeof$2,070,000 (excludingGST)waspaidonexecutionoftheDeedwasrecordedasincomereceivedinadvancein 2022.Thisassetwassoldin2023andagainof$15,922,792wasrecognisedonsale.
Valuation
TheindependentvaluationoftheGroup'slandandbuildings(locatedatCastleHill)carriedoutasat30 June2023byGlobalValuationServicesPtyLimitedonthebasisofthemarketvalueforexistinguse resultedinavaluationoflandandbuildingsof$121,500,000.Aslandandbuildingsarerecordedat cost,thevaluationhasnotbeenbroughttoaccount.
TheindependentvaluationoftheGroup'slandandbuildings(locatedatParramatta)carriedoutasat 30June2023byGlobalValuationServicesPtyLimitedonthebasisofthemarketvalueforexistinguse resultedinatotalvaluationof$89,500,000.Aslandandbuildingsarerecordedatcost,thevaluation hasnotbeenbroughttoaccount.
TheindependentvaluationoftheGroup'slandandbuildings(locatedatLynwoodCountryClubatPitt Town)carriedoutasat30June2023byGlobalValuationServicesPtyLimitedonthebasisofmarket valueforexistinguseresultedinavaluationoflandandbuildingsof$19,600,000.Aslandandbuildings arerecordedatcost,thevaluationhasnotbeenbroughttoaccount.
TheindependentvaluationoftheGroup'slandandbuildings(locatedatCastleHillBowlingClubat CastleHill)carriedoutasat4November2022byGlobalValuationServicesPtyLimitedonthebasis ofmarketvalueforexistinguseresultedinavaluationoflandandbuildingsof$7,000,000.Thevaluation hasbeenbroughttoaccountasfairvalueuponamalgamation.
fourlocations,resultedin acombinedvaluationoflandandbuildingsof$237,600,000.
Thedirectorsdonotbelievethattherehasbeenamaterialmovementinthefairvaluesincethe valuationdates.
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
10.Property,plantandequipment(continued) Coreproperties
Thefollowingarecoreproperties:
77CastleSt,CastleHillNSW2154(PhysicalbuildingoftheRegisteredClubandCHFAC)
2MacquarieStreet,ParramattaNSW2150
253PittTownBottomsRoad,PittTownNSW2756
79CastleStreet,CastleHillNSW2154
Thefollowingarenon-coreproperties:
77CastleSt,CastleHillNSW2154(Carparkandgrounds)
2MacquarieStreet,ParramattaNSW2150(CarparkongroundsofformerClub)
11.Intangibleassets
Asat30June2024,theseassetsweretestedforimpairmentandtherewasnoimpairmentcharge.
Movement
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
12.Tradeandotherpayables
Tradepayablesarenon-interestbearingandarenormallysettledwithin60days
13.Employeebenefitliabilities
Superannuationplans
Contributions
TheGroupisunderalegalobligationtocontribute11.5%ofeachemployee'sbasesalarytoa superannuationfund.
14.Interest-bearingloansandborrowings
4,822,9604,917,609
5,847,6395,889,271
5,083,152 2,477,605 37,695,380 4,988,736 2,477,605
1,510,2021,510,198 43,766,33946,671,919
Fortheyearended30June2024
14.Interest-bearingloansandborrowings(continued)
1,233,515 1,085,000 58,188,06961,756,895
5,888,736 2,477,605
1,024,679971,662 49,631,05252,561,190
Commercialbillfacility1isbasedonavariableinterestrateofwhichatyearendwas5.30%, repaymenttermsare$250,000permonth.Thefacilitymatureson30October2025.
Commercialbillfacility2isbasedonavariableinterestrateofwhichatyearendwas5.30%, repaymenttermsare$75,000permonth.Thefacilitymatureson30October2025.
Commercialbillfacility3isbasedonavariableinterestrateofwhichatyearendwas5.30%,which ispaideverymonth.Thefacilityamountowingispayableatthematuritydateon30October2025.
Duringthecurrentyear,loanarrangementswereamended,withthematurityofcommercialbill facilities1,2and3beingrenegotiatedto30October2025.
Asset/equipmentfinancefacility1and2
TheGrouppurchasescertainplantandequipmentunderhirepurchasearrangementsfromthebank. ThesefacilitiesarealsosecuredbyafixedandfloatingchargeoftheassetsoftheGrouptogether withthecommercialbillfacility.Themarginsonthesefacilitiesaretailoredtothegoodsandtypeof transactiontheGroupselects.Facility1hasnomaturitydate.Facility2hasaterminationdateof20 February2025.
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
14.Interest-bearingloansandborrowings(continued)
Theinsurancepremiumfundingisbasedonaninterestrateof2.64%andpaidmonthlyuntil20 February2025,whenthedebtwillbefullyrepaid.
Security
Thecommercialbillfacilitiesaresecuredover:
(a)FirstRegisteredMortgageregistrationnumberAG49452dated1February2011,beingtheproperty at77CastleStreet,CastleHill,NewSouthWales,beingthelanddescribedinCertificateofTitle FolioIdentifier1/1080161
(b)RegisteredCharge(MortgageDebenture)dated1February2011,allpresentandfuture undertakings(includinggoodwill)andunpaidoruncalledcapitaloftheCastleHillRSLClubLtd ACN001043910
(c)TripartiteAgreementdated1February2011,beingtheliquorlicenseandpokermachine entitlementsforthepropertysituatedat77CastleStreet,CastleHill,NewSouthWales
(d)AllpresentandafteracquiredpropertyofCastleHillRSLClubLtdACN001043910asdescribed intheGeneralSecurityAgreement
(e)FirstRegisteredMortgageforthepropertyat2MacquarieStreet,Parramatta,NewSouthWales beingthelanddescribedintheCertificateofTitleFolioIdentifier362/752058
(f)Builder'sSideDeed,beingtheagreementsbetweenfinanciersandbuildingcontractorsinrelation toconstructionloansinordertoensuretheircontractualresponsibilitiesaremet;and
(g)LiquorLicenceSideDeedforLicenceNumberLIQC300226425beingtheliquorlicenseforthe propertysituatedat2MacquarieStreet,Parramatta,NewSouthWales
Thecarryingamountofthepledgedassetsisasfollows:
15.Leases
Groupasalessee
TheGrouphasleasecontractsforvariousitemsofequipmentandotherequipmentusedinits operations.Leasesofequipmentgenerallyhaveleasetermsbetween3and5years.TheGroup Group isrestrictedfromassigningandsubleasingtheleasedassetsandsomecontractsrequiretheGroupto maintaincertainfinancialratios.Thereareseveralleasecontractsthatincludeextensionand terminationoptionsandvariableleasepayments,whicharefurtherdiscussedbelow.
TheGroupalsohascertainleasesofmachinerywithleasetermsof12monthsorlessandleasesof officeequipmentwithlowvalue.TheGroup-recognitionexemptionsfortheseleases.
Fortheyearended30June2024
15.Leases(continued)
Setoutbelowarethecarryingamountsofright-of-useassetsrecognised andthemovementsduringtheperiod: Asat1July2023
Setoutbelowarethecarryingamountsofleaseliabilitiesandthemovements
Thefollowingaretheamountsrecognisedinprofitorloss:
TheGrouphadtotalcashoutflowsforleasesof$73,236in2024(2023:$80,726)andtotalexpense relatingtoshort-termleasesandleasesoflowvalueassetsrecognisedduringtheyearended30June 2024of$115,700(2023:$105,065).TheGroupalsohadnon-cashadditionstoright-of-useassetsand leaseliabilitiesof$183,682in2024(2023:$61,213).
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
17.Reserves
Capitalprofitsreserve
Thecapitalprofitsreserverepresentsrealisedcapitalprofitonsaleoffreeholdpropertyinprioryears
Amalgamationreserve
Theamalgamationreserveisusedtorecorddifferencesbetweenthefairvalueofnetassetacquired throughamalgamationandconsiderationpaid.
18.Auditorsremuneration
AmountsreceivedordueandreceivablebyErnst&YoungAustraliafor:
19.Commitments
Hirepurchasecommitments
1,052,2471,130,271
1,676,3101,636,995
2,728,5572,767,266
(295,395)(239,459)
2,433,1622,527,807
Comprises:
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
20.Commitments(continued)
TheGrouphiresproperty,plantandequipmentunderhirepurchaseagreementsexpiringfromoneto fiveyearsAttheendofthehirepurchasetermtheconsolidatedentityhastheoptiontopurchasethe equipment.Thehirepurchasefacilityissecuredagainsttheassetspurchasedunderthisfacility.
Capitalcommitments
Capitalexpenditureasatyearend30June2024ofNILhasbeencontractedatbalancedatebutnot providedinthefinancialstatements(2023:$1,793,883).
21.Contingentliabilities
22.Keymanagementpersonneldetails
(a)Directors
Thefollowingpersonswerenon-executivedirectorsoftheGroupduringthefinancialyear*:
JohnRichardPayne(President)
MichaelYeo(Vice-President)
RickAnthonyCumming
DavidBruceWood
JohnJamesMason
DavidWilliamHand
DavidAndrewElliott(Appointed:6April2024)
MichelleRofe(Appointed:6April2024)
AnnemarieKateChristie(Resigned:8November2023)
JohnRichardHopwood(Resigned:4April2024)
ShubhadaGandhi(Resigned:27July2024)
*PaulBryanwasappointedon31July2024whichwasafterthefinancialyearend.
(b)Otherkeymanagementpersonnel
Thefollowingpersonsalsohadauthorityandresponsibilityforplanning,directingandcontrollingthe activitiesoftheGroup,directlyorindirectlyduringthefinancialyear:
Name Position
DavidO'Neil
GroupChiefExecutiveOfficer
AndriannaAbeyaratneGroupChiefOperatingOfficer
NadeemAli
AllanDePaoli
DenisSullivan
GroupChiefFinancialOfficer
ExecutiveManager-GroupAssetsandProjects
HeadofHospitality
Notestotheconsolidatedfinancialstatements
Fortheyearended30June2024
22.KeyManagementPersonnel(continued)
(c)Keymanagementpersonnelcompensation
Benefitsandpaymentsmadetothedirectorsandotherkey managementpersonnel 2,462,8301,985,991
(d)Transactionswithrelatedparties
Apartfromthedetailsdisclosedinthisnote,nodirectorhasenteredintoamaterialcontractwiththe Groupsincetheendofthepreviousfinancialyearandtherewerenomaterialcontractsinvolving directors'interestsexistingatyearend.
23.Relatedparties
Keymanagementpersonnel
DisclosuresrelatingtokeymanagementpersonnelaresetoutinNote22
Receivablefromandpayabletorelatedparties
Therewerenotradereceivablesfromortradepayablestorelatedpartiesatthecurrentandprevious reportingdate
24.Eventsafterthereportingperiod
TherewerenosignificanteventsoccurringafterthereportingperiodwhichmayaffecteithertheGroup's operationsorresultsofthoseoperationsortheGroup'sstateofaffairs.
Fortheyearended30June2024 25.Parententitydisclosure
Consolidatedentitydisclosurestatement
Fortheyearended30June2024
Consolidatedentitydisclosurestatementasat30June2024
Directorsdeclaration
InaccordancewitharesolutionofthedirectorsofCastleHillRSLClubLimited,westatethat:Intheopinion ofthedirectors:
(a)theconsolidatedfinancialstatementsandnotesoftheconsolidatedentityareinaccordancewiththe CorporationsAct2001,including:
(i)givingatrueandfairviewoftheconsolidatedentity'sfinancialpositionasat30June2024and itsperformancefortheyearendedonthatdate;and
(ii)complyingwithAustralianAccountingStandardsSimplifiedDisclosuresandtheCorporations Regulations2001;
(b)therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasandwhen theybecomedueandpayable;
(c)theconsolidatedentitydisclosurestatementrequiredbysection295(3A)oftheCorporationsActis trueandcorrect;
Onbehalfoftheboard
JohnRichardPayne Director
CastleHill,25September2024
MichaelYeo
Director
CastleHill,25September2024
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
Independent auditor’s report to the members of Castle Hill RSL Club Limited
Opinion
We have audited the financial report of Castle Hill RSL Club Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 30 June 2024, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, notes to the financial statements, including material accounting policy information, the consolidated entity disclosure statement and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a. Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2024 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 responsibilities 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 for 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 or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – 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 either 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 economic 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 appropriateness 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 obtained, 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 and 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 25 September 2024