2024 Financial Statements

Page 1


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.

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

CastleHill,25September2024

MichaelYeo

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

Sydney 25 September 2024

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