Cranbourne Turf Club - Annual Report 2007-08

Cranbourne Turf Club Inc Annual Report 2007/2008

– Annual Report 2007/2008

1

Annual General Meeting The Annual General Meeting of the Cranbourne Turf Club Inc will be held in the club buildings, Cranbourne Recreation Reserve on Thursday 11 December 2008 @ 6.00pm.

BUSINESS 1.

Apologies

2.

Confirmation of Minutes of Annual General Meeting held on Tuesday 30 October 2007

3.

Chairman’s Report

4.

Treasurer’s Report

5.

To receive and adopt Financial Statement and Auditors Report for season 2007-2008

6.

To appoint Auditors for 2008-2009 season

7.

To elect three members to the committee

The following Members of Committee retire pursuant to the rules of Cranbourne Turf Club and have re-nominated: Messrs. P Birman, D Cook, G Whiffin As no other nominations have been received, they will be duly elected.

Neil Bainbridge Chief Executive Officer Cranbourne Turf Club Inc – Annual Report 2007/2008

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Chairman’s Report our first race meeting under strict bio security measures. Horse numbers swelled at this meeting resulting in what we believe to be a first for Victorian thoroughbred racing, a 12 race programme. This day will also be remembered for the maiden win of Weekend Hussler who went on to win 6 Group One races that year and be crowned Australian Racehorse of the year.

our major sponsor. Scott and Linda are wonderful supporters of Cranbourne Turf Club and their business provides outstanding service to many owners and trainers throughout the region.

On Sunday 14 October 2007, the Browns It is my honour and pleasure to present Sawdust & Shavings Cranbourne Cup the Chairman’s Report for the 2007-2008 was won by Emerald Jack trained by season.

Peter Moody and ridden by Damien The start of this season was severely Oliver. It was nearly a fairytale result for affected when Equine Influenza struck in local trainer Ken Keys aiming for back to August 2007. Whilst Victorian racing was back cups with Blue Collar Jack finishing only suspended for a short period of time a close second. racing in NSW and Queensland was not Premiership winners for the season were so fortunate. Although EI had a financial local Cranbourne trainer Michael Kent, impact on our business, we were very Jockey Craig Newitt and Apprentice fortunate that no race meetings at Jockey Ibrahim Gundogdu. We offer our Cranbourne were lost. congratulations to all our winners.

With racing having been suspended A special thanks to Scott and Linda in Victoria for a week due to EI, on 2 Brown from Browns Sawdust & Shavings September 2007 Cranbourne conducted

As part of our commitment to continually improve our racecourse and facilities the club invested in the reconstruction of Grant Street, the main roadway to the racecourse. The improved access road will provide raceday patrons and trainers travelling to the training centre with a safer and wider road whilst improving the visual presentation of this wonderful asset located in the heart of Cranbourne.

– Annual Report 2007/2008

A sincere thank you to all our valued sponsors who contribute to the club in so many ways during the course of the season. Without their support racing at Cranbourne would not be as successful as it is today.

To Rob McNab our Racecourse Manager and his staff, I congratulate you on your achievements this season and for preparing the track and facilities in a first class condition at all times. Thank 3

Chairman’s Report Cont... you also to our Chief Executive Neil Junior Vice Chairman.

Bainbridge and his team for their efforts I would also like to acknowledge the during the season. dedication and hard work of all our Our investment in TRIOS provides the committee members and in particular club with important financial stability and thank Vice-Chairmen Garry Sidwell and enables the committee to explore new Geoff Whiffin, Treasurer Paul Birman and exciting ways to grow thoroughbred and our Club Doctor, Dr Sam Birman. racing in the City of Casey for the benefit This season we welcomed David Cook to of the wider community. It’s pleasing to the committee. David has already shown see TRIOS continuing to develop into a a great passion for racing and I’m sure truly wonderful entertainment complex. he will be a great contributor for years to

In October 2007, Brian Asley retired from the committee after 15 years of outstanding service. I thank Brian for his contribution and wish him all the very best for the future. As General Manager of TRIOS Brian will still be active in securing a bright future for our club.

come.

We wish Helen all the best in the future with her retirement after 25 years at the Club and Rohan every success in his future career after 18 years of service.

Their longstanding commitment to the Club is very much appreciated.

Finally, a special thank you to recently retired Chief Steward, Des Gleeson, for his outstanding service to racing over many years. We wish Des all the best in his retirement.

Next season will be an exciting and challenging period for our club. Racing Victoria will release a Blueprint for the future of racing in late 2008. Whilst the Blueprint will announce a number of changes, as Chairman of the Cranbourne Turf Club I feel confident that Cranbourne will be an integral part of the industry’s vision and greater opportunities for our club will present themselves.

To our friends at Country Racing Victoria and Racing Victoria I thank you for your support and tireless work in growing this wonderful industry. We are well aware that there are many challenges ahead of us all, however by working together I’m I congratulate committee member Rex sure that we can deliver a sustainable and Trimble who in February 2008 received vibrant racing industry in Cranbourne. a Life Membership from the club in I would also like to thank our Members recognition of his outstanding service for their continued support of racing in and commitment to racing in Cranbourne. Cranbourne.

Rex has served as a committee member since 1988 and previously held the I would like to acknowledge the ROBIN DALEY positions of Senior Vice Chairman and outstanding service of staff members Helen Flanigan and Rohan Schreuder. CHAIRMAN – Annual Report 2007/2008

4

Racing Report EQUINE INFLUENZA

BROWNS SAWDUST & SHAVINGS I ♥ FRANKSTON CUP Whilst Equine Influenza had a significant CRANBOURNE CUP In February 2008 the inaugural I ♥

impact on Australian racing, Cranbourne The Browns Sawdust & Shavings was fortunate not to lose a race meeting Cranbourne Cup held on 14 October during that period.

2007 provided a thrilling finish with Peter On Sunday 2 September racing returned Moody trained Emerald Jack ridden by to Country Victoria with Cranbourne Damien Oliver edging out locally trained conducting the first country meeting since Blue Collar Jack. Blue Collar Jack the outbreak. A marathon 12 races were trained by Ken Keys was aiming for back conducted on that day, believed to be a to back Cups. first for Victorian thoroughbred racing. Sarrera, which ran fourth in the It turned out to be a day of firsts with a Cranbourne Cup, went on to win back to horse called Weekend Hussler winning back Group One’s in the Queen Elizabeth his maiden on the first race of the day.

Stakes at Randwick and then taking out the Doomben Cup 14 days later on 17 May 2008.

– Annual Report 2007/2008

Frankston Cup was conducted. Strongly supported by the City of Frankston this new and exciting raceday was an immediate success with around 3,000 patrons seeing the Ian Hutchins trained Mangonui win the Cup. The I ♥Frankston Cup will become a feature on the clubs calendar for many years to come.

5

Racing Report Cont...

LOCAL TRAINER SUCCESS

RACING

Local Cranbourne trainers continue to enjoy success at their home track. In 2007-2008 the local trainers won 39% of races conducted at Cranbourne and collected over $1mil in prize money for the season.

Racing at Cranbourne continues to be well supported by trainers and owners. The club conducted a total of 180 races across the 21 meetings with starter numbers reaching 1,843.

At the final meeting of the season local trainers nearly made it a clean sweep winning seven of the eight races on the card and finishing second in the other race.

No. of Races 182 180 178 176 174 172 170 168 166 164 162 2003/04

2004/05

2005/06

2006/07

2007/08

No. of Starters 1,850 1,840 1,830 1,820 1,810 1,800 1,790 1,780 1,770 2003/04

– Annual Report 2007/2008

2004/05

2005/06

2006/07

2007/08

6

Racing Report Cont...

PREMIERSHIPS Congratulations to our premiership winners for the 2007/08.

Ibrahim Gundogdu took out the Apprentices’ Jockey Premiership securing the win on All The Queues in the third race of the last meeting which coincidently was trained by Michael Kent, winner of the Trainer’s Premiership. Michael won the premiership in a canter beating second place David Hayes by 8 winners.

Craig Newitt held off a fast finishing Peter Mertens and Brad Rawiller to win the Senior Jockey’s Premiership for the second consecutive year.

Apprentice Jockey Wins

Seconds

Thirds

I Gundogdu

2

3

1

2

B Higgins

5

4

W Hernan

3

4

W J Egan

3

4

N Hall

3

2

3

6

Senior Jockey

Wins

Seconds

Thirds

C Newitt

14

19

10

P Mertens

12

6

8

B Rawiller

11

11

10

D Brereton

8

11

6

M J Zahra

8

3

Trainer

Wins

Seconds

Thirds

M Kent

16

3

6

4

4

D Hayes

8

R Griffiths

7

7

7

M Price

7

6

2

L Freedman

7

3

7

– Annual Report 2007/2008

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Racing Report Cont...

WAGERING It was an up and down year for wagering.

Whilst the clubs’ offcourse turnover continued to grow, oncourse turnover and bookmakers’ turnover decreased in line with country racing trends. Offcourse wagering was particularly pleasing with the club averaging $1.873m per meeting, more than any other country racing club in Victoria.

Offcourse Turnover 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 2003/04

2008/2009 The 2008/2009 season will see the club enter a new phase with racing every second Sunday.

Sunday racing will provide the club with increased prize money resulting in improved racing product by attracting better horses, trainers and jockeys. Sunday will also provide the club with a structured racing calendar that will provide participants with regularity and confidence that feature programmes will be conducted at Cranbourne fortnightly.

Sunday is the number one day in country Victoria for racing and the club is looking forward to the opportunities that 22 Sundays will bring next season.

– Annual Report 2007/2008

2004/05

2005/06

2006/07

2007/08

Oncourse Turnover $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2003/04

2004/05

2005/06

2006/07

2007/08

Bookmakers Turnover $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2003/04

2004/05

2005/06

2006/07

2007/08

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Treasurer’s Report The Cranbourne Turf Club recorded a loss for the 2007/2008 financial year of $99,774. Excluding depreciation of $110,762, the club has made a small cash profit for the year of $10,988.

Included in the prior year’s profit figure is $1.117million in capital funding received for the dam, irrigation & drainage projects.

Comparing results year to year excluding capital funding and depreciation, the club has recorded a $20,772 improvement on last year’s cash loss of $9,784.

The growth in raceday package revenue and food & bar revenue were highlights for the season. Package revenue grew 83% on last year, whilst in the second year of operating our own bars, bar profit rose 35% from last year. This was achieved through improved cost and pricing management.

For the fourth consecutive year, the club returned at least 100% of industry funding to owners, returning a record $2.87 million in prize money, trophies and other benefits. This ranks the Cranbourne Turf Club as one of the top payers of prize money in country Victoria.

– Annual Report 2007/2008

Raceday Packages Income

400,000 300,000 200,000 100,000 0

2004

2005

2006

2007

2008

Food & Beverage Income

200,000 150,000 100,000 50,000 0

2004

2005

2006

2007

2008

2007

2008

Returns to Owners

3,000,000 2,000,000 1,000,000 0 2004

2005

2006

9

Treasurer’s Report Cont...

The club continues to suffer financially from the decrease in oncourse wagering along with a decrease in the wagering commission levels paid to clubs. Since 2003/04, oncourse turnover has fallen 18% whilst over the same period the commission received by the club has fallen 33%. Adding to the situation is the discontinuation of paying commission to the club for turnover at TRIOS on race days. The payment for that alone was between $15,000 and $20,000 a year. We are yet to see the financial effects of the changes to legislation allowing bookmakers not fielding at a race meeting to accept bets, however we expect that this will have a negative result on the income of all Victorian clubs.

– Annual Report 2007/2008

300,000

Oncourse Wagering Commission Income

200,000 100,000 0 2004

12,000,000

2005

2006

2007

2008

Oncourse Wagering Turnover

9,000,000 6,000,000 3,000,000 0 2004

2005

2006

2007

2008

10

Treasurer’s Report Cont...

The club has invested $1.5 million in capital expenditure over the past two years. This expenditure has provided for improved customer facilities and track conditions and important drought resistance measures. As a consequence of these investments, current assets and cash reserves of the club have halved over the same period. On a positive note, the liabilities of the club are at a 5 year low.

Whilst significant capital investment has been required, the club views these costs as an investment towards its future financial security. Net Assets have increased 10% over the five years to an amount of approximately $14.5 million

Current Assets

1,000,000 750,000 500,000 250,000 0 2004

2005

2006

2007

2008

2007

2008

2007

2008

Total Liabilities

1,000,000 750,000 500,000 250,000 0 2004

2005

2006

Net Assets

15,000,000 10,000,000 5,000,000 0 2004 – Annual Report 2007/2008

2005

2006

11

Treasurer’s Report Cont...

The club acknowledges the important financial contribution from TRIOS. The club along with both the Harness & Greyhound racing clubs received cash distributions of $200,000 during the 2007/2008 year. These distributions allow the club to continue to invest in capital improvements such as the TAB Trackside Sportsbar & catering equipment.

400,000

TRIOS Cash distributions

300,000 200,000 100,000 0 2004

2005

2006

2007

2008

The 2008/2009 season brings with it new challenges and opportunities for the club.

With the Sunday strategy and in-house catering implemented, focus will shift to cost control and capitalising on new revenue opportunities.

Finally, I would like to thank the staff and most specifically Peter O’Shannessy and Neil Bainbridge for their assistance and the Chairman and Committee for their support.

PAUL BIRMAN TREASURER – Annual Report 2007/2008

12

CRANBOURNE TURF CLUB INCORPORATED

STATEMENT BY MEMBERS OF THE COMMITTEE

In the opinion of the committee the financial report as set out in pages 14 - 26

1. Presents a true and fair view of the financial position of the Cranbourne Turf Club Inc. as at 31 July 2008 and its performance for the year ended on that date in accordance with Australian Accounting Standards, mandatory professional reporting requirements and othe authorative pronouncements of the Australian Accounting Standards Board.

2. At the date of this statement, there are reasonable grounds to believe that Cranbourne Turf Club Inc. will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the committee and is signed for and on behalf of the committee by:

Chairman …………………………………………

Robin Daley

Treasurer …………………………………………

Paul Birman

Dated this 30th day of October 2008

– Annual Report 2007/2008

13

CRANBOURNE TURF CLUB INCORPORATED

INCOME STATEMENT FOR THE YEAR ENDED 31 JULY 2008

Note Revenue

2

Employee benefits expense

2008 $

2007 $

4,658,381

5,314,398

(719,015)

(669,933)

Finance Costs

3

(102)

(104)

Depreciation and amortisation expense

3

(110,762)

(80,912)

Other expenses

3a

(3,928,276)

(3,537,278)

Profit / (Loss) before income tax

(99,774)

Income tax expense

1(a)

Profit from operations

-

(99,774)

The accompanying notes form part of this financial report

– Annual Report 2007/2008

1,026,172

-

1,026,172

CRANBOURNE TURF CLUB INCORPORATED

BALANCE SHEET AS AT 31 JULY 2008 Note

2008 $

2007 $

Current Assets Cash and Cash equivalents Trade and Other receivables Inventories Other Current Assets Total Current Assets

5 6 7 8

139,631 182,818 26,195 12,789 361,432

250,096 220,284 17,006 17,467 504,853

Non-Current Assets Financial Assets Property, plant and equipment Total Non-Current Assets

9 10

1,355,975 12,931,332 14,287,307

1,309,424 13,042,902 14,352,326

14,648,740

14,857,179

Total Assets Current Liabilities Trade and Other Payables Provisions Total Current Liabilities

11 12

110,915 95,026 205,941

103,123 164,619 267,742

Non-Current Liabilities Provisions Total Non-Current Liabilities

12

17,994 17,994

11,440 11,440

223,935

279,182

14,424,805

14,577,997

3,137,054 11,287,751 14,424,805

3,190,472 11,387,525 14,577,997

Total Liabilities Net Assets Equity Reserves Retained Earnings Total Equity

13

The accompanying notes form part of this financial report

– Annual Report 2007/2008

CRANBOURNE TURF CLUB INCORPORATED

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2008

Retained Earnings

Asset Revaluation Reserve

Capital Grant Reserve

Total

2007 Balance at beginning of the financial year Profit/(loss) for the year Net asset revaluation increment(decrement) Transfers to and from reserves Grants Received Balance at end of the financial year

10,361,353 1,026,172 11,387,525

Retained Earnings

2,563,110 2,563,110 Asset Revaluation Reserve

680,780 (53,418) -

13,605,243 1,026,172 (53,418) -

627,362

14,577,997

Capital Grant Reserve

Total

2008 Balance at beginning of the financial year Profit/(loss) for the year Net asset revaluation increment(decrement) Transfers to and from reserves Grants Received Balance at end of the financial year

11,387,525 (99,774) 11,287,751

2,563,110 2,563,110

627,362 (53,418) -

14,577,997 (99,774) (53,418) -

573,944

14,424,805

The accompanying notes form part of this financial report

– Annual Report 2007/2008

CRANBOURNE TURF CLUB INCORPORATED

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2008

Note

2008 $

2007 $

Cash Flows From Operating Activities Receipts from racing and gaming activities Operating grants received Payments to suppliers and employees Interest paid Interest received Distributions received from Joint Venture Net cash flows from / (used in) operating activities

4,428,724 (4,697,861) (102) 12,906 200,000 16

(56,332)

3,936,093 1,116,868 (4,427,802) (104) 13,455 200,000 838,510

Cash Flows From Investing Activities Payments for property, plant and equipment Proceeds from sale of property, plant and equipment

(77,278) 23,145

(1,090,344) 14,773

Net cash flows from/(used in) investing activities

(54,133)

(1,075,571)

(110,465)

(237,061)

250,096

487,157

139,631

250,096

Net increase/(decrease) in cash held Cash at the beginning of the financial year Cash at the end of the financial year

5

The accompanying notes form part of this financial report

– Annual Report 2007/2008

CRANBOURNE TURF CLUB INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2008

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial report covers Cranbourne Turf Club Inc as an individual entity. Cranbourne Turf Club Inc. is an association incorporated in Victoria under the Associations Incorporation Act (Victoria) 1981.

Basis of Preparation The financial report is a general purpose financial report that has been prepared in accordance with Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the requirements of the Associations Incorporation Act (Victoria) 1981.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply.

Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated.

The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, and financial assets and financial liabilities for which the fair value basis of accounting has been applied. (a) Income Tax Cranbourne Turf Club Inc. is exempt from income tax under Section 50-45 of the Income Tax Assessment Act 1997. (b) Inventories Inventories consist of food and beverages and are measured at the lower of cost and net realisable value.

Costs are assigned on a specific identification basis and include direct costs and appropriate overheads, if any. (c) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

Property Freehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm's length transaction), based on periodic, but at lease triennial, valuations by external independent valuers, less subsequent depreciation for buildings.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Plant and equipment Plant and equipment are measured on the cost basis less depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually by the committee to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets' employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

The cost of fixed assets constructed within the club includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the assets' carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the club and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Depreciation The depreciable amount of all fixed assets including building and capitalised lease assets, is depreciated on a straight-line basis over their useful lives to the club commencing from the time the asset is held ready for use.

Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Leasehold Improvements Office Equipment Computer Equipment Motor vehicles Plant & equipment Fixtures & Fittings

Depreciation rate 2.50% to 10.0% 10.0% to 33.3% 33.33% 20.00% 10.00% to 33.3% 20.00% to 33.3%

– Annual Report 2007/2008

CRANBOURNE TURF CLUB INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2008

The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at each balance date.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation relating to that asset are transferred to retained earnings. (d) Financial Instruments Recognition Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Financial assets at fair value through profit and loss A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term or if so designated by management. Derivatives are also categorised as held for trading unless they are designated as hedges Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise.

Available -for-sale financial assets Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from change in fair value are taken directly to equity.

Financial Liabilities Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payment and amortisation.

Impairment At each reporting date, the club assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement. (e) Impairment of Assets At each reporting date, the club reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value-in-use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is expensed to the income statement.

Where it is not possible to estimate the recoverable amount of an individual asset, the club estimates the recoverable amount of the cash-generating unit to which the asset belongs. (f) Employee Benefits Provision is made for the Club’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. (g) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet. (h) Revenue Revenue from the sale of goods is recognised upon the delivery of goods to the customer.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

Dividend revenue is recognised when the right to receive a dividend has been established.

All revenue is stated net of the amount of goods and services tax (GST).

– Annual Report 2007/2008

CRANBOURNE TURF CLUB INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2008

(i) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. (j) Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

2008 2007 $ $ NOTE 2. REVENUE Gaming revenue 226,273 142,866 Grant Income 1,116,868 Industry Funding 2,873,374 2,542,167 Interest received 12,906 13,455 Joint venture distributions 20,278 70,240 Non raceday catering 24,431 12,512 Other revenue 38,063 19,006 Profit/(loss) on disposal of plant & equipment (1,522) (3,692) Racing Income 1,464,578 1,400,976 4,658,381 5,314,398 NOTE 3. EXPENSES Depreciation of non-current assets: Depreciation Finance costs (a) Other expenditure Administration & Marketing Non raceday catering Racecourse maintenance Race day expenses & services Prize monies and trophies

110,762

80,912

102

104

338,643 23,757 133,529 562,120 2,870,227 3,928,276

321,304 18,360 229,561 425,022 2,543,030 3,537,278

17,356 122,275 139,631

15,728 234,368 250,096

56,921 56,921 125,897 182,818

65,987 65,987 154,297 220,284

NOTE 4. AUDITORS' REMUNERATION Remuneration of the auditor of the Club for auditing or reviewing the financial report is payable by Racing Victoria Limited NOTE 5. CASH AND CASH EQUIVALENTS Cash at bank Cash on hand Cash on deposit

NOTE 6. TRADE AND OTHER RECEIVABLES Trade debtors Provision for impairment Sundry debtors

Current trade receivables are generally 30 day terms. These receivables are assessed for recoverability and a provision for impairment is recognised when there is an objective guidance that an individual trade receivable is impaired.

It is expected that all balances will be received when due

– Annual Report 2007/2008

CRANBOURNE TURF CLUB INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2008

2008 $ NOTE 7. INVENTORIES Current At Cost - Stock of food and beverages

NOTE 8. OTHER CURRENT ASSETS Prepayments

NOTE 9. FINANCIAL ASSETS - NON CURRENT Investment in Radio Sport 927 at cost Investment in Cranbourne Racing Centre Joint Venture Investment in Trios Tabaret Joint Venture

2007 $

26,195 26,195

17,006 17,006

12,789 12,789

17,467 17,467

82,450 90,518 1,183,007 1,355,975

82,450 70,240 1,156,734 1,309,424

11,434,721 (28,943) 11,405,778

11,051,153 (14,979) 11,036,174

14,057 (5,901) 8,156

11,557 (3,446) 8,111

15,887 (9,001) 6,886

9,510 (6,503) 3,007

73,145 (47,447) 25,698

114,732 (45,649) 69,083

510,309 (281,799) 228,510

495,369 (231,997) 263,372

488,824 (307,963) 180,861

477,491 (256,537) 220,954

NOTE 10. PROPERTY, PLANT AND EQUIPMENT Leasehold buildings & Improvements at Committee Valuation July 1997 At valuation Less accumulated amortisation

Office Equipment At cost Less accumulated amortisation

Computer Equipment At cost Less accumulated amortisation

Motor Vehicles At cost Less accumulated amortisation

Plant and equipment At cost Less accumulated depreciation

Furniture and fittings At cost Less accumulated depreciation

Catering Equipment At cost Less accumulated depreciation

Industry Funded Assets At cost Less accumulated depreciation

Work In Progress At cost Less accumulated depreciation

Total written down amount

– Annual Report 2007/2008

8,218 (358) 7,860

-

1,090,774 (24,960) 1,065,814

-

1,768 1,768

1,442,201 1,442,201

12,931,332

13,042,902

CRANBOURNE TURF CLUB INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2008

Movements in carrying amounts Leasehold buildings & Improvements at Committee Valuation July 1997 Carrying amount at beginning of year Additions Disposals Amortisation expense Carrying amount at end of year

2008 $

2007 $

11,036,174 383,568 (13,964) 11,405,778

11,041,631 (5,457) 11,036,174

Office Equipment Carrying amount at beginning of year Additions Disposals Depreciation expense Carrying amount at end of year

8,111 2,500 (2,455) 8,156

5,084 5,330 (2,303) 8,111

Computer Equipment Carrying amount at beginning of year Additions Disposals Depreciation expense Carrying amount at end of year

3,007 6,377 (2,497) 6,887

6,176 (3,169) 3,007

Motor Vehicles Carrying amount at beginning of year Additions Disposals Depreciation expense Carrying amount at end of year

69,083 (24,668) (18,717) 25,698

93,535 17,900 (18,083) (24,269) 69,083

Plant and equipment at cost Carrying amount at beginning of year Additions Disposals Depreciation expense Carrying amount at end of year

263,372 14,941 (49,803) 228,510

266,730 44,189 (47,547) 263,372

Furniture and fittings Carrying amount at beginning of year Additions Disposals Depreciation expense Carrying amount at end of year

220,954 11,332 (51,425) 180,861

272,538 (51,584) 220,954

Catering Equipment Carrying amount at beginning of year Additions Disposals Depreciation expense Carrying amount at end of year

8,218 (358) 7,860

-

Industry Funded Assets Carrying amount at beginning of year Additions Disposals Depreciation expense Carrying amount at end of year

1,090,774 (24,960) 1,065,814

-

Work In Progress Carrying amount at beginning of year Additions Transfer to Assets Depreciation expense Carrying amount at end of year

1,442,201 1,768 (1,442,201) 1,768

Total written down amount

12,931,332

– Annual Report 2007/2008

419,657 1,033,308 (10,764) 1,442,201 13,042,902

CRANBOURNE TURF CLUB INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2008

2008 $ NOTE 11. TRADE AND OTHER PAYABLES - CURRENT Trade creditors Sundry creditors Income in advance

NOTE 12. PROVISIONS Employee benefits Current Non Current

1,100,727 2007 $

31,388 43,763 35,764 110,915

60,193 24,745 18,185 103,123

95,026 17,994 113,020

164,619 11,440 176,059

NOTE 13. RESERVES Asset Revaluation Reserve The asset revaluation reserve records revaluation of non current assets.

Capital Grant Reserve The capital grant reserve records receipt of capital funding from Racing Victoria Limited and Country Racing Victoria Limited prior to 1st August 2006.

NOTE 14. CONTINGENT LIABILITIES There were no contingent liabilities at the date of this report to affect the financial statements.

NOTE 15. RELATED PARTY TRANSACTIONS The names of persons who were members of the Committee at any time during the year were: Brian Asley Robin Daley Chairman Dr Sam Birman Garry Howe Paul Birman Garry Sidwell Andrew Brumby Rex Trimble David Cook Geoff Whiffen No remuneration or retirement benefits are payable as the positions are voluntary.

The following Committee members of the Club have received benefits from the business transactions arising in the ordinary course of the Club's business and conducted at ordinary commercial terms and conditions no more favourable than those it is reasonable to expect the Club would have adopted if dealing at arm's length in the same circumstances.

Committee Member Nil NOTE 16. CASHFLOW INFORMATION (a) Reconciliation of cash Cash at bank Cash on hand Cash on deposit

17,356 122,275 139,631

15,728 234,368 250,096

(b) Reconciliation of profit after tax to net cash from/(used in) operating activities Profit after income tax

(99,774)

Non cash items: Depreciation Amortisation Capital Funding reserve (Profit)/Loss on disposal of asset

164,180 (53,418) 1,522

134,330 (53,418) 3,692

Changes in assets and liabilities: (Increase) decrease in joint venture (Increase) decrease in receivables (Increase) decrease in inventories (Increase) decrease in prepayments Increase (decrease) in payables Increase (decrease) in provisions

(46,551) 37,466 (9,189) 4,678 7,792 (63,039)

(13,106) (31,324) (7,140) (4,118) (253,487) 36,911

Net cashflows from / (used in) operating activities

(56,332)

838,510

– Annual Report 2007/2008

1,026,172

CRANBOURNE TURF CLUB INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2008

1

NOTE 17. FINANCIAL INSTRUMENTS

1

(a) Financial Risk Management The Club's financial instruments consist mainly of deposits with banks, local money market instruments, short-term investment, accounts receivable and payable.

The club does not have any derivative instruments at 31 July 2008 The main risks that the Club is exposed to through its financial instruments are interest rate risk, liquidity risk, credit risk and price risk.

Interest rate risk - is managed with a mixture of fixed and floating rates.

Liquidity risk - is monitored by forecasting cash flows and review of any borrowing facilities.

Credit risk - The maximum exposure to credit risk at balance date to recognised financial assets is the carrying amount of those assets as disclosed in the balance sheet and notes to the financial statements. There are no material credit risk exposures to any single debtor or group of debtors under financial instruments entered into by the economic entity.

Price risk - the Club is not exposed to any material price risks. (b) Financial Instrument Composition and Maturity Analysis

Financial Instrument Financial Assets Cash assets Investments Receivables

Floating Interest Rate 2008 2007 $ $

Fixed Interest Rate Maturing 1 year or less Over 1 to 5 years 2008 2007 2008 2007 $ $ $ $

Non Interest Bearing 2008 2007 $ $

139,631 -

250,096 -

-

-

-

-

1,355,975 182,818

1,309,424 220,284

-

-

-

-

-

-

110,915 -

103,123 -

Financial Liabilities Payables Loans

Weighted Average Effective interest rate 2008 2007 % %

6.04

6.00 -

-

-

-

(c ) Net Fair Values The net fair values of financial assets and liabilities approximate the carrying values as disclosed in the Balance Sheet The Club does not have any unrecognised financial instruments at the year end. (d) Sensitivity Analysis The Club has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. This sensitivity analysis demonstrates the effect on current year results and equity which could result from a change in risk.

As at 31 July 2008, the effect on profit and equity as a result as a result of changes in the interest rate, with all other variables remaining constant would be as follows: Movement in Interest Rate -1% 0% 1%

-4%

-3%

-2%

Change in profit: 2008 2007

(5,585) (10,004)

(4,189) (7,503)

(2,793) (5,002)

(1,396) (2,501)

-

Change in equity: 2008 2007

(5,585) (10,004)

(4,189) (7,503)

(2,793) (5,002)

(1,396) (2,501)

-

2%

3%

4%

1,396 2,501

2,793 5,002

4,189 7,503

5,585 10,004

1,396 2,501

2,793 5,002

4,189 7,503

5,585 10,004

(e) Capital Management The committee members control the capital of the Club in order to maintain a good debt-to-equity ratio and to ensure that the Club can fund its operations and continue as a going concern.

No capital management issues have been noted during the financial year.

NOTE 18. CLUB DETAILS The registered office and principal place of business is Grant Street, Cranbourne Vic 3977 NOTE 19. SEGMENT REPORTING The club operates in the thoroughbred racing sector in Victoria.

– Annual Report 2007/2008

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– Annual Report 2007/2008

27

Cranbourne Turf Club Inc Grant Street, Cranbourne 3977 Tel: (03) 5996 1300 Fax: (03) 5996 4972 Email: info@cranbourneturfclub.com.au www.cranbourneturfclub.com.au ABN: 72 001 641 203

– Annual Report 2007/2008

28