2022 Annual Report with FY22 Atrium Group Audited Financials

managed strata, and agility when dealing with COVID related challenges.

Values

We have a passionate team of people from our Council of Owners, Hotel Board, Management team, and staff who are dedicated to ensuring that our values are not only maintained but lived out every day when providing excellent hospitality in service to our guests

Family

We reflect our community and embrace the history and tradition of our role in the Peel region

Hospitality

We believe in providing hospitality through both our attitudes and actions towards our guests, members & owners.

Teamwork

We ensure that every staff member, management team member, Board Member, and Owner supports and encourages each other Integrity

We believe in acting with the highest of integrity Excellence

We perform at the highest levels of service, language, behaviour, and appearance.

1 CHAIRPERSON'S REPORT

1 JULY 2021 TO 30 JUNE 2022

1.1 FY22 Review

Welcome to the Annual Report for the SP11104 Owners and Atrium Hotel Mandurah Managed Investment Scheme for the 2022 Financial Year I'm excited, once again, to be able to bring this report to you and inform you of the significant number of achievements that have been realized by your dedicated and hard working team since our most recent AGM held on the 6th of February 2022

The team is at this very moment continuing to implement projects. We have come a very long way in under 2 years, and have achieved one of our biggest goals for FY22 which was to grow accommodation income by over $1M (achieving $1.14M) or 42%, and a total increase in profit year on year of over $280K for the hotel which is a year on year movement of +409% Numbers don't lie The corporate recovery and growth strategies our strategist shared with you last year are coming to fruition, and we would have achieved the entirety of our target if not for function room closures due to water ingress issues shutting these areas down, and which currently being dealt with through Strata

The future is bright and the Atrium Hotel Mandurah is ultimately a good news story, and are committed to achieving the results we need for all owners, focusing on paying dividends as per our Strategic Plan, throughout FY24 The Management Modality project has been thoroughly investigated and it's a great outcome to be able to even have a robust conversation around future modalities. We will bring this to you in the weeks leading up to the 2022 AGM

One thing is for sure, we needed external assistance as we could not have achieved the necessary changes on our own due to the complexity and vastness of the task that was ahead of us. As an owner group, we have all been through a lot. The emotional and financial costs are different for each owner depending on individual exposure and we have been championing you, remaining committed and focused to increase the value of our investment and get returns again for all owners and not just reinvest back into the business. FY22 was a year of transition and foundation laying towards growth, after FY21 which was a year of crisis containment We can now see growth in our results We accepted the task of investigating and bringing past dysfunctional management to an end, but the job is not over.

1 CHAIRPERSON'S REPORT

/CONT.

I would like to extend a huge and heartfelt thank you from myself and the entire Council and my fellow Director Kerry Lee, whose done an amazing job of being Company Secretary, and to all of the owners and consultants who've contributed significant support, patience and expertise to get us to this point The heart and integrity of the Atrium Management team headed by our General Manager Siska Fletcher and the majority of our owners who understand the unenviable task they have had. The entire team is working above and beyond to achieve the strategies that we have committed to you, and we will not stop until these are achieved. There are many hours of unseen personal sacrifice from our Voluntary Council, and Board, many unbilled hours from our consultants, and our staff volunteering to work on their days off to cover unfilled shifts due to sick leave, do additional training to upskill themselves, or support activities to ensure we deliver on our promises.

We have proven the business can be profitable, and we are now focusing on achieving our strategies. 1) Consistent profitability and investment growth, 2) eliminating historical debt, 3) Simplifying our MIS, and 4) creating a cohesive and unified group of owners who are fully informed and included in their business, together we have a bright and exciting future

We promised you all transparency, and have been fighting to deliver this for you It's important for us all to come together and support our collective Vision. You voted for this at the last AGM and the entire team is delivering this for you now, and we need your support. If for some unfortunate reason you are unable to attend the AGM please give your support for our team and help us to champion your business into the future by giving your Proxy’s to your Directors, Jamie Trawinski and Kerry Ann Lee For your support, patience and understanding we cannot thank you enough.

Yours sincerely

JAMIE TRAWINSKI Chairperson Strata Council & Atrium Hotel Mandurah Pty Ltd

ATRIUM GROUP PERFORMANCE REPORTS

2.1 HOTEL GENERAL MANAGER'S REPORT

1 JULY 2021 TO 30 JUNE 2022

We have had a massive year of change and growth, weathering the ongoing COVID landscape, and spending time re focusing the business on income producing activities and cost saving initiatives There has been misinformation circulating throughout some areas of the owner group, as well as several disruptive visits to the hotel and activities which has been highly unproductive for the team. We've been endeavoring to shield staff from these events, as most staff including myself, have been working double shifts and at times 7 days a week, alongside our strategist, Council, and Board to achieve necessary targets and goals for the owner group

We continue to deal with skilled recruiting shortages and juggle the many building maintenance issues which will assist us in opening up some of the functions spaces that have been closed due to safety issues. Whilst we did not make our budget, due to those building issues restricting functions, the loss of a sales team member whose task was to sell through in house TV Advertising, and the Monadelphous deal being pulled 3 months early or $300K, we still increased our total hotel income by $1.14M or 42% growth on FY21, and $1.4M or 56% on FY20.

Implementing FY22 23 Strategic Priorities

This year has been a year of consolidation, refocusing, and recruiting a strong experienced team, to allow us to achieve our targets in FY23. We have been working with our Strategic Planning Consultant to implement many projects and below are one of 57 projects that have been implemented across the different business units within the hotel:

Implementing annual Vendor Audits: negotiating new contracts and monitoring new Company Policies Weekly Monitoring of Workforce Planning and reporting at the weekly Finance meeting has seen our Wages and Salaries come in on budget (within 1.4%) which is a great result Significant Safety & Maintenance work (with Strata Manager & Council) and Ground Floor Bar Furniture

WIFI Project/CISCO Sparkboard purchase to ramp up Corporate meetings in the Boardroom This purchase paid for itself in 8 meetings in the Boardroom.

New Functions Manager Role created in July 2022 to maximise functions support for weddings and provide oversight for events and catering attributable to those events

Cost Rationalisation: Downsize Maintenance and integrate tasks into Night Porter and Duty Manager Roles, Kitchen, Bar, and Restaurant reducing wastage and ordering errors, reducing housekeeping hours implementing standards reporting.

On going training, Heads of Dept, customer service training and systems

come together and produced some great results under very challenging circumstances;

"I'm

know that FY23 will be even better Thank you to the owners, Council and Board members, and our consultants who have supported us as we navigate a backlog of fixing building issues through Strata and implementing our growth program "

SiskaFletcher General Manager

very proud of my team, who have

we

2.2 STRATA MANAGER'S REPORT

1 JULY 2021 TO 30 JUNE 2022

The Owners of SP11104 Council of Owners worked with the Strategic Consultant, the Accountants and ESM Strata to deliver on the Managed Investment Scheme Strategic goal of September 2021, where the hotel serviced the Body Corporate historical debt and agreed to pay outgoings with respect to the common property, whilst allowing both entities to trade and report independently

This goal was achieved and strata levies were reduced in the second half of 2021 into the remaining half of FY22 by nearly half. The remaining goals of Strata for FY22 were delivered by the Council of Owners, Strategic Consultant and ESM Strata and the operational team of the hotel;

A compliance role was created from existing positions within the hotel staff to work with the General Manager and ESM Strata to ensure compliance with Building & Safety Requirements; Property Maintenance: acting on maintenance items to ensure that the Hotel Building and Common Property allowing the hotel to open some areas for function with more to go over the next couple of months. Strata projects completed this year were in the majority of safety issues where the hotel had outdated equipment for fire services, asbestos door replacement, and work on bringing the gardens and grounds up to new hotel standards.

One of the key items of note during this period is a reminder for all owners to ensure that should they decide to sell their units, part of the legal requirements is to advise me your Strata Manager and your Company Secretary, Kerry Lee at secretary@atriumhotel.com.au.

Jake Kneebone

Strata Manager ESM Strata

2.3KEYRESULTAREASACROSSGROUP

1July to 30 June 2022 [Results noted in financials & strategic plan results]

Managed Investment Scheme - Hotel Manager:

Strata:

Key result areas across the group were identified as outlined in Diagram 1 above. At the heart of everything absolute, consistent governance and adherence to the strategic plan at all times generates results. This governance must be maintained continuously for the plans to work and the activity currently being undertaken to be fruitful. STRATA

Ensure the strata company is well governed and the strata manager ensures the hotel manager can operate 'unhindered'.

Ensure a well-kept and well-maintained building that meets or exceeds health & safety standards that doesn't pose a risk to owners, hotel management and staff, or the public in order to support the managed investment scheme to generate returns for owners.

Ensure the customer experience meets our goals and that the hotel is managed and presented to the highest standards as outlined in the Hotel Standards documentation and future ISO Accreditation - Tourism Australia standards; Liaise with the strata manager to ensure building and common property issues don't adversely affect hotel operations and ultimately profit; Ensure the Management team drives results, achieving returns for owners.

2.3.1FACTORSAFFECTINGREVENUE

THE PRICING REVIEW PROJECT LEADS TO THIRD-PARTY COMMISSION REDUCTSAND AN INCREASE IN REVENUE, AND A HIGHER AVG RATE FOR FY22

A pricing project was completed in August 2021, by the Strategic Consultant, General Manager, and Front Office Manager, identifying that historical room rates were very low compared to the Mandurah market. Along with this, the amounts being paid to third-party providers like Expedia and Booking.comwashighandshouldberenegotiated.

The General Manager and Front Office Manager met with the Regional Manager of Booking.com and reduced the booking fee by 3% bringing it to the lower end of the market.

MISINFORMATION AND NEGATIVE COMMUNICATIONS BY A SMALL GROUP OF OWNERS

Throughout FY22, the hotel's compliance team has been tracking the negative effects of misinformation and unsafe owner behavior and how this is negatively affecting both theproductivity of staff and the overall ability of management and staff to meet expectations and profitability as this is adverselyaffectingemployees'timeforincome-producingactivity.

The time required to reply to thousands of emails bombarding the volunteer council and Board, the General Manager and her staff and our consultants have been astounding in their volume. This has been addressed to ensure that Staff, Management, Council and Consultants can ensure that they focus on income-producing activities Negative social media posts were also madeby this group to be seen by the public, which affects the reputation of the hotel, all owners, and ourinvestment.

LEAKING POOL REFURBISHED - SAVES WATER AND ELECTRICITY UPDATED POOL PUMP(11 weeks)

Water and electricity bills from FY20 & 21, were analysed as part of a utilities review by theStrategist, General Manager and ESM. Two areas, Peppers and the Conference room wereexperiencing water ingress issues, which stopped the hotel from hosting functions & eventswhich was affecting revenue, and it was found that the pool was leaking and requiredresurfacing. As the pool area had to be closed, and room sales declined due to the closure ofthe pool area, this identified how imperative the pool to our hotel bookings. The pool is nowopen for the summer season.

2.4 FINANCIAL

ANALYSIS

RESULTS TO 30 JUNE 2022

EXTRACT SUMMARISED FROM (ANNUAL AUDITED FINANCIAL STATEMENTS)

An important thing to note from the chart above is the movement from FY19, FY20 to FY21 and the actuals achieved for MIS and Strata in FY22 and the forecast 23.

The MIS being the hotel, made a profit of $284,460 for the year before a charge of $330K was raised to part cover the cash funding provided to the Body Corporate. In the future, this will be charged monthly as the companies trade at arm's length.

3 ATRIUM HOTEL MANDURAH RESULTS TO 30 JUNE 2022

3.1 HOTEL TRADING

INCOME

BY DEPARTMENT

FIGURE 2 FIGURE 3

As can be seen in Figure 1, Total Trading Income for the Hotel has increased year on year by $1,148,115 or 42%, which is a great result. The total trading income was 19% down on budget due to the closure of function rooms for building maintenance issues, which resulted in lost bookings due to the time required in investigations to locate the problems and seekconsultationontotalsolutionnotband-aidfixes. See notes in Figure 1 above. Higher than normal accommodation sales in Figure 2, can be attributed to an excellent Christmas/New Year which showed the highest sales results over the last many years and a dedicated focus on reservation re-bookings and increasing price points, and reducing 3rd Party Provider booking commissions. The highest results over previous years, with much room for growth, yet customer experience ratings continue to be hampered by outdated rooms, which whilst clean and comfortable are not meeting customer expectations. hence working on utilisingthe6%refurbishmentfundingtocontinuetoupdatefurnishings.

Sales were also affected by management and staff requiring to be continually retasked to deal with a small group of disruptive owners, this is being tracked to record its effect on the managementteamtakingtimeawayfromconductingincome-producingactivities. Overthelast fewyears,thousandsofphonecalls,disrespectfulemails,andface-to-facehotelvisitsbyasmall group of owners verbally attacking the board, and management and threatening staff with legal action have created a very real exposure to Fair Work claims for management and the situation has been reported to the council and is being managed. As results have proven when hotel management is allowed to focus on income-producing activities results (particularly Corporate Sales) can continue to grow, and reduce the risk of stress leave claims, and damage to the hotel'sgoodreputation. Council and hotel management are working to resolve the issues with thisownergroup.

3.2 HOTEL FINANCIAL ANALYSIS

Please note: The effect of the COVID lockdown in March 2020 the previous year, has been quoted to the insurance company as a claim This claim has not yet been accepted as whilst a pandemic was included in the previous insurance policy the first payout was challenged in the High Court in Canberra, and are yet to make a determination whether these subsequent claims should be honoured This issue is continuing to be tracked

FIGURE 6

The hotels occupancy increased to its highest level in 7 years as can be seen in the graph in Figure 6 above, up to a high in January 2022 of 89.3% vs 69.8% in January 2021. The red line indicates the end of the first Phase of the Crisis Management containment project and the start of Phase 2 & 3 of the recovery phase, and growth strategy in FY23. These results show the monthly occupancy figures over the last 6 years. A trendline indicates the shift in sales along with the dates of previous lockdowns marked with red shields red. The duck icon indicates how sales are directly linked to the popularity of the pool as a drawcard for people staying at the hotel, so maintaining this asset is critical. Even though this is in the FY23 financial year, pool maintenance and refurbishment required to mitigate a water leak was undertaken in low season to minimise sales loss. FIGURE 7

Figure 7 identifies the continued increase in average daily rate and upswing in revenue per available room A new pricing strategy after extensive analysis was implemented, working with third party booking providers Booking com is the priority provider and other smaller providers were removed A price increase was implemented in March 2021 as part of a Room Rate Review conducted by our Corporate Strategist and monitored throughout FY22 After consultation and a contract review with Booking com, the price was again increased online after analysis of figures with Booking com by Hotel Management The forecast is for this trend to continue into FY23

3 ATRIUM HOTEL MANDURAH ACHIEVEMENTS TO 30 JUNE 2022 (FY22)

3.3 HOTEL 6 YEAR PROFIT & LOSS COMPARISON TO 30 JUNE 2022

The separation of the companies is now complete. This has allowed the Hotel to not only recover but to increase its profitability whilst continue paying down the historical Body Corporate Debt on behalf of the Strata Company. The above commentary identifies that even whilst this was occurring in FY22, the Hotel created a significant profit year on year.

To ensure this trend continues it is vital for the hotel management team not be drawn into the small group of owners who have been and continue to try to destabilise and undermine the activity being undertaken

The Strategic Consultant has been working closely with the General Manager operationally, and the Council and Board to ensure growth was achieved and Strategic outcomes and Corporate Governance was maintained The entire team has done an amazing job under very trying circumstances to turn the hotel around.

4.1

CORPORATE STRATEGIC UPDATE TO 30 JUNE 2022

(1 July - 6 February presented at FY21 AGM, updated to 30 June 2022)

PROJECT PHASE 1 2 CRISIS CONTAINMENT FOUNDATIONS

11 Jan 21 - 30 June 21

Project Illumination/EGM

90 days crisis management and Hotel Operations resstructure

Corporate Strategic Plan Robust Governance Structure & Reporting

PROJECT PHASE 3

REINVIGORATE

Transition => Profitability

1 July 21 - 30 June 22 2021 AGM's

Companies separated Accounting separated

On-going review & reporting Hotel Mgt Modality Project Gap Analysis

PHASE 1 CURRENT ACCELERATE

1 July 22 30 June 23 2022 AGM's

Future-proof sustainable model Reviewed annually Monthly reporting Profitability Modelling

PHASE 2 GROW

1 Jul 23 30 June 24 2023 AGM's

Growth Activity Profitability Modelling Reviewed Monthly

Figure 1: 18 months to June 30, 2022 and chart showing Accelerate and Grow Phasing of the Strategic Plan

The Corporate Strategic Plan was implemented in early 2021, and encompassed the findings and recommendations from the Crisis Containment Project Illumination A copy of the findings of this project was presented at the June 27, 2021 EGM, with the owners voting to implement the resolutions to make the necessary changes to the dysfunctional management structure to bring the companies back into profit.

Project Phase 3 and the launch into Phase 1 of the Accelerate program, herald the move into preparing for the Company's growth phase, having built a strong foundation An Owner's Investment Policy has been developed to work with owners to create a structure supporting governing documents in how the Council and Board guide and direct the process of accessing ideas and changes for the companies

The Atrium Group's Corporate Governance as can be seen summarised in Figure 2 below is the backbone of the change management and ongoing governance structure that was implemented with the Council/Board by OnPoint! Strategy and the Strata and MIS companies last year and updated monthly with the Strategic Plan. It is mandatory to protect all owner's investments by stopping any further erosion of the company's position and maintaining stability. Implementing strict controls from vendor audits and proper contract management, cost analysis and rationalisation over FY22 is yielding cost savings and there is more scope to reduce costs as the process continues.

Figure 2: Strict Corporate Governance Calendars and Compliance Reporting has been in place for the last 18 months

historical debts) from the Managed Investment Scheme and Management Company was implemented on 1 July 2021 FY22 was agreed as a year of change and transition to the newly separated companies and the detangling of the company accounts. This was a massive project conducted over several months and paramount to successful separation.

Author's notes:

From FY23, both companies must be managed and trading maintained at 'arm's length'. This means that the Board Directors of the Managed Investment scheme cannot be the same as the Executive Committee Members of the Council of Owners. The Management Modality Feasibility Study and Business Case Analysis was approved by resolution of the owners (AGM Feb 6, 2022), has been conducted from June to November 2022, and will be presented to owners in the weeks leading up to the 2022 MIS Annual General Meeting, and vote to accept the recommendations

Lannock Loans

There is evidence from the way the loans were both drawn up and executed that they fell outside the clear guidelines provided to the Council of Owners from the Owner Group and minuted at the AGM. A presentation by the legal team will be made at the 2022 AGM. In the meantime, the loans are being serviced monthly by the MIS, on behalf of Strata, and are currently being tracked monthly and are in good standing

Secondary Sales Notices

Prospective buyers now receive a video and information on how the companies (Strata & Managed Investment Scheme) work To ensure owners understand what they have purchased, with full disclosure and explanation, the process of a Secondary Sale notice was re introduced in FY22.

Governance

Cybersecurity governance and Cybersecurity insurance have been implemented for the MIS. Monthly Council of Owner meetings for Strata and Board meetings for MIS are being held regularly with outcomes tracked as part of the Governance plan and Strategic Plan

Hotel Management also has weekly operational Heads of Department and staff meetings, with weekly reporting and tracking of their budgets. STA and ASIC Compliance is tracked ongoing Internal audit compliance checks are now undertaken regularly with vendor audits being conducted for suppliers who do not meet their obligations.

4.1

CORPORATE STRATEGIC UPDATE

(1 JULY 6 FEBRUARY

Operational Issues

PRESENTED

TO 30 JUNE 2022

AT FY21 AGM, UPDATED TO 30 JUNE 2022)

As in any working hotel, operational issues presented themselves throughout FY22. The new General Manager and team were running alongside the Strategist who developed and implemented many new operational policies, procedures and standards with the team Many of the issues required immediate action, particularly where legacy strata maintenance and safety issues caused the hotel to lose revenue. The accounts between the Strata company and the Atrium Hotel Mandurah Pty Ltd (MIS) have been untangled and now have completely separate accounting files and accounts management having been started on the 1st July 2021. Strata finances being managed through a Strata Management Company and AHM Pty Ltd MIS through Xero and an external bookkeeper An internal compliance officer was appointed who now also has oversight to support the bookkeeper. The operational team and strategist are working towards ISO9001 Accreditation for Tourism. All policies and procedures are pat way through being updated and an Accreditation Assessment will take place sometime in the new year Marketing and sales activities will be the focus for QT2 4 in FY23, along with the planning for the 40th birthday celebrations in January 2024, planning has begun for large public, media, and owner events, over the month of celebrations, with social media campaigns starting in November and pre bookings in December 2023.

HR Strategy

OnPoint! Strategy began working with the General Manager, with the Heads of Department to be trained up to industry standards to ensure compliance across all new policies and KPI's. Performance Reviews for FY22 began in late Qtr 4/FY22 and continue on a rolling basis as per staff anniversaries. All staff will have performance reviews in October annually, along with the General Manager. Performance development plans have begun and staff are being actively encouraged to liaise with training providers to see government assistance to increase their skills and competencies, and to create succession planning in the teams.

Technology/Website/Cybersecurity

Analysis of existing technologies identified most were out of date or the contracts out of date and all needed upgrading and moving to Cloud based versions. This was completed throughout the year hardware will be budgeted into FY23 24 for upgrades as per Tech Analysis in late FY22 Recognising the risks of cybersecurity issues, additional insurance was upgraded to include this, along with Cybersecurity training for staff. Previously, the software used to run the hotel has a local backup on a server, and the WIFI of the hotel was slow and limited in reach The recommendations approved to upgrade to Microsoft Office 365 and Cloud based Sharepoint, with an off site back up, along with upgrading all the current software to cloud based more user friendly with greater integration with other software and delivering enhanced capability, particularly reporting This was completed throughout the year. RoomMaster upgrades and food & beverage management and reporting capability were also upgraded, along with the reconciliation between RoomMaster accounting and Xero Other initiatives to future proof the hotel through new technology is being developed in FY23. The Members and Owners Portal is currently being built and will be available over December 2022/January 2023 ready for the high season. This is forecast to bring in $150K in additional revenue

4.1 CORPORATE STRATEGIC UPDATE TO 30 JUNE 2022

(1 July 6 February presented at FY21 AGM, updated to 30 June 2022)

Future Strategic Direction

Future proof the Company

Create a strong Company Profit Growth Strategy > Corporate Culture > Strong Board Leadership (COMPLETE)

Payout all historical debt within 24 months (FY24)

Implement Strong Company Structure reducing liability and risk exposure for owners (COMPLETE)

Educate owners as to the structure, management agreement, strata, managed investment scheme and their rights and responsibilities, including sales of units and information required to be provided (COMPLETE) **

Develop an exceptional operational team to deliver the profit story as per the budget (COMPLETE) On going professional development

Upgrade technologies for all areas of the company, cloud based software & WiFi Implementation of Youth Mentoring and Hospitality Training programs through local providers (COMPLETE)

Increase Revenue through targeted strategies

A key strategy for revenue growth is to create a renewed domestic focus > 2023 (Increased 42% in FY22)

Create Strategic Alliance Partnerships for Corporate Accommodation sales Foster relationships with local community groups and organisations to use the hotels’ function rooms and catering (Begun FY22, Continuing FY23)

Create a new catering outlet to service local businesses => new revenue streams

Rationalise costs

Reduce overheads and cost per stay (COMPLETE FY22)

Reduce kitchen and catering waste (COMPLETE FY22)

Build a strong internal team and reduce operational supplier costs (COMPLETE)

Key Strategic Marketing Initiatives

Key target markets are families, singles, and elderly travellers, FIFO, corporate functions

Advertise on radio, social media campaigns, and other mediums as part of a dedicated marketing plan (Marketing Plan Complete, Radio Advertising ongoing)

All deliverables as outlined in the initial proposal have been delivered The further success of the Strategic Plan and budgets provided is the flawless execution of these strategies by strong governance and management. It cannot be stressed enough that it is essential for all areas of the business, owners, Board, Strata Council of Owners, Management and staff to cohesively work together towards that end. Performance reviews take place in 3, 6, 9 and 12 month increments, to assess the progress, and adjust future projections accordingly.

**At risk if owners choose not to follow this process and provide incorrect information to buyers

4.2 CORPORATE STRATEGY RESULTS FY22

1 JULY 2021 TO 30 JUNE 2022 (FY22) AND ONGOING

Mining: Corporate Accommodation Deal

=> 30 rooms, 7 days a week, 26 weeks = $758K contract (Completed FY22 $458K)

Increase brand experience => Young families => Online FB marketing Campaign FY22 (Completed FY22)

Upgrade old WIFI and connectivity (Completed Nov 2021)

STRATA COMMON PROPERTY UPKEEP & MAINTENANCE

Clean up old rooms FY22 FY23 (Phase 1, Completed Nov 2021, On going) Create a maintenance project with the local TAFE to work with students and TAFE teachers to use the hotel as an 'on the job' training facility. This will allow for work to be completed in rooms without additional wage cost [Met with TAFE, awaiting outcome of discussions for implementation] Replace Hot Water System to reduce plumbing charges (Completed FY22) New Signage upgraded with new Branding (Completed FY22 Paid by the hotel) Implement a 10 year maintenance plan Qtr1 FY22 (Completed FY22) Ensure Asbestos Register is maintained (Completed Qtr1 FY22, Updated FY23) Ensure Pool & Spa maintenance is maintained (On going) OH&S Report and Fix to urgent and high risk issues: (Completed Qtr1 FY22)

a Bollard Lighting fixed (On going project, 90% completed FY22) b. Roof vents (Investigations and Reporting Completed Qtr 1/FY23) c Security Cameras (Investigations and Quoting completed FY22, Funding FY23) d. Asbestos Register (Completed FY22) e Lift, Pool & Spa (Started FY22, Completed Qtr 1/FY23) f. Flooring in Peppers (On going) g. Water Ingress Issues (Investigations and Reporting Completed Qtr 1/FY23)

AtriumHotelMandurahPtyLtd ABN96102783942 SpecialPurposeFinancialReport

Fortheperiod1July2021to30June2022 LGAccountingSolutions

ABN80389747852 POBox1008OsborneParkWA6916 Phone:0892084000 Website:www.lgas.com.au

Contents

Directors' Report

Statement of Profit or Loss

Statement of Changes in Equity

Statement of Financial Position

Notes to the Financial Statements

Auditors Independence Declaration

Independent Auditor's Report

AtriumHotelMandurahPtyLtd

ABN96102783942

Directors'Report

YourDirectorspresenttheirreportonthecompanyforthefinacialyearended30June2022.

Directors

TheNamesoftheDirectorsinofficeatanytimeduringorsincetheendof30June2022are

1.KerryLee(Appointed12Feb2021)2.JamieTrawinski(Appointed12Feb2021)

TheDirectorshavebeeninofficesincethestartofthefinancialyeartothedateofthisreportunlessotherwise stated.

ReviewofOperations

Thelossofthecompanyforthefinancialyearafterprovidingforincometaxamountedto$352.

SignificantChangesintheStateofAffairs

Nosignificantchangesinthecompany’sstateofaffairsoccurredduringthefinancialyear.

PrincipalActivities

Nosignificantchangeinthenatureoftheseactivitiesoccurredduringtheyear.

EventsSubsequenttotheEndoftheReportingPeriod

Nomattersorcircumstanceshavearisensincetheendofthefinancialyearwhichsignificantlyaffectedormay significantlyaffecttheoperationsofthecompany,theresultsofthoseoperations,orthestateofaffairsofthe companyinfuturefinancialyears.

LikelyDevelopmentsandExpectedResultsofOperations

Likelydevelopmentsintheoperationsofthecompanyandtheexpectedresultsofthoseoperationsinfuture financialyearshavenotbeenincludedinthisreportastheinclusionofsuchinformationislikelytoresultin unreasonableprejudicetothecompany.

EnvironmentalRegulation

TheCompany’soperationsarenotregulatedbyanysignificantenvironmentalregulationunderalawofthe Commonwealthorofastateorterritory.

Dividends

Nodividendshavebeenpaidordeclaredintheyearending30June2022.

Options

Nooptionsoverissuedsharesorinterestsinthecompanyweregrantedduringorsincetheendofthefinancial yearandtherewerenooptionsoutstandingatthedateofthisreport.

Noshareswereissuedduringorsincetheendoftheyearasaresultoftheexerciseofanoptionoverunissued sharesorinterests.

IndemnificationofOfficers

Noindemnitieshavebeengivenorinsurancepremiumspaid,duringorsincetheendofthefinancialyear,forany personwhoisorhasbeenanofficerorauditorofthecompany.

ProceedingsonBehalfoftheCompany

Nopersonhasappliedforleaveofcourttobringproceedingsonbehalfofthecompanyorinterveneinany proceedingstowhichthecompanyisapartyforthepurposeoftakingresponsibilityonbehalfofthecompanyfor alloranypartofthoseproceedings.

TheCompanywasnotapartytoanysuchproceedingsduringtheyear.

KerryLee

Date: JamieTrawinski

Date:

AtriumHotelMandurahPtyLtd ABN96102783942 StatementofProfitorLoss

Fortheperiod1July2021to30June2022

20222021 Note$$

Income

RentReceived58,07590,000

VariableOutgoings-MIS98,102TotalIncome156,17790,000 Expenses BankFees480369 Bookkeeping-1,775 ESMStrataLevies52,146FilingFees276273 LicenceFees-1,020 Light,Power,Heating4,964ManagementFees30,00042,000 Rates&LandTaxes41,44214,861 TotalExpenses129,30860,297 DepreciationandAmortisation Depreciation Depreciation12,62812,889 TotalDepreciation12,62812,889 TotalDepreciationandAmortisation12,62812,889 Interest InterestExpense InterestExpense14,59315,218 TotalInterestExpense14,59315,218 TotalInterest (14,593)(15,218) Profit/(Loss) (352)1,595

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

AtriumHotelMandurahPtyLtd

ABN96102783942

StatementofChangesinEquity

Fortheperiod1July2021to30June2022

20222021

Note$$

Profit/(Loss)fortheyear (352)1,594 OpeningBalanceattheBeginningofthePeriod (45,767)(47,361) (46,119)(45,767)

RetainedEarningsattheEndofthePeriod (46,119)(45,767)

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Statement of Financial Position

As at 30 June 2022

20222021

Note$ $

Assets

CurrentAssets

CashandCashEquivalents 26,791 TradeandOtherReceivables 310,862 OtherCurrentAssets 4 -3,083

TotalCurrentAssets 17,6533,083

NonCurrentAssets

TradeandOtherReceivables 541,324 Property,PlantandEquipment 6788,190800,818 TotalNonCurrentAssets 829,514800,818 TotalAssets 847,167803,901

Liabilities

CurrentLiabilities

TradeandOtherPayables 715,14513,254 Borrowings 8582,382501,132 TotalCurrentLiabilities 597,527514,386

NonCurrentLiabilities

Borrowings 9295,758335,281 TotalNonCurrentLiabilities 295,758335,281

TotalLiabilities 893,285849,667

NetAssets (46,118)(45,766)

Equity ShareCapital 10 1 1

RetainedEarnings 11(46,119)(45,767)

TotalEquity (46,118)(45,766)

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

AtriumHotelMandurahPtyLtd

ABN96102783942

NotestotheFinancialStatements

Fortheperiod1July2021to30June2022

FinancialReportingFramework

ThedirectorshavepreparedthefinancialstatementsonthebasisthattheCompanyisanonreporting entitybecausetherearenousersdependentongeneralpurposefinancialstatements.Thefinancial statementsarethereforespecialpurposefinancialstatementsthathavebeenpreparedinorderto meettheneedsoftheshareholdersandmustnotbeusedforanyotherpurpose.

Thefinancialstatementshavebeenpreparedinaccordancewiththesignificantaccountingpolicies disclosedinNote1,whichthedirectorshavedeterminedareappropriatetomeettheneedsofthe shareholders.Suchaccountingpoliciesareconsistentwiththepreviousperiodunlessstated otherwise.

BasisofPreparation

Thefinancialstatementshavebeenpreparedonanaccrualbasisandbasedonhistoricalcosts,unless otherwisestatedintheaccountingpoliciesbelow.AllamountsarepresentedinAustraliandollars, unlessotherwisenoted.

Note1AccountingPolicies

(a)PropertyPlant&Equipment

Allproperty,plantandequipmentexceptforfreeholdlandareinitiallymeasuredatcostandare depreciatedovertheirusefullivesonastraight-linebasis.Depreciationcommencesfromthetimethe assetisavailableforitsintendeduse.Leaseholdimprovementsaredepreciatedovertheshorterof eithertheunexpiredperiodoftheleaseortheestimatedusefullivesoftheimprovements.

Thecarryingamountofplantandequipmentisreviewedannuallybydirectorstoensureitisnotin excessoftherecoverableamountfromtheseassets.Therecoverableamountisassessedonthebasis oftheexpectednetcashflowsthatwillbereceivedfromtheasset’semploymentandsubsequent disposal.Theexpectednetcashflowshavenotbeendiscountedindeterminingrecoverableamounts.

Subsequentcostsareincludedintheasset’scarryingamountorrecognisedasaseparateasset,as appropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflow tothecompanyandthecostoftheitemcanbemeasuredreliably.Allotherrepairsandmaintenance arerecognisedasexpensesinprofitorlossduringthefinancialperiodinwhichtheyareincurred.

TheLand&Buildingscontainedinthestatementoffinancialpositionaremeasuredattheirhistorical costvalue,lesssubsequentdepreciationcharges.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

(b)ImpairmentofAssets

Attheendofeachreportingperiod,property,plantandequipment,intangibleassetsandinvestments arereviewedtodeterminewhetherthereisanyindicationthatthoseassetshavesufferedan impairmentloss.Ifthereisanindicationofpossibleimpairment,therecoverableamountofany affectedasset(orgroupofrelatedassets)isestimatedandcomparedwithitscarryingamount.The recoverableamountisthehigheroftheasset’sfairvaluelesscostsofdisposalandthepresentvalue oftheasset’sfuturecashflowsdiscountedattheexpectedrateofreturn.Iftheestimatedrecoverable amountislower,thecarryingamountisreducedtotheestimatedrecoverableamountandan impairmentlossisrecognisedimmediatelyinprofitorloss.

(c)TradeandOtherPayables

Tradeandotherpayablesrepresenttheliabilityoutstandingattheendofthereportingperiodfor goodsandservicesreceivedbythecompanyduringthereportingperiod,whichremainunpaid.The balanceisrecognisedasacurrentliability.Tradeandotherpayablesaresubjecttonormalcredit terms(30–60days)anddonotbearinterest.

(d)CashandCashEquivalents

Cashandcashequivalentsincludecashonhand,depositsheldatcallwithbanks,other short-termhighlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorless,andbank overdrafts.Bankoverdraftsareshownwithinborrowingsincurrentliabilitiesonthebalancesheet.

(e)RevenueandOtherIncome

Revenueismeasuredatthevalueoftheconsiderationreceivedorreceivableaftertakingintoaccount anytradediscountsandvolumerebatesallowed.Forthispurpose,deferredconsiderationisnot discountedtopresentvalueswhenrecognisingrevenue.

Interestrevenueisrecognisedusingtheeffectiveinterestratemethod,which,forfloatingrate financialassets,istherateinherentintheinstrument.Dividendrevenueisrecognisedwhentheright toreceiveadividendhasbeenestablished.

Revenuerecognisedrelatedtotheprovisionofservicesisdeterminedwithreferencetothestageof completionofthetransactionattheendofthereportingperiodandwhereoutcomeofthecontract canbeestimatedreliably.Stageofcompletionisdeterminedwithreferencetotheservicesperformed todateasapercentageoftotalanticipatedservicestobeperformed.Wheretheoutcomecannotbe estimatedreliably,revenueisrecognisedonlytotheextentthatrelatedexpenditureisrecoverable.

Allrevenueisstatednetoftheamountofgoodsandservicestax(GST).

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

(f)Leases

Thecompanyaslessee

AASB16Leases.Wherealeaseexists,aright-of-useassetandacorrespondingleaseliabilityare recognisedbythecompanywherethecompanyisalessee.However,allcontractsthatareclassified asshort-termleases(i.e.leasewithremainingleasetermof12monthsorless)andleasesoflowvalue assetswillberecognisedasanoperatingexpenseonastraight-linebasisoverthetermofthelease.

Initially,theleaseliabilityismeasuredatthepresentvalueoftheleasepaymentsstilltobepaidat commencementdate.Theleasepaymentsarediscountedattheinterestrateimplicitinthelease.If thisratecannotbereadilydetermined,thecompanyusestheincrementalborrowingrate.

Theright-of-useassetscomprisetheinitialmeasurementofthecorrespondingleaseliabilityas mentionedabove,anyleasepaymentsmadeatorbeforethecommencementdayaswellasany initialdirectcosts.Thesubsequentmeasurementoftheright-of-useassetsisatcostlessaccumulated depreciationandimpairmentlosses.

Right-of-useassetsaredepreciatedovertheleasetermorusefullifeoftheunderlyingasset whicheveristheshortest.

Wherealeasetransfersownershipoftheunderlyingassetorthecostoftheright-of-useassetreflects thatthecompanyanticipatesexercisingapurchaseoption,thespecificassetisdepreciatedoverthe usefullifeoftheunderlyingasset.

(g)GoodsandServicesTax(GST)

Revenues,expensesandassetsarerecognisednetoftheamountofGST,exceptwheretheamountof GSTincurredisnotrecoverablefromtheAustralianTaxationOffice(ATO).Inthesecircumstances,the GSTisrecognisedaspartofthecostofacquisitionoftheassetoraspartofanitemoftheexpense. ReceivablesandpayablesinthebalancesheetareshowninclusiveofGST.

Cashflowsarepresentedinthecashflowstatementonagrossbasis,exceptfortheGSTcomponents ofinvestingandfinancingactivities,whicharedisclosedasoperatingcashflows.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

(h)GoingConcern

Whilstacknowledgingthefinancialperformanceofthecompanyforthe2022financialyear,the financialstatementshavebeenpreparedonagoingconcernbasiswhichassumescontinuityof normalbusinessactivitiesandtherealisationofassetsandsettlementofliabilitiesinthenormal courseofbusiness.

Fortheyearended30June2022,thecompanyincurredalossafterincometaxof$352.Current liabilitiesexceededthecurrentassetsat30June2022andatyearthenendedacurrentassetdeficit of$579,874existed.Includedinthiscurrentassetdeficit$530,412isowingtoarelatedparty.

Additionally,managementhaveundertakenanumberofactionstoassistthecompanyincontinuing tooperateasaGoingConcern.

a)Theloanfromrelatedparty-AtriumBodyCorporatewillnotberecalledforpaymentunless cashflowallowsforittoberepaid.

b)ManagementhaveperformeddetailedbudgetsfortheFinancialyear2023toallowforthe repaymentoftheWestpacloanandtofunditsoperations.

c)TheCompanyhasenteredintoaRentalagreementwhichwillcovertheWestpacLoanrepayments togetherwithoutgoingschargesforthecoming12Months.

TheDirectorsacknowledgethecurrentfinancialrisksfacedbythecompanyduetoitscurrentfinancial situationhowevertheyaresatisfiedthatthecompanywillbeabletogeneratesufficientfundsfrom bothoperatingandpotentialfinancingactivitiesofthecompanyandassociatedentities.Accordingly, theDirectorsbelievethatitisappropriatetoadoptagoingconcernbasisofaccountinginthe preparationofthefinancialreport.

ShouldtheCompanynotbeabletocontinueasagoingconcern,itmayberequiredtorealiseits assetsanddischargeitsliabilitiesatamountsthatdiffertothosestatedinthefinancialreport.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

20222021 Note$$

FreeholdLand

LandatCost500,000500,000 TotalFreeholdLand500,000500,000

Buildings Buildings(Cost)411,343411,343

Less:AccumulatedDepreciation (144,250)(133,966) TotalBuildings267,093277,377

Improvements

FurnitureatCost36,00636,006 Less:AccumulatedDepreciation-Furniture (14,909)(12,565)

TotalLeaseholdimprovements21,09723,441

Land&Buildingsarerecordedatcostvaluelessitsaccumulateddepreciation.TheLand&Buildings consistofLot1OnStrataPlan11104(65OrmsbyTerrace,Mandurah).Thepropertywaspurchasedin 2007.AsecuredmortgageisregisteredbyWestpacwithrespecttothisproperty.

Note6Property,PlantandEquipment Note7TradeandOtherPayables

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note8Borrowings

20222021

CurrentNote$$

WestpacBusinessLoan****542051,97051,970

Loan-AtriumBodyCorporate-202281,250Loan-AtriumBodyCorporate449,162449,162

TotalCurrentBorrowings582,382501,132 20222021

Note9Borrowings

NONCURRENTNote$$

WestpacBusinessLoan***5420295,757335,281

TheLoanrepayabletoWestpacisasecuredloan.WestpachavearegisteredmortgageovertheLand &Buildings.Asat30.06.2022theinterestratewas4.62%.

TheLoanowingtoAtriumBodyCorporateisaninterestfreeloanprovidedbyitsparententity,The OwnersofStrataPlan11104.Therearecurrentlynodocumentedrepaymentdates.Theloanshave beensplitinto2022andhistoricaltoshowadditionalborrowingspostMISestablishment. Note10ShareCapital

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note11RetainedEarnings

Note$$

OpeningBalance

RetainedEarnings (45,766)(47,361)

TotalOpeningBalance (45,766)(47,361)

CurrentYearEarnings

CurrentEarnings (352) 1,595

TotalCurrentYearEarnings (352) 1,595

TotalRetainedEarnings (46,118)(45,766)

Note12RegisteredSecurity

Asat30June2022,aregisteredPPSRchargewithrespecttoasecurityinterestlodgedin2019bya formerdirector.Thesecurityinterestnotesallpresentandafteracquiredproperty.Managementare currentlydisputingthis.

Note13SubsequentEvents

Therearenosubsequenteventsthatrequiredisclosure.

Note14PrincipalPlaceofBusiness

65OrmsbyTerrace

MandurahWA

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Criterion Audit Pty Ltd

ABN 85 165 181 822

PO Box 233 LEEDERVILLE WA 6902

Suite 2, 642 Newcastle Street LEEDERVILLE WA 6007

Phone: 9466 9009

Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

As lead audit director for the audit of the financial statements of Atrium Hotel Mandurah Pty Ltd for the financial year ended 30 June 2022, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

• any applicable code of professional conduct in relation to the audit.

Yours faithfully

Stephen John Rellis CPA Director

CRITERION AUDIT PTY LTD

DATED 07 November 2022

Liability limited by a scheme approved under Professional Standards Legislation

To The Board of Directors

Independent Auditor’s Report

To the Members of Atrium Hotel Mandurah Pty Ltd (ABN: 96 102 783942)

Opinion

Criterion Audit Pty Ltd

ABN 85 165 181 822

PO Box 233 LEEDERVILLE WA 6902

Suite 2, 642 Newcastle Street LEEDERVILLE WA 6007

Phone: 9466 9009

We have audited the accompanying financial report, being a special purpose financial report, of Atrium Hotel Mandurah Pty Ltd (“the Company”), which comprises the statement of financial position as at 30 June 2022, detailed profit and loss statement for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

In our opinion, the financial report of Atrium Hotel Mandurah Pty Ltd is in accordance with the Corporations Act 2001, including:

a. Giving a true and fair view of the Company’s financial position as at 30 June 2022 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements; and

b. complying with Australian Accounting Standards to the extent described in Note 1, and the Corporations Regulations 2001.

Emphasis of Matter - Material Uncertainty Regarding Continuation as a Going Concern

Without modifying our opinion above, we draw attention to Note 1 to the financial report, which indicates that the Company incurred a loss of $352 for the year ended 30 June 2022 and at year end had a net current asset deficit of $579,874. These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty that may cast significant doubt about the ability of the Company to continue as a going concern and whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

Emphasis of Matter - Basis of Accounting

Without modifying our opinion, we draw attention to Note 1 of the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the directors’ financial reporting responsibilities under the Corporations Act 2001. As a result, the financial report may not be suitable for another purpose.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. 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 Company 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

Liability limited by a scheme approved under Professional Standards Legislation

Ethics for Professional Accountants (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.

Directors’ Responsibility 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 and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Corporations Act 2001 and is appropriate to meet the needs of the members. The directors’ responsibility also includes 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 ability of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Other Information

The directors are responsible for the other information. The other information comprises the information included in the company annual report for the year ended 30 June 2022 but does not include the financial report and our auditor’s report thereon.

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.

Auditor’s Responsibilities for the Audit of the Financial Report

Our responsibility is to express an opinion on the financial report based on our audit. 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 judgement 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 Company’s internal control.

• Evaluate the appropriateness of accounting policies used based on the accounting policies disclosed in Note 1 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 Company’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 Company 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 Company to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the 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.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

CRITERION AUDIT PTY LTD Director

AtriumOwnersStrataPlan11104UnitTrust

T/AAtriumHotelMandurah

TrusteesDeclaration

TheTrusteeshavedeterminedthattheunittrustisareportingentityandthatthisgeneralpurposefinancial reportshouldbepreparedinaccordancewiththeaccountingpoliciesprescribedinNote1tothefinancial statements.

TheTrusteesofAtriumOwnersStrataPlan11104UnitTrustdeclarethat:

1.Thefinancialstatementsandnotes,presentfairlytheunittrust'sfinancialpositionasat30June2022and itsperformancefortheperiod1July2021to30June2022inaccordancewiththeaccountingpolicies describedinNote1tothefinancialstatements;and

2.IntheTrusteesopinion,therearereasonablegroundstobelievethattheunittrustwillbeabletopayits debtsasandwhentheybecomedueandpayable.

Signed:

JamieTrawinski

Date: KerryLee

Date:

AtriumOwnersStrataPlan11104UnitTrust

T/AAtriumHotelMandurah

StatementofProfitorLoss

Fortheperiod1July2021to30June2022

2022 Note$

Income

AccommodationRevenue3,045,691

BeverageRevenue371,402

CorporateBookings34,125 EventRevenue263,483

FoodRevenue193,400

TVAdvertising1,364 TotalIncome3,909,464

CostofSales

CommissionFees-Agent/Booking249,337 Purchase-Food240,024 Purchase-Beverages115,763 Purchases-Other17,390 Purchases-Function/Event9,358 Purchase-Linen&Amenities251,496

HousekeepingLabour556,989 HousekeepingLabour-Super45,230

EquipmentHire-Event87

OtherDirectCosts305

ClosingStock (26,606)

TotalCostofSales1,459,373

Expenses

AdvertisingExpenses6,198 AuditFees20,710

BankCharges146

Bookkeeping46,268

ComputerExpenses37,019

ConsultingFees38,347

ConsultingFees-HR35,364

Consumables&Requisites13,657 Electricity&Gas122,528

EquipmentHire1,720

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

EquipmentHireFee-BodyCorporate330,000 Fines&penalties2,613 Freight&Courier416 GeneralExpenses1,354 Insurance53,006

LeaveProvision-Expense (1,433) Legalexpenses7,577 MerchantFees27,311

MotorVehicleExpenses80 OfficeEquipmentExpenses2,898 PayrollTaxExpense41,525 Postage1,163 Printing&Stationery24,886 ProfessionalFees80,789 Promotions&Entertainment33,634 Rent-VO's98,102

RepairsandMaintenance74,658 Replacements6,848 Security1,143 Staff-Amenities2,479 StaffTraining7,847

Strata-WaterRates/Consumption57,758 Subscriptions&Membership25,705 Superannuation106,028 Telephone&Internet28,658

Uniforms3,187 WagesandSalaries1,024,066 WasteDisposal2,800

WorkersCompensation37,187

TotalExpenses2,404,242

OtherIncome

OtherRevenue53,061

TotalOtherIncome53,061

DepreciationandAmortisation

Depreciation

Depreciation78,469

TotalDepreciation78,469

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Amortisation

AmortisationExpense58,075

TotalAmortisation58,075

TotalDepreciationandAmortisation136,544

Interest

InterestExpense InterestExpense7,906

TotalInterestExpense7,906

TotalInterest (7,906)

Loss (45,540)

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

AtriumOwnersStrataPlan11104UnitTrust

T/AAtriumHotelMandurah

StatementofChangesInEquity

Fortheperiod1July2021to30June2022

RetainedEarnings

Balanceat01July2021 0

Profit/(Loss)fortheyear (45,540)

AccumulatedLossesatYearEnd (45,540)

AccumulatedIncome(Losses)attheEndofthePeriod (45,540)

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

AtriumOwnersStrataPlan11104UnitTrust

T/AAtriumHotelMandurah

StatementofFinancialPosition

Asat30June2022

Assets

CurrentAssets

2022

Note$

CashandCashEquivalents3198,285

TradeandOtherReceivables447,069

Inventories626,606

TotalCurrentAssets271,961

NonCurrentAssets

Trade&OtherReceivables5293,383

RightofUseAssets7221,230

TotalNonCurrentAssets514,613

TotalAssets786,574

Liabilities

CurrentLiabilities

TradeandOtherPayables9278,996

AccruedandDeferredItems10233,765

OtherFinancialLiabilities1210,972

Borrowings1341,324

LeaseLiability1153,540 Provisions1445,827

TotalCurrentLiabilities664,424

NonCurrentLiabilities

LeaseLiabilities11167,690

TotalNonCurrentLiabilities167,690

TotalLiabilities832,114

NetAssets (45,540)

Equity

AccumulatedIncome(Losses)15(45,540)

TotalEquity (45,540)

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

AtriumOwnersStrataPlan11104UnitTrust

T/AAtriumHotelMandurah

StatementofCashFlows

Fortheperiod1July2021to30June2022

2022 Note$

OperatingActivities

Lossfortheyear (45,540)

Adjustmentsfor: InterestExpense7,906 Depreciation78,469

Amortisation58,075

MovementinProvisions45,827

Operatingcashflowsbeforemovementsinworkingcapital144,737

MovementinTradeandOtherReceivables (47,069)

MovementinInventories (26,606)

MovementinTradeandOtherPayables512,761

CashGeneratedFromOperations583,822

InterestPaid (7,906)

NetCashfromOperatingActivities575,916

InvestingActivities

PurchaseofProperty,PlantandEquipment (78,469)

PaymentofLeaseLiabilities (58,075)

NetCash(usedin)/fromInvestingActivities (136,544)

FinancingActivities

NetFundsloanedtorelatedparties (293,383)

NetProceedsfromBorrowings41,324

Netproceedsfrompremiumfunding10,972

NetCash(usedin)/fromFinancingActivities (241,087)

NetIncrease/(Decrease)inCashandCashEquivalents198,285

CashandCashEquivalentsattheBeginningofthePeriodCashandCashEquivalentsattheEndofthePeriod198,285

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

AtriumOwnersStrataPlan11104UnitTrust

T/AAtriumHotelMandurah

NotestotheFinancialStatements

Fortheperiod1July2021to30June2022

FinancialReportingFramework

ThetrusteeshavepreparedthefinancialstatementsonthebasisthattheUnitTrustisareportingentitybecausethe usersaredependentongeneralpurposefinancialstatements.Thefinancialstatementsarethereforegeneralpurpose financialstatementsthathavebeenpreparedinordertomeettheneedsoftheunitholders.

ThefinancialstatementshavebeenpreparedinaccordancewiththesignificantaccountingpoliciesdisclosedinNote1, whichthetrusteeshavedeterminedareappropriatetomeettheneedsoftheunitholders.Suchaccountingpolicies areconsistentwiththepreviousperiodunlessstatedotherwise.

BasisofPreparation

Thefinancialstatementshavebeenpreparedonanaccrualbasisandbasedonhistoricalcosts,unlessotherwisestated intheaccountingpoliciesbelow.AllamountsarepresentedinAustraliandollars,unlessotherwisenoted.

Note1SignificantAccountingPolicies

Theprincipalaccountingpoliciesadoptedinthepreparationofthefinancialstatementsaresetoutbelow.These policieshavebeenconsistentlyappliedtoalltheyearspresented,unlessotherwisestated.

NeworAmendedAccountingStandardsandInterpretationsAdopted

ThetrusthasadoptedalloftheneworamendedAccountingStandardsandInterpretationsissuedbytheAustralian AccountingStandardsBoard('AASB')thataremandatoryforthecurrentreportingperiod.

AnyneworamendedAccountingStandardsorInterpretationsthatarenotyetmandatoryhavenotbeenearly adopted.

TheadoptionoftheseAccountingStandardsandInterpretationsdidnothaveanysignificantimpactonthefinancial performanceorpositionofthetrust.

ThefollowingAccountingStandardsandInterpretationsaremostrelevanttothetrust:

ConceptualFrameworkforFinancialReporting(ConceptualFramework)

ThetrusthasadoptedtherevisedConceptualFrameworkfrom1July2021.TheConceptualFrameworkcontainsnew definitionandrecognitioncriteriaaswellasnewguidanceonmeasurementthataffectsseveralAccountingStandards, butithasnothadamaterialimpactonthetrust'sfinancialstatements.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

AASB 1060 General Purpose Financial Statements Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities

The trust has adopted AASB 1060 from 1 July 2021. The standard provides a new Tier 2 reporting framework with simplified disclosures that are based on the requirements of IFRS for SMEs. As a result, there is increased disclosure in these financial statements for key management personnel and related parties.

Basis of Preparation

These general purpose financial statements have been prepared in accordance with the Australian Accounting Standards Simplified Disclosures issued by the Australian Accounting Standards Board ('AASB'), and associated regulations and the Corporations Act 2001, as appropriate for profit oriented entities.

Historical cost convention

The financial statements have been prepared under the historical cost convention.

Critical accounting estimates

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.

Revenue Recognition

The company recognises revenue as follows:

Revenue from contracts with customers

Revenue is recognised at an amount that reflects the consideration to which the company is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the company: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.

Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Interest

Interestrevenueisrecognisedasinterestaccruesusingtheeffectiveinterestmethod.Thisisamethodofcalculating theamortisedcostofafinancialassetandallocatingtheinterestincomeovertherelevantperiodusingtheeffective interestrate,whichistheratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthe financialassettothenetcarryingamountofthefinancialasset.

Otherrevenue

Otherrevenueisrecognisedwhenitisreceivedorwhentherighttoreceivepaymentisestablished.

CurrentandNon-currentClassification

Assetsandliabilitiesarepresentedinthestatementoffinancialpositionbasedoncurrentandnon-current classification.

Anassetisclassifiedascurrentwhen:itiseitherexpectedtoberealisedorintendedtobesoldorconsumedinthe company'snormaloperatingcycle;itisheldprimarilyforthepurposeoftrading;itisexpectedtoberealisedwithin12 monthsafterthereportingperiod;ortheassetiscashorcashequivalentunlessrestrictedfrombeingexchangedor usedtosettlealiabilityforatleast12monthsafterthereportingperiod.Allotherassetsareclassifiedasnon-current.

Aliabilityisclassifiedascurrentwhen:itiseitherexpectedtobesettledinthecompany'snormaloperatingcycle;itis heldprimarilyforthepurposeoftrading;itisduetobesettledwithin12monthsafterthereportingperiod;orthereis nounconditionalrighttodeferthesettlementoftheliabilityforatleast12monthsafterthereportingperiod.Allother liabilitiesareclassifiedasnon-current.

Deferredtaxassetsandliabilitiesarealwaysclassifiedasnon-current.

CashandCashEquivalents

Cashandcashequivalentsincludescashonhand,depositsheldatcallwithfinancialinstitutions,othershort-term, highlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorlessthatarereadilyconvertibletoknown amountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.

TradeandOtherReceivables

Otherreceivablesarerecognisedatamortisedcost,lessanyallowanceforexpectedcreditlosses.

TradeandOtherPayables

Tradeandotherpayablesrepresentliabilitiesforgoodsandservicesreceivedonthebasisofnormalcreditterms(3060days)thatremainunpaidattheendofthereportingperiod.Tradeandotherpayablesdonotbearinterest.

ContractAssets

Contractassetsarerecognisedwhenthecompanyhastransferredgoodsorservicestothecustomerbutwherethe companyisyettoestablishanunconditionalrighttoconsideration.Contractassetsaretreatedasfinancialassetsfor impairmentpurposes.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Property,Plant&Equipment

Plantandequipmentisstatedathistoricalcostlessaccumulateddepreciationandimpairment.Historicalcostincludes expenditurethatisdirectlyattributabletotheacquisitionoftheitems.

Depreciationiscalculatedonastraight-linebasistowriteoffthenetcostofeachitemofproperty,plantand equipment(excludingland)overtheirexpectedusefullivesasfollows:

Plantandequipment

Theresidualvalues,usefullivesanddepreciationmethodsarereviewed,andadjustedifappropriate,ateachreporting date.

Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhenthereisnofutureeconomicbenefit tothecompany.Gainsandlossesbetweenthecarryingamountandthedisposalproceedsaretakentoprofitorloss.

ImpairmentofNon-financialAssets

Non-financialassetsarereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethatthe carryingamountmaynotberecoverable.Animpairmentlossisrecognisedfortheamountbywhichtheasset's carryingamountexceedsitsrecoverableamount.

Recoverableamountisthehigherofanasset'sfairvaluelesscostsofdisposalandvalue-in-use.Thevalue-in-useisthe presentvalueoftheestimatedfuturecashflowsrelatingtotheassetusingapre-taxdiscountratespecifictotheasset orcash-generatingunittowhichtheassetbelongs.Assetsthatdonothaveindependentcashflowsaregrouped togethertoformacash-generatingunit.

TradeandOtherPayables

Theseamountsrepresentliabilitiesforgoodsandservicesprovidedtothecompanypriortotheendofthefinancial yearandwhichareunpaid.Duetotheirshort-termnaturetheyaremeasuredatamortisedcostandarenot discounted.Theamountsareunsecuredandareusuallypaidwithin30daysofrecognition.

ContractLiabilities

Contractliabilitiesrepresentthecompany'sobligationtotransfergoodsorservicestoacustomerandarerecognised whenacustomerpaysconsideration,orwhenthecompanyrecognisesareceivabletoreflectitsunconditionalrightto consideration(whicheverisearlier)beforethecompanyhastransferredthegoodsorservicestothecustomer.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

EmployeeBenefits

Short-termemployeebenefits

Liabilitiesforwagesandsalaries,includingnon-monetarybenefits,annualleaveandlongserviceleaveexpectedtobe settledwhollywithin12monthsofthereportingdatearemeasuredattheamountsexpectedtobepaidwhenthe liabilitiesaresettled.

Otherlong-termemployeebenefits

Theliabilityforannualleaveandlongserviceleavenotexpectedtobesettledwithin12monthsofthereportingdate aremeasuredatthepresentvalueofexpectedfuturepaymentstobemadeinrespectofservicesprovidedby employeesuptothereportingdateusingtheprojectedunitcreditmethod.Considerationisgiventoexpectedfuture wageandsalarylevels,experienceofemployeedeparturesandperiodsofservice.Expectedfuturepaymentsare discountedusingmarketyieldsatthereportingdateonnationalgovernmentbondswithtermstomaturityand currencythatmatch,ascloselyaspossible,theestimatedfuturecashoutflows.

Definedcontributionsuperannuationexpense

Contributionstodefinedcontributionsuperannuationplansareexpensedintheperiodinwhichtheyareincurred.

FairValueMeasurement

Whenanassetorliability,financialornon-financial,ismeasuredatfairvalueforrecognitionordisclosurepurposes, thefairvalueisbasedonthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderly transactionbetweenmarketparticipantsatthemeasurementdate;andassumesthatthetransactionwilltakeplace either:intheprincipalmarket;orintheabsenceofaprincipalmarket,inthemostadvantageousmarket.

Fairvalueismeasuredusingtheassumptionsthatmarketparticipantswouldusewhenpricingtheassetorliability, assumingtheyactintheireconomicbestinterests.Fornon-financialassets,thefairvaluemeasurementisbasedonits highestandbestuse.Valuationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataare availabletomeasurefairvalue,areused,maximisingtheuseofrelevantobservableinputsandminimisingtheuseof unobservableinputs.

GoodsandServicesTax(GST)andOtherSimilarTaxes

Revenues,expensesandassetsarerecognisednetoftheamountofassociatedGST,unlesstheGSTincurredisnot recoverablefromthetaxauthority.Inthiscaseitisrecognisedaspartofthecostoftheacquisitionoftheassetoras partoftheexpense.

ReceivablesandpayablesarestatedinclusiveoftheamountofGSTreceivableorpayable.ThenetamountofGST recoverablefrom,orpayableto,thetaxauthorityisincludedinotherreceivablesorotherpayablesinthestatementof financialposition.

Cashflowsarepresentedonagrossbasis.TheGSTcomponentsofcashflowsarisingfrominvestingorfinancing activitieswhicharerecoverablefrom,orpayabletothetaxauthority,arepresentedasoperatingcashflows.

CommitmentsandcontingenciesaredisclosednetoftheamountofGSTrecoverablefrom,orpayableto,thetax authority.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

RightofUseAsset&LeaseLiabilites

Thetrustrecognisedarightofuseassetandaleaseliabilityattheleasecommencementdate,whichisthedatethat thelessormakestheassetavailable.

Therightofuseassetisinitiallymeasuredatcost,whichcomprises: -theamountoftheinitialmeasurementoftheleaseliability; -anyleasepaymentsmadeatorbeforethecommencementdate,lessanyleaseincentivereceived; -anyinitialdirectcostsincurred.

Afterthecommencementdate,theright-of-useassetismeasuredatcostlessanyaccumulateddepreciationandany accumulatedimpairmentlosses.Right-of-useassetsaredepreciatedusingthestraight-linedepreciationmethod,from thecommencementdateto(a)theendoftheusefullifeoftheunderlyingasset,incasetheleasetransfersownership oftheunderlyingassetbytheendoftheleaseterm,ortheleasecontainsapurchaseoptionthatisreasonablycertain tobeexercised,or(b)theearlieroftheendoftheusefullifeandtheendoftheleaseterm,inallothercases.

Theleaseliabilityisinitiallymeasuredatthepresentvalueoftheleasepaymentsthatarenotpaidatthe commencementdate,discountedusingtheinterestrateimplicitintheleaseor,ifthatratecannotbereadily determined,therespectiveentity’sincrementalborrowingrate.Leasepaymentsincludedinthemeasurementofthe leaseliabilitycomprisethefollowing: -fixedpayments,lessanyleaseincentives; -variableleasepaymentsthatdependonanindexorarate,initiallymeasuredusingtheindexorrateasatthe commencementdate;

-amountsexpectedtobepayablebytheGroupunderresidualvalueguarantees;

-theexercisepriceofapurchaseoptioniftheGroupisreasonablycertaintoexercisethatoption;and -paymentsofpenaltiesforearlyterminatingthelease,iftheGroupisreasonablycertaintoexerciseanoptiontoearly terminatethelease.

Afterthecommencementdate,theleaseliabilityismeasuredby:

-increasingthecarryingamounttoreflectinterestontheleaseliability; -reducingthecarryingamounttoreflecttheleasepaymentsmade;and -remeasuringthecarryingamounttoreflectanyreassessmentorleasemodifications,ortoreflecttheimpactfroma revisedindexorrate.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

GoingConcern

WhilstacknowledgingthefinancialperformanceoftheAtriumOwnersStrataPlan11104UnitTrustforthe2022 financialyear,thefinancialstatementshavebeenpreparedonagoingconcernbasiswhichassumescontinuityof normalbusinessactivitiesandtherealisationofassetsandsettlementofliabilitiesinthenormalcourseofbusiness.

Fortheyearended30June2022,theunittrusttradingasitsownseparateentity,previouslyconsolidatedwithAtrium BodyCorporate.

Thetrustincurredalossafterincometaxof$45,540whichincludesrelatedpartyequipmenthirecostsof$330,000. Thenetcashinflow/(outflow)fromoperatingactivitiesforthe2022financialyearwas$575,916.Currentliabilities exceededthecurrentassetsat30June2022,whichresultedinacurrentassetdeficitof$392,463.

Additionally,managementhaveimplementedthefollowingactionswhichwillberequiredtotakeplaceinorderfor thetrusttocontinueasaGoingConcernandtoadjusttotheongoingimpactoftheCoronaVirus(COVID-19):

• revenueasaresultofthecompletionoftherenovationsundertakenontherestaurant,thiswillleadtosignificant increasesofprofitabilityfortheFY2023year.Managementareconfidentthatthesebudgetedincreaseswillbe realised.

• aresultoftheeventroomsbeingavailableforuse.ThiswillleadtoafurtherincreaseinprofitabilityfortheFY2023 year.

• WaterCorporationandESMStrataforoutstandingdebtsowed.

allows,anagreementhasbeenreachedwiththecompany.

Thetrusteesacknowledgethecurrentfinancialrisksfacedbythetrustduetoitscurrentfinancialsituation.However, theyaresatisfiedthatthegroupwillbeabletogeneratesufficientfundsfrombothoperatingandfinancingactivitiesof thetrustandassociatedentitiesforitsongoingactivitiesandtherealisationofassetsandsettlementofliabilitiesin thenormalcourseofbusiness.

Accordingly,thetrusteesbelievethatitisappropriatetoadoptagoingconcernbasisofaccountinginthepreparation ofthefinancialreport.However,shouldtheentitynotachievethematterssetoutabove,andshouldthebudgeted forecastnotmaterialise,thereissignificantuncertaintywhetherthetrustwillcontinueasagoingconcern.

Shouldthetrustnotbeabletocontinueasagoingconcern,itmayberequiredtorealiseitsassetsanddischargeits liabilitiesatamountsthatdiffertothosestatedinthefinancialreport.Thefinancialreportdoesnotincludeany adjustmenttotheassetsorliabilitiesthatmaybenecessaryshouldthegroupnotbeabletocontinueasagoing concern.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note2CriticalAccountingJudgements,EstimatesandAssumptions

Thepreparationofthefinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptions thataffectthereportedamountsinthefinancialstatements.Managementcontinuallyevaluatesitsjudgementsand estimatesinrelationtoassets,liabilities,contingentliabilities,revenueandexpenses.Managementbasesits judgements,estimatesandassumptionsonhistoricalexperienceandonothervariousfactors,includingexpectations offutureevents,managementbelievestobereasonableunderthecircumstances.Theresultingaccounting judgementsandestimateswillseldomequaltherelatedactualresults.Thejudgements,estimatesandassumptions thathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilities(referto therespectivenotes)withinthenextfinancialyeararediscussedbelow.

Coronavirus(COVID-19)pandemic

JudgementhasbeenexercisedinconsideringtheimpactsthattheCoronavirus(COVID-19)pandemichashad,ormay have,onthecompanybasedonknowninformation.Thisconsiderationextendstothenatureoftheproductsand servicesoffered,customers,supplychain,staffingandgeographicregionsinwhichthecompanyoperates.Otherthan asaddressedinspecificnotes,theredoesnotcurrentlyappeartobeeitheranysignificantimpactuponthefinancial statementsoranysignificantuncertaintieswithrespecttoeventsorconditionswhichmayimpactthecompany unfavourablyasatthereportingdateorsubsequentlyasaresultoftheCoronavirus(COVID-19)pandemic.

Estimationofusefullivesofassets

Thecompanydeterminestheestimatedusefullivesandrelateddepreciationandamortisationchargesforitsproperty, plantandequipmentandfinitelifeintangibleassets.Theusefullivescouldchangesignificantlyasaresultoftechnical innovationsorsomeotherevent.Thedepreciationandamortisationchargewillincreasewheretheusefullivesare lessthanpreviouslyestimatedlives,ortechnicallyobsoleteornon-strategicassetsthathavebeenabandonedorsold willbewrittenofforwrittendown.

Employeebenefitsprovision

Asdiscussedinnote1,theliabilityforemployeebenefitsexpectedtobesettledmorethan12monthsfromthe reportingdatearerecognisedandmeasuredatthepresentvalueoftheestimatedfuturecashflowstobemadein respectofallemployeesatthereportingdate.Indeterminingthepresentvalueoftheliability,estimatesofattrition ratesandpayincreasesthroughpromotionandinflationhavebeentakenintoaccount

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note$

AtriumHotelMandurahPTYLTD51,556 WestpacHotelDebitCard71231,749

SuperannuationHoldingAccount8,250 Savings6%Refurbishment133,330 TilFloat3,400

TotalCashandCashEquivalents198,285 2022 Note$

SundryDebtors-Eftpos11,119 SundryDebtors-Cash619 Prepayments35,331 TotalTradeandOtherReceivables47,069 2022 NonCurrentNote$

RelatedPartyLoans

Note3CashandCashEquivalents Note4TradeandOtherReceivables Note5OtherFinancialAssets Note6Inventories

Atrium-BodyCorporateLoan293,383 TotalRelatedPartyLoans293,383 TotalOtherFinancialAssets293,383 2022 Note$ Inventory26,606 TotalInventories26,606

Theaboveloanisaninterestfreeloanbetweenrelatedparties.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note7RightofUseAssets

2022 Note$

RighttoUseAsset-NonCurrent221,230 TotalRightofUseAssets221,230

Theaboverighttouseassetisforthecommercialleaseoftheproperty,1/65OrmsbyTerraceMandurah,WA6210, betweenAtriumHotelMandurahPtyLtdandthetrust.

TheleaseexpiresinJune2026. 2022 $

Note8Non-currentAssets-Property,PlantandEquipment

Plantandequipment-atcost77,561 Less:AccumulatedDepreciation (77,561)

Reconciliations

Reconciliationsofthewrittendownvaluesatthebeginningandendofthecurrentfinancialyeararesetoutbelow:

TotalPlant&EquipmentPlant& Equipment Total $$

Balanceat1July2021 Additions 77,56177,561 DepreciationExpense (77,561)(77,561)

Balanceat30June2022

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

AccountsPayable243,071

GSTPayable

IntegratedClientAccount (208) PAYGWithholdingsPayable22,966 GSTAdjustment (1,500) GST (24,385) TotalGSTPayable (3,128) PayrollLiabilities

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note11LeaseLiabilities

2022 Note$

LeaseLiability-Current53540

LeaseLiability-NonCurrent167,690

TotalLeaseLiabilities221,230

Theaboveleaseliabilityisforthecommercialleaseoftheproperty,1/65OrmsbyTerraceMandurah,WA6210, betweenAtriumHotelMandurahPtyLtdandthetrust.

Theincrementalborrowingrateusedis3.87%. 2022 Note$

Note12OtherFinancialLiabilities

InsurancePremiumFunded11,466 Less:UnexpiredInterest (494) TotalOtherFinancialLiabilities10,972 2022 Note$

Note13Borrowings

Borrowings

Loan-AtriumHotelMandurahPL41,324 TotalRelatedPartyLoans41,324

TotalBorrowings41,324

TheAboveLoanisaninterestfreeloanpayabletoAtriumHotelMandurahPtyLtd.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note$

ProvisionforAnnualLeave38,943

ProvisionforTimeinlieu6,884 TotalProvisions45,827 2022

Note$

CurrentYearEarnings

CurrentEarnings (45,540)

TotalCurrentYearEarnings (45,540)

Theentitycommencedtradingasof01July2021,hencetherewasaNilopeningbalanceofRetainedEarnings.

Note14Provisions Note15AccumulatedIncome(Losses) Note16KeyManagementPersonnelDisclosures

TheHotelactivitiesinprioryearswerecarriedoutbytheOwnersofStrataPlan11104(AtriumBodyCorporate).

Compensation

Theaggregatecompensationmadetodirectorsandothermembersofkeymanagementpersonnelofthecompanyis setoutbelow:

TotalAccumulatedIncome(Losses) (45,540) 2022

Note$

Aggregatecompensation -

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note17RemunerationofAuditors

DuringthefinancialyearthefollowingfeeswerepaidorpayableforservicesprovidedbyCriterionAuditPtyLtd,the auditorofthecompany:

Note$

AuditServices-CriterionAuditPtyLtd(2022year) 12,000

Note18ContingentLiabilities

Theunittrusthadnocontingentliabilitiesasat30June2022and30June2021.

Note19Commitments

TheHotelhascommittedtopaytheamountof$5,000perweektowardstheAtriumBodyCorporateATOBalance outstanding.ThiscommitmentwillcontinueuntilsuchtimeastheATOdebtoftheAtriumBodyCorporateiscleared. ThedebtisunderapaymentarrangementandisscheduledforrepaymentinMarch2024.

Furthermore,theHotelhascommittedtorepaytheLannockloansoutstanding,whichareowingbyTheOwnersof StrataPlan11104(AtriumBodyCorporate).Monthlypaymentsofapproximatly$11,900arebeingmade.Thesefunds aretreatedasanadvancetotheAtriumBodyCorporate.TheBalanceoutstandingoftheLannockLoansat30.06.2022 is$1,034,714.

TheHotelhasenteredintoanEquipmentHireagreementwithTheOwnersofStrataPlan11104(AtriumBody Corporate)ofapprox$27,500permonth.Thechargeswillbeoffsetagainsttherelatedpartyloanaccountbalance. ThisagreementexpiresinMay2023.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note20RelatedPartyTransactions

Keymanagementpersonnel Disclosuresrelatingtokeymanagementpersonnelaresetoutinnote16.

Transactionswithrelatedparties Asdetailedbelow.

Note$

Purchases

EquipmentHire-TheOwnersofStrataPlan11104(Atrium BodyCorporate) 330,000

PurchaseofStockat01July2021-TheOwnersofStrataPlan 11104(AtriumBodyCorporate) 20,623

Rent&Outgoings(AtriumHotelMandurahPtyLtd) 156,177

ReimbursementsofWater&ElectricitychargestoESMStrata withrespecttotheStrataPlan 174,540

Totalpurchases 681,340

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

LoansReceivable

TheownersofStrataPlan11104(AtriumBodyCorporate)

293,383

Theaboveloanisanunsecured,withnodocumentedrepaymenttermsorinterestpayable.

LoansPayable

AtriumHotelMandurahPtyLtd 41,324

Theaboveloanisanunsecured,withnodocumentedrepaymenttermsorinterestpayable.

TradePayables

AtriumStrataPlan11104-ESM 131,637

AtriumHotelMandurahPtyLtd 10,868 142,505

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note21EventsAftertheReportingPeriod

TheimpactoftheCoronavirus(COVID-19)pandemicisongoingandwhileithasbeenfinanciallypositiveforthetrust upto30June2022,itisnotpracticabletoestimatethepotentialimpact,positiveornegative,afterthereportingdate. ThesituationisrapidlydevelopingandisdependentonmeasuresimposedbytheAustralianGovernmentandother countries,suchasmaintainingsocialdistancingrequirements,quarantine,travelrestrictionsandanyeconomic stimulusthatmaybeprovided.

Noothermatterorcircumstancehasarisensince30June2022thathassignificantlyaffected,ormaysignificantly affectthetrust'soperations,theresultsofthoseoperations,orthetrust'sstateofaffairsinfuturefinancialyears.

AdeedofRectificationwassignedinAugust2022withrespecttotheunregisteredManagedInvestmentScheme knownasAtriumResortHotel.

Note22ExplanatoryNotes

Bythetermsofthemanagementagreementexcutedin1981betweenAllSeasonHotels&ResortsPtyLtd('the manageratthetime)andeachoftheOwnersofAtriumStrataPlan11104("Owners").Themanageroperatedthe AtriumHotelResortMandurahcomprisingthelotsinStrataPlan11104togetherwithcommonpropertyandthe ConventionCentre.

In2009themanagementagreementwasconsolidatedincludingtheappointmentofAtriumHotelMandurahPtyLtdas thecorporateentityresponsibleforthemanagementoftheoftheunregisteredmanagedinvestmentschemeknown astheAtriumresort.

The2009managementagreementbestowsonthemanagerthepowersandobligationsofatrusteeforthebenefitof theOwnersofStrataPlan11104,andgovernedbythemanagementagreementinstitutedin1992.

ThebeneficialinterestofthetrustisdividedintounitsbasedonthelotownersofStrataPlan11104,excludingLot1, andaformaldeedwasexecutedinAugust2022toactastheconstitutionforthetrust.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Criterion Audit Pty Ltd

ABN 85 165 181 822

PO Box 233 LEEDERVILLE WA 6902

Suite 2, 642 Newcastle Street LEEDERVILLE WA 6007

Phone: 9466 9009

Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

As lead audit director for the audit of the financial statements of Atrium Owners Strata Plan 11104 Unit Trust for the financial year ended 30 June 2022, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

• any applicable code of professional conduct in relation to the audit.

Yours faithfully

Stephen John Rellis CPA Director

CRITERION AUDIT PTY LTD

DATED 07 November 2022

Liability limited by a scheme approved under Professional Standards Legislation

To The Board of Directors

Independent Auditor’s Report

To the Members of Atrium Owners Strata Plan 11104 Unit Trust

Opinion

Criterion Audit Pty Ltd

ABN 85 165 181 822

PO Box 233 LEEDERVILLE WA 6902

Suite 2, 642 Newcastle Street LEEDERVILLE WA 6007

Phone: 9466 9009

We have audited the accompanying financial report, of Atrium Owners Strata Plan 11104 Unit Trust T/A Atrium Hotel Mandurah (“the Trust”), which comprises the Statement of Financial Position as at 30 June 2022, detailed Profit and Loss Statement, Statement of Changes In Equity and Statement of Cashflows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the Trustees’ declaration.

In our opinion, the financial report on pages 1 26 of Atrium Owners Strata Plan 11104 Unit Trust is:

a. Giving a true and fair view of the Trusts financial position as at 30 June 2022 and of its performance for the year then ended on that date in accordance with the accounting policies described in Note 1 to the financial statements; and b. complying with Australian Accounting Standards to the extent described in Note 1

Emphasis of Matter - Material Uncertainty Regarding Continuation as a Going Concern

Without modifying our opinion above, we draw attention to Note 1, Going Concern to the financial report, which indicates that the Trust incurred a loss of $45,540 for the year ended 30 June 2022, had positive operating cashflows of $575,916 for the year then ended and at year end the current liabilities exceeded the current assets by $392,463 These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty that may cast significant doubt about the ability of the Trust to continue as a going concern and whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report

Emphasis of Matter Basis of Accounting

Without modifying our opinion, we draw attention to Note 1 of the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the Trustees financial reporting responsibilities to the unit holders. As a result, the financial report may not be suitable for another purpose.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. 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 Company 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 (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.

Liability limited by a scheme approved under Professional Standards Legislation

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

Directors’ Responsibility for the Financial Report

The directors of the Trustee Company are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Trustee and is appropriate to meet the needs of the unitholders. The directors’ responsibility also includes 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 ability of the Trust to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Trust or to cease operations, or has no realistic alternative but to do so.

Other Information

The directors of the Trustee Company are responsible for the other information. The other information comprises the information included in the Trust and its associated entities annual report for the year ended 30 June 2022 together with the appendix attached to the financial report but does not include the financial report and our auditor’s report thereon.

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.

Auditor’s Responsibilities for the Audit of the Financial Report

Our responsibility is to express an opinion on the financial report based on our audit. 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 judgement 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 Trust’s internal control.

• Evaluate the appropriateness of accounting policies used based on the accounting policies disclosed in Note 1 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 Trust’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 Trust 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 Trust to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the 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.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Rellis CPA Director

CRITERION AUDIT PTY LTD

Stephen

AtriumOwnersStrataPlan11104UnitTrust

T/AAtriumHotelMandurah

Appendix

Fortheperiod1July2021to30June2022

Income

20222021

Note$ $

AccommodationRevenue 3,045,6912,255,804

BeverageRevenue 371,402221,241

CorporateBookings 34,12540,487 EventRevenue 263,483

FoodRevenue 193,400207,337

TVAdvertising 1,364

TotalIncome 3,909,4642,724,869

CostofSales

OpeningStock 20,62318,942

CommissionFees-Agent/Booking 249,337114,649

Purchase-Food 219,401484,178

Purchase-Beverages 115,763

Purchases-Other 17,390

Purchases-Function/Event 9,358

Purchase-Linen&Amenities 251,496

HousekeepingLabour 556,989382,017

HousekeepingLabour-Super 45,23036,481

EquipmentHire-Event 87

OtherDirectCosts 3051,792

ClosingStock (26,606)(20,623)

TotalCostofSales 1,459,3731,017,438

Expenses

AdvertisingExpenses 6,1981,531

AuditFees 20,71010,700

BankCharges 1461,845

Bookkeeping 46,26819,358

ComputerExpenses 37,01913,831

ConsultingFees 38,34785,471

ConsultingFees-HR 35,364

Consumables&Requisites 13,65734,450

Electricity&Gas 122,5281,187

20222021

Note$ $

EquipmentHire 1,72023,914

Fines&penalties 2,613 888

Freight&Courier 416

GeneralExpenses 1,35411,183 Insurance 53,00662,907

LeaveProvision-Expense (1,433)(25,546)

Legalexpenses 7,57715,338

MerchantFees 27,31119,616

MotorVehicleExpenses 80

OfficeEquipmentExpenses 2,898

PayrollTaxExpense 41,52527,888 Postage 1,163

Printing&Stationery 24,8867,488

ProfessionalFees 80,78954,324

Promotions&Entertainment 33,63423,432

Rent-Lot1 -90,000 Rent-VO's 98,102

RepairsandMaintenance 74,65825,929 Replacements 6,848 242

Security 1,1433,285

Staff-Amenities 2,479

StaffTraining 7,8474,107

Strata-WaterRates/Consumption 57,75868,497

Subscriptions&Membership 25,70516,663

Superannuation 106,02895,508

SuperannuationPenalties 997

Telephone&Internet 28,65814,879

Uniforms 3,187

WagesandSalaries 1,024,0661,141,460 WasteDisposal 2,800

WorkersCompensation 37,187

TotalExpenses 2,074,2421,851,374

OtherIncome

JobkeeperPayments -208,500 CashflowBoost -37,500

OtherRevenue 53,06129,115

TotalOtherIncome 53,061275,115

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note$ $

DepreciationandAmortisation

Depreciation

Depreciation 78,469 TotalDepreciation 78,469

Amortisation

AmortisationExpense 58,075 TotalAmortisation 58,075 -

TotalDepreciationandAmortisation 136,544

Interest

InterestExpense

InterestExpense 7,9066,847

TotalInterestExpense 7,9066,847

TotalInterest (7,906)(6,847) Profit 284,460124,326

OtherComprehensiveIncome

ManagementFee -42,000 EquipmentHireFee-BodyCorporate (330,000)

TotalOtherComprehensiveIncome (330,000)42,000

TotalComprehensiveIncome (45,540)166,326

TheaboveappendixprovidesalikeforlikebreakdownoftheAtriumHotelOperationsprofit&loss, preconsolidationforthe2021financialyear.Thebreakdownalsoprovidesaprofitfigureofthetrust beforerelatedpartyfeesareincluded.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

TheOwnersofStrataPlan11104 (ATRIUMBODYCORPORATE)

SPECIALPURPOSEFINANCIALREPORT

Fortheperiod1July2021to30June2022 LGAccountingSolutions

ABN80389747852 POBox1008OsborneParkWA6916 Phone:0892084000 Website:www.lgas.com.au

TheOwnersofStrataPlan11104 (ATRIUMBODYCORPORATE)

Contents

CouncilofOwnersDeclaration

StatementofProfitorLoss

StatementofChangesinEquity

StatementofFinancialPosition

NotestotheFinancialStatements

Appendix

IndependentAuditorsReport

TheOwnersofStrataPlan11104

(ATRIUMBODYCORPORATE)

CouncilofOwnersDeclaration

TheCouncilofOwnersoftheStrataPlanhavedeterminedthatthestrataplanisnotareportingentityandthat thisspecialpurposefinancialreportshouldbepreparedinaccordancewiththeaccountingpoliciesprescribedin Note1tothefinancialstatements.

TheCouncilofOwnersdeclarethat:

1.Thefinancialstatementsandnotes,presentfairlytheStrataPlansfinancialpositionasat30June2022and itsperformancefortheperiod1July2021to30June2022inaccordancewiththeaccountingpolicies describedinNote1tothefinancialstatements;and

2.IntheTrusteesopinion,therearereasonablegroundstobelievethattheStrataPlanwillbeabletopayits debtsasandwhentheybecomedueandpayable.

Signed:

JamieTrawinski

Date:

KerryLee

Date:

TheOwnersofStrataPlan11104 (ATRIUMBODYCORPORATE)

StatementofProfit&Loss

Fortheperiod1July2021to30June2022

20222021 Note$$

Income

HotelRevenue 2-2,753,982

OtherIncome

StrataLevies-ESMStrata740,926575,541

RentReceived-BodyCorp9,2509,250 Reimbursements-ESMStrata229,90825,988

ManagementFees-Lot130,00042,000

EquipmentHireFee-MIS4330,000JobkeeperPaymentReceived-Hotel-208,500 OtherRevenue3,92337,500

TotalOtherIncome1,344,007898,779 InterestIncome16,7572,034

TotalIncome1,360,7633,654,795

CostofSales-Hotel

TotalHotelCostofSales 3 -902,788

Expenses

Advertising-Hotel-1,531

Auditfees-Hotel-10,700

AuditFees3,000BadDebtsWrittenOff-BodyCorp1,0331,105

BankFees1,367565

BankCharges-Hotel-1,835

Consumables-Hotel-34,450

BookkeepingFees-BodyCorp-1,777

BookkeepingFees-ESMStrata2,4411,200

BookkeepingFees-Hotel-19,358

CommissionPaid-Hotel-114,649

ConsultantsFees-BodyCorp-3,258

ConsultantsFees-ESMStrata11,24426,568

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note$$

ConsultantsFees-Hotel-85,471 BorrowingCostsAmortised-BodyCorp120120 ComputerExpenses-Hotel-13,831 Entertainment-23,432

EmployeeEntitlements-Hotel-(25,546) EquipmentHire10,32523,913 Gardening-ESMStrata-15,111

Fines&Penalties-Hotel-888 OtherExpenses-Hotel-10,627 Insurance-Hotel-62,907 Insurance-ESMStrata77,64379,986 InsuranceClaims-BodyCorp-4,158 InsuranceClaims-ESMStrata-4,273

Legalexpenses44,25220,384 LegalFees-Hotel-15,338 Licences-Hotel-556 Light,Power,Heating127,966125,982 Electricity&Gas-Hotel-1,187 ManagementFees-ESMStrata32,06527,328 MeetingExpenses-BodyCorp-150 MerchantFees-Hotel-19,616 MeetingExpenses-ESMStrata14,0919,146 PayrollTax-Hotel-27,888 Printing&Stationery-180

Printing,Postage&Stationery-Hotel-7,488 ProfessionalFees-BodyCorp-3,465 ProfessionalFees-Hotel-54,324 RentPaid-Hotel-90,000 Repairs&Maintenance-BodyCorp-7,458 Repairs&Maintenance-ESMStrata159,021163,179

Repairs&Maintenance-Hotel-25,929 Replacements-BodyCorp-3,276 Replacements-Hotel-242

WagesandSalaries-1,141,460 Superannuation-95,508

SuperannuationPenaltiesAccrued-Hotel-997 Security-Hotel-3,285 StaffTraining&Welfare-Hotel-4,107

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note$$

Subscriptions-16,663

StrataLevies-Hotel-33,331 Telephone&Internet-BodyCorp-155 Telephone&Internet-ESMStrata600810 Telephone&Internet-Hotel-14,879 WaterRates&Consumption-ESMStrata62,42753,198 Waterrates&consumption-Hotel-35,167

TotalExpenses547,5942,518,843

DepreciationandAmortisation

Depreciation

Depreciation93,288126,211 TotalDepreciation93,288126,211

TotalDepreciationandAmortisation93,288126,211

InterestExpense

Interestexpense119,918103,444

Surplus/(Deficit)fortheyear599,9643,510

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

TheOwnersofStrataPlan11104 (ATRIUMBODYCORPORATE)

StatementofChangesinEquity

Fortheperiod1July2021to30June2022

20222021 Note$$

OpeningRetainedEarnings/(Losses) (1,551,455)(1,554,964) Surplus/(Deficit)fortheyear599,9643,509

ClosingRetainedEarnings/(Losses)asatyearend (951,491)(1,551,455)

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

TheOwnersofStrataPlan11104 (ATRIUMBODYCORPORATE)

StatementofFinancialPosition

Asat30June2022

Assets

CurrentAssets

Note$$

CashandCashEquivalents5207,12558,181

TradeandOtherReceivables6323,365561,316 Inventories7-20,623

OtherCurrentAssets8-25,901

TotalCurrentAssets530,490666,021

NonCurrentAssets

InvestmentatCost 11

Trade&OtherReceivables6 530,412 Property,PlantandEquipment9 443,669 536,957 Intangibles10-120

TotalNonCurrentAssets974,082537,078

TotalAssets1,504,5721,203,099

Liabilities

CurrentLiabilities

TradeandOtherPayables1197,603333,210 IncomeinAdvance1247,009199,244

Taxliabilities14490,242558,969

Borrowings13686,532396,989 Provisions-54,194

TotalCurrentLiabilities1,321,3861,542,606

NonCurrentLiabilities

Borrowings13967,6371,034,733

IncomeinAdvance12167,040177,215

TotalNonCurrentLiabilities1,134,6771,211,948

TotalLiabilities2,456,0632,754,554

NetAssets

Equity

AccumulatedIncome(Losses)

(951,491)(1,551,455)

(951,491)(1,551,455)

TotalEquity (951,491)(1,551,455)

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

TheOwnersofStrataPlan11104 (ATRIUMBODYCORPORATE)

NotestotheFinancialStatements

Fortheperiod1July2021to30June2022

FinancialReportingFramework

TheCouncilofOwners,beingthemembersoftheStrataPlan11104(TheAtriumBodyCorporateorBody Corporate),havepreparedthefinancialstatementsonthebasisthatitisanonreportingentitybecause therearenousersdependentongeneralpurposefinancialstatements.Thefinancialstatementsare thereforespecialpurposefinancialstatementsthathavebeenpreparedinordertomeettherequirements oftheowners,theinformationneedsofstakeholdersandforthepreparationoftheIncomeTaxreturn. Thefinancialstatementshavebeenpreparedusingthefollowingaccountingstandards.

AASB:101PresentationoftheFinancialstatements

AASB:108Accountingpolicies,changesinAccountingEstimatesanderrors

AASB:1048Interpretationofstandards

AASB:1054AustralianAdditionalDisclosures

Thefinancialstatementshavebeenpreparedinaccordancewiththesignificantaccountingpolicies disclosedinNote1,whichtheCouncilofOwnershavedeterminedareappropriatetomeettheneedsof theunitholders.Suchaccountingpoliciesareconsistentwiththepreviousperiodunlessstatedotherwise.

BasisofPreparation

Thefinancialstatementshavebeenpreparedonanaccrualbasisandbasedonhistoricalcosts,unless otherwisestatedintheaccountingpoliciesbelow.AllamountsarepresentedinAustraliandollars,unless otherwisenoted.

Note1AccountingPolicies

PresentationofFinancialStatements

ThepresentationofthefinancialstatementshavebeencombinedtoincludetheAtriumBodyCorporate andESMStrata,fortheyearended30June2022.DuringtheyearaseparateABNwascreatedforthe StrataPlanwhichiscurrentlymanagedbyESMStrata.TheIncome,Expenditureandfinancialpositionof thisbusinessunithavebeenconsolidatedintothefinancialreport.

Thefinancialresultsandperformanceofthesubsidiaryentity,AtriumHotelMandurahPtyLtddonotform partofthisreport.

During2021,theHoteloperationsofAtriumHotelMandurahwereincludedintheactivityoftheStrata Plan.Thisceasedon30June2021.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

(a)IncomeTax

Theincometaxexpense(income)fortheyearcomprisescurrentincometaxexpense(income).TheBody Corporatedoesnotapplydeferredtax.

Currentincometaxexpensechargedtotheprofitorlossisthetaxpayableontaxableincomecalculated usingapplicableincometaxratesenacted,orsubstantiallyenacted,asatthereportingdate.Currenttax liabilities(assets)arethereforemeasuredattheamountsexpectedtobepaidto(recoveredfrom)the relevanttaxationauthority.

(b)LoansandReceivables

Tradereceivablesarerecognisedinitiallyatcostandaresubsequentlymeasuredatcostlessanyprovision forimpairment.Mostsalesaremadeonthebasisofnormalcredittermsandarenotsubjecttointerest. Wherecreditisextendedbeyondnormalcredittermsandismorethan12months,receivablesare discountedtotheirpresentvalue.Attheendofeachreportingperiod,thecarryingamountsoftradeand otherreceivablesarereviewedtodeterminewhetherthereisanyobjectiveevidencethattheamountsare notrecoverable.AprovisionforimpairmentisestablishedwhenthereisobjectiveevidencethattheBody Corporatewillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsofthereceivables. OtherreceivablesincludeloansgrantedbytheBodyCorporateandarediscountedtopresentvaluesusing theinterestrateinherentintheloan.

(c)Inventories

Inventoriesaremeasuredatthelowerofcostandnetrealisablevalue.Costsareassignedonafirst-infirstoutbasisandincludedirectmaterials,directlabourandanappropriateproportionofvariableandfixed overheadexpenses.

(d)Property,PlantandEquipment(PPE)

Allproperty,plantandequipmentexceptforfreeholdlandandbuildingsareinitiallymeasuredatcostand aredepreciatedovertheirusefullivesonastraight-linebasis.Depreciationcommencesfromthetimethe assetisavailableforitsintendeduse.Leaseholdimprovementsaredepreciatedovertheshorterofeither theunexpiredperiodoftheleaseortheestimatedusefullivesoftheimprovements.

Thecarryingamountofplantandequipmentisreviewedannuallybydirectorstoensureitisnotinexcess oftherecoverableamountfromtheseassets.Therecoverableamountisassessedonthebasisofthe expectednetcashflowsthatwillbereceivedfromtheasset’semploymentandsubsequentdisposal.The expectednetcashflowshavenotbeendiscountedindeterminingrecoverableamounts.

Subsequentcostsareincludedintheasset’scarryingamountorrecognisedasaseparateasset,as appropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowto thecompanyandthecostoftheitemcanbemeasuredreliably.Allotherrepairsandmaintenanceare recognisedasexpensesinprofitorlossduringthefinancialperiodinwhichtheyareincurred.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

(e)ImpairmentofAssets

Attheendofeachreportingperiod,property,plantandequipment,intangibleassetsandinvestmentsare reviewedtodeterminewhetherthereisanyindicationthatthoseassetshavesufferedanimpairmentloss. Ifthereisanindicationofpossibleimpairment,therecoverableamountofanyaffectedasset(orgroupof relatedassets)isestimatedandcomparedwithitscarryingamount.Therecoverableamountisthehigher oftheasset’sfairvaluelesscostsofdisposalandthepresentvalueoftheasset’sfuturecashflows discountedattheexpectedrateofreturn.Iftheestimatedrecoverableamountislower,thecarrying amountisreducedtotheestimatedrecoverableamountandanimpairmentlossisrecognised immediatelyinprofitorloss.

(f)TradeandOtherPayables

Tradeandotherpayablesrepresenttheliabilityoutstandingattheendofthereportingperiodforgoods andservicesreceivedbytheBodyCorporateduringthereportingperiod,whichremainunpaid.The balanceisrecognisedasacurrentliability.Tradeandotherpayablesaresubjecttonormalcreditterms (30–60days)anddonotbearinterest.

(g)EmployeeBenefits

ProvisionismadefortheBodyCorporateliabilityforemployeebenefitsarisingfromservicesrenderedby employeestotheendofthereportingperiod.Employeebenefitshavebeenmeasuredatthenominal amountsexpectedtobepaidwhentheliabilityissettled,plusanyrelatedon-costs.Bothannualleaveand longserviceleavearerecognisedwithintheprovisions.

(h)Provisions

Provisionsarerecognisedwhenthecompanyhasalegalorconstructiveobligation,asaresultofpast events,forwhichitisprobablethatanoutflowofeconomicbenefitswillresultandthatoutflowcanbe reasonablymeasured.

Provisionsrecognisedrepresentthebestestimateoftheamountsrequiredtosettletheobligationatthe endofthereportingperiod.

(i)CashandCashEquivalents

Cashandcashequivalentsincludecashonhand,depositsheldatcallwithbanks,other short-termhighlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorless,andbankoverdrafts. Bankoverdraftsareshownwithinborrowingsincurrentliabilitiesonthebalancesheet.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

(j)RevenueandOtherIncome

Revenueismeasuredatthevalueoftheconsiderationreceivedorreceivableaftertakingintoaccountany tradediscountsandvolumerebatesallowed.Forthispurpose,deferredconsiderationisnotdiscountedto presentvalueswhenrecognisingrevenue.

Interestrevenueisrecognisedusingtheeffectiveinterestratemethod,which,forfloatingratefinancial assets,istherateinherentintheinstrument.Dividendrevenueisrecognisedwhentherighttoreceivea dividendhasbeenestablished.

Revenuerecognisedrelatedtotheprovisionofservicesisdeterminedwithreferencetothestageof completionofthetransactionattheendofthereportingperiodandwhereoutcomeofthecontractcan beestimatedreliably.Stageofcompletionisdeterminedwithreferencetotheservicesperformedtodate asapercentageoftotalanticipatedservicestobeperformed.Wheretheoutcomecannotbeestimated reliably,revenueisrecognisedonlytotheextentthatrelatedexpenditureisrecoverable.

Allrevenueisstatednetoftheamountofgoodsandservicestax(GST).

(k)GoodsandServicesTax(GST)

Revenues,expensesandassetsarerecognisednetoftheamountofGST,exceptwheretheamountofGST incurredisnotrecoverablefromtheAustralianTaxationOffice(ATO).Inthesecircumstances,theGSTis recognisedaspartofthecostofacquisitionoftheassetoraspartofanitemoftheexpense.Receivables andpayablesinthebalancesheetareshowninclusiveofGST.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

(l)GoingConcern

WhilstacknowledgingthefinancialperformanceofTheownersofStrataPlan11104(AtriumBody Corporate)forthe2022financialyear,thefinancialstatementshavebeenpreparedonagoingconcern basiswhichassumescontinuityofnormalbusinessactivitiesandtherealisationofassetsandsettlementof liabilitiesinthenormalcourseofbusiness.Fortheyearended30June2022,theoverallStrataplanhada surplusof$599,964.

Currentliabilitiesexceededthecurrentassetsat30June2022andatyearendacurrent assetdeficitof$790,896existed.

Additionally,managementhaveimplementedthefollowingactionswhichwillberequiredtocontinuein orderfortheStrataPlantocontinueasaGoingConcern.

a)Asof31/10/2022theAtriumBodyCorporatehasanoutstandingliabilitytotheAustralianTaxation officeof$381,759.ThisdebtisunderapaymentarrangementwhichwasenteredintoinJanuary 2022.Ongoingweeklyrepaymentsof$5,000arerequiredtobemadetomaintainthispayment arrangement.ThepaymentarrangementrunsuntilMarch2024todischargethedebt.

b)TheStrataPlanhasenteredintoaninformalarrangementwiththeAtriumResortHotelforthe paymentof$5,000perweektobemadetowardstheoutstandingdebttotheATO.Theadvancesof thesesumsistobeallocatedagainsttherelatedpartyloanaccountwithAtriumResortHotelandthe StrataPlan.

c)TheStrataPlanhasdebtsowingtoLannockloans,aninformalarrangementwiththeAtriumResort Hotelforthepaymentofthemonthlyscheduledrepaymentsofapprox.$11,500permonthistobe madetowardstheoutstandingloanbalance.Theadvancesofthesesumsistobeallocatedagainst therelatedpartyloanaccountwithAtriumResortHotelandtheStrataPlan.

d)TheCouncilOfownersarerequiredtoimposeLeviesundertheStrataTitlesActwithrespecttothe AdministrationandReserveactivitiesoftheStrataPlan.IntheeventoftheHoteloperationsbeing unabletopaytheLannockLoansamountandATOBalance,aspeciallevymayberequiredtobe raisedtoassistwiththeserepayments.

e)TheStrataPlanatyearendhasapproximately$135,000owingtoitfromTheAtriumResortHotel. ThisbalanceisunsecuredanditiswithregardtovariousreimbursementschargedtotheHotel.An informalpaymentarrangementhasbeenenteredintotorecoverthisamount.

ThecouncilofownersacknowledgethecurrentfinancialrisksfacedbytheStrataPlanduetoitscurrent financialsituation;however,theyaresatisfiedthatthegroupwillbeabletogeneratesufficientfundsfrom bothoperatingandfinancingactivitiesoftheStrataPlanandassociatedentitiesforitsongoingactivities.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Accordingly,theCouncilofOwnersbelievethatitisappropriatetoadoptagoingconcernbasisof accountinginthepreparationofthefinancialreport.

However,shouldtheentitynotachievethematterssetoutaboveandshouldthebudgetedforecastnot materialisethereissignificantuncertaintywhethertheStrataPlanwillcontinueasagoingconcern.

ShouldtheStrataPlannotbeabletocontinueasagoingconcern,itmayberequiredtorealiseitsassets anddischargeitsliabilitiesatamountsthatdiffertothosestatedinthefinancialreport.Thefinancial reportdoesnotincludeanyadjustmenttotheassetsorliabilitiesthatmaybenecessaryshouldthegroup notbeabletocontinueasagoingconcern.

Note2HotelRevenue

2022 2021 Note $ $

FunctionRevenue 40,487

AccomodationIncome 2,255,804 BeverageSales 221,241 FoodSales 207,337 Other 29,113

TheHoteloperationsceasedtradingthroughtheOwnersofStrataPlan11104(AtriumBodyCorporate)on30.06.2021.

Note3HotelCostOfSales

TotalHotelRevenue 2,753,982 2022 2021 Note $ $

OpeningStock 18,942 Purchases 484,178 ClosingStock (20,623) OtherDirectCosts 1,792

HousekeepingLabour 382,017

HousekeepingSuperannuation 36,481

TotalHotelCostofSales -902,788

TheHoteloperationsceasedtradingthroughTheOwnersofStrataPlan11104(AtriumBodyCorporate)on 30.06.2021.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note4EquipmentHire

20222021

TheStrataPlanenteredintoanEquipmentHirearrangementwiththeAtriumResortHotelduringthe financialyear.TheagreementexpiresinMay2023.TheEquipmenthirechargeiswithrespecttovarious equipmentownedbytheStrataPlanhoweverutilisedbytheHoteloperations.

Note5CashandCashEquivalents

Note$$ EquipmentHire-AtriumResortHotel330,000TotalEquipmentHire330,00020222021

Note$$ CashonHand-3,400 ATMClearingAccount****4031-5,309 AtriumHotel****3092 (32,956) 19,286 WestpacBusinessOne****2509-710 WestpacBusinessOne****3121-1,584 WestpacBusinessOne****5560-5 WestpacBusinessOne****5579-9,858 WestpacBusinessOne****8619-105

WestpacBusinessOne****8627-94

ESM-Macquarie****6352240,08117,832

TotalCashandCashEquivalents207,12558,181

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note6TradeandOtherReceivables

CurrentTrade&OtherReceivables

20222021

Note$$

TradeDebtors-Hotel-1,136 TradeDebtors-ESMStrata138,3362,674 TradeDebtors-BodyCorp-2,000 Less:ProvforDoubtfulDebts-BodyCorp- (2,000) Leviesreceivable-ESMStrata185,029108,344 Loan-AtriumHotelMandurahPtyLtd-Relatedparty-449,162

TotalCurrentTradeandOtherReceivables323,365561,316

TheLoanowingbyAtriumHotelMandurahPtyLtdisaninterestfree,undocumentedrelatedpartyloan. ThebalancewasconsideredaNonCurrentAssetasat30.06.2022aspaymentisnotexpectedwithin12 months.

20222021

Note$$

NONCURRENT-Trade&OtherReceivables

Loan-AtriumHotelMandurahPtyLtd2022-Relatedparty81,250Loan-AtriumHotelMandurahPtyLtd-Relatedparty449,162-

TotalNonCurrentTradeandOtherReceivables530,412-

TheLoanowingbyAtriumHotelMandurahPtyLtdisaninterestfree,undocumentedrelatedpartyloan. ThebalancewasconsideredaNonCurrentAssetasat30.06.2022aspaymentisnotexpectedwithin12 months.The2022loanbalancehasbeenseparatelyidentifiednowthattheHoteloperationsareoperating throughtheMIS

Note7Inventories

20222021

Note$$ Stock-20,623 TotalInventories-20,623

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Note12IncomeinAdvance

CURRENTLIABILITY

DepositsReceived-Hotel-188,888 OptusLease10,17510,175 PrepaidLevies-ESMStrata36,833181 TotalAccruedandDeferredItems47,009199,244

NONCURRENTLIABILITY

Duringtheyearended30June2020,anagreementwassignedbyTheOwnersofStrataPlan11104with Optuswithrespecttotheleaseofroofspace.Theagreementisfor20years.Thetermsincludeda paymentupfrontforthe20yearperiodandtherevenueisrecognisedonastraightlinebasisoverthis period.

Note13Borrowings

OptusLease 167,040177,215 TotalAccruedandDeferredItems 167,040177,215 20222021 Note$$

CurrentBorrowings

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

NonCurrentBorrowings

LannockLoans 967,6371,034,733

Theloanowingtotheformerchairpersoniscurrentlysubjecttoalegaldispute-Nointeresthasbeen accruedonsuchloan.

Note14CurrentTaxLiabilities

TotalNonCurrentBorrowings 967,6371,034,733 20222021 Note$$

GST/PAYGWHPayable 490,754558,627 IncomeTaxPayable (512)342

TotalCurrentTaxLiabilities 490,242558,969

ThereisapaymentarrangementinplaceforthemajorityoftheGST/PAYGWHpayableatyearend.

Note15EventsSubsequenttoReportingDate

Intheperiodsubsequenttoyearend,thefollowingaction/stookplace:

AcontinuedlegaldisputeisinprogresswithDavidEvans,managementhasengagedtheservicesoflawyers withregardstothematter.

Note16ContingentLiability

Acontingentliabilityexistedat30June2022duetothefollowing:

Thesubsidiaryentity,AtriumHotelMandurahPtyLtdhasaWestpacloanfacilitywhichamountsto $347,727attheyearended30June2022.Intheeventofthesubsidiarycompanybeingunabletopayfor theloanliability,thestrataplanwillbecomeliableforthebalanceoutstanding.

InterestcostsmaybeapplicableontheloanbalanceoutstandingtoDavidEvans.Thisloaniscurrentlyina legaldisputeandisbeingcontested.TheamountpayableontheongoinglegalmatterisintherangeofNil to$250,000.Inadditiontotherecognisedliabilityof$152,385asrecordedabove.Thisisonthebasisthat theStrataplanhasanadverselegalfindingagainstitwithrespecttothismatter.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

TheOwnersofStrataPlan11104 (ATRIUMBODYCORPORATE)

Appendix

Fortheperiod1July2021to30June2022

Expenses

20222021

Note$$

AuditFees3,0003,465

BadDebtsWrittenOff-BodyCorp1,0331,105 BankFees1,367555

BookkeepingFees-BodyCorp-1,777

BookkeepingFees-ESMStrata2,4411,200 ConsultantsFees-BodyCorp-3,258 ConsultantsFees-ESMStrata40,85726,568

BorrowingCostsAmortised-BodyCorp120120 EquipmentHire10,325Gardening-ESMStrata-15,111 Insurance-BodyCorp-4,158 Insurance-ESMStrata77,64384,258 Legalexpenses11,38920,384

Light,Power,Heating127,966125,982

ManagementFees-ESMStrata35,31527,328 MeetingExpenses-BodyCorp-150 MeetingExpenses-ESMStrata14,0919,146

Printing&Stationary-BodyCorp-180

Repairs&Maintenance-BodyCorp-7,458

Repairs&Maintenance-ESMStrata159,021163,179

Replacements-BodyCorp-3,276

Telephone&Internet-BodyCorp-155

Telephone&Internet-ESMStrata600810

WaterRates&Consumption-ESMStrata62,42653,198

TotalExpenses547,594552,820

OtherIncome

OtherRevenue3,923StrataLevies-ESMStrata740,926575,541

RentReceived-BodyCorp9,2509,250

OtherRentalIncome-ESMStrata229,90825,988

TotalOtherIncome984,007610,779

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

DepreciationandAmortisation

Depreciation

Depreciation93,288126,211 TotalDepreciation93,288126,211

TotalDepreciationandAmortisation93,288126,211

Interest

InterestIncome

InterestReceived-ESMStrata16,7572,005 InterestReceived-BodyCorp-27 TotalInterestIncome16,7572,032

InterestExpense

InterestPaid-BodyCorp111,62596,597 Interest-OwnersLoans8,293TotalInterestExpense119,91896,597

TotalInterest (103,161)(94,565) Profit239,964(162,817)

OtherComprehensiveIncome

ManagementFees-Lot130,000EquipmentHireFee-MIS330,000TotalOtherComprehensiveIncome360,000TotalComprehensiveIncome599,964(162,817)

TheaboveappendixprovidesalikeforlikebreakdownoftheAtriumBodyCorporateentities,pre consolidationforthe2021financialyear.Thebreakdownalsoprovidesaprofitfigureofthebody corporatebeforerelatedpartyfeesareincluded.

Thesestatementsshouldbereadinconjunctionwiththeattached compilationreport.

Criterion Audit Pty Ltd

ABN 85 165 181 822

PO Box 233 LEEDERVILLE WA 6902

Suite 2, 642 Newcastle Street LEEDERVILLE WA 6007

Phone: 9466 9009

Auditor’s Independence Declaration

As lead audit director for the audit of the financial statements of The Owners of Strata Plan 11104 (Atrium Body Corporate) for the financial year ended 30 June 2022, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• the auditor independence requirements of the applicable Act in relation to the audit; and

• any applicable code of professional conduct in relation to the audit.

Yours faithfully

Stephen John Rellis CPA Director

CRITERION

AUDIT PTY

LTD DATED 04 November 2022

Liability limited by a scheme approved under Professional Standards Legislation

To the Council of Owners

Independent Auditor’s Report

To the Members of The Owners of Strata Plan 11104

ATRIUM BODY CORPORATE

ABN: 83 733 720 581

Qualified Opinion

Criterion Audit Pty Ltd

ABN 85 165 181 822

PO Box 233 LEEDERVILLE WA 6902

Suite 2, 642 Newcastle Street LEEDERVILLE WA 6007

Phone: 9466 9009

We have audited the financial report, being a special purpose financial report, of the Owners of Strata Plan 11104 (“the Strata Plan” or “Atrium Body Corporate”) which comprises the Statement of Financial Position as at 30 June 2022, Detailed Profit and Loss statement and Statement of Changes in Equity, for the year then ended, together with notes comprising a summary of significant accounting policies and other explanatory information, and the Council of Owners’ declaration.

In our opinion, except for the matters described in the Basis of Qualified Opinion below, the special purpose financial report of The Owners of Strata Plan 11104 (Atrium Body Corporate), as set out on pages 1 19 presents fairly, in all material respects, the financial position of the Strata Plan as at 30 June 2022 and its financial performance for the year then ended in accordance with the accounting policies described in Note 1 of the financial report. Our opinion does not cover the appendix as outlined on pages 20 and 21 of the report.

Basis for Qualified Opinion

Qualified Opinion Plant & Equipment

Included in the statement of financial position are plant & equipment which is currently valued at cost less accumulated depreciation totalling $443,670 This includes improvements to various rooms throughout the Atrium Resort Hotel complex totalling a written down value of $215,815. These are included as assets of the Strata Plan within the financial report We are unable to determine if the ownership of these improvements belong to the Strata Plan or are the assets of the respective room owners. No adjustment has been made with respect to this and therefore we are unable to provide an opinion on the carrying value or ownership of these improvements.

Emphasis of matter –Material Uncertainty regarding Going Concern

Without modifying our opinion above, we draw attention to Note 1 Going Concern, of the financial report, which indicates that the Strata Plan had a surplus of $599,964 for the year ended 30 June 2022 At year ended 30 June 2022 a net current asset deficit of $790,896 existed These conditions along with other matters included in the Note 1 Going Concern, indicate the existence of a material uncertainty that may cast significant doubt on the ability of the plan to continue as a going concern If the Stata Plan is unable to continue as a Going Concern, then it may not be able to realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

Liability limited by a scheme approved under Professional Standards Legislation

Emphasis of matter - Basis of Accounting

Without modifying our opinion, we draw attention to Note 1 of the financial report, which describes the basis of accounting and presentation of the financial report. The financial report has been prepared for the purpose of fulfilling the Council of Owners financial reporting responsibilities to its members. As a result, the financial report may not be suitable for another purpose.

We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. 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 Strata Plan 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 (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 qualified opinion.

Council of Owners’ Responsibility for the Financial Report

The Council of Owners of the Strata Plan are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the members and the reporting requirements. The Council of Owners’ responsibility also includes such internal control as the Council of Owners 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 Council of Owners are responsible for assessing the ability of the group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Council of Owners either intend to liquidate the Strata Plan or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the financial reporting process of the group.

Other Information

The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2022, but does not include the financial report and our auditor’s report thereon.

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.

Auditor’s Responsibilities for the Audit of the Financial Report

Our responsibility is to express an opinion on the financial report based on our audit. 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 judgement 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 Atrium Body Corporate internal control.

• Evaluate the appropriateness of accounting policies used based on the accounting policies disclosed in Note 1 and the reasonableness of accounting estimates and related disclosures made by the Council of Owners

• Conclude on the appropriateness of the Council of Owners’ 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 audit. We remain solely responsible for our audit opinion.

We communicate with the Council of Owners 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.

We also provide the Council of Owners with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards

CRITERION AUDIT PTY LTD

STEPHEN RELLIS CPA Director

Dated 07 November 2022

APPENDIX 6.1 INTRODUCTION TO CONSULTANTS

CONSULTANTS PROJECT PHASES 1, 2 & 3 STRATEGIC PLAN

DONNA BATES STRATEGIC PLANNING CONSULTANT ONPOINT! STRATEGY

Donna Bates is an Award winning Strategic Planning Consultant and Owner of OnPoint! Strategy She has over 25+ years’ of experience in Senior Executive Leadership specialising in Corporate Strategy, Governance and Marketing. She aligns companies to their Vision designing exceptional strategies to future proof the companies she is consulting with to maximise sustainable profitability for growth She has worked for some of the world’s largest and most respected brands, most notably News Corporation and the Royal Automobile Clubs where she worked on National and International projects to innovate and re imagine companies into agile, profitable businesses. She was a Senior Media Advisor with the Department of Defence and is currently a member of the Australian Institute for Company Directors, Fellow of the Governance Institute of Australia, Conscious Capitalism, and the Centre for Public Integrity. She sits on the Board of the Bendigo Bank and is an Executive Board Member for the Rockingham Kwinana Chamber of Commerce In late 2020, Donna was the recipient of the Australian Women in Finance Award and runner up for Businessperson of the Year with the RKCC in 2021. In 2022, she was awarded the Peel CCI Business of the Year (Solo).

LLEW EYNON LG ACCOUNTING SOLUTIONS

Llew is the founding Director of LG Accounting Solutions and Partner with Succession Plus He has been a Director of LG Accounting Solutions for over 21 years and an accountant for over 30 years He is highly sought after for his strategic financial advice and has a passion for working closely with business owners optimising their business success using the strategic accounting and financial knowledge accrued over 30 years Llew and his team of 20 accountants and administrators specialise in all things tax compliance, in depth business analysis, financial modelling, succession planning as well as ongoing analysis and advice for businesses. At the heart of our work is this: our business is about relationships and trust.

CONSULTANTS PROJECT PHASES 1, 2 & 3 IMPLEMENTATION

VICKI MOUNTAIN OWNER & SENIOR SOLICITOR MOUNTAINS LAWYERS LEGAL SOLUTIONS

Vicki Mountain is the owner of one of WA's premier boutique law firms She has represented clients in various courts and tribunals across Australia and is an admitted Barrister and Solicitor of the High Court of Australia and Supreme Court of Western Australia Vicki has both accounting and legal qualifications providing her clients with a complete advocacy experience specialising in trade practices, contractual disputes, mediation, and conduct of major insolvency and other commercial litigation matters. Vicki's experience with the Department of Consumer and Employment Protection, various forensic accountants, and insolvency practitioners was instrumental to her engagement with (ASIC) the Australian Securities and Investment Commission, where she provided legal advice and appeared and assisted counsel with Federal Court actions concerning entities within the "Westpoint Group" During her engagement with ASIC, the Federal Court handed down the groundbreaking decision with ramifications for accessing trust assets if a debtor is deemed to be the ultimate controller of the trust funds. In 2000, she established Mountains Lawyers, providing access to affordable justice for her business clients She is an active member/ committee member of the Insolvency Practitioners Association and the International Women's Insolvency Committee, and a member of the Executive Committee of the Rockingham Kwinana Chamber of Commerce.

JAKE KNEEBONE STRATA MANAGER ESM STRATA MANAGEMENT

Jake Kneebone is the Owner of ESM Strata Pty Ltd established in 1987 ESM Strata is one of the largest Strata Management Companies in WA and has grown over this time, to manage in excess of 850 strata companies, representing over 11,000 lot proprietors Jake has been a councillor of the Strata Titles Institute of WA (now SCA(WA)) and held committee positioning on Professional Standard, Law Review, and Business Planning. He was vice president and treasurer for a number of years. Jake is also a consultant to the property industry.

Jakes has represented the SCA(WA) on the Community Titles Advisory Committee (CTAC), a committee appointed by the Minister of Lands to advise the minister on community titles needs, including proposed amendments to the existing strata titles legislation. Jake is in regular contact to keep up to date with current practices and procedures in the eastern states to ensure that ESM embraces the latest technologies and practices.

APPENDIX 6.2: APPROVED CORPORATE GOVERNANCE MODEL

The above model was tabled and agreed upon by the Council or Owners and Board collectively at a meeting on the 27th January 2021, placing strict governance and oversight across the entirety of the Atrium Group of Companies

This kind of structure can only work as it should if it is upheld and used to govern the companies that have governance and oversight of the Atrium Hotel Mandurah for and on behalf of the Owners of SP11104.

It is highly recommended that the adopted model which includes non owner professionals support the Council of Owners and Board of Directors in their capacity as Auditor, Company Accountants, Legal, Strategic Advisory, and Strata Management. This is to ensure unbiased compliance across all levels of operations and strategic implementation is upheld

Multi level oversight and accountability have been implemented to ensure compliance standards are upheld, but this is only as good as the commitment of the Owner governing bodies to ensure remains in place.

Some decisions made historically (including some 10 15 years ago) were devoid of compliance, governance, or oversight putting the Owners, the Directors, and the Strata company at risk This is no longer acceptable and the new model will ensure this not happen

IMPORTANT FOR ALL OWNERS!

New strict government regulations surrounding employment law and OH&S manslaughter laws identify the company and directors as liable for non compliance to OH&S regulations, along with other new Corporations and Strata Act provisions.

STRUCTURE