Synergy & Taikoz Ltd 2016 Annual Report

(a company limited by a guarantee) ABN 67 003 352 181

Synergy & TaikOz Ltd Annual Report 31 December 2016

© Synergy & TaikOz Ltd 2017

Synergy Percussion & Taikoz : Annual Report 2016

Contents

Contents Directors’ Report

2

3

Artistic Directors’ Report

14

Synergy Percussion Artistic Director’s Report

17

Taikoz Artistic Director’s Report

23

Auditor’s Independence Declaration

30

Financial Report

31

Statement of Comprehensive Income

32

Statement of Financial Position

33

Statement of Changes in Equity

34

Cash Flow Statement

35

Notes to the Financial Report

36

Directors’ Declaration

52

Declaration by General Manager

53

Independent Auditor’s Report

54

Synergy Percussion & Taikoz : Annual Report 2016

Directors’ Report

Directors’ Report Your directors submit the financial report for Synergy & TaikOz Ltd for the year ended 31 December 2016.

Directors The names of the directors in office during the year and until the date of this report, 15th May 2017, are: • Jeremy Wright (Chair, Board and Chair, Philanthropy Committee) • Jodie Baker (Chair, Finance and Risk Committee) • Helen Brown

• Norman Weaver • Elsa Atkin • Ian Cleworth • Elizabeth Hill • Phillipa Berkett

Phillipa Berkett joined the Board on 27 June 2016, Louisa Graham resigned on 30 May 2016, and Timothy Constable resigned from the Board on 10 April 2017.

Principal activities The principal continuing activities of the company consisted of the promotion of the study, practice and performance of contemporary music and associated art forms.

There were no significant changes in the nature of the activities of the company during the year.

Operating result The surplus for the year amounted to $7,216, (($180,366) deficit 2015).

Dividends No dividend was declared or paid by the directors during the year.

The company’s constitution prohibits the declaration or payment of dividends.

Environmental issues The company’s operations are not regulated by any particular and significant environmental regulation under a law of the Commonwealth or State.

Regulation The Company is regulated under the Charitable Fundraising (NSW) Act 1991.

The company is also registered with the ACNC.

3

Synergy Percussion & Taikoz : Annual Report 2016

Directors’ Report

Directors’ Report A Note from the Chair Overview 2016 was an extraordinary year for Synergy and Taikoz, our players and everyone associated with the Company.

The two ensembles provided their most extensive creative output ever - Synergy with Cinemusica and 40Under40, and Taikoz with a Chi Udaka tour spanning Eastern Australia and India. Meanwhile we faced a Damocles-like cut to our future funding with the Australia Council announcements in May and managed our way through a related crisis in accommodation.

And we survived the year financially, with an operating surplus of $7,216 as the first surplus for several years. However, this came at the cost of a significant reduction in our administrative staff and we are now adjusting to the departures of an Artistic Director and several key players.

The profile of the two ensembles remained intact and thankfully there is now some security of premises. A rebuilding of both ensembles is underway and a new operating model, necessarily dependent on successful grant applications, is now in place.

Synergy The year began with the impending Australian Chamber Orchestra tour of Cinemusica imposing a heavy load on our Artistic Director, Timothy Constable and the other players, Beth Van Reyk and Josh Hill. Timothy was finishing a new composition for the tour and the players were involved in extensive rehearsals. The April performances, starting in Sydney and touring nationally, attracted strong audiences, great critical acclaim and strengthened the group’s profile to new audiences.

The year ended for Synergy with an amazing 40Under40 launch in December at Yellow House gallery Potts Point. This involved the world premier of 40 original and delightful ‘miniature’ percussion compositions produced for digital audiences and hosted on our own web platformhttp://synergypercussion40under40.com/ which is now available in perpetuity.

In between April and December, Synergy, their Artistic Assistant Tim Hansen and various creative associates – produced, filmed and recorded the 40Under40 material, toured to South Korea for a performance of Earth Cry, performed Petra in Sydney with Vox Choir (the Sydney Philharmonic Choirs) which included a newly commissioned work by Melody Eötvös. And we released two new CD’s – Masterpieces in Time and Xenakis Pleiades.

Taikoz and Chi Udaka For Taikoz, more than half of 2016 was devoted to producing and touring Chi Udaka, with at least 4 months spent developing the production and rehearsing, and over 2 months of the year actually touring both Eastern Australia and India. Added to this, an enormous administrative effort was undertaken in planning the respective tours, developing the marketing and other required materials, and organising a supporters tour of India.

4

Synergy Percussion & Taikoz : Annual Report 2016

Directors’ Report

The outcome was judged to be an outstanding success in artistic terms, critical acclaim and international goodwill for Australia, but with a disappointing shortfall in early audiences in Australia. The national tour was curtailed (in Adelaide and Melbourne) given insufficient forward bookings. However, as the tour progressed, through regional NSW and Canberra, returning to Sydney and in Brisbane, these audiences were bolstered by excellent word-of-mouth.

The India tour (10th - 30th Nov), as a partnership with the Australian Department of Foreign Affairs, was a great achievement, but not without its difficulties. Performances in Chennai, Hyderabad and Mumbai were greeted with standing ovations, and the show at Visakhapatnam was followed by local officials heaping great praise on the performers and organisers. Workshops in all these centres were very well received. However, the Bangalore performance - the first on tour - had to be cancelled following delays in freight forwarding that were outside the company’s control.

The Taikoz players, led by Artistic Director Ian Cleworth and the Lingalayam dancers, directed by Anandavalli, were superbly professional throughout this time. A note that Ryuji Hamada stepped up to ably fill the gap left by Anton Lock, for the tour.

The tour organisation - especially through India - was superbly driven by our General Manager Lee McIver. The support provided by the Department of Foreign Affairs, particularly from the Australian Consul General for South India Mr Sean Kelly, was exceptional.

The rest of the year was filled with the Taikoz players conducting weekly term classes for over 100 of our own students as well as Taiko clubs in four of Sydney’s leading private schools, and monthly one off workshops attended by over 450 of Sydney’s community. Additionally to this, the ensemble and its associate players performed 171 school shows touring for the Musica Viva in Schools Program and our own schools program as well as performing at many corporate and contracted events.

Premises and Space We had difficulty with accommodation throughout this time of heightened activity. But, thankfully the year ahead looks more settled.

2016 started with a Taikoz workshop at Galston George being judged (by neighbours) as too noisy and a cancellation for any repeat event. The same reason forced Taikoz to depart a temporary storage and rehearsal space in Rozelle and end up in a cold concrete floored warehouse at Auburn for most of the Chi Udaka preparation. Thankfully we maintained Ultimo for our Taikoz school classes and workshops which, also provides a space to house our considerable collection of Taiko.

Synergy did not fare much better and had to depart Rozelle not long after Taikoz, then to land in Lillyfield, via assistance from Legs on the Wall. However, this arrangement was threatened later in the year dictating another move of instruments and loss of rehearsal space altogether for Synergy.

Thankfully and after a false start, Arts NSW through Legs On the Wall came to the rescue with an offer of storage and an ongoing conversation around possible long-term rehearsal space at Lillyfield for both ensembles.

Meanwhile, the temporary administrative office in Parramatta Road, Glebe lived up to its name and we had to move mid-year to Chester St in Annandale, where we now remain. Between moves there was extensive continual searching. However, with the disadvantage of not knowing our funding fate, we have been constrained in arranging long-term commitments. Despite this, Lillyfield, Ultimo and Annandale now look more settled for the time being.

5

Synergy Percussion & Taikoz : Annual Report 2016

Directors’ Report

Company Assets During 2016 the board decided to revalue our considerable taiko instrument assets. Having consulted the two major instrument makers in Japan (Asano and Miyamoto) for the revaluation, we have revised the taiko value and as a consequence, the company received an asset uplift, which is reflected in our 2016 financial report.

Funding, Philanthropy, Grants and Sponsorship Our final year of previously recurrent Commonwealth funding ($251,750) represented 17% of our income for 2016. These payments allowed us to take risks, produce shows like Earth Cry and Chi Udaka and aspire to a Sculthorpe Centre of Percussive Arts. Without this ‘foundation’ funding our activity reduces by more than half. So it feels more like we are down by 60% from 2017, unless we can generate regular project grants.

Thankfully Arts NSW funding of $120,000 for 2016 will recur into 2017 and beyond, with a small increase promised.

To generate other non-performance income, the Company held a well-attended Supporter’s event in May at the MCA. When this was followed with news of the Australia Council cuts, we were blessed with generous support amounting to the best year yet for Philanthropy – achieving $159,000, or 12% of our income. This included a $20,000 contribution from a City Recital Hall fundraising concert which was much appreciated. Overall, thank you to all our great supporters.

We also applied for a number of extra Grants and were mostly successful, including: • A Catalyst grant ($185,000) and from the Australia-India Council ($50,000) for the India tour of Chi Udaka, Another Catalyst Grant for 40Under40 ($35,000), and ($10,392.00) from the Australia Korea Foundation for the performance of Earth Cry in South Korea, • An Australia Council Transition Grant for $64,000 late in the year.

In sponsorship, we made considerable effort to establish our first ‘corporate’ support of note for the India tour, and had several organisations close to the line. However, assurances from potential Indian-based sponsors proved to be false hopes. A significant disappointment was that support for the Lingalayam dancers was not forthcoming.

We did finish the year on a brighter note, however with TAL Insurances coming onboard with Taikoz from late 2016 and onwards.

6

Synergy Percussion & Taikoz : Annual Report 2016

Directors’ Report

Marketing The branding for Synergy was strengthened this year, to follow what had been achieved for Taikoz in 2015. This combined with an updated website for Synergy, another specifically for 40Under40 and Taikoz having their education section merge with their site, giving us a strong social media presence.

Otherwise, we will always live with a performance craft that is presented in super-short seasons, mostly one-night stands. That makes marketing very challenging and we saw this, with lower than expected audiences for Chi Udaka in markets outside NSW (where it benefited from a good track record).

Staffing From mid-year onwards there was considerable staff disruption caused by the impending funding cuts. From a position where we could afford to support the two ensembles with over 6 FTE administration staff, we had to plan on scaling back considerably through late 2016. By year’s end we were left with a 1.5 FTE support group, and reliance on both players and volunteers.

We have seen a number of valuable people leave including Emma Elder, Kathy Kenyon and Tim Hansen. Meanwhile the jobs of General Manager, Accounts/Administrator, Taikoz School Coordinator, Taikoz Operations Manager and Taikoz Marketing & Assistance are all scaled back.

Naturally this takes a toll, with our only recourse towards project-based staff for the near future.

The Future The funding cuts have ushered in a new and essentially lean operating model. The staffing issues make for a challenging future, but a future that we will face with a heavy emphasis on seeking new grants, hiring contract staff for projects and asking the players to assist in the administration.

Crucially, Synergy is facing the loss of its Artistic Director and Taikoz now has fewer players who also no longer have permanent contracts. So the artistic output – following a year of the most adventurous production activity ever – will in the short term be scaled back.

Our approach will be to limit our self-presented productions, seek what grants can match our revised aspirations and aim to increase invited performances and co-productions. This will see our annual turnover reduce by 60% (from $1.6mill in 2016) despite our aim to maintain our corporate, school and other contracted bookings where possible.

We are coming up to 20 years of Taikoz in Australia and we will celebrate this milestone in October 2017 with a performance that reflects the considerable achievements so far. And this is shadowed by 43 years of Synergy, being one of Sydney’s few truly avant-garde ensembles. We will use this to fortify the profile of the unique and rare art of percussive performance – and trust that our private and public supporters will rally to the cause of maintaining a valued but endangered species.

7

Synergy Percussion & Taikoz : Annual Report 2016

Directors’ Report

2016 Donor Acknowledgements Synergy Percussion and Taikoz would like to pay tribute to the following donors who contributed to our activities in 2016.

40 Under 40 Commission Program, launched December The Permsew Foundation

Silo Collective for the Melody Eotvos commission Christopher Whitehead and Peter Wilson

Anna Cerneaz

Robert Green

Alden Toevs

Teresa Biet

Cathy Gray Chi Udaka Tour of Australia and India Alden Toevs

Lopa Mehrotra

The Permsew Foundation

Anonymous

Elsa Atkin

Min Li Chong

Andrew Andersons

Gina Bowman

Noriko Shimada

Beverley Sloan

Hyde Park Consultants Pty Ltd

Norman Weaver

Bill Torrey

Ian Cleworth

Oi Choong

Bruce Garton

Ian Narev

Perpetual Foundation

Carolyn Gould

Jeremy Davis

Phillipa Berkett

Chris & Sharon Van Reyk

Jeremy Long

Rachel Sieff

Craig Greening

Jodie Baker

Rebekah Jenkin

Duncan Boyle

Julie Miller

Richard Pollitt

Dr Arn Sprogis & Dr Margot Woods

Kerry & Maria Ang

Robert Green

Kim McLoughlin

Robert & Lindy Jeremy

Lynette Wherry

Ross Feller & Dr Clare Willington

Inner Beat Donors $500 or more

Dr Jennifer Gill Dr Rodney Smith & Elizabeth Hill Duncan Boyle Elisabeth McDonald Elizabeth Tupper & John Morgan

8

Marilyn Smith & Jeremy Wright

Samantha Newton

Martin Lee

Steve Anderson

Mathew Wilkie

Steve Davidson

Maxine Brodie

The Wales Family Foundation

Synergy Percussion & Taikoz : Annual Report 2016

Directors’ Report

2016 Donor Acknowledgements (continued) Tim & Bryony Cox

Valerie Tupper

Wendy Tsui

Toni Downes

Vi Nguyen

Yvonne Krenzien

Trudy Weibel & Gernot Heiser

Victoria Parsons

Yvonne Vidovic

Alan Luscombe

Dr Edna Ross

George Kelen

Anita Cook

Dr Michael & Jennifer Henderson

Geraldine Maclurcan

Synergy & Taikoz Friend $1 - $499

Ann Carrick Ann McLean Ann Williams Anne Barber Benoit Maurel Beverley Stafford Bevianne Fitch Bill & Fran Warner Brett Davies Brian Everingham Brian Nixon Campbell Reid Carol Kenchington Carolyn Behm Cath McMurchy Cathy Gray Cathy Henderson Christina Pender Christine Manning Claire Boyle Colin Piper Courtney Webber Dr Anne Cawsey

Dr Mitchell Ross Dr Patricia Underwood Dr Paula Mohacsi Dr Robyn Philip Dr Thais Miles Daniela Hartman David van Reyk Debbie Cameron Deborah Stow Dorothy Galvin Elaine Chia Elaine Minty Elizabeth Sakker Emily Yap Emma O’Connor Eric Bradley Eugene Ughetti Fleur Horan Frank & Rosanna Corniola Gael Kennedy Gail Pemberton Gary Campbell

Hanli Botha Heather Cameron Heather Stone Helen Keogh Ian Gunn Ian Thom Ian Sawell Ita Kurniasari Janice Leong Janice Marshall Jeanette Baird Jennifer Aaron Jennifer Coughlan Jenny Hutchins Jerry Reilly Joanne Scott John Dewhurst John Napier Jon Whitehead Jonathon Poon Joseph Small June Preece Karen Jakobsen

9

Synergy Percussion & Taikoz : Annual Report 2016

Directors’ Report

2016 Donor Acknowledgements (continued)

10

Karen Steains

Michael Smetanin

Ruth Thompson

Khairon Ismail

Natanya Shearer-Stanton

Sally Glover

Kip Jansson

Natsuko Igushi

Sally Walker

Laurence McManus

Neil & Pamela Hardie

Sandra Bogilevu

Lee McIver

Nerida Wu

Sandy Belford

Leon Smith

Nicholas Hansen

Sarah Buckler

Leta Keens

Nora Pieterse

Sheref Sidarous

Lewis Weaver

Norman Long

Simone Doherty

Lynndy Bennett

Paul Millay

Sophie Unsen

Lisa Mains

Paulien Gort

Stuart Farrell

Lisa McNab

Petah Martin

Sue Hewitt

Louisa Graham

Peter Murray

Sue Marshman

Lynne Saunder

Philip Lincoln

Suzanne Godfrey

Margaret Grove

Philip Atkin

Suzanne McGrath

Maija Rove

Philip Robinson

Tanya Crothers

Marcia Lancaster

Ralph Pliner

Tanya Mitchell

Margaret Crouch

Rick Lock

Tim Hampton

Mark Husk

Rita Ooi

Tomoko Player

Mark Walton

Roberto Dias

Ursula Potter

Martin Storm

Rosamund Plummer

Walter Firgau

Martin Wesley-Smith

Roser Arjona

Will Hutchins

Medha Sengupta

Roslyn Laird

Yuriko Kunizawa

Mitchell Grimston

Ross McDonnell

Zuzu Burford

Synergy Percussion & Taikoz : Annual Report 2016

Directors’ Report

Likely developments and expected results of operations It is not foreseen that the company will undertake any change in its general direction during the coming financial year. The company shall continue to pursue its trading activities as detailed earlier to produce the most beneficial result.

Events subsequent to balance date There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction, or event of a material and unusual nature likely, in the opinion of the directors, to affect significantly the operations of the company, the results of those operations, or the state of affairs of the company in subsequent financial years.

11

Synergy Percussion & Taikoz : Annual Report 2016

Directors’ Report

Information on directors Name:

Jeremy Wright

Experience:

Consultant in Marketing & Fundraising Board member since 17 June 2013

Special responsibilities:

Chair, Board and Chair, Philanthropy Committee, Member Finance and Risk Committee

Name:

Jodie Baker

Experience:

Company Director Board member since 17 August 2015

Special responsibilitie:

Chair, Finance and Risk Committee

Name:

Helen Brown

Experience:

Director of Macquarie Investment Management Limited Board member since 1 November 2008

Special responsibilities:

Member Finance and Risk Committee

Name:

Ian Cleworth

Experience:

Founder of Taikoz, Musician Board member since 18 May 2009

Special responsibilities:

Artistic Director of Taikoz

Name:

Elizabeth Hill

Experience:

Arts Policy and Project Manager Board member since 16 April 2012

Name:

Norman Weaver

Experience:

Company Director Board member since 23 May 2011

Name:

Elsa Atkin

Experience:

Non-Executive Director and Cultural Management Consultant Board member since 5 August 2013

Special responsibilities:

Member Philanthropy Committee

Name:

Phillipa Berkett

Experience:

Company director Board member since 27 June 2016

Special responsibilities:

Member Philanthropy Committee

Name:

Timothy Constable

Experience:

Musician Board member since 18 May 2009

Special responsibilities:

12

Artistic Director of Synergy Percussion and Moth People

Synergy Percussion & Taikoz : Annual Report 2016

Directors’ Report

Directors’ benefits Since the end of the previous financial year no director of the company has received or become entitled to receive any benefit (other than a remuneration benefit included in Note 16 to the financial statements) because of a contract made by the company with the director or with a firm of which the director is a member, or with an entity in which the director has a substantial interest.

Meetings of directors The following table sets out the numbers of meetings of the company’s directors held during the year ended 31 December 2016 and the number of meetings attended by each director.

Directors meetings held whilst a director

Directors meetings attended

Norman Weaver

12

11

Helen Brown

12

10

Jeremy Wright

12

12

Ian Cleworth

12

12

Timothy Constable

12

7

Elizabeth Hill

12

12

Phillipa Berkett

7

6

Louisa Graham

4

2

Elsa Atkin

12

7

Jodie Baker

12

11

Signed in accordance with a resolution of the directors.

Jeremy Wright Director Sydney, 15 May 2017

13

Synergy Percussion & Taikoz : Annual Report 2016

Artistic Director’s Report

© Synergy & TaikOz Ltd 2017 14

Directors’ Report

Synergy Percussion & Taikoz : Annual Report 2016

Artistic Director’s Report

Artistic Director’s Report What a year 2016 turned out to be! From the highs of producing some of our finest work to date, touring and performing two original music-productions to highly responsive international audiences, collaborating with a wide range of artists, including those from other cultures and artistic disciplines, and educating people from an array of cultural and musical backgrounds… to losing multi-year funding from the Australia Council, and all that has meant. Having built our company into a leading-light medium-size arts organisation over the course of the past twenty years (or 42 years from the inception of Synergy), it is something of an understatement to report the shock and dismay we felt by the Australia Council’s decision.

Nevertheless, we can look back on 2016 with pride and satisfaction. Both ensembles produced original work of the highest quality and performed it with the utmost skill and dedication. From creative sparks that ignited years ago, Earth Cry and Chi Udaka reached their artistic high points when Synergy and collaborative partners Noreum Machi presented in Seoul and Taikoz toured India with Anandavalli and Lingalayam. For a medium-size arts organisation, these two tours alone would be major achievements. However, by stretching our resources to ‘the max’ both ensembles also undertook major tours of Australia, again with new, original work.

Synergy surprised and delighted Australian Chamber Orchestra audiences when they partnered with the ACO to perform Timothy Constable’s newly commissioned piece, Cinemusica. Coupled with a solo performance of Xenakis’ earth-shattering Psappha (arranged by Timothy), this collaboration received rave responses including high praise from The Age’s Chief Music Critic Clive O’Connell when he named it one of the ‘concerts of the year’.

Before ending the year in India, Chi Udaka toured the eastern seaboard of Australia with a cast of 15 and crew of 6. Largely self-produced, this was an incredible achievement by all members of the admin and creative team. And what a joy it was for us to work with such a super-talented bunch of creatives – lighting design, sound design, stage design, dramaturgy and animation all played a part in bringing our music and dance to life. In the words of Consul-General of South India Sean Kelly, “Chi Udaka represents the finest of Australian culture. Reflecting our multi-culturalism in the most modern and relevant of ways, this work by Taikoz and Lingalayam is not only original, but breathtaking in its scope.”

And as the ensuing reports account, these major projects were not undertaken in isolation, but in fact sat alongside a plethora of other equally dynamic, challenging and culturally relevant creative activities that were conceived, discussed, wrestled with, transformed, practiced and performed by a highly talented and dedicated group of artists. What more can we expect of each other? Indeed, what more is expected of us from the funding bodies?

2016 also turned out to be Timothy Constable’s final year as Synergy AD. I have known Timothy since he was a young teen, and over the course of the past twenty years have had the pleasure (and challenge!) of teaching him for a year at the Sydney Conservatorium before playing together ever since as colleagues.

15

Synergy Percussion & Taikoz : Annual Report 2016

Artistic Director’s Report

Timothy’s work with Synergy over the past decade has been extraordinary – his ideas were always conceived with deep thought, care and consideration. And his playing? Well, that goes without saying! The group has never sounded better and the projects have been tremendously exciting, challenging, satisfying and wildly varied. I’ve loved every minute.

I have many very precious personal memories of our relationship. Here are four… … meeting Timothy for the first time when he appeared on the steps of Newcastle Town Hall in the 1990s – bright-eyed (always bright-eyed) – ready to help shift Synergy’s gear into the hall for an evening concert, and him later hanging around, eager to look, listen and learn… ... Timothy’s first lesson with me at the Sydney Con, when I asked for a basic harmonic breakdown of Bach’s G-major Cello Suite Prelude (on marimba) and he giving me all the inversions, suspensions and resolutions – all the while playing note-perfect! (I must admit that I went home wondering what I was going to do with this kid for the rest of the year)… ... Timothy playing Bob Becker’s Lahara after I said, “It’s just a study piece, no-one ever plays it all the way through, let alone for public performance! What are you going to do with it? 40 minutes of snare drum could become a tad boring! And just how are you going to turn the 30-odd pages of music?” Needless to say, Timothy astounded me with the most inventive and wonderfully colourful arrangement you could imagine for snare drums, percussion, cello and electric guitar… … and finally, playing Xenakis’ mighty Pleaides under Timothy’s inspired direction in 2014.

No more to be said... it was an amazing life/music experience!

So despite the new, different and considerable challenges we face in the foreseeable future, our creative spirits continue to run high.

Ian Cleworth Taikoz Artistic Director

16

Synergy Percussion & Taikoz : Annual Report 2016

Synergy Percussion Artistic Director’s Report

Artistic Director’s Report Timothy Constable Synergy Percussion

© Synergy & TaikOz Ltd 2017 17

Synergy Percussion & Taikoz : Annual Report 2016

Synergy Percussion Artistic Director’s Report

Productions

Cinemusica Australian Chamber Orchestra and Synergy Percussion Direction:

Richard Tognetti and Timothy Constable

Composition:

Iannis Xenakis – Voile Thomas Newmann - American Beauty Bernard Herman – Psycho Iannis Xenakis - Psappha Timothy Constable - Cinemusica Bela Bartok - Music for Strings, Percussion and Celesta

Performers:

Australian Chamber Orchestra, Timothy Constable, Bree van Reyk, Joshua Hill and Bobby Singh

The ensemble’s first collaboration with the Australian Chamber Orchestra was devised and refined at length over previous years. Cinemusica was a truly collaborative effort on the part of both directors - broadly appealing, demanding, exciting, and extremely well received by audiences in 4 states. For Synergy it was a welcome opportunity to connect with ACO’s subscriber base, and equally to work with such an iconic ensemble (with whom the members had all collaborated independently over previous years). Naturally many of the mutual composer heroes were featured (eg. Iannis Xenakis, Thomas Newman, Bela Bartok), and the specifically composed Cinemusica

by Timothy Constable brought a further element of Indian Tabla to the mix, performed by Bobby Singh.

18

Synergy Percussion & Taikoz : Annual Report 2016

Synergy Percussion Artistic Director’s Report

Earth Cry Synergy Percussion and Noreum Machi Direction:

Timothy Constable and Kim Juhong

Composition:

Timothy Constable, Noreum Machi and Ensemble Devised Works

Performers:

Timothy Constable, Joshua Hill, Mark Robinson and Noreum Machi

2017 saw an opportunity for Synergy to present Earth Cry at the National Theatre in Seoul, alongside collaborators of many years Noreum Machi. An extensive remount/tertiary development allowed for refinement of the program, with many of the self-devised works expanded and revised. Earth Cry is, in the view of Timothy Constable, one of the ensembles most significant achievements of recent years, culminating extensive inter-cultural dialogue, study and research into new notated works for “western” and traditional Korean instruments, alongside fresh orchestrations of deeply religious shamanic music. As such the apparently unanimous positive response of Korean audiences was a deeply satisfying validation of the long process, and the ensemble looks forward to still more opportunities for presentation and exploration with this group and other Korean artists.

19

Synergy Percussion & Taikoz : Annual Report 2016

Synergy Percussion Artistic Director’s Report

40 Under 40 Synergy Percussion Project Direction:

Timothy Constable and Tim Hasen

Composers:

Alex Pozniak , George Lam, Amanda Cole, Gerard Brophy, Andrew BattRawden, Jane McKernans, Annie McKinnon, John Cleworth, Austin Buckett, Julian Day, Bree van Reyk, Kate Moore, Cat Hope, Timothy Constable, Damian Barbeler , Lachlan Skipworth, Damien Ricketson, Larry Sitsky, Daniel Wohl, Lauren Brincat, David Harris, Marcus Whale , Elena Kats-Chernin, Marnie Palomares, Evan Mannell, Marten del Amo, Matt Frey, Melody Eötvös, Michael Gordon, Michael Smetanin, Michael Sollis, Molly Herron, Nicholas Ng, Nick Wales, Paul Stanhope, Ruben Naeff, Ruby Fulton, Sandra France, Terumi Narushima, Tim Hansen

Performers:

Timothy Constable, Joshua Hill, Bree van Reyk, Mark Robinson, Yvonne Lam, Clare Edwards, Terumi Narushima

This monumental video project was in full production across the greater part of the year. What resulted was the biggest independent snap-shot of percussion composition of at least the last decade; a testament to the creativity of composers near and far, and the versatility of the ensemble itself. Synergy’s lack of studio space made the work a particularly bold achievement, with most of the works recorded ‘out and about’ across Sydney city. This colourful and innovative installation will remain available online indefinitely.

20

Synergy Percussion & Taikoz : Annual Report 2016

Synergy Percussion Artistic Director’s Report

PETRA Direction:

Vox Choir and Timothy Constable

Composition:

Iannis Xenakis (1922 – 2001) Okho Iannis Xenakis (1922 – 2001) Idmen A Eric Whitacre (b. 1970) Sleep (Percussion Version) Dan Forrest (b. 1978) Three Nocturnes Luke Byrne (b. 1980) Desert Sea Melody Eötvös (b. 1984) A Strange Manuscript Found In A Copper Cylinder

Performers:

Timothy Constable, Joshua Hill, Bree van Reyk and Vox Choir

In November Synergy collaborated with the Philharmonia Choirs, Vox Choir to produce the program Petra. Petra was performed at the Parramatta Riverside Theatre and at the Independent Theatre in North Sydney. There was a third concert planned for Newcastle however this was cancelled early on due to slow ticket sales. The program included the world premier of a new work by Australian composer Melody Eötvös commissioned by Synergy Percussion for this program. We would like to thank the Silo Collective for their assistances with this commission.

21

Synergy Percussion & Taikoz : Annual Report 2016

Synergy Percussion Artistic Director’s Report

Recording Masterpieces of Time.

Synergy’s re-imaginings of core baroque and 20th Century music.

Monteverdi, Bach, Handel, Webern and Cage.

Xenakis - Pleaides A live recording from Synergy’s 40th birthday season in 2014.

Education Unfortunately due to funding and staffing issues for the Sydney Youth Orchestra our long running partnership for Synergy Percussion to train their percussionists and ensembles ceased in 2016.

We hope this program may be reinstated for 2018.

22

Synergy Percussion & Taikoz : Annual Report 2016

Taikoz Artistic Director’s Report

Artistic Director’s Report Ian Cleworth Taikoz

© Synergy & TaikOz Ltd 2017 23

Synergy Percussion & Taikoz : Annual Report 2016

Taikoz Artistic Director’s Report

Productions

Chi Udaka ©Jhuny-Boy Borja

Chi Udaka ©Jhuny-Boy Borja

Chi Udaka Taikoz and Lingalayam Dance Company Direction:

Ian Cleworth, Anandavalli and Tom Royce-Hampton

Choreography:

Anandavalli

Composition:

Ian Cleworth, Riley Lee, John Napier, Aruna Parthiban and John Cleworth

Dramaturgy:

Tom Royce-Hampton

Taikoz Choreography:

Anton Lock

Stage Design:

Bart Groen

Lighting Design:

Karen Norris

Audio Design:

Craig Greening

Animation:

Bartek Reszelski

Costume Design Taikoz:

Alissa Bruce

Costume Design Lingalayam: Anandavalli

Chi Udaka proved to be the largest in-house production ever undertaken by Taikoz – and what a fantastically ambitious, challenging, exciting and rewarding project it turned out to be! Building on its World Premiere at the 2015 Sydney Festival, our 2016 iteration of the production was truly a case of ‘bigger is better’. Having the opportunity to develop theatrical-dramatic thematic ideas was a boon, as we always knew that there was so much more potential in the work.

By drawing on a rich vein of musical-choreographic-theatrical elements, Chi Udaka is a wonderful example of Taikoz’s inter-cultural and inter-media work – a characteristic that dates back to the very beginnings of the group. In fact, a great strength of the ensemble is our ability to create new music for a variety of instruments in a wide range of contexts, and to fashion dramatic narratives out of our unique performance aesthetic. Collaborating with the likes of Anandavalli, Riley Lee, John Napier, Aruna Parthiban and John Cleworth drew out a range of new and different structures, drama, rhythm, melody, harmony, textures, colours, and resonances.

Chi Udaka received multiple performances in both Australia and India. A comprehensive education resource kit specifically designed for The Arts Unit was also produced.

24

Synergy Percussion & Taikoz : Annual Report 2016

Taikoz Artistic Director’s Report

Touring Taikoz always enjoys the opportunity to share our music with others, and having established ourselves as a national company, we are committed to touring our productions and educational activities to well beyond our metropolitan Sydney home base.

Undertaking two major tours of Chi Udaka to Australia’s eastern seaboard and India, as well as smaller tours to Perth (WA), Baradine-Dubbo (NSW), Bermagui (NSW) and Macedon Ranges (VIC), 2016 proved to be a big year out of Sydney for Taikoz.

An extensive schools program courtesy of our partnership with Musica Viva In Schools also saw the Taikoz Trio tour to schools in outer-metropolitan Sydney and regional NSW, as well as Brisbane and regional QLD. Twelve weeks of touring saw Taikoz extending its reach considerably.

Chi Udaka Australian Tour June-August Riverside Theatre, Parramatta 15.6 Canberra Theatre 15.7 Parade Theatre 22.7 Bathurst Memorial Entertainment Centre 23.7 Capitol Theatre, Tamworth 26.7 The Glasshouse, Port Macquarie 29.7 Brisbane Powerhouse 4-5.8

Chi Udaka Indian Tour November-December The Music Academy, Chennai 19.11 Andhra University Convocation Hall, Vizag 23.11 Ravindra Bharathi, Hyderabad 26.11 Jamshed Bhabha Hall (NCPA), Mumbai 29.11

Chi Udaka ©Jhuny-Boy Borja

Largely self-produced, our tour to metropolitan and regional centers on the eastern seaboard saw our whole company team pull together and work tirelessly towards meeting the enormous logistical, financial, operational and artistic demands. A cast of 15 and production crew of 6 enjoyed life on the road, giving performances to enthusiastic audiences in New South Wales, the ACT and Queensland.

For performers, there is nothing quite like testing oneself on the world stage and so the group’s tour to India was the most ambitious international tour it has ever undertaken. It proved to be an artistic success and was a most enjoyable and stimulating – not to mention extremely challenging – experience for cast and crew.

Chi Udaka

We had fantastic encouragement and financial support from our Taikoz Supporters Touring Group, the Australian Consulates in South and North India, as well as the state of Andhra Pradesh and our own government through the Catalyst fund and Australia-India Council.

25

Synergy Percussion & Taikoz : Annual Report 2016

Canning World Arts Exchange Perth, WA 6.2 RHYTHM RIVER Macedon Ranges, VIC 18.3 FOUR WINDS FESTIVAL Bermagui, NSW 25-27.3 NARA CANDLE FESTIVAL Canberra, ACT 16.10

Taikoz Artistic Director’s Report

Taikoz undertook numerous smaller tours to a wide range of places and audiences – most were free, community-based events, such as the Canning World Arts Exchange in Perth, Nara Candle Festival in Canberra and a couple of outdoor performances in Bermagui’s popular Four Winds Festival. A schools concert and a series of free workshops were also given in Canberra and Kyneton, Victoria. Each event was unique in its locale, cultural context, venue and programming, giving the members of Taikoz ample opportunity to perform a wide range of music and engage with local people and other artists.

Highlights include… . . . collaborations with New York dance legend Douglas Dunn (Merce Cunningham & John Cage) and his NYC company … as well as the Ede Gong Group from Vietnam:

Canning World Arts Exchange 2016

Ede GOng Group from Vietnam

… and young gun Link Dancers at Canning Exchange.

All delightful surprises!

Link Dancers at Canning World Arts Exchange

26

Synergy Percussion & Taikoz : Annual Report 2016

Taikoz Artistic Director’s Report

a dawn performance by the seaside for Bermagui’s Four Winds Festival when we were unsure anyone would turn up at 5am…

Bermagui’s Four Winds Festival dawn performance

… and preparing our top students for the Nara Candle Festival performance after their year of hard work in our IDP program.

Nara Candle Festival performance

27

Synergy Percussion & Taikoz : Annual Report 2016

Musica Viva in Schools Metro & Outer Metro Sydney / Regional NSW 16.5-18.11 Metro & Outer Metro Brisbane / Regional QLD 29.8-16.9

Taikoz Artistic Director’s Report

Taikoz partnered with Musica Viva In Schools to develop an extensive education resource kit focusing on Taikoz’s music and performance. The first of a 7-year commitment, 2016 proved to be a hardworking year for our trio of performers. Graduates from Taikoz’s IDP (Individual Development Program) assisted Taikoz members in many performances in schools in New South Wales and Queensland.

Moorambilla Festival Baradine-Dubbo, NSW 16-21.8 / 20-25.10 Government House, NSW 7.6

Moorambilla Festival Sydney Tour July 2016

A mainstay of Taikoz‘s annual schedule, we are proud to partner with the indefatigable Michelle Leonard and her Moorambilla Voices to produce what is an amazing series of educative and artistic events. This year, Tom Royce-Hampton composed and choreographed a new work for 60 taiko-playing/fan-dancing/ broomstick-wielding children, which was work-shopped, rehearsed and performed with a trio of Taikoz members in Baradine, Dubbo and Sydney.

28

Synergy Percussion & Taikoz : Annual Report 2016

Taikoz Artistic Director’s Report

Education Taikoz is equally passionate about its many and varied educational activities. In 2016, members of the ensemble taught over 450 weekly community classes. We also presented our own series of concerts and workshops for school children. Our 10th Annual January Intensive Camp saw international guest instructor Tiffany Tamaribuchi from the USA share her abundant knowledge and skill with players from all around the country.

Intensive 2016

Intensive 2016

And the Individual Development Program, an intensive course for aspiring taiko players, was extended to 4 sessions per week from February-October. The 2016 program culminated in a public concert that included works composed by members of the IDP Ensemble.

IDP 2016

Stonewave Taiko

Community workshops were also held in Bega for the newlyformed Stonewave taiko.

Intensive Camp 2016 29

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

Auditor’s Independence Declaration

30

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

Synergy & TaikOz Ltd Annual Financial Report 31 December 2016

Š Synergy & TaikOz Ltd 2017 31

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

Statement of Comprehensive Income for the year ended 31 December 2016 Synergy & TaikOz Ltd

Revenue

Note

2016 $

2015 $

3

1,721,502

1,136,964

1,721,502

1,136,964

Total revenue Expenses Employee benefits expense

4

(409,217)

(454,744)

Depreciation and amortisation expenses

4

(25,728)

(46,438)

Adminitstration expenses

(274,840)

(247,643)

Cost of merchandise sold

(7,185)

(8,482)

(997,316)

(560,023)

(1,714,286)

(1,317,330)

7,216

(180,366)

-

-

7,216

(180,366)

-

-

7,216

(180,366)

Performance expenses Total Expenses Net profit/(loss) before tax Income tax Net profit/(loss) after tax Other Comprehensive Income Total Comprehensive Income

The above statement of Comprehensive Income should be read in conjunction with the accompanying notes.

32

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

Statement of Financial Position for the year ended 31 December 2016 Synergy & TaikOz Ltd

Note

2016 $

2015 $

Cash and cash equivalents

5

271,935

331,518

Trade and other receivables

6

21,232

34,655

Inventories

7

51,562

41,869

Prepayments and deposits

8

94,262

107,834

438,991

515,876

268,705

87,096

268,705

87,096

707,696

602,972

10

153,912

120,997

Employee benefits

11

4,174

5,453

Unearned income

12

62,779

42,630

Government grants

13

178,000

125,875

398,865

294,955

18,230

24,632

18,230

24,632

TOTAL LIABILITIES

417,095

319,587

NET ASSETS

290,601

283,385

290,601

283,385

ASSETS Current assets

Total current assets Non-current assets Plant and equipment

9

Total non-current assets TOTAL ASSETS LIABILITIES Current liabilities Trade and other payables

Total current liabilities Non-current liabilities Employee benefits Total non-current liabilities

11

EQUITY Retained earnings

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

33

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

Statement of Changes in Equity for the year ended 31 December 2016 Synergy & TaikOz Ltd

Balance at 1 January Profit/(Loss) for the year (as reported) Balance at 31 December

2016

2015

283,385

463,751

7,216

(180,366)

290,601

283,385

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

34

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

Cash Flow Statement for the year ended 31 December 2016 Synergy & TaikOz Ltd

Note

2016 $

2015 $

1,003,890

581,199

668,273

413,224

3,695

9,188

(1,244,098)

(823,951)

(415,347)

(454,858)

18

16,413

(275,198)

9

(75,996)

(39,719)

(75,996)

(39,719)

Increase/(Repayments) of borrowings

-

-

Unrealised foreign exchange gain/loss

-

-

Net cash used in financing activities

-

-

(59,583)

(314,917)

331,518

646,435

271,935

331,518

Cash flows from operating activities Receipts from customers Receipts from appropriations/grants Interest received Payments to suppliers Payments to employees Net cash provided by operating activities Cash flows from investing activities Payments for plant & equipment and acquisitions Net cash used by investing activities Cash flows from financing activities

Net decrease in cash and cash equivalents held Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year

5

The above cash flow statement should be read in conjunction with the accompanying notes.

35

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

Notes to the Financial Report for the year ended 31 December 2016 Synergy & TaikOz Ltd 1 Summary of Significant Accounting Policies

37

2 Financial Risk Management

41

3 Revenue

43

4 Expenses

44

Current assets 5 Cash and cash equivalents

44

6 Trade and other receivables

45

7 Inventories

45

8 Prepayments

45

Non-current assets 9 Plant and equipment

45

Current liabilities 10 Trade and other payables

46

11 Employee benefits

46

12 Unearned income

46

13 Government grants

47

Non-current liabilities

36

11 Employee benefits

46

14 Auditor’s remuneration

47

15 Financial instruments

48

16 Director and executive disclosures

49

17 Commitments for expenditure

49

18 Reconciliation of surplus from ordinary activities to net cash inflows from operating activities

50

19 Company details

50

20 Members’ Guarantee

51

21 Contingent Liabilities and Assets

51

22 Subsequent Events

51

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

1 Summary of Significant Accounting Policies This financial report covers Synergy & TaikOz Ltd (“the Company”) as an individual entity for the year ended 31 December 2016. Synergy & TaikOz Ltd is a company limited by guarantee, incorporated and domiciled in Australia. Its principal place of business is Level 1, Unit 5, 21 Chester St Annandale NSW 2038. Its registered office is C/- Mitchell & Partners, Suite 3, Level 2, 66 Clarence Street, Sydney NSW 2000. The Company is not-for-profit and is primarily involved in musical performance and education.

All amounts are presented in Australian Dollars, which is the Company’s functional currency.

The following is a summary of the material accounting policies adopted by the Company in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

Basis of Preparation and Compliance statements (a) Statement of Compliance The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001.

The Financial Report was approved by the Board of Directors on 15 May 2017. (b) Basis of Measurement The financial report is prepared on an accruals basis and is based on an historical costs basis.

The ASSB has issued a number of new and Amended Accounting standards and interpretations that have mandatory application dates for future reporting periods some of which are relevant to the company. The company has decided not to early adopt any of the new and amended standards. The company does not expect that the new and amended standards will have a significant effect on its financial statements.

Significant Accounting Policies (a) Income tax As the company is of a kind referred to in Section 50-5 item 1.1 of the Income Tax Assessment Act 1997, its income is exempt from the income tax. The company is also registered with the ACNC. (b) Cash and cash equivalents Cash and cash equivalents includes cash on hand, 90 day term deposits, deposits held at call with financial institutions, and petty cash/tour floats.

37

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

1 Summary of Significant Accounting Policies (continued) (c) Trade and other receivables Trade and other receivables are measured at cost, less any provision for impairment. Trade receivables are due for settlement generally no later than 30 days.

Trade receivables are reviewed monthly. Receivables that are known to be uncollectible are written off. An allowance for provision of impairment of receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of receivables. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the allowance is recognised in the income statement. (d) Property, plant and equipment Each class of property, plant and equipment is stated at historical cost less accumulated depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

A large variety of percussion instruments are owned by the Company to support performances by the various groups. Some of the instruments are hand made, unique or rare and valuable. All are subject to rigorous and regular maintenance.

Items of plant and equipment, leasehold improvements, computer equipment and musical instruments are depreciated using the straight-line method over their estimated useful lives. Each class of asset in the current period was depreciated over the useful lives as set out in the following table: Asset class

Useful life

Computer equipment

3 years

Office equipment

5 years

Furniture and fittings

5 years

Plants and equipment

3-5 years

Musical instruments

7 years (Class 1) 15 years (Class 2)

The Board made a decision to revalue the taiko instrument assets and sought current market valuations from the taiko suppliers in Japan (Asano and Miyamoto). The new asset values were recognised in the financial statements for 2016, which resulted in a recovery of $131,341 accumulated depreciation for these assets.

Repairs and maintenance on Taiko 15 years (Class 2) (e) Impairment of Assets The carrying values of plant and equipment are reviewed for impairment at each reporting date, with a recoverable amount being estimated when events or changes in circumstances indicate the carrying value may not be recoverable. Asset values are reviewed annually during the process of renewal and confirmation of the company’s instrument insurance policy. The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use. Impairment losses are recognised in the income statement should they occur.

38

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

1 Summary of Significant Accounting Policies (continued) (f) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense.

Receivables and payables in the Balance Sheet are shown inclusive of GST. (g) Trade and other payables These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year, which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. (h) Inventories Inventories are measured at cost. All items are purchased as finished goods, apart from the bachi sticks, which are treated as WIP items and transferred to inventory once finished goods are delivered. (i) Employee benefits Provision is made for the company’s liability for employee benefits arising from services rendered by employees to the Company at balance date – this includes annual leave and long service leave for employees with 5 or more years continuous service. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. (j) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed are net of goods and services tax (GST).

Revenue is recognised for the major business activities as follows: • Production and related revenue Revenue from productions and other services is recognised in the period in which the service is provided.

• Sponsorship Revenue Revenue receivable from sponsors may be cash or in-kind and revenue is recognised in the period in which it is received.

• Trusts and Foundations Revenue Grants from trusts and foundations are recognised in the income statement when it is controlled.

When there are conditions attached to the grant revenue relating to the use of those grants for specific purposes it is recognised in the balance sheet as a liability until such conditions are met or services provided.

39

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

• Grant revenue An unconditional Government grant is recognised as income when the grant becomes receivable.

Other Government grants are recognised as deferred income when there is reasonable assurance that they will be received and the Company will comply with any conditions associated with the grant. Grants that compensate the Company for expenses incurred are recognized as income on a systematic basis in the same periods in which the expenses are recognised. • Donations Revenue from donations is recognised in the period in which donations are received. (k) Foreign currency translation Both the functional and presentation currencies of the Company are Australian dollars.

Transactions in foreign currencies are recorded initially in Australian dollars at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. Foreign currency gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income. (l) Economic dependence The company is dependent on the Australia Council for the Arts and Trade & Investment Arts NSW to support the operation of the business. (m) Going concern The financial report has been prepared on a going concern basis, which contemplates continuity of normal trading activities and the realisation of assets and settlement of liabilities in the normal course of business. The Company is ultimately dependent upon the support of core funding from Arts NSW project funding from Australia Council for the Arts and the success of future productions.

At the date of this report the Board of Directors has no reason to believe these funding bodies will not continue to support the Company. (n) Finance income and expenses Finance income comprises interest income on funds invested. Interest revenue is recognised as interest accrues taking into account the effective interest rates applicable to the financial assets.

40

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

2 Financial Risk Management Overview The Company has exposure to the following risks from their use of financial instruments: • credit risk; • liquidity risk; and • market risk This note presents information about the Company’s exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk. Further quantitative disclosures are included in Note 15.

Risk Management Framework The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Company’s financial risk management program focuses on transferring revenue risk to presenters where possible, sharing box office and teaching income uncertainty with members, closely linking income and expenditure and maintaining a high level of liquidity.

Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and cash and cash equivalents.

Trade Receivables Trade receivables are reviewed monthly. Receivables that are known to be uncollectible are written off. An allowance for provision of impairment of receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of receivables.

The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows. The amount of the allowance is recognised in the income statement. The company has no significant concentrations of credit risk. To ensure contracts are financially sound, the company ensures it only deals with presenters, promoters and venues with an appropriate credit history (no provision for bad debts for 2016).

Cash and cash equivalents The Company limits its exposure to credit risk by investing and holding cash positions only with counterparties that have a credit rating of at least A from Standard & Poor’s.

41

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

2 Financial Risk Management (continued) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency risk The Company is exposed to currency risk mainly on purchases that are denominated in a currency other than the respective functional currency, Australian dollar (AUD). The currency in which these transactions are primarily denominated is Japanese Yen. The company ensures that its net exposure to foreign currencies is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.

The exposure of the Company to foreign currency is not significant in 2015 and 2016.

Interest rate risk Interest risk arises from cash deposits in financial institutions, cash and cash equivalents holdings are exposed to floating interest rates. There are no interest bearing liabilities.

Other market price risk The Company is not exposed to any other market risk.

42

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

3 Revenue for the year ended 31 December 2016 Synergy & TaikOz Ltd

REVENUE FROM CONTINUING OPERATIONS

2016 $

2015 $

119,902

51,751

207,420

173,069

327,322

224,820

304,189

295,012

304,189

295,012

251,750

251,750

Australia Council – other

16,000

39,966

Australia Council – Ministry for the Arts - Catalyst Grants

220,131

-

120,000

91,620

-

922

60,392

28,966

668,273

413,224

8,118

12,467

8,118

12,467

Donations received

131,032

75,218

Trusts, Foundations, Corporate

27,704

21,088

Sponsorship - Cash

10,387

-

74,200

68,140

3,695

9,188

30,267

14,302

4,974

3,505

131,341

-

413,600

191,441

1,721,502

1,136,964

SALES REVENUE Performance fees: Box office income Contract appearances

EDUCATION REVENUE Education – workshops, school concerts and taiko school fees received

GOVERNMENT GRANTS Australia Council – triennial funding

Arts NSW – triennial funding Arts NSW – Regional Touring and Other grants DFAT Project Funding

SALE OF GOODS Sales of merchandise

OTHER REVENUE

Sponsorship in Kind (software, venues, legal, accountancy) Interest received Freight and touring costs reimbursed Sundry revenue Depreciation recovery on revalued taiko instruments

TOTAL REVENUE

43

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

4 Expenses The surplus includes the following specific expenses: Depreciation Plant and equipment

2016 $

2015 $

25,718

46,438

25,718

46,438

356,057

388,994

1,550

817

53,241

60,273

(6,401)

(3,666)

6,049

5,590

(1,279)

2,736

Employee benefits expense Salaries and wages Staff development and travel Superannuation Long service leave provision Workers compensation insurance Annual leave provision Paid parental leave

409,217

454,744

241,060

28,490

30,875

257,653

-

45,375

271,935

331,518

5 Cash and cash equivalents Cash at bank and on hand Deposits at call Term Deposit (90 days)

(a) Reconciliation to cash and cash equivalents at the end of the year The above figures are reconciled to cash and cash equivalents at the end of the financial year as shown in the cash flow statement as follows: Balance per cash flow statement

271,935

331,518

(b) Deposits at call The deposits are bearing floating interest rates between 2.15% and 2.25% (2015 – 2.25% and 2. 5%).

These funds are at call.

44

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

6 Trade and other receivables 2016 $

2015 $

21,232

34,655

51,562

41,869

94,262

107,834

692,320

616,324

Accumulated depreciation

(423,615)

(529,228)

Total plant and equipment

268,705

87,096

Carrying amount 1 January

87,096

93,815

Additions

76,496

50,893

Disposals

(500)

(11,174)

-

-

(25,728)

(46,438)

131,341

87,096

268,705

87,096

Current Trade and other receivables

7 Inventories Current Finished goods – at cost

8 Prepayments Current Prepayments and deposits – general

9 Plant and equipment Plant and equipment Plant and equipment – at cost

Reconciliations Reconciliations of the carrying amounts of each plant and equipment at the beginning and end of the current financial year:

Fixed asset written off Depreciation Carrying amount 31 December

45

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

10 Trade and other payables 2016 $

2015 $

Trade creditors

31,518

39,113

GST payable

56,741

45,700

65,653

36,184

153,912

120,997

4,174

5,453

4,174

5,453

18,230

24,632

24

23

Current

Sundry creditors and accrued charges

11 Employee benefits Current Liability for annual leave

Non-current Liability for long service leave Employee numbers Average number of employees during the financial year

Note: Note: 9 Head office staff totaling 4.8 FTEs, 5 part-time artists totaling 2.5 FTEs, and 10 casual employees

12 Unearned income Current Taikoz school and intensive study fees in advance

16,729

30,630

Contract income in advance

4,383

12,000

41,667

-

62,779

42,630

Sponsorship in advance

46

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

13 Government grants 2016 $

2015 $

-

125,875

Australia Council – Transition Grant

48,000

-

Arts NSW – Triennial Funding 2017

130,000

-

178,000

125,875

3,500

7,000

Current Australia Council – Triennial Funding

14 Auditor’s remuneration The auditor of Synergy & TaikOz Ltd is Mitchell & Partners.

Assurance services Audit Services Audit of the financial report

Note: Pro bono assistance for reduction in 2015 fee and 2016 fee to $3,500

47

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

15 Financial instruments 2016 Less than 6 months

Between 6 months & 1 year

1 year to 5 years

More than 5 years

Total

271,935

-

-

-

271,935

21,232

-

-

-

21,232

293,167

-

-

-

293,167

Trade and other payables

(153,912)

-

-

-

(153,912)

Total financial liabilities

(153,912)

-

-

-

(153,912)

139,255

-

-

-

139,255

Less than 6 months

Between 6 months & 1 year

1 year to 5 years

More than 5 years

Total

Cash and cash equivalents

331,518

-

-

-

331,518

Trade and other receivables

34,655

-

-

-

34,655

Total financial assets

366,173

-

-

-

366,173

Trade and other payables

(120,997)

-

-

-

(120,997)

Total financial liabilities

(120,997)

-

-

-

(120,997)

245,176

-

-

-

245,176

Financial assets Cash and cash equivalents Trade and other receivables Total financial assets Financial liabilities

Net financial assets

2015

Financial assets

Financial liabilities

Net financial assets

The weighted average interest rate for Cash & Cash equivalents is 2.2% at 31 December 2016 (31 December 2015: 2.37%). Trade and other receivables and Trade and other payables are not interest bearing financial instruments.

Sensitivity Analysis At 31 December 2016 it is estimated that a general increase of one percentage point in interest rates would increase the company profit by approximately $2,719 (at 31 December 2015: $3,315).

48

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

16 Director and executive disclosures (a) Details of key management personnel The names of each person holding the position of director of the company during the financial year are listed on page 3 of the Directors’ Report.

Details of the executive officers are as follows: Lee McIver

General Manager

Karen Steains

Administrator

b) Compensation of key management personnel Short term benefits Key management personnel compensation

2016 $

2015 $

87,362

146,016

No other forms of compensation were paid to Key Management personnel.

The constitution of the Company prohibits the distribution of Company surpluses by way of dividend, bonus or other profit distribution, to any of the members or directors but does not prevent them from being remunerated for goods and services provided to the company in the fulfillment of its objects. The level of remuneration is commercially based, transparent and approved by the Board of Directors.

17 Commitments for expenditure 2016 $

2015 $

Payable not later than 1 year

28,475

8,225

Later than 1 year but no later than 5 years

12,979

-

41,454

8,225

Operating leases Taiko School studio and head office lease Minimum commitments payable are as follows:

Representing: Non-cancellable operating leases

49

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

18 Reconciliation of surplus from ordinary activities to net cash inflows from operating activities 2016 $

2015 $

7,216

(180,366)

25,728

46,438

(131,341)

-

-

-

13,423

(10,171)

(9,693)

4,882

(Increase)/Decrease in prepayments and deposits

13,572

(28,733)

Increase/(Decrease) in trade and other payables

32,915

16,864

Increase/(Decrease) in provision for Employee entitlements

(7,681)

(930)

Increase/(Decrease) in unearned income and grants

72,274

(123,182)

16,413

(275,198)

Profit/(Deficit) from ordinary activities Depreciation of plant and equipment Revaluation of instruments Fixed asset written off Changes in operating assets and liabilities Decrease/(Increase) in trade and other receivables Decrease/(Increase) in inventories

Net cash outflow from operating activities

19 Company details Synergy & TaikOz Ltd is a company limited by guarantee, incorporated and domiciled in Australia.

50

The registered office of the Company is:

The principal place of business is:

C/- Mitchell & Partners Suite 3, Level 2 66 Clarence Street SYDNEY NSW 2000

Level 1, Unit 5 21 Chester St ANNANDALE NSW 2038

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

20 Members’ Guarantee The guarantee of members in the event of the winding up of the company is limited to $100 per member. At 31 December 2016, the company has a total of 21 members representing a total guarantee of $2,100.

21 Contingent Liabilities and Assets No contingent liabilities and assets to report.

22 Subsequent Events No significant events have occurred since the end of the reporting period, which would impact on the financial position of the Company disclosed in the statement of financial position as at 31 December 2016, or on the results and cash flow of the Company for the year ended on that date.

51

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

Directors’ Declaration In the opinion of the Directors of Synergy & TaikOz Ltd (‘the Company’)

(a)

the financial report and notes, as set out pages 31 to 51 are in accordance with the Corporations Act 2001; including:

(i)

giving a true and fair view of the Company’s financial position as at 31 December 2016 and of it’s performance, for the year ended on that date, and

(ii)

complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and

(b)

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

Signed in accordance with a resolution of the Directors:

Jeremy Wright Director Sydney

52

15 May 2017

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

Declaration by General Manager in respect of fundraising appeals pursuant to the Charitable Fundraising (NSW) ACT 1991

I, Lee McIver, General Manager of Synergy & TaikOz Ltd, declare in my opinion:

(a)

the Annual financial report gives a true and fair view of all income and expenditure of Synergy & TaikOz Ltd with respect to fundraising appeal activities for the financial year ended 31 December 2016;

(b)

the statement of financial position gives a true and fair view of the state of affairs with respect to fundraising appeal activities as at 31 December 2016;

(c)

the provisions of the Charitable Fundraising Act 1991 and Regulations and the conditions attached to the authority have been complied with for the financial year ended 31 December 2016; and

(d)

the internal controls exercised by Synergy & TaikOz Ltd are appropriate and effective in accounting for all income received and applied from any fundraising appeals.

Lee McIver General Manager Sydney

15 May 2017

53

Synergy Percussion & Taikoz : Annual Report 2016

Independent Auditor’s Report to the members of Synergy & TaikOz Ltd

54

Annual Financial Report

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

55

Synergy Percussion & Taikoz : Annual Report 2016

56

Annual Financial Report

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

Synergy & Taikoz Ltd would like to acknowledge the support of and thank the following Commonwealth and State funding bodies for their contribution to our 2016 program.

57

Synergy Percussion & Taikoz : Annual Report 2016

58

Annual Financial Report

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

59

Synergy & TaikOz Ltd ABN 67 003 352 181 PO Box 284 Camperdown NSW 1450 Phone: (+61 2) 9557 5842 admin@synergyandtaikoz.com