Canterbury League Club Limited...Director, Bulldogs Rugby League Club Limited 2008-2011 Member,...

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Canterbury League Club Limited

ABN 84 000 191 248

Annual Report

31 October 2018

Contents

Directors' report 2

Lead auditor's independence declaration 12

Statement of profit or loss and other comprehensive income 13

Statement of financial position 14

Statement of changes in members' funds 15

Statement of cash flows 16

Notes to the financial statements 17

Directors' declaration 41

Independent auditor's report 42


1

1

Age

59

35Deputy Chairman

Admitted as a Solicitor of the Federal Court of Australia (2008)

Admitted as a Solicitor of the Supreme Court of NSW (2008)

Admitted as a Solicitor of the High Court of Australia (2008)

Member, Bulldogs Rugby League Club Limited

Graduate Certificate in Legal Practice (University of Technology Sydney, 2007)

Bachelor of Laws with Honours (University of Technology Sydney, 2007)

March 2018

Member of Canterbury League Club Limited since January 2002

Member of Audit & Risk Sub-Committee

Club Director Training: Finance for Club Boards

Bachelor of Science (Molecular Biology and Genetics) (University of Sydney, 2004)

Member of Disciplinary Sub-Committee

Deputy General Counsel of nbn co LimitedGeneral Counsel of Cindicium Pty Ltd

Member FBAA

Australian Credit Licence Financial Services

Member of ClubGRANTS Sub-Committee

Experience, special responsibilities and other directorships

Canterbury League Club LimitedDirectors' reportFor the year ended 31 October 2018

Peter John Callaghan

George CooreyChairman

Director of Canterbury League Club Limited since 21 March 2012

Managing Director Picadilly Financial Services Pty Ltd

Director Justsportz Management Services Pty Ltd Director Bulldogs Rugby League Club Limited 1995-2002

Member of the Project Control Group since March 2016Member, Canterbury League Club Limited

The directors present their report together with the financial report of Canterbury League Club Limited ('the Company' or 'the Club') for the financial year ended 31 October 2018 and the auditor’s report thereon.

Directors

Director (Deputy Chairman) of Canterbury League Club Limited since

Club Director Training: Director Foundation and Management Collaboration

Mortgage Broker – Self Employed

The directors of the Company at any time during or since the end of the financial year are:

Name, qualifications and independence status

2

1

Age

73

69

55

Former Player of Bulldogs Rugby League Football Club Limited – Premiership winner in 1988 – Clive Churchill Medal recipient

ClubsNSW Governance Refresher Training 2018

Australian Sports Medal

Member of Project Control Group, Remuneration and Audit

Subcommittees of Canterbury League Club Ltd since March 2018

Delegate to NSW Rugby League

Former Director of Rugby League Players Association



For the year ended 31 October 2018

Directors (continued)

President of Canterbury League Club from 2006 to 2010

Former Director of Canterbury League Club Ltd from 2002 until 2010

Former player Bulldogs Rugby League Team from 1972 to 1976

Deputy Chairman of Bulldogs Football Club Board 2018 – present

Inaugural member of Bulldogs Ambassadors Club & Chairman for 5 years

Honorary Life member of Canterbury Bankstown Referees

Mandatory Director Training, Director Foundation and Management

Senior Tax Partner of Winchester Lonnon & Klein for over 35 years

Member, Project Control Group Sub Committee 2018 – present

Member of St Vincent de Paul Association for over 14 years

Director of Bulldogs Rugby League Football Club Limited since February 11, 2018, also February 2008 till February 2014Member of Bulldogs Ambassadors Club – Former Chairman 2013-2015

Member of the Institute of Chartered Accountants for over 40 years

Appointed Director of Canterbury League Club Ltd in March 2018

until closure in December 2015.

Directors' report (continued)

CEO Canterbury League Club 1982 to 2011

Collaboration 2018

John Patrick Ballesty

Director of Canterbury League Club 2018 – present

Peter Winchester

Director of Bulldogs Rugby League Club Limited 2005 & 2006

Member of Audit Committee in 2018

Head of New Business and Co-Owner of 360 Degree Media GroupDirector of Global Tech Australia Pty Ltd Director of Ciinch Pty LtdDirector of 360 Degree Holdings Pty LtdBachelor of Business (Accounting)

Mandatory Director Training, Finance for Club Boards 2018

Master of Business Administration (MBA) in Sports ManagementDirector of Canterbury League Club Ltd since March 21, 2018

Paul Anthony Dunn

Former Director of Men of League Foundation 2005-2008


3

1

Age

62

57

Stephen Charles Mortimer (OAM)Degree in Aggricultural Science, Dip Ed.

Directors' report (continued)For the year ended 31 October 2018



The Hon. Morris IemmaCeased Directorship 28 September 2018



Director of Steve Mortimer Marketing & Promotions Pty Limited since 1984Founder and Managing Director of Australian Shuffleboard Pty Limited 1989-2002 Australian Shuffleboard relaunched under SMMP Pty Ltd in 2015 The Athletes Foot Shop (Bankstown & Roselands) Franchisee 1984-1988 Bulldogs Rugby League Club Limited, CEO 2002-2004Director of Bulldogs Rugby League Club Director of ANZ Stadium ClubBerries/Bulldogs Rugby League Football Club player 1976-1988 Played in 6 NRL Grand Finals for Bulldogs4 Grand Final Premierships 1980, 1988, Captain of Bulldogs Premiers 1984, 1985Represented Australia 1982-1985 (9 tests)Captained NSW to first State of Origin series win 1985Voted as one of the 100 greatest ARL players in 2008 celebrating the "Centenary of Rugby League"Life Member of the Bulldogs Rugby League Club Limited since 1988 Life Member of Canterbury League Club Limited since 2013Patron, Newhaven Farm (Intellectual Disability Support Service) Member, ClubGRANTS Sub-Committee since February 2011 Director of Canterbury League Club Limited since 1 January 2003 Max Employment AmbassadorClub Director Training: Director Foundation and Management Collaboration Club Director Training: Finance for Club Boards

Director Canterbury League Club Limited (March – September 2018) Member Audit Committee (March – September 2018) Chair NSW Government Greyhound Industry Reform PanelChair Greyhounds NSW (G.R.N.S.W) Chair Planning Assessment Panel Sydney South DistrictAdvisory Board Roberts- Pizzarotti Constructions. 2017 to date Planning Commissioner Sydney South District Board Member of NSW T.A.F.EChairman of Riverwood Community CentreChairman of Miracle Babies Foundation Chairman of NSW Cancer Institute Member of Parliament NSW 1991 to 2008Premier of NSWMinister for State DevelopmentTreasurer of NSW

4

1

Age

46

65

Mr George KanaanCeased Directorship 28 September 2018

Dr George Peponis (OAM)Ceased Directorship 25 September 2018



Name, qualifications and independence status The Hon. Morris Iemma Cease Directorship 28 September 2018 (continued)



Minister for CitizenshipMinister for HealthMinister for SportMinister for Public Works and ServiceParliamentary Secretary to Premier & Attorney GeneralMember of LakembaMember of HurstvilleBachelor of Law University of Technology SydneyBachelor of Economics Sydney University

Director Canterbury League Club Limited (March – September 2018) Member Audit Committee (March – September 2018) Managing Director Head of Distribution, UBS25 years’ experience in investment banking Bachelor of Commerce, Majoring in Economics & Finance – UWS

Director Canterbury League Club Limited (January 2003 – September 2018)President Canterbury League Club Limited (March 2010 – March 2018) Member Audit Committee (2007 – 2018) Member Project Control Group (June 2011 – March 2018) Member Joint Management Committee (March 2010 – March 2018) Member ClubGRANTS Sub-Committee (May 2012 – September 2018) Chairman and Director Bulldogs Rugby League Club Limited from 30 August 2002 to 14 February 2010 Inaugural Chairman / Member, Ambassadors Club Former player and Captain of Bulldogs Rugby League Football Team Former player and Captain of Australian Rugby League Team Life Member, Bulldogs Rugby League Club Limited Life Member, Canterbury League Club Limited Director NSWRL since December 2010 Chairman NSWRL since April 2013 General Practitioner Member of RACGP, AMA Member Australian Institute of Company Directors Order of Australia Medal January 2013 Chairman of NSW Leagues Club since 2015Chairman Rugby League World Cup 2017Director, ClubsNSW 2017Director, ClubKENO Holdings Pty Ltd 2017Director, Clubs N.S.W. Pty Ltd 2017Director, Registered Clubs Association Holdings Pty Ltd 2017

5

1

Age

62

53Mr Raymond Dib J.P., GAICDCeased Directorship 21 March 2018

Canterbury League Club LimitedDirectors' report (continued)For the year ended 31 October 2018



Dr George Peponis (OAM)Ceased Directorship 25 September 2018 (continued)

Mr Arthur John CooreyCeased Directorship 21 March 2018


Club Director Training: Director Foundation and Management Collaboration Club Director Training: Finance for Club Boards

Director and Co-Managing Director, Stewarts Gentlemen's Outfitters Sydney Member, Canterbury League Club LimitedMember, City Tattersalls ClubMember, Royal Motor Yacht Club of NSW Gold Member, Sydney Cricket Ground/Sydney Football Stadium Deputy Delegate to New South Wales Rugby League Member, Disciplinary Sub-Committee (August 2011 – March 2018) Member, Project Control Group (2011 – 2016) Director, Bulldogs Rugby League Football Club Limited 1994-2002 & 2008 - 2018Life Member, Bulldogs Rugby League Club Limited Director of Canterbury League Club Limited (March 2010 – March 2018)



Director of Canterbury League Club Limited (March 2010 – March 2018)

Member Audit Committee (July 2010 – March 2018)Member Project Control Group (June 2011 – March 2018) Member Joint Management Committee (February 2010 – March 2018) Chairman of Bulldogs Rugby League Club Limited (February 2010 – February 2018)Director of Bulldogs Rugby League Club Limited (February 2007 – February 2018) Director NSW Rugby League since 2010Director of NSW Leagues Club since May 2015Graduate of Australian Institute of Company DirectorsMember Australian Institute of Company DirectorsManaging Director Dib SteadfastCertificate IV in Corporate Governance Former Director Australian Rugby League Former Member NRL PartnershipDiploma Sports ScienceAustralian Sports MedalFormer Bulldogs Rugby League Football Club Trainer and player

6

1

Age

47

62

Director of Canterbury League Club Limited March 2010 – March

Regional Vice Chair (Asia Pacific) for Agribusiness in Lex Mundi (2011 - 2017)

Trustee of Committee for the Economic Development of Australia (CEDA) (2000 to 2017)

Chair Elect for Lex Mundi Real Estate (2014 - 2015) Global Chair for Lex Mundi Real Estate (from 8 May 2015 to 1 May 2017)


Leadership in Professional Service Firms, Harvard Business School (USA), 1998Regional Vice Chair (Asia Pacific) for Real Estate in Lex Mundi (the world's leading association of independent law firms) (2009 - 2014)

Managing Director of Investment & Property Choices Pty Limited.

Diploma of Business

Senior Partnership Executive Bulldogs Rugby League Club Limited

Former player of the Bulldogs Rugby League Football Club

Life Member of the Bulldogs Rugby League Club Limited

Member of the Bulldogs Ambassadors ClubPrevious Chairman of the Bulldogs Ambassadors Club Director, Bulldogs Rugby League Club Limited 2008-2011Member, ClubGRANTS Sub-Committee since February 2011

Member of Canterbury League Club Audit & Risk Committee (March 2016 – March 2018)

Past Chairman of Property Law Reform Alliance (and Property Council representative on PLRA)

Mr Peter McMahon, BA, LLB, FAPICeased Directorship 21 March 2018

Principal, Peter McMahon Advisory (July 2017 - March 2018 ) Partner, Clayton Utz 1989 to 2017 (including term as National Managing Partner, 2000 - 2001)Bachelor of Arts (University of Sydney, 1977)Bachelor of Laws (University of Sydney, 1979)Fellow of Australian Property Institute (from 20 May 2015)

Advanced Diploma Financial Services (Insurance Broking)




Director of Bulldogs Rugby League Club Limited (November 2011- February 2018) Director of Canterbury League Club Limited (March 2014 – March 2018)

Directors' report (continued)

Member of Property Council of Australia

Life member of University of Sydney Union (since 1979)

Foundation Member of Australian Turf Club (formerly being member of both Australian Jockey Club and Sydney Turf Club)Member of Sydney Cricket Ground Trust (since 1985)

Advanced Diploma Financial Services (Financial Planning)Club Director Training: Director Foundation and Management Collaboration

Former Australian & World Universities R.L. Representative


Name, qualifications and independence status Mr Raymond Dib J.P., Ceased Directorship 21 March 2018(continued)

Mr Barry WardCeased Directorship 21 March 2018



NSW Cup Coach 2012-2014

7

1

Age


Principal, Peter McMahon Advisory (July 2017 - March 2018 )



Member of Canterbury League Club Members Disciplinary Sub Committee (October 2017 – March 2018)Member of Bulldogs Rugby League Club Finance, Risk & Audit Committee (October 2017 – March 2018)



Member of Canterbury League Club Remuneration Committee (March 2015 – March 2018)


Name, qualifications and independence statusMr Peter McMahon, BA, LLB, FAPI

Ceased Directorship 21 March 2018

(continued)

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2

3

In addition to the directors above, the independent Chair of the Audit Committee is:G Russell

4

The Company's over-arching charter is identified in the constitution, which is broadly:

(a)

(b)

(c)

15

- -

10

To provide leadership within the industry by developing and operating best practice in every area, partnering with suppliers to innovate, engaging the community and developing productive relations with all stakeholders.

2 2

Director

to render aid, financial and otherwise to junior league associations, schools, clubs and other associations or organisations in the cities of Canterbury, Bankstown, Liverpool and elsewhere which are playing, conducting or involved in the playing of the game of Rugby League.

The Company also seeks, by its own volition as well as through the need to conform with licence requirements, to support community welfare and endeavour through the ClubGRANTS Scheme and other means:

5

-10

Directors also represent the Company on various bodies relating to the operation and promotion of the game of rugby league, and are on various committees within the Company.

9

to assist financially and otherwise in the promotion, conduct and propagation of the game of Rugby League in the cities of Canterbury, Bankstown, Liverpool and elsewhere;

B – Number of meetings held during the time the director held office during the year

Board MeetingsA

97 9

- -3

7

A

A – Number of meetings attended

J Ballesty2

P Winchester 10 10 2 2

3

B WardR DibP McMahon

G Coorey

G KanaanM Iemma

5 55 55 5

14

13

2

Company strategy and objectives

4

Principal activities

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

The principal activities of the Company during the course of the financial year were the operation of registered clubs and the promotion of Rugby League.

G Peponis

To provide the best facilities for customers, delivering service and services of unsurpassed quality.

P Dunn

Company strategy, objectives and principal activities

to provide a social and sporting club for members and their guests with all the usual facilities and accommodation of a club including bars, restaurants, poker machine areas, sporting facilities including (without limitation) facilities for lawn bowls, entertainment facilities and residential accommodation;

Audit Committee Meetings

210

35A Coorey

S Mortimer

P Callaghan

B

5

Directors' report (continued)Canterbury League Club Limited


-13

-

-

- -14

10

15

33 3

- -

1

B

10

Company secretaryMr David Peter Brace was appointed to the position of Company Secretary on 4 March 2013 and resigned from the position on 31 August 2018. Jonathan Brain was appointed to the position on 31 August 2018.

Directors' meetingsThe number of directors’ meetings held (including meetings of committees of directors) and attendance by each of the directors of the Company during the financial year were as follows:

To recognise strength in gaming returns, and retain focus on providing the best quality gaming machine facility, in an elegant atmosphere through unparalleled service and teamwork by dedicated, satisfied customer service-oriented employees.

9

5

6

2018 2017Ordinary Members 45,747 44,131 Pension 10,479 10,436 Bateau Bay 948 1,319 Lakemba 3 32 25 Year Members 2,665 2,568 50 Year Members 440 359 Life Members 6 6 Honorary Members 100 91 Junior Members 236 169

60,624 59,111

In accordance with the Constitution of the Company, every member of the Company undertakes to contribute an amount limited to $10 per member in the event of the winding up of the Company during the time that he or she is a member or within one year thereafter. Total amount that members are liable as at 31 October 2018 is $606,240 (2017: $591,110).

Operating and financial review and performance measurement

The profit after tax from continuing operations of the Company for the year ended 31 October 2018 was $6,126,230 (2017: $6,386,373). Included in this profit was a fair value gain on investment properties of $2,151,383 (2017: $nil).

Overview of the Company

MembershipThe Company is a company limited by guarantee and without share capital. The numbers of members, both financial and unfinancial, as at 31 October 2018 and the comparison with last year is as follows:

The Company's financial performance is continually measured against internally set Key Performance Indicators (KPIs) in core business activities, including gaming, catering and fitness centre activities. Industry benchmarks, past performance and current economic conditions are also used when setting internal KPIs.

Performance measurement

Canterbury League Club LimitedDirectors' report (continued)For the year ended 31 October 2018

10

In AUD Note 2018 2017

Continuing operationsRevenue 4 85,969,558 84,855,714 Other income 554,048 547,329 Net gain arising from changes in the fair value of investment properties 13 2,151,383 -

Changes in inventories 98,400 73,409 Materials and consumables used (3,833,549) (4,184,737) Poker machine licences and taxes (20,459,217) (19,796,717) Personnel expenses 5 (27,022,934) (27,855,160) Property expenses (4,943,354) (4,246,487) Members’ amenities expense (3,502,216) (3,494,078) Donations and sponsorships (1,073,120) (1,059,099) Security expense (165,260) (157,105) Repairs and maintenance (3,588,125) (3,353,595) Consulting and professional fees (661,457) (479,247) Gain on disposal of non-current assets 956,454 398,800 Other expenses (2,348,732) (2,138,202) Earnings before depreciation, grants paid and net finance (costs) / income 22,131,879 19,110,825

Depreciation expense 15 (11,320,708) (8,776,094) Grants paid 6 (4,674,999) (4,663,340) Results from operating activities 6,136,172 5,671,391

Finance income 3,172 63,939 Finance costs (111) - Net finance income 7 3,061 63,939

Profit before tax 6,139,233 5,735,330 Income tax benefit / (expense) 8 (13,003) 651,043 Profit from continuing operations 6,126,230 6,386,373

Discontinued operationsLoss from discontinued operations, net of tax 9 - (160,027) Profit for the year 6,126,230 6,226,346

Other comprehensive income - - Total comprehensive income for the year 6,126,230 6,226,346

The notes on pages 17 to 40 are an integral part of these financial statements.


For the year ended 31 October 2018Statement of profit or loss and other comprehensive income

13

In AUD Note 2018 2017AssetsCash and cash equivalents 10 5,457,925 5,633,351 Trade and other receivables 11 64,323 99,282 Inventories 12 1,027,986 929,586 Prepayments 502,179 1,372,372 Current tax receivable 49,388 228,729 Held for sale assets - 490,000 Total current assets 7,101,801 8,753,320

Investment property 13 13,575,000 11,423,617 Deferred tax assets 14 852,174 773,684 Property, plant and equipment 15 214,441,862 183,268,628 Intangible assets 17 6,217,682 6,217,682 Total non-current assets 235,086,718 201,683,611 Total assets 242,188,519 210,436,931

LiabilitiesTrade and other payables 18 8,502,269 9,455,610 Provisions 19 246,896 220,473 Employee benefits 20 2,858,999 2,675,190 Borrowings 21 5,400,000 2,587,300 Total current liabilities 17,008,164 14,938,573

Borrowings 21 42,600,000 18,960,000 Employee benefits 20 192,793 277,026 Total non-current liabilities 42,792,793 19,237,026 Total liabilities 59,800,957 34,175,599 Net assets 182,387,562 176,261,332

Members' fundsAmalgamation reserve 12,901,167 12,901,167 Retained earnings 169,486,395 163,360,165 Total members' funds 182,387,562 176,261,332



Statement of financial positionAs at 31 October 2018

14

In AUD NoteAmalgamation

reserveRetained earnings Total

Balance at 1 November 2016 9,103,825 157,133,819 166,237,644

Profit for the year - 6,226,346 6,226,346 Amalgamation with Canterbury-Bankstown Tennis & Bowls Club Ltd. 27 3,797,342 - 3,797,342 Total comprehensive income for the year 3,797,342 6,226,346 10,023,688

Balance at 31 October 2017 12,901,167 163,360,165 176,261,332

Balance at 1 November 2017 12,901,167 163,360,165 176,261,332

Profit for the year - 6,126,230 6,126,230 Other comprehensive income - - - Total comprehensive income for the year - 6,126,230 6,126,230

Balance at 31 October 2018 12,901,167 169,486,395 182,387,562


Statement of changes in members' fundsFor the year ended 31 October 2018


15

In AUD Note 2018 2017Cash flows from operating activitiesCash receipts from customers 95,214,422 94,017,517 Cash paid to suppliers and employees (78,642,087) (80,722,435) Grants paid to Bulldogs Rugby League Club 6 (4,000,000) (4,000,000) Cash generated from operations 12,572,335 9,295,082 Interest paid (111) - Net income tax refund / (paid) 87,848 830,779 Interest received 3,172 63,939 Net cash from operating activities 12,663,244 10,189,800

Cash flows from investing activitiesProceeds from sale of property, plant and equipment 1,097,521 1,030,889 Proceeds from sale of held for sale assets 1,446,454 - Acquisition of gaming machine entitlements 17 - (200,000) Acquisition of property, plant and equipment 15 (41,835,345) (39,486,439) Acquisition of investment property 13 - (7,746) Net cash used in investing activities (39,291,370) (38,663,296)

Cash flows from financing activitiesProceeds from borrowings 21 26,452,700 21,547,300 Net cash from financing activities 26,452,700 21,547,300

(175,426) (6,926,196) Cash and cash equivalents at beginning of year 5,633,351 12,559,547 Cash and cash equivalents at end of year 10 5,457,925 5,633,351



Net decrease in cash and cash equivalents


Statement of cash flows

16

1

2

(a)

(b)

(c)

(d)

• Note 9 Discontinued operations• Note 13 Investment properties• Note 15 Property, plant and equipment• Note 17 Intangibles• Note 24 Contingencies


Notes to the financial statements

Basis of preparation

In the opinion of the directors, the Company is not publicly accountable. The financial statements are Tier 2 general purpose financial statements which have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements adopted by the Australian Accounting Standards Board and the Corporations Act 2001 . These financial statements comply with Australian Accounting Standards – Reduced Disclosure Requirements.

Statement of compliance

Reporting entity

Canterbury League Club Limited ("the Company" or "the Club") is a company incorporated and domiciled in Australia. The financial statements of the Company are as at and for the year ended 31 October 2018.

The Company is a not-for-profit entity and is primarily involved in the operation of registered clubs and the promotion of rugby league.


The Company is a company limited by guarantee and without share capital. In accordance with the Constitution of the Company, every member of the Company undertakes to contribute an amount limited to $10 per member in the event of the winding up of the Company during the time that he or she is a member or within one year thereafter.

The financial statements have been prepared on the historical cost basis, except for investment property which is measured at fair value.

The financial statements were approved by the Board of Directors on 18 December 2018.

These financial statements are presented in Australian dollars, which is also the Company’s functional currency.

Use of estimates and judgementsThe preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes:

Functional and presentation currency

Basis of measurement

17

2

(e)

3

(a)(i)


Notes to the financial statements (continued)For the year ended 31 October 2018

Basis of preparation (continued)

Going concern

The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have been applied consistently by the Company.

The Company has the following categories of non-derivative financial assets:

Financial instruments

Significant accounting policies

Non-derivative financial assetsFinancial assets are recognised initially on the date at which the Company becomes a party to the contractual provisions of the instrument.

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Company is recognised as a separate asset or liability.

Cash and cash equivalentsCash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Company in the management of its short-term commitments.

Loans and receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less any impairment losses (see note 3(h)). Loans and receivables comprise cash and trade and other receivables and call deposits with maturities greater than three months from the acquisition date that are subject to an insignificant risk of changes in their fair value.

As at 31 October 2018, the Company had a net working capital deficiency of $9,906,363 (2017: $6,185,253 deficiency) and net assets of $182,387,562 (2017: $176,261,332). In addition, the Company recorded a net profit for the year of $6,126,230 (2017: $6,226,346) and positive operating cash flows of $12,663,244 (2017: $10,189,800).

The Company has completed the execution of the development masterplan to build a multi-storey car park and refurbish the existing facilities except for minor works on the Atrium Bar and Infinity Lounge. A consequence of this project is that excess operating cash flow has been utilised to fund the initial stages of the masterplan, resulting in the net working capital deficiency. The nature of the gaming industry is such that the Company generates significant cash flows on a short term basis, with limited working capital investment required. In addition to this, the Company has access to a $10,000,000 working capital facility with Westpac Banking Corporation and at 31 October 2018 $8,000,000 of this facility has been drawn down.

The Directors have prepared the next financial year's cash flow forecasts and are comfortable that the Company will be able to meet its financial obligations as and when they fall due. Accordingly, the Directors have prepared the financial report on a going concern basis in the belief that the Company will realise its assets and settle its liabilities and commitments in the normal course of business and for at least the amounts stated in the financial report.

Loans and receivables

18



3(a)(ii)

(b)(i)

(ii) Subsequent costs Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Company. Ongoing repairs and maintenance are expensed as incurred.

Non-derivative financial liabilities comprise loans and borrowings and trade and other payables.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gains and losses on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss.

Debt securities issued and subordinated liabilities are initially recognised on the date that they are originated. All other financial liabilities are recognised initially on the trade date at which the Company becomes party to the contractual provisions of the instrument. The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.

Significant accounting policies (continued)

Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.

Property, plant and equipmentRecognition and measurement

Loans and borrowings and trade and other payables are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these finanical liabilities are measured at amortised cost with any difference between cost and redemption value being recognised in the statement of profit or loss and other comprehensive income over the period of the borrowings on an effective interest rate.

Where the terms and conditions of borrowings are modified, the carrying amount is remeasured to fair value. Any difference between the carrying amount and fair value is recognised in equity.

Non-derivative financial liabilitiesFinancial instruments (continued)

19



3(b)(iii)

Depreciation rates Depreciation methods• 2.50% Straight line• 7.5 - 66.67% Diminishing value• 20 - 40% Diminishing value

(c)

(d)


When the use of a property changes such that it is reclassified as property, plant and equipment, its fair value at the date of reclassification becomes its cost for subsequent accounting.

Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value.

Depreciation is recognised in profit or loss over the estimated useful lives of each part of an item of property, plant and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Land is not depreciated.

The depreciation methods and estimated depreciation rates for the current and comparative periods are as follows:

Property, plant and equipment (continued)

BuildingsPlant and equipmentPoker machines

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

Poker machine entitlementsIntangible assets

Poker machine entitlements have infinite useful lives given they have no expiry date. They are measured at cost less accumulated impairment losses.

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business for administrative purposes. Investment property is measured at cost on initial recognition and subsequently at fair value with any change therein recognised in profit or loss. Cost includes expenditure that is directly attributable to the acquisition of the investment property.

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred.

Investment property

Amortisation

Poker machine entitlements have indefinite useful lives as they have no expiry date. Accordingly, such intangible assets are not amortised but are systematically tested for impairment at each reporting date.

Subsequent expenditure

Depreciation

20



3(e)

(f)

(g)

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

Leases in terms of which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.

Other leases are classified as operating leases and the leased assets are not recognised in the Company’s statement of financial position.

InventoriesInventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out principle, and includes expenditure incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition.

Provisions

Leased assets

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

The Company operates a loyalty program where customers accumulate points for dollars spent. The provision represents the current estimate of future cash outflows that will result from future redemption of unredeemed points as at year end.


21



3(h)(i)

(ii) Non-financial assetsThe carrying amounts of the Company’s non-financial assets, other than investment property, inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Indefinite life intangible assets are tested annually for impairment.

Impairment

A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.


The recoverable amount of an asset or cash-generating unit is the greater of its fair value less costs to sell and value in use, being the depreciated replacement cost of the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (a “cash-generating unit" or "CGU").

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against receivables. Interest on the impaired asset continues to be recognised through the unwinding of the discount. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.

The Company considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment.

Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Company on terms that the Company would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, economic conditions that correlate with defaults.

Financial assets

22



3

(h)

(ii)

(i)(i)

(ii)

(iii)

(j)

(k)

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

Short-term benefits

Employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an employee benefit expense in profit or loss in the periods during which services are rendered by employees.

Revenue

Grant paymentsGrant payments made to Bulldogs Rugby League Club and other donees are recognised through profit or loss at the time the grants are awarded by the Company, thereby crystallising an obligation to make payment to the other parties.

Defined contribution plans

The Company’s net obligation in respect of long-term employee benefits other than defined benefit plans is the amount of future benefit that employees have earned in return for their service in the current and prior periods plus related on-costs; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on government bonds that have maturity dates approximating the terms of the Company’s obligations.

Other long-term employee benefits


Impairment (continued)

Revenue from the sale of goods comprises revenue earned from the provision of food, beverage and other goods, and is recognised when the significant risks and rewards of ownership have been transferred to the buyer.

Revenue from services rendered comprises revenue from gaming facilities together with other services provided to members and patrons of the Company, and is recognised through profit or loss when the services are provided. No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due or the reliable measurement of costs incurred or to be incurred, there is risk of return of goods or there is continuing management involvement with the goods.

Non-financial assets (continued)

23



3(l)

(m)

(n)

(i)

(ii)


Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Finance costs comprise interest expense on loans and borrowings. Borrowing costs that are not directly attributable to the acquisition, construction or productions of a qualifying asset are recognised in profit or loss using the effective interest method.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets andliabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when theyreverse, using tax rates enacted or substantively enacted by the reporting date.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

The measurement of deferred tax reflects the tax consequences that could follow the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.

Current tax

Deferred tax

Tax

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax ratesenacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.

Finance income comprises interest income on cash and cash equivalents. Interest income is recognised as it accrues in profit or loss, using the effective interest method.

Finance income and finance costs

Lease payments

24



3

(n)(ii)

(iii)

(o)

(p)

Tax (continued)


An amalgamation reserve in members' funds is utilised for amalgamations with other registered clubs. The amount presented is equal to the accumulated fair values of the net assets of the clubs acquired. The individual assets and liabilities acquired are presented in the statement of financial position. This policy is effective for amalgamations occurring after 1 November 2010.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the Australian Taxation Office (ATO) is included as a current asset or liability in the statement of financial position.

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

Amalgamation reserve

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Deferred tax (continued)

Goods and services tax

The Income Tax Assessment Act 1997 (amended) provides that under the concept of mutuality, clubs are only liablefor income tax on income derived from non-members and from outside entities.

Tax exposure

In determining the amount of current and deferred tax the Company takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Company to change its judgement regarding the adequacy of existing tax liabilities; such changes totax liabilities will impact tax expense in the period that such a determination is made.

25



3(q)


AASB 9 replaces the existing guidance in AASB 139 Financial Instruments: Recognition and Measurement. AASB 9 includes revised guidance on the classification and measurement of financial instruments, a new expected credit loss model for calculating impairment on financial assets, and new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from AASB 139.

AASB 9 is effective for annual reporting periods beginning on or after 1 January 2019, with early adoption permitted.

The Company has considered the impact on it's financial instruments and financial assets and does not expect a material impact.

AASB 9 Financial Instruments (2014)

AASB 15 Revenue from Contracts with CustomersAASB 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including AASB 118 Revenue, AASB 111 Construction Contracts and AASB Interpretation 13 Customer Loyalty Programmes.

AASB 15 is effective for annual reporting periods beginning on or after 1 January 2019, with early adoption permitted. Given the nature of the Company's material revenue streams are predominantly cash-based, and recognised at the point of sales, with limited residual performance obligation, the Company does not anticipate a material impact on it's financial statements.

AASB 16 LeasesAASB 16 removes the classification of leases as either operating lease or finance leases - for the lessee - effectivelytreating all leases as finance leases. Short-term leases (less than 12 months) and leases of low-value assets (such as personal computers) are exempt from the lease accounting requirements. There are also changes in accounting over the life of the lease. In particular, companies will recognise a front-loaded pattern of expenses for most leases, even when they pay constant rentals.

AASB 16 is effective for annual reporting periods beginning on or after 1 January 2019, with early adoption permitted where AASB 15 Revenue from Contracts with Customers is adopted at the same time.

The Company has limited arrangements which meet the definition of an operating lease and would require recognition under the new AASB 16 Leases Standard. The Company will continue to monitor the arrangements in place and any new arrangements entered into to ensure they are accounted for in accordance with the new accounting standard from the effective date.

New standards and interpretations not yet adoptedA number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 November 2018, and have not been applied in preparing these financial statements. Those which may be relevant to the Company are set out below. The Company does not plan to adopt these standards early.

26

4

2018 2017

Revenue from catering 7,388,681 6,778,314 Redemption of complimentary and discounted food (2,494,207) (2,313,529)

4,894,474 4,464,785

Revenue from beverages 5,005,745 5,011,306 Redemption of complimentary and discounted drinks (1,998,570) (1,624,237)

3,007,175 3,387,069

Revenue from gaming 75,768,665 74,390,104 Loyalty points issued (1,185,470) (1,063,516)

74,583,195 73,326,588

Revenue from fitness centre 2,135,812 2,145,465 Revenue from functions 958,884 1,095,757 Subscriptions and joining fees 190,972 212,741 Commissions revenue 199,046 223,308

Total revenue 85,969,558 84,855,714

5

2018 2017

19,328,503 20,290,412

5,590,540 5,298,602

Contributions to defined contribution plans 2,004,315 2,090,118

8,209 55,900

91,367 120,128 27,022,934 27,855,160

6

2018 2017

4,000,000 4,000,000 Other (Marquee player arrangements, Junior League grant, other) 674,999 663,340

4,674,999 4,663,340

In AUD

Grants paid to Bulldogs Rugby League Club

Personnel expenses

In AUD

Grants paid

Wages and salaries

Change in liability for annual leave

Change in liability for long service leave

Other associated personnel expenses



Revenue

In AUD

27



7

2018 2017

3,172 63,939 3,172 63,939

(111) - (111) -

3,061 63,939

8

2018 2017

Current tax expense(72,270) - (19,223) 580,662 (91,493) 580,662

Deferred tax expenseOrigination and reversal of temporary differences 78,490 70,381

78,490 70,381 (13,003) 651,043

Numerical reconciliation between tax expense and pre-tax accounting profit

2018 2017

Proportion of net taxable income attributable to non-members 1,353,666 1,073,465 - -

1,353,666 1,073,465

(1,112,766) (1,073,465) 240,900 -

Income tax using the Company's statutory income tax rate of 30% (2016: 30%) (72,270) - 78,490 70,381 (19,223) 580,662 (13,003) 651,043

Net finance (costs) / income recognised in profit or loss

Interest income

Finance income and finance costs

Interest expense – bank loans

Tax expense

Finance income

In AUD

Less: Other deductible expenses

The amount set aside for income tax in the statement of profit or loss and other comprehensive income has been calculated as follows:

The Income Tax Assessment Act 1997 (amended) provides that under the concept of mutuality, registered clubs are only liable for income tax on income derived from non-members and from outside entities.

Total tax benefit / (expense)

Over provision for prior periods

In AUD

Movement in deferred tax assets

Add: Other taxable income

Finance costs

Current year

In AUD

Over provision for prior periods

Net taxable income subject to tax

28



9

2018 2017

Revenue 86,067 Expenses (231,888) Earnings before depreciation and impairment - (145,821)

Depreciation expense (14,206) Results from operating activities - (160,027)

Income tax benefit - Results from operating activities, net of tax - (160,027)

Cash flows from (used in) discontinued operations2018 2017

Net cash (used in) / from operating activities (including impact of internal financing) - 14,811 Net cash used in investing activities - (32,820) Net cash flow for the year - (18,009)

10

2018 2017

5,457,925 5,633,351

5,457,925 5,633,351

11

2018 2017

Current64,323 99,282 64,323 99,282

In AUD

Trade and other receivables

Trade receivables

In AUD

In AUD

Cash and cash equivalents in the statement of cash flows

Cash and cash equivalents

In AUD

Cash at bank and on hand

Discontinued operations

On 28 October 2016, the Board of Director's approved an exit strategy for Belfield Sub-Branch RSL Club. Trade formally ceased on 24 December 2016. Belfied Sub-Branch RSL Club was previously classified as a discontinued operation.

After taking into account discontinued operations, the profit after tax for the year ended 31 October 2018 was $6,126,230 (2017: $6,226,346).

29



12

2018 2017

401,962 352,498 134,735 83,121 491,289 493,967

1,027,986 929,586

13

2018 2017

11,423,617 11,415,871 - 7,746

Net gain arising from changes in the fair value of investment properties 2,151,383 - 13,575,000 11,423,617

Other

In AUD

Acquisitions

Investment property represents the Company's land and building holdings located in Liverpool, Lakemba and Belmore NSW, and is stated at fair value. The determination of fair value has been based on a valuation by an independent valuer (Hymans Assets Management) who hold a recognised and relevant professional qualification and have recent experience in the location and category of the investment properties. The open market value for these properties during the year was $13,575,000 as at October 2018. The Directors have performed an internal valuation as at 31 October 2018.

Balance at 1 November

In AUD

BistroBar

Investment property

Inventories

Balance at 31 October

30



14

2018 2017 2018 2017 2018 2017

879,841 818,652 - - 879,841 818,652 - - 316,542 316,542 (316,542) (316,542)

201,418 181,296 - - 201,418 181,296 71,162 76,739 - - 71,162 76,739

Provisions 16,295 13,539 - - 16,295 13,539 1,168,716 1,090,226 316,542 316,542 852,174 773,684

Balance 1 November

2016Recognised in profit or loss

Balance31 October 2017

770,661 47,991 818,652 (316,542) - (316,542) 160,492 20,804 181,296 76,004 735 76,739

Provisions 12,688 851 13,539 703,303 70,381 773,684

Balance 1 November

2017Recognised in profit or loss

Balance31 October 2018

818,652 61,189 879,841 (316,542) - (316,542) 181,296 20,123 201,419 76,739 (5,578) 71,161

Provisions 13,539 2,756 16,295 773,684 78,490 852,174

Assets

Employee benefits

Investment property

Movement in temporary differences during the year

Net

Employee benefits

Liabilities

Property, plant and equipment

Employee benefits

Tax assets and liabilities

In AUD


Investment property

Recognised deferred tax assets and liabilities

In AUD

Trade and other payables


In AUD



Net tax assets

Deferred tax assets and liabilities are attributable to the following:

Investment property

31

15 Property, plant and equipment

Land and buildings

Plant and equipment

Poker machines

Work in progress Total

Cost

139,719,870 40,579,489 25,227,687 72,600,029 278,127,075 6,011,157 2,584,103 4,290,538 30,705,665 43,591,463 (528,666) (4,246,224) (2,716,745) - (7,491,635)

72,629,259 28,070,280 - (100,699,539) - 217,831,620 66,987,648 26,801,480 2,606,155 314,226,903

48,770,703 28,084,594 18,003,150 - 94,858,447 3,644,885 3,936,347 3,739,476 - 11,320,708

- (4,069,609) (2,324,505) - (6,394,114) Balance at 31 October 2018 52,415,588 27,951,332 19,418,121 - 99,785,041

Carrying amounts

90,949,167 12,494,895 7,224,537 72,600,029 183,268,628 165,416,032 39,036,316 7,383,359 2,606,155 214,441,862

Balance at 1 November 2017

Valuation of land and buildingsThe latest independent valuations of the Company’s land and buildings, carried out in October 2018 by Hymans Assets Management on the basis of open market value for existing use, resulted in a valuation of land and buildings of $219,000,000. Any additions or transfers since the valuations are expected to be reflected in an equivalent increase in the recoverable amount of the Company's land and buildings. The written down value of land and buildings as at 31 October 2018 is $165,416,032. The Directors are comfortable that the carrying amounts of the land and buildings are not impaired.

At 1 November 2017At 31 October 2018

Balance at 31 October 2018

Depreciation and impairment

Disposals



In AUD

Additions

Depreciation for the year

Transfers

Balance at 1 November 2017

Disposals/write-offs

32



16

2018 2017

164,430,706 89,963,586 14,560,325 12,409,198

178,991,031 102,372,784

26 Bridge Road, Belmore, NSW26 Quigg Street, Lakemba, NSW20 The Boulevarde, Lakemba, NSW21 The Boulevarde, Lakemba, NSW

Non-core properties are located at:32 Quigg Street, Lakemba, NSW82 Memorial Avenue, Liverpool, NSW84 Memorial Avenue, Liverpool, NSW70 Bridge Road, Belmore, NSW64 Bridge Road, Belmore, NSW376 Burwood Road, Belmore, NSW4 York Street, Belmore, NSW28 Gladstone Street, Belmore, NSW

17

Poker machine entitlements

Rights to a domain name Total

6,209,500 8,182 6,217,682 - - -

6,209,500 8,182 6,217,682

Core and non-core properties

Non-core property

Pursuant to Section 41J of the Registered Clubs Amendment Act 2006, the Company defines property as follows:

Core properties are located at:

Intangible assets

Balance as at 31 October 2018

Balance at 31 October

In AUD

Core property

Acquisitions

In AUD

Balance as at 1 November 2017Cost

Poker machine entitlements represent the Company's licence to operate gaming machines at their Club's premises. They are measured at cost less accumulated impairment losses. They have been tested for impairment losses through analysis of fair value less cost to sell and value in use. From this assessment no impairment losses were identified ($nil in 2017).

33



18

2018 2017

Current 2,526,766 1,468,286 5,627,984 7,644,237

347,519 343,087 8,502,269 9,455,610

19

2018 2017

Current 246,896 220,473 246,896 220,473

20

2018 2017

1,603,447 1,427,847 1,255,552 1,247,343 2,858,999 2,675,190

192,793 277,026

Accrued expenses and other payables

In AUD

Income received in advance


In AUD

Non-current

Liability for long service leaveLiability for annual leave

Employee benefits

In AUD

Liability for long service leave

Provisions

Trade payables

Loyalty points

Current

34



21 Loans and borrowings

2018 2017

5,400,000 1,040,000 - 1,547,300

5,400,000 2,587,300

42,600,000 18,960,000

The Club has access to the following lines of credit:

In AUD

Bank bill business loan

facility

Working capital loan

facility

Total loan facilitiy

Total facility limit 40,000,000 10,000,000 50,000,000

Facilities utilised at reporting date 40,000,000 8,000,000 48,000,000

Facilities not utilised at reporting date - 2,000,000 2,000,000

Security:The facilities are secured by registered first mortgages over certain properties of the entity.

(a)

(b)

(c)

(d)

(e)

(f)

In AUD

Current

Bank bill business loan facility

The Company has entered into a loan agreement with Westpac Banking Corporation for the financing of the construction of a multi-storey cark park and internal refurbishment of Canterbury League Club facility at 26 Bridge Road, Belmore NSW, in accordance with stages 1-4 of the Club's development of its Masterplan. This agreement was signed on 20 July 2016 and provides for a bank bill business loan facility of up to $37,000,000 to be drawn down on for the given purpose. On 22 August 2018, a letter of variation to the original loan agreement was signed increasing the loand facility to $40,000000.

Non-current

General Security Agreement by Canterbury League Club Limited ACN 000 191 248 over all existing and future assets and undertakings

Fixed & Floating Charge by Canterbury League Club Limited ACN 000 191 248 over all existing and future assets and undertakings

Mortgage by Canterbury League Club Limited ACN 000 191 248 over the property located at 3, 5, 14, 16 and 18 Gladstone Street, Belmore NSW and 17-25 Collins Street, Belmore NSW and 52-62 Bridge Bridge Street Belmore, NSW 2192

Mortgage by Canterbury League Club Limited ACN 000 191 248 over the property located at 36, 38, 40-42, 44, 46, 48 and 50 aBridge Road, Belmore NSW and 1 Gladstone Street, Belmore NSW 2192

Bank bill business loan facilityWorking capital loan facility

Tripartite agreement (Builder Side Deed) between Canterbury League Club Limited (Borrower), Parkview Constructions Pty Ltd (Builder) and Westpac Banking Corporation ABN 33 007 457 141

The Club is in compliance with all the restrictive loan covenants as at reporting date.

Mortgage by Canterbury League Club Limited ACN 000 191 248 over the property located at 26 Bridge Street Belmore, NSW 2192 (includes 2-12 Gladstone Street, Belmore and 7-15 Collins Street Belmore)

35



22

2018 2017

10,450 11,246 9,401 - 19,851 11,246

2018 2017

243,000 216,000 Between one and five years 22,500 292,500

265,500 508,500 23

2018 2017

Amount due on settlement of poker machines - 3,793,236 - 3,793,236

Amount due on settlement of investment property - 4,655,000 - 4,655,000

Capital works contracted for but not yet completed 795,257 18,382,115 795,257 18,382,115

5,800,000 5,300,000 5,800,000 5,300,000

Operating leases

Leases as lessee

In AUD

Other commitments

Leases as lessor

In AUD

Purchase of investment property

Commitments

In AUD

Purchase of poker machines

The Company leases out its investment property held under operating leases (see note 13). The future minimum lease payments under non-cancellable leases are as follows:

Less than one yearBetween one and five years

At the end of the reporting period, the future minimum lease payments under non-cancellable operating leases are payable as follows:

Capital works

Within one year

Less than one year

The Company has committed to provide financial assistance to Bulldogs Rugby League Club Limited

Within one year

36

24

2018 2017

(i) 210,300 210,300

(ii) Bank guarantee to Bulldogs Rugby League Club Limited's financiers 1,500,000 1,500,000

(iii)

25

Parent and ultimate controlling party

2018 2017

171,295 174,002

2018 2017

Short-term and long-term employee benefits and termination payments 1,802,025 1,480,435

a)

b)

The key management personnel compensation included in ‘personnel expenses’ (see note 5) are as follows:

Included within short-term and long-term employee benefits is a termination payment of $397,500 (2017: nil).

The parent and the ultimate controlling party of the Company is Bulldogs Rugby League Club Limited, a company limited by guarantee incorporated in Australia.

Contingent liabilities not considered remoteIn AUD



Guarantee

Contingent assets and contingent liabilities

The directors are of the opinion that provisions are not required in respect of these matters, as it is not probable that a future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement.

Bank performance guarantees

The Company has provided its parent entity, Bulldogs Rugby League Club Limited, with a letter confirming that it will provide financial support to the parent entity in the foreseeable future to enable the parent entity to meet its obligations as and when they fall due, if necessary.

From time to time directors of the Company may purchase goods from the Company or participate in other Company activities. These purchases and participations are on the same terms and conditions as those entered into by other employees or members of the Company and are trivial or domestic in nature.

The aggregate amounts recognised during the year relating to key management personnel were as follows:

During the 2018 financial year Stewarts Gentlemens Outfitters Pty Limited, a company associated with Arthur Coorey, supplied uniforms to the Company under arm's length terms and conditions with total cost amounting to $51,546 (2017: $29,827).

In 2018, $55,613 (2017: $53,993) was paid to D.I.B Insurance Brokers Pty Ltd, a company associated with Mr Raymond Dib under arm’s length terms and conditions in relation to insurance brokerage services provided to the Company.

Related parties

Key management personnel compensationAmounts paid to non-executive directors during the year were as follows:

In AUD

Director honorariums and other related expenses

Key management personnel and director transactions

In AUD

37



25

c)Mr Steve MortimerMr John Patrick BallestyMr Paul Anthony Dunn

d)

e)

f)

g)

h)

i)

j)

k)

l)

m)

n)

Certain players of Bulldogs Rugby League Club Limited have paid rent amounting to $28,994 (2017: $37,829) to the Company. All transactions have been executed at commercial rates. Furthermore, additional property was provided to certain junior players by the subsidiary free of charge.

Bulldogs Rugby League Club operates a Teamstore in a property owned by the Company located at Burwood Road, Belmore. Total rent received for the year amounts to $52,000 (2017: $52,000).

Grants amounting to $4,000,000 (2017: $4,000,000) were paid to the parent entity. Furthermore, $ 405,000 (2017: $286,668) was paid to Bulldogs Rugby League Club through the ClubGRANTS Scheme 1 for player rep levies and the referees association. ClubGRANTS category 2 amounted to $100,000 (2017: $100,000). Donations to Junior League totalled $375,000.

During the year the Company did not purchase memorabilia from the parent entity (2017: Nil).

The remuneration of Directors noted above does not include amounts received by these directors from Bulldogs Rugby League Club Limited.

During the 2018 financial year, one relative of Dr George Peponis and one relative of Arthur John Coorey were employed by the Company and received wages within normal employee terms and conditions.

Barry Ward is employed by the Bulldogs Rugby League Club Limited as a Corporate partnership executive.

Related parties (continued)

The following directors of Canterbury Leagues Club Limited are also directors of Bulldogs Rugby League Club

An amount of $300,000 (2017: $300,000) was paid to certain players of the parent entity pursuant to permissible arrangements under the NRL Salary Cap regulations.

During the 2018 financial year, the Company paid $38.50 (2017: $7,195) for shuffleboard supplies to Steve Mortimer Marketing Promotions Pty Ltd, a company associated with Mr Stephen Mortimer under arm’s length terms and conditions.

An amount of $100,000 (2017: $100,000) was paid as corporate hospitality to the parent entity.

Transactions with parent entity - Bulldogs Rugby League Club LimitedDuring the year, the Company had the following transactions with its parent entity:

Key management personnel and director transactions (continued)

The Company has a number of miscellaneous payments to Bulldogs Rugby League Club during the year for reimbursements of shared Directors expenses amounting to $99,962 (2017: $78,757).

IT personnel from Canterbury League Club has been seconded to Bulldogs Rugby League Club for the year. Total payment received was $9,160 (2017: $10,000).

38



25

o)

p)

26

27

In AUD

10,749 2,306,693 1,700,000

(71,273) (148,827)

3,797,342

Fair value measurement recognised in the Statement of Financial PositionThe fair value measurement disclosures use a three-tier value hierarchy that reflects the significance of the inputs used in measuring fair values. The fair value hierarchy is comprised of the following levels:

• Level 1 – fair values measured using quoted prices (unadjusted) in active markets for identical instruments;• Level 2 – fair values measured using directly (i.e. as prices) or indirectly (i.e. derived from prices) observable inputs, other than quoted prices included in Level 1; and• Level 3 – fair values measured using inputs that are not based on observable market data (unobservable inputs).

The fair value of investment property was determined by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued. The fair value measurement for all of the investment properties has been categorised as a Level 2 fair value given the valuation methodology used by the valuer is the direct comparison approach.

Other transactions by the Company with Bulldogs Rugby Club include functions and in house dining charged to the Bulldogs Rugby Club amounting to $223,000 as at 31 October 2018 (2017: $154,000)

At year end, an amount of $13,207 (2017: $63,128) was receivable from the parent entity and no amount is payable to the parent entity (2017: $Nil).

There was no consideration transferred from the Club to CBTB. Members interest in CBTB were exchanged for membership of the Club.

Identifiable assets acquired and liabilities assumed (at fair value)

Cash and cash equivalentsProperty, plant and equipmentIntangibles (poker machine entitlements)Trade and other payablesLoans and borrwoingsTotal net identifiable assets

During the year there have been other transactions between the parent entity and the Company, such as purchases of merchandise and game tickets. All transactions have been executed on commercial terms.

Business combination

Amalgamation with Canterbury-Bankstown Tennis & Bowls Club Ltd. (CBTB)

On 2 December 2016, the Club (the acquirer) facilitated an amalgamation with Canterbury-Bankstown Tennis & Bowls Club Ltd. (the acquiree), a registered club that provides services and facilities to its members and guests. Members of CBTB were made an offer to elect to become a member of the Club, if not already a member.

The amalgamation has enabled the Club to expand its family of Clubs and ensure the continued operation of CBTB and delivery of services to the community of Canterbury and surrounding suburbs.

Related parties (continued)

Transactions with parent entity - Bulldogs Rugby League Club Limited (continued)

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28 Events after the reporting period

There has not arisen in the interval between the end of the financial period and the date of this report any item, transaction or event of a material and unusual nature likely, to affect significantly the operations of the Club, the results of those operations, or the state of affairs of the Club, in future financial years.

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KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Liability limited by a scheme approved under Professional Standards Legislation.

Independent Auditor’s Report

To the members of Canterbury League club Limited

Opinion

We have audited the Financial Report of Canterbury League Club Limited (the Company).

In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including:

giving a true and fair view of theCompany’s financial position as at 31October 2018 and of its financialperformance for the year ended onthat date; and

complying with Australian AccountingStandards- Reduced DisclosureRequirements and the CorporationsRegulations 2001.

The Financial Report comprises:

Statement of financial position as at 31 October2018

Statement of profit or loss and other comprehensiveincome, Statement of changes in members’ funds,Statement of cash flows for the year then ended

Notes including a summary of significant accountingpolicies

Directors’ Declaration.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 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 fulfilled our other ethical responsibilities in accordance with the Code.

Other Information

Other Information is financial and non-financial information in Canterbury League Club Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information.

The Other Information we obtained prior to the date of this Auditor’s Report was the Directors’ Report. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon.

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