BUNDEENA R RSL... · Web viewA.B.N : 16 001 037 350 FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH...

BUNDEENA R

BUNDEENA R.S.L. MEMORIAL CLUB LIMITED

A.B.N : 16 001 037 350

FINANCIAL REPORT

FOR THE YEAR ENDED

31 MARCH 2009

BUNDEENA R.S.L. MEMORIAL CLUB LIMITED

A.B.N : 16 001 037 350

CONTENTS

Directors' Report

1

Auditor's Report

6

Auditor's Independence Declaration

8

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13

Directors' Declaration

32

Disclaimer on Additional Financial Information

33

Your directors present their report on the company for the financial year ended 31 March 2009.

The names of the directors in office at any time during or since the end of the year are:

Mr Graeme Kelly

Mr Barrie Dean

Mr Ken Woodbine

Mrs Joyce Drew

Mr Craig Hamilton

Mr David Lake

Mrs Kathleen Harrigan

Mr Robert Demeio

Mr John Scott - Resigned 3/02/2009

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Company Secretary

The following person held the position of company secretary at the end of the financial year :

Name :

Daniel Morris

Appointment Date :

23/09/2005

Experience and Qualifications :

Employed as Assistant Secretary Manager at Bundeena RSL Memorial Club from September 2004 until appointment as Secretary-Manager in September 2005. Previous experience includes position of Office and Bar Supervisor at North Bondi RSL Club 2003-2004 and Duty Manager at Hotel Bar Ace between July and November 2003.

Relevant training includes Clubs NSW courses in Code of Practice, OH&S Management and Finance Management. Other relevant training includes First Aid Certificate and Responsible Service of Alcohol and Responsible Conduct of Gaming Courses.

Principal Activities

The principal activities of the company during the financial year were :

Licensed Club

Operating Results

The net loss of the company for the financial year after providing for income tax amounted to $122,415.

Dividends

The company is prevented by law from paying dividends.

Review of Operations

A review of the operations of the company during the financial year and the results of those operations are as follows :

Results are detailed in the President's and Treasurer's reports which accompany the Annual Financial Report to the members.

Significant Changes

No significant changes in the company's state of affairs occurred during the financial year.

Future Developments

The likely developments in the operation of the company and the expected results of those operations in financial years subsequent to the year ended 31 March 2009 are as follows :

The Club has raised funds through members donations and is currently preparing to sell a further six poker machines licences.This along with a restructure of staff will enable the Club to continue its operations. As auditors Booth Partners will closely monitor trading conditions over the next six months to ensure the club remains solvent.

After Balance Date Events

The club sought amalgamation partners through CMP Lawler and subsequently received notice that amalgamation attempts had failed on 20 May 2009.As auditors Booth Partners have written to ASIC on 26 May 2009 notifying them that there were reasonable grounds to suspect that the Club may be insolvent trading as per RG34.49 and that s.588G of the Act has been breached.Directors called a general meeting of members on 21 June 2009 to vote on a special resolution "that the Club cannot by reason of its liabilities continue its business and that it is advisable to wind up the Club voluntarily in accordance with the Corporations Act".

Environmental Issues

The company's operations are not regulated by any significant environmental regulations under a law of the Commonwealth or of a State or Territory.

Membership

The number of members registered in the Register of Members at the 31 March 2009 were as follows :

Ordinary Members

1227

Total Members

1227

Directors

Qualifications, Experience and Special Duties of Directors

Graeme Kelly

President

Union Manager.Nine years Director.Eight years President.

Barrie Dean

Senior Vice President

Company Director.Ten years Director.

Ken Woodbine

Junior Vice President

Retired.Eight years Director.

Joyce Drew

Treasurer

Retired.Sixteen years Director.

Craig Hamilton

Director

IT Manager.One year Director.

David Lake

Director

Garbage Worker.Three years Director.

Kathleen Harrigan

Director

Retired.Three years Director.

Robert Demeio

Director

Project Manager.Two year Director.

John Scott

Director

Engineer.

Resigned 3/02/2009

Summary of Meeting Attendances :

14 ordinary meetings and 4 special meetings and 1 executive meeting were held during the year.

Number of

Number of

Meetings Eligible

Meetings

To Attend

Attended

Graeme Kelly

19

16

Barrie Dean

19

15

Ken Woodbine

18

18

Joyce Drew

14

7

Craig Hamilton

14

8

David Lake

14

14

Kathleen Harrigan

14

13

Robert Demeio

14

12

John Scott

12

9

Directors' Indemnity

Directors' and Officers' indemnity premiums have been paid by the company during the year for Directors' and Officers' liability insurance. The insurance is in respect of legal liability for damages and legal costs to a maximum of $2,000,000 arising from claims made by reason of any omission or acts (other than dishonesty) by them whilst acting in their individual or collective capacity as Directors or Officers of the company. The company has not, during or since the financial year, in respect of any person who is or has been an officer or auditor of the company indemnified or made any relevant agreement for indemnifying against a liability, including costs and expenses in successfully defending legal proceedings.

Directors Benefits

No director has received or become entitled to receive, during or since the end of the financial year, a benefit because of a contract made by the company or a related body corporate with the director, a firm of which a director is a member or a company in which a director has a substantial financial interest. This statement excludes a benefit included in the aggregate amount of emoluments received or due and receivable by directors shown in the company's accounts, prepared in accordance with applicable accounting standards and other mandatory professional reporting requirements and the Corporations Act 2001.

Non-audit Services

The board of directors is satisfied that the provision of non-audit services provided during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the services disclosed below did not compromise the external auditors independence for the following reasons :

-

all non-audit services are reviewed and approved prior to commencement to ensure they do not adversely affect the integrity and objectivity of the auditor; and

-

the nature of the services provided do not compromise the general principles relating to auditor independence as set out in the Institute of Chartered Accountants in Australia and CPA Australia's Professional Statement F1 : Professional Independence.

The following fees for non-audit fees were paid/payable to the external auditors during the year ended 31 March 2009:

$

Taxation services

1,000

Accounting services

7,900

8,900

Auditor's Independence Declaration

The auditor's independence declaration for the year ended 31 March 2009 as required under Section 307c of the Corporations Act 2001 is set out on page 8.

Signed in accordance with a resolution of the Board of Directors:

Director:

______________________

Mr Graeme Kelly

Dated this day of

Scope

We have audited the financial report of Bundeena R.S.L. Memorial Club Limited being the Income Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement, Notes to and Forming Part of the Accounts and Directors Declaration for the financial year ended 31 March 2009. The company's directors are responsible for the preparation and presentation of the financial report and the information they contain. We have conducted an independent audit of the financial report in order to express an opinion on it to the members of the company.

Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance as to whether the financial report is free of material misstatement. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial report, and the evaluation of accounting policies and significant accounting estimates.

These procedures have been undertaken to form an opinion whether, in all material respects, the financial report is presented fairly in accordance with Accounting Standards and other mandatory professional reporting requirements in Australia and statutory requirements so as to present a view which is consistent with our understanding of the company's financial position, and performance as represented by the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Independence

In conducting our audit, we followed applicable independence requirements of Australian professional and ethical pronouncements and the Corporations Act 2001.

In accordance with ASIC Class Order 05/83, we declare to the best of our knowledge and belief that the auditor's independence declaration, set out on page 8 of the financial report, has not changed as at the date of providing our audit opinion.

Matters relating to the electronic presentation of the audited financial report

The auditor's report relates to the financial report of Bundeena R.S.L. Memorial Club Limited for the financial year ended 31 March 2009 included on the company's website. The Director's are responsible for the integrity of the company's website. We have not been engaged to report on the integrity of the company's website. The auditor's report refers only to the statements named above. It does not provide an opinion on any other information which may have been hyperlinked to / from these statements. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report to confirm the information included in the audited financial report presented on this website.

Audit Opinion

In our opinion, the financial report of Bundeena R.S.L. Memorial Club Limited is in accordance with:

(a)

the Corporations Act 2001, including:

(i)

giving a true and fair view of the company's financial position as at the year ended 31 March 2009 and of their performance for the year ended on that date; and

(ii)

complying with Accounting Standards in Australia and the Corporation Regulations 2001; and

(b)

other mandatory professional reporting requirements

Booth Partners

Certified Practising Accountants

____________________________

Tony Federici

52 Osborne Street, Nowra NSW 2541

Dated this day of

I declare that, to the best of my knowledge and belief, during the year ended 31 March 2009, there have been :

i)

no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

ii)

no contraventions of any applicable code of professional conduct in relation to the audit.

Booth Partners


Tony Federici


Dated this day of

Sales and trading revenue

2

921,331

1,102,696

Cost of sales and trading expenses

(519,020)

(579,215)

Gross profit

402,311

523,481

Revenue from ordinary activities

2

167,652

124,072

Administration, Security Wages and Wage on Costs

(177,608)

(194,897)

Borrowing Expenses

(56,074)

(47,018)

Depreciation and Amortisation

(64,192)

(67,057)

Promotion and Entertainment Expenses

(132,018)

(152,076)

Occupancy Expenses

(157,118)

(141,484)

Other Expenses from Ordinary Activities

(105,368)

(117,122)

Loss before income tax

3

(122,415)

(72,101)

Income tax expense

-

(7,255)

Loss attributable to members of the company

16

(122,415)

(79,356)

CURRENT ASSETS

Cash and cash equivalents

5

80,553

171,718

Trade and other receivables

7

11,375

12,142

Financial assets

8

750

-

Inventories

9

72,769

73,751

Other current assets

10

8,920

10,330

TOTAL CURRENT ASSETS

174,367

267,941

NON-CURRENT ASSETS

Property, plant and equipment

11

1,405,203

1,492,459

TOTAL NON-CURRENT ASSETS

1,405,203

1,492,459

TOTAL ASSETS

1,579,570

1,760,400

CURRENT LIABILITIES

Trade and other payables

12

93,293

74,276

Borrowings

13

55,443

189,138

Short term provisions

14

45,167

39,609

Tax liabilities

(1,148)

-

Other current liabilities

15

7,774

3,918

TOTAL CURRENT LIABILITIES

200,529

306,941

NON-CURRENT LIABILITIES

Borrowings

13

557,033

508,476

Long term provisions

14

13,727

14,287

TOTAL NON-CURRENT LIABILITIES

570,760

522,763

TOTAL LIABILITIES

771,289

829,704

NET ASSETS

808,281

930,696

EQUITY

Reserves

4

159,933

159,933

Retained earnings

16

648,348

770,763

TOTAL EQUITY

808,281

930,696

Retained Profits

Reserves

Total

Balance at 1 April 2007

850,119

159,933

1,010,052

Profit attributable to members of the entity

(72,101)

(72,101)

Income tax expense

(7,255)

(7,255)

Balance at 31 March 2008

770,763

159,933

930,696


770,763

159,933

930,696

Profit attributable to members of the entity

(122,415)

(122,415)


648,348

159,933

808,281

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers

999,865

1,195,556

Payments to suppliers and employees

(1,040,130)

(1,146,386)

Interest received

1,576

8,362

Borrowing costs paid

(29,678)

(37,000)

Income tax paid

-

(7,255)

Net cash provided by (used in) operating activities

(68,367)

13,277

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of property, plant and equipment

104,500

15,000

Payments for property, plant and equipment

(41,411)

(313,356)

Payments for investments

(750)

-

Net cash provided by (used in) investing activities

62,339

(298,356)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings

-

409,397

Repayment of borrowings

(85,138)

(117,489)

Net cash provided by (used in) financing activities

(85,138)

291,908

Net increase (decrease) in cash held

(91,166)

6,829

Cash at beginning of financial year

171,719

164,890

Cash at end of year

80,553

171,719

1

Statement of Significant Accounting Policies

Basis of Preparation

The financial report is a general purpose financial report that has been prepared in accordance with applicable Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated.

The financial report has been prepared on an accrual basis and is based on historical costs and does not take into account changing money values, or except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets.

Income Tax

The income tax expense for the year is the tax payable on the current year's taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.

Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax assets and liabilities are recognised at the tax rates expected to apply when the assets are recovered or the liabilities are settled. Current and deferred tax is recognised as an expense in the income statement except when it relates to items credited or debited directly to equity, in which case the deferred tax is also recognised directly in equity.

Deferred tax assets are recognised to the extent that it is probable that sufficient taxable profits will be available, against which deductible temporary differences can be utilised.

Under the concept of mutuality, clubs are only assessed for income tax on that proportion of income derived from non-members and other external sources.

Inventories

Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a first-in first-out basis.

Stores are valued at cost.

Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Property

Freehold land and buildings are measured at cost less depreciation. It is the policy of the entity to have annual appraisals by the directors to ensure the carrying amount is not in excess of the recoverable amount from those assets.

Plant and Equipment

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

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

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

Depreciation

The depreciable amount of all fixed assets including buildings, but excluding freehold land, are depreciated on diminishing value basis over the asset's useful life to the company commencing from the time the asset is held ready for use. Properties held for investment purposes are not subject to a depreciation charge.

The depreciation rates used for each class of depreciable asset are:

Class of Fixed Asset

Depreciation Rate

Buildings

2.5%

Plant and Equipment

10 - 40%

Poker Machines

20%

Motor Vehicles

22%

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

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

Employee Benefits

Provision is made for the company's liability for employee benefits arising from services rendered by employees to balance date. Employee benefits expected to be settled within one year together with benefits arising from wages and salaries, annual leave and long service leave which will be settled after one year, have been measured at the amounts expected to be paid when the liability is settled plus related on-costs. Other 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.

Provisions

Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

Provisions are measured using the best estimate of the amounts required to settle the obligation at balance date.

Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to the company, are classified as finance leases. Finance leases are capitalised, recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual value. Leased assets are depreciated on a straight line basis over their estimated useful lives where it is likely that the company will obtain ownership of the asset, or over the term of the lease. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

Lease incentives received under operating leases are recognised as a liability. Lease payments received reduce the liability.

Financial Instruments

Initial Recognition and Measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (ie trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified

Classification and Subsequent Measurement

(i) Financial assets at fair value through profit and loss

Financial assets are classified at fair value through profit and loss when they are held for trading for the purpose of short term profit taking, where they are derivatives not held for hedging purposes, or designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Realised and unrealised gains and losses arising from changed in fair value are included in profit or loss in the period in which they arise.

(ii) Loans and Receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments which are not quoted in an active market and are stated at an amortised cost using the effective interest rate method.

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the group's intention to hold these investments to maturity. They are subsequently measured at amortised cost using the effective interest rate method.

(iv) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either designated as such or that they are not classified in any of the other categories. They compromise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

(v) Financial Liabilities

Non-derivative financial liabilities (excluding financial guarantee) are subsequently measured at amortised cost using the effective interest rate method.

Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm's length transactions, reference, to similar instruments and option pricing models.

Impairment

At each reporting date, the Company assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed is recognised in profit or loss.

Impairment of Assets

At each reporting date, the company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the income statement.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the Balance sheet.

Revenue

Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and cessation of all involvement in those goods.

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

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

Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in income in the period in which they are incurred.

Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.

Cash flows are presented on a gross basis, except for the GST component of investing and financing activities which are disclosed as operating cash flows.

Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data.

Key Estimates - Impairment

The company assesses impairment at each reporting date by evaluating conditions specific to the company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.

2

Revenue

Operating activities

Trading Revenue

921,331

1,102,696

Interest

1,576

8,362

Kitchen Rent

(1,797)

10,822

Members Subscriptions

10,718

7,534

Sundry Income

64,990

82,634

996,818

1,212,048

Non-operating activities

Profit on disposal of property, plant and equipment

92,165

14,720

92,165

14,720

1,088,983

1,226,768

3

Loss from Ordinary Activities

Loss from ordinary activities before income tax expense has been determined after:

Expenses:

Cost of sales

519,020

579,215

Borrowing costs

Borrowing Costs

420

203

Total borrowing costs

420

203

Auditors' Remuneration

Accounting Fees

8,900

9,800

Auditors Remuneration

7,300

6,200

16,200

16,000

Total Auditors' Remuneration

16,200

16,000

No other benefits were received.

4

Reserves

Capital Profits Reserve

159,933

159,933

5

Cash and Cash Equivalents

Current

Cash on Hand

45,222

48,004

Macquarie Cash Management Account

625

1,723

National Australia Bank - TAB & Keno

9,000

9,000

National Australia Bank - Current Account

25,706

1,991

IMB Term Deposit

-

111,000

80,553

171,718

Reconciliation of cash

Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the balance sheet as follows:

Cash and cash equivalents

80,553

171,718

80,553

171,718

6

Key Management Personnel Compensation

Directors' Remuneration

Honoraria and Expenses paid or payable to directors of the Company by the Company and any related parties

-

2,000

Key Management Personnel Remuneration

Total Remuneration

87,598

88,687

87,598

88,687

7

Trade and Other Receivables

Current

Debtors

11,375

12,142

8

Financial Assets

Current

ILG Co-Op Shares

750

-

9

Inventories

Current

Stock on Hand

33,450

32,005

Stock on Hand - Other

39,319

41,746

72,769

73,751

10

Other Current Assets

Current

Prepayments

6,446

8,511

Prepaid Borrowing Expenses

2,474

1,819

8,920

10,330

11

Property, Plant and Equipment

Land and Buildings

Leasehold Improvements

1,344,211

1,328,013

Less: Accumulated Depreciation

(170,841)

(135,905)

1,173,370

1,192,108

Total Land and Buildings

1,173,370

1,192,108

Plant and Equipment

Plant & Equipment at Cost

409,116

395,472


(288,270)

(263,927)

120,846

131,545

Motor Vehicles at Cost

24,050

24,050


(20,091)

(18,942)

3,959

5,108

Office Furniture & Equipment at Cost

106,584

105,499


(78,892)

(75,128)

27,692

30,371

Poker Machines at Cost

425,483

550,786


(346,147)

(417,459)

79,336

133,327

Bar at Cost

53,085

53,085


(53,085)

(53,085)

Total Plant and Equipment

231,833

300,351

Total Property, Plant and Equipment

1,405,203

1,492,459

Movements in Carrying Amounts

Movements in carrying amount for each class of property, plant and equipment between the beginning and the end of the current financial year

Leasehold Improvements

Plant & Equipment

Poker Machines

Motor Vehicles

Total

$

$

$

$

$

$


1,026,333

154,904

117,765

6,591

-

1,305,593

Additions

198,368

39,993

74,995

-

-

313,356

Disposals

-

-

(281)

-

-

(281)

Depreciation expense

(32,593)

(32,981)

(59,152)

(1,483)

-

(126,209)


1,192,108

161,916

133,327

5,108

-

1,492,459


1,192,108

161,916

133,327

5,108

-

1,492,459

Additions

16,198

14,730

10,483

-

-

41,411

Disposals

-

-

(12,336)

-

-

(12,336)

Depreciation expense

(34,936)

(28,107)

(52,139)

(1,149)

-

(116,331)

Carrying amount at 31 March 2009

1,173,370

148,539

79,335

3,959

-

1,405,203

12

Trade and Other Payables

Current

Accrued Expenses

58,120

23,344

Trade Creditors

35,173

50,932

93,293

74,276

13

Borrowings

Current

Hire Purchase Liability

66,148

71,308

Less: Unexpired Hire Purchase Liability

(10,705)

(16,170)

Loan - A & M Livingston

-

134,000

55,443

189,138

Non-Current

Hire Purchase Liability

95,991

162,139

Less: Unexpired Hire Purchase Liability

(7,708)

(18,413)

Loan - A & M Livingston

468,750

364,750

557,033

508,476

Loans are expected to be settled :

within 12 months

-

134,000

12 months or more

468,750

364,750

468,750

498,750

The loans from Alick William & Margaret Eileen Livingston are secured by a registered first mortgage over all licences, fixtures, fittings, plant and equipment, uncalled capital, book debts, assets, undertaking and goodwill of the Club.

Alick William & Margaret Eileen Livingston is a fixed and floating charge over all of the assets and goodwill of the Club therein.

14

Provisions

Current

Provision for Annual Leave

37,693

32,551

Provision for Long Service Leave

7,474

7,058

45,167

39,609

Non-Current


13,727

14,287

Aggregate employee benefit liability

58,894

53,896

15

Other Liabilities

Current

Poker Machine Tax Rebate

2,871

2,863

Subscriptions in Advance

4,903

1,055

7,774

3,918

16

Retained Earnings

Retained earnings at the beginning of the financial year

770,763

850,119

Net loss attributable to members of the company

(122,415)

(79,356)

Retained earnings at the end of the financial year

648,348

770,763

17

Capital and Leasing Commitments

Hire Purchase Commitments

Payable:

Not later than one year

66,148

71,308

Later than one year but not later than five years

95,991

162,139

Minimum payments

162,139

233,447

Less future finance charges

(18,413)

(34,583)

Total hire purchase liability

143,726

198,864

18

Cash Flow Information

Reconciliation of cash flow from operations with profit after income tax

Profit (loss) after income tax

(122,415)

(79,356)

Non-cash flows in profit :

Profit on sale of non-current assets

(92,165)

(14,720)

Depreciation

116,331

126,209

Changes in assets and liabilities :

(Increase) Decrease in current inventories

982

(9,128)

(Increase) Decrease in current receivables

767

(6,718)

(Increase) Decrease in prepayments

1,410

(438)

Increase (Decrease) in trade creditors

19,017

(12,523)

Increase (Decrease) in current provisions

4,410

7,583

Increase (Decrease) in non-current provisions

(560)

3,780

Increase (Decrease) in income in advance

3,856

(1,412)

Cash flows from operations

(68,367)

13,277

19

Company Limited by Guarantee

Bundeena R.S.L. Memorial Club Limited is a Company limited by guarantee with the liability of members limited to the amount of $2 as set out in the Company's Memorandum and Articles of Association.

20

Company Details

Bundeena R.S.L. Memorial Club Limited

The principal place of business is:

69-71 Loftus Street, Bundeena

21

Financial Risk Management

Financial Risk Management Policies

The company's financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and payable and leases.

The main purpose of non-derivative financial instruments is to raise finance for company operations.

The company does not have any derivative instruments at 31/03/2009.

(i) Treasury Risk Management

Senior management meet on a regular basis to analyse financial risk exposure and to evaluate treasury management strategies in the context of the most recent economic conditions and forecasts.

The overall risk management strategy seeks to assist the company in meeting its financial targets, whilst minimising potential adverse effects on financial performance.

(ii) Financial Risk Exposures and Management

The main risks the company is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk.

Interest rate risk

Interest rate risk is managed by assessing the company's exposure and using an appropriate mixture of fixed and floating rate debt.

Foreign currency risk

The company is not exposed to fluctuations in foreign currencies

Liquidity risk

The company manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained.

Credit risk

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount of those assets, net of any provisions for doubtful debts, as disclosed in the statement of financial position and notes to the financial statements. The company does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the company.

Price risk

The company is not exposed to any material commodity price risk.

Financial Instrument Composition and Maturity Analysis

The tables below reflect the undiscounted contractual settlement terms for financial instruments of a fixed period of maturity, as well as management's expectations of the settlement period for all other financial instruments.

Weighted Average

Floating Interest

Fixed Interest Rate Maturing

Non Interest

Effective Interest

Rate

Within 1 year

1 to 5 years

Over 5 years

Bearing

Rate

2009

2008

2009

2008

2009

2008

2009

2008

2009

2008

2009

2008

%

%

$

$

$

$

$

$

$

$

$

$

Financial Assets

National Australia Bank Current Account

-

-

25706

1991

-

-

-

-

-

-

-

-

National Australia Bank Deposits

-

4.50

9000

9000

-

-

-

-

-

-

-

-

Macquarie Cash Management Account

2.06

6.58

625

1723

-

-

-

-

-

-

-

-

IMB Term Deposit

-

8.00

-

111000

-

-

-

-

-

-

-

-

Cash on Hand

-

-

-

-

-

-

-

-

-

-

45222

48004

Debtors

-

-

-

-

-

-

-

-

-

-

11375

12142

Total Financial Assets

35331

123714

-

-

-

-

-

-

56597

60146

Financial Liabilities

Hire Purchase Liabilities

-

-

-

-

55443

55138

88283

143726

-

-

-

-

Loan - A&M Livingston

8.00

8.00

-

-

-

134000

-

364750

468750

-

-

-

Creditors & Accruals

-

-

-

-

-

-

-

-

-

-

95293

74276

Total Financial Liabilities

-

-

55443

189138

88283

508476

468750

-

95293

74276

Net Fair Values

The net fair values of listed investments have been valued at the quoted market bid price at balance date adjusted for transaction costs expected to be incurred. For other assets and other liabilities net fair value approximates their carrying value. No financial assets and financial liabilities are readily traded on organised markets in standardised form other than listed investments. Financial assets where the carrying amount exceeds net fair values have not been written down as the company intends to hold these assets to maturity. The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the statement of financial position and in the notes to the financial statements.

Aggregate net fair values and carrying amounts of financial assets and financial liabilities at balance date:

2009

2008

Carrying Amount

Net Fair Value

Carrying Amount

Net Fair Value

$

$

$

$

Financial Assets

Debtors

11,375

11,375

12,142

12,142

Total Financial Assets

11,375

11,375

12,142

12,142

Financial Liabilities

Creditors & Accruals

(95,293)

(95,293)

(74,276)

(74,276)

Total Financial Liabilities

(95,293)

(95,293)

(74,276)

(74,276)

Sensitivity Analysis

Interest Rate Risk

The company has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. This sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in this risk.

Interest Rate Sensitivity Analysis:

At 31/03/2009, the effect on profit and equity as a result of changes in the interest rate, with all other variables remaining constant, would be as follows:

2009

2008

$

$

Change in Profit

Increase in interest rate by 2%

(9,675)

(8,675)

Decrease in interest rate by 2%

9,675

8,675

Change in Equity

Increase in interest rate by 2%

(9,675)

(8,675)

Decrease in interest rate by 2%

9,675

8,675

The above interest rate sensitivity analysis has been performed on the assumption that all other variables remain unchanged.

No sensitivity analysis has been preformed on foreign exchange risk, as the entity is not exposed to foreign currency fluctuations.

The directors of the company declare that:

1.

The financial statements and notes are in accordance with the Corporations Act 2001:

(a)

comply with Accounting Standards and the Corporations Regulations 2001; and

(b)

give a true and fair view of the financial position as at 31 March 2009 and of the performance for the year ended on that date of the company.

2.

In the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Director:

____________________________

Mr Graeme Kelly

Dated this day of

The additional information on the proceeding pages is in accordance with the books and records of Bundeena R.S.L. Memorial Club Limited which have been subjected to the auditing procedures applied in the statutory audit of the company for the year ended 31 March 2009. It will be appreciated that the statutory audit did not cover all details of the additional financial information. Accordingly, we do not express an opinion on such financial information and no warranty of accuracy or reliability is given.

In accordance with our firm policy, we advise that neither the firm nor any member or employee of the firm undertakes responsibility arising in any way whatsoever to any person (other than the company) in respect of such information, including any errors or omissions therein, arising through negligence or otherwise however caused.

Booth Partners


Kade Wallace


Dated this day of

Bar Trading

Bar Sales

540,789

498,397

Function Room Sales

24,590

22,492

565,379

520,889

LESS: COST OF GOODS SOLD

Opening Stock

32,005

27,222

Purchases

226,387

222,534

Closing Stock

(33,450)

(32,005)

224,942

217,751

GROSS PROFIT FROM TRADING

340,437

303,138

Sales Rebate

3465

-

Sales Support

5000

-

8465

-

TOTAL INCOME

348902

-

EXPENDITURE

Bar Supplies & Requisites

1,840

714

Bar Snacks

178

1,730

Equipment hire

715

3,000

Happy Hour

5,136

4,903

Sundry Purchases

10,300

14,260

Stock Control

3,120

3,120

Wages - Bar

149,907

164,109

Wages - Function Room

5,437

4,981

176,633

196,817

NET PROFIT

172,269

106,321

Poker Machine Trading

Net Clearances

347,487

581,807

347,487

581,807

GROSS PROFIT FROM TRADING

347,487

581,807

EXPENDITURE

Data Monitoring Services

11,706

13,149

Finance Charges

6,102

3,367

Depreciation

52,139

59,152

Quickchange Fees

263

540

Hopper Variations

1,195

(872)

Promotions

4,648

6,385

Metered Profit Adjustment

34

184

Poker Machine Turnover Duty

14,450

54,146

Repairs & Maintenance

8,950

9,217

Wages

17,958

19,379

117,445

164,647

NET PROFIT

230,042

417,160

INCOME

Bar Trading

172,269

106,321

Poker Machine Trading

230,042

417,160

Interest Received

1,576

8,362

Kitchen Rent

(1,797)

10,822

Members Subscriptions

10,718

7,534

Sundry Income

22

64,990

82,634

Profit on Sale of Fixed Assets

92,165

14,720

569,963

647,553

LESS : EXPENDITURE

Accounting & Audit Services

16,200

16,000

Advertising & Sponsorships

4,580

8,921

Affiliation Fees

3,431

3,693

Cleaning Materials & Laundry

55,157

57,193

Bank Charges & Government Duties

14,820

10,849

Computer Expenses

2,663

1,877

Borrowing Costs

420

203

Directors Expenses

-

2,397

Entertainment & Promotion Expenses

132,018

152,076

Electricity & Gas

34,489

34,538

Donations

3,071

2,807

Depreciation

64,192

67,057

Fees & Licences

2,764

2,681

General Expenses

23

22,875

19,989

Hire Purchase Charges

9,976

9,815

Honorariums

-

2,000

Insurance

29,899

30,614

Interest Paid

45,678

37,000

Members Benefits

834

1,130

Mortality Payments

136

-

Motor Vehicle Expenses

1,404

2,716

Printing & Stationery

7,566

11,139

Provision for Annual Leave

7,102

14,779


(143)

4,232

Rates

4,899

4,603

Repairs & Maintenance

31,793

18,424

Rent

19,025

18,476

Security Costs

6,580

4,271

Sporting Club Subsidies

1,543

3,400

Superannuation

24,752

25,653

Telephone - Club

3,276

3,512

Telephone - Members

902

1,277

Wages - General & Administration

135,301

142,353

Water Rates

5,175

3,979

692,378

719,654

OPERATING LOSS

(122,415)

(72,101)

22

Sundry Income

ATM Commission

5,666

4,042

Bingo Income

5,781

4,535

Catering and Room Hire

6,503

6,545

Cigarette Commission

616

679

Creditor Adjustment

-

20,315

Insurance Recoveries

327

2,193

Poker Income

-

2,149

Keno Commission

14,948

14,502

Pool Table

2,226

1,728

Raffles

11,749

13,772

Sports Pick Subscriptions

418

690

Snack Machine Commission

1,714

1,823

Sundries

-

10

TAB Commission

11,146

7,335

Telephone and Printing

185

503

Video Games/Pool Table/Juke Box

3,711

1,813

64,990

82,634

23

General Expenses

Courtesy Bus Expenses

313

4,001

First Aid Supplies

109

173

Internet Expenses

1,454

1,589

Consultancy & Legal Fees

4,893

2,028

Staff Amenities

2,444

1,458

Staff Training

1,901

3,273

Sundries

85

146

Travelling Expenses

68

78

Unders & Overs

804

(371)

Uniforms

780

708

ATM & EFTPOS Expenses

3,714

2,800

Keno Expenses

4,494

2,241

TAB Expenses

1,816

1,865

22,875

19,989

BUNDEENA R RSL... · Web viewA.B.N : 16 001 037 350 FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH...

Documents

Transcript of BUNDEENA R RSL... · Web viewA.B.N : 16 001 037 350 FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH...