2011 REPORT ANNUAL - Racing NSW

RACING NSW COUNTRY LTD
ACN 075 186 873
NOTES TO AND FORMING PART OF THE FINANCIAL
STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2011
2011
$
2010
$
NOTE 21: RISK MANAGEMENT POLICIES AND OBJECTIVES
Activities undertaken by the company may expose it to credit risk, economic
dependency risk and interest rate risk. The company’s risk management policies and
objectives are therefore designed to minimise the potential impacts of these risks on
the financial performance of the company where such impacts may be material.
The totals for each category of the financial instruments, measured in accordance
with AASB 139 as detailed in the accounting policies to these financial statements
are as follows:
Financial assets
Cash and cash equivalents 9 1,372,438 1,318,158
Trade and other receivables 10,11 11,770,016 9,633,201
13,142,454 10,951,359
Financial liabilities
Financial liabilities at amortised cost:
Trade and other payables 13 4,382,100 5,164,525
4,382,100 5,164,525
Credit risk
The company trades only with recognised, credit worthy third parties. Receivable balances are monitored on an ongoing
basis with the result that the company’s exposure to bad debts is not significant.
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, net of any provisions for doubtful debts of those assets, as disclosed in
the Statement of Financial Position and notes to the financial statements. The company has credit risk exposure to
Tabcorp Holdings Ltd and Sky Channel Pty Ltd.
2011
$
2010
$
Racingcorp Pty Ltd 10,828,816 8,655,963
Trade and other receivables 851,200 887,238
Loans to race clubs 90,000 90,000
11,770,016 9,633,201
Objectives and Policies
Policies require that Cash at Bank and Term
Deposits be placed with major banks.
Individual debtors are small in number and
assessed as to likely recovery prior to
advancing credit.
Racing NSW Country's major sources
of revenue are from Tabcorp. The company
is satified with Tabcorp's credit worthiness
given the long term strength of its operation
and the fact that its wagering operation is
predominatly a cash business.
Process for
Managing the Risk
No changes are made to
investment policy without
Board approval.
Debtors are reviewed on an
ongoing basis depending on
type of debt. Collectability is
assessed on a regular basis.
Reporting requirements of
Tabcorp to the racing industry.
Methods used to
Measure the Risk
The holdings and performance of
Cash at Bank and Term Deposits are
reported to the Board.
Debtors are reviewed on a regular
basis.
The Racing Distribution Agreement,
Inter-Code Agreement and the
Intra-Code Agreement.
Economic Dependency Risk
The company is dependent on Distributions Pursuant to the Racing Distribution Agreement. This distribution is
governed by the NSW Racing Distribution Agreement as entered into by Racingcorp Pty Limited and TAB Limited
(Tabcorp Holdings Ltd). Consequently, Racing NSW Country is economically dependent on Tabcorp Holdings Ltd.
Borrowings and Interest Risk
The company has no borrowings at 30 June 2011; (30 June 2010: Nil)
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