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Financial Report Yr Ending 3.. - SHARKIES | Cronulla Sutherland ...

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2011<br />

ANNUAL<br />

REPORT


1200mm x 2400mm<br />

Shire Steel Supplies<br />

COUNTER SALES<br />

CUSTOMER PARKING OFFCUTS<br />

250mm x 500mm 250mm x 500mm 300mm x 500mm<br />

KG<br />

STEEL CUT TO SIZE<br />

Tel: (02) 9542 2227<br />

500mm x 1000mm<br />

CHAIRMAN’S REPORT<br />

White background:<br />

Black / dark coloured background:<br />

Hisense Colour Specifications<br />

SIGNAGE:<br />

Shire Steel<br />

S U P P L I E S<br />

STEEL CUT TO SIZE<br />

RHS / ANGLES /FLATS / PIPE / STRUCTURAL<br />

Shire Steel<br />

Shire Steel<br />

Shire Steel<br />

$2<br />

Shire Steel<br />

Dear Members,<br />

Over the past few years we have spoken about what we are striving to achieve at the Sharks. We are moving<br />

away from a business model based on poker machine revenue to fund an NRL side, to one where our<br />

business operations are truly diversified, a financially independent NRL team supported by revenue from<br />

our Leagues Club and property assets. If we are successful, it will enable us to provide more support for<br />

our juniors and our local community.<br />

At the time of writing this report we are a step closer to our objective, our development plans have received<br />

a favourable recommendation from the NSW Department of Planning and Infrastructure. Our proposal has<br />

now been referred to the Planning Assessment Commission for final determination. It has been a long<br />

journey and by the Atime of our AGM it may well be the case that their decision has been handed down.<br />

Whatever the decision, I know that no effort has been spared in securing a favourable outcome for the<br />

Club. We have spent many hours discussing our plans with local politicians and community groups and while<br />

we may not have always agreed with their views we have always been available to discuss our plans with<br />

those interested. Our planning proposal attracted an enormous response from the community, with almost<br />

5,000 submissions received by the Department. Importantly, the majority (56%) of those submissions were<br />

in favour of our proposal. To all who have contributed to this effort, no matter how large or small, I offer<br />

sincere thanks for your support. In particular I would like to acknowledge the support and hard work of our<br />

property partners Bluestone Capital Group.<br />

If we obtain a favourable outcome on our development proposal our future will no doubt be bright. However,<br />

at present our operating performance in the Leagues Club highlights how important our property plans are<br />

to our future. In the past year the Leagues Club generated an operating surplus of $0.64m prior to finance<br />

costs and grants to the Football Club, however once those factors were considered, generated a loss of<br />

$1.89m. The results highlight the difficult situation the Club will be in if a successful property outcome is<br />

not achieved. Managing our financial situation is crucial and we are well served in having an excellent Chief<br />

<strong>Financial</strong> Officer in Gy Wallace.<br />

A successful property outcome will result in our property partners Bluestone Capital Group in paying<br />

$10million off our bank debt. This will provide immediate relief on the level of interest that we must pay,<br />

however the real benefits of a successful development application will not be immediate. This will require<br />

your Club to continue careful financial management ensuring that both Clubs continue to operate within<br />

their means.<br />

During the year Steven Coomber acted as our interim Leagues Club General Manager and did a remarkable<br />

job in stabilising our trading performance and more recently Jeff Morris has joined the Club as our Leagues<br />

Club General Manager. Jeff has many ideas to make the Club more attractive for our members and their<br />

guests and if you haven’t yet met Jeff please make yourself known to him. We want a Club that is more<br />

attractive to our members and all feedback is welcome.<br />

Our Football Club is performing extremely well and we are pleased to have secured Shane Flanagan as head<br />

coach. His partnership with our Football Club General Manager Darren Mooney has been crucial to turning<br />

our Football Club fortunes around. We are also fortunate to have a leader in Paul Gallen captaining our side.<br />

While the focus is on the NRL side I am particularly excited about changes through our Club. In 2012 the<br />

majority of our NYC squad are local juniors. This reflects favourably on our junior representative program,<br />

the coaches and the support team that are helping develop the Sharks of tomorrow. I would specifically like<br />

to mention the work of Al Wilson and our development staff and coaches involved in our Sharks Academy<br />

Talent Squad which has been crucial in developing the pathway for our local juniors. However, it all begins<br />

with our local Junior Rugby League Clubs and the Junior Rugby League and to all those volunteers and the<br />

tireless volunteer committee, who help our young people play this great game – thank you.<br />

During the year we welcomed Onsite Cleaning as a shorts sponsor and enjoyed the continued support<br />

of Toyota, Hisense, Blades, BodyScience, Gatorade, Schweppes, PokerStars.net and Fosters. To all our<br />

sponsors no matter how large or small your support is crucial and is greatly appreciated. To Peter Beaumont<br />

and his team, thank you for your efforts in not only attracting new sponsors but serving our existing<br />

sponsors.<br />

Thank you to all our staff, from our bar staff, catering, accounts, our duty managers, administration, players,<br />

coaches, support staff, and marketing team, without your hard work and loyalty a difficult job would have<br />

been impossible.<br />

In closing I would like to acknowledge our members and supporters. Your support through a tough few years<br />

has made us stronger and I offer you my sincerest thanks.<br />

CMYK: C=100 M=10 Y=60 K=5<br />

CMYK: C=0 M=55 Y=100 K=0<br />

Damian Irvine<br />

Chairman


CHAIRMAN’S REPORT CONTINUED<br />

Football Club<br />

As far as results and ladder position were concerned the 2011 NRL season was disappointing in that it matched our 2010 win record<br />

of seven, despite the fact that we were sitting on the fringe of the top eight after 18 rounds. Finishing the season with eight straight<br />

losses certainly wasn’t a part of the plan and even though our results were equal to those of 2010 the team definitely showed signs<br />

of improvement in Shane Flanagan’s first full season as Head Coach, with our inability to win the close matches proving to be the<br />

difference.<br />

On a personal level our Captain Paul Gallen was once again the standout, representing Australia and captaining NSW during 2011. Paul<br />

also backed up his 2010 efforts with a clean sweep at our 2011 Awards Night, winning the Player of the Year and the Players’ Player<br />

awards, while adding to that he also won the prestigious Dally M Lock Forward of the Year, the Peter Frilingos “Headline Moment of<br />

the Year” and the RLPA Player of the Year.<br />

Capping off a season of outstanding personal achievement in Round 26 in a match played against the Wests Tigers at Toyota Stadium<br />

Paul also celebrated his 200th NRL and <strong>Cronulla</strong> Sharks match which represented a tremendous accomplishment for such a loyal<br />

servant to our club.<br />

Of our other players, Kade Snowden again played for NSW in the State of Origin and also achieved a childhood dream when selected to<br />

debut for Australia. Jeremy Smith again represented New Zealand and Tyson Frizell was selected to play for Wales in the Four Nations<br />

Tournament at the end of season.<br />

The 2011 season also saw a number of players depart the club for an assortment of reasons while heading to a number of different<br />

destinations, with Luke Douglas, Kade Snowden, Dean Collis, Tim Smith, Scott Porter, Johnny Mannah, Broderick Wright, Siosaia Vave,<br />

Paul Aiton, Taulima Tautai, Stuart Flanagan and Trent Grubb leaving the Sharks. We would like to thank them all for their contribution<br />

to the club and wish them all the best in their future. NRL Assistant Coach Joey Grima also decided to move on and our best wishes<br />

went with him as well.<br />

Our NYC team, coached by James Shepherd were the shining lights for the club in 2011 finishing the home and away season in third<br />

position on 37 competition points. It was the first time since the inception of the Toyota Cup in 2008 that a <strong>Cronulla</strong> Sharks team has<br />

made the finals. Congratulations must go to all Toyota Cup players and staff on this achievement. The boys performed well in the finals<br />

series before bowing out to eventual runners up North Queensland in the Grand Final Qualifier.<br />

In the NSW Cup the Sharks entered into a partnership with the Melbourne Storm in 2011, a venture which proved to be a great<br />

success. The team, in replicating their NYC counterparts, finished in third position on 37 competition points and while they too<br />

performed admirably during the finals series they were denied a spot in the Grand Final as a result of a heartbreaking loss in golden<br />

point to the Auckland Vulcans. Coach Tony Herman, his players and staff all deserve recognition for an excellent season.<br />

In the District Junior Representative arena our Under-18 SG Ball side, coached by Dave Howlett finished the year in a credible 7th<br />

position and were knocked out in a hard fought contest by eventual Premiers Newcastle. As for the Sharks under-16 Harold Matthews<br />

side, coached by Steve Holz, they may have had a disappointing season finishing in 14th position, but the boys were a credit to the<br />

club and showed great spirit and determination each week.<br />

Finally, in relation to the junior representative program, special thanks must go to the <strong>Cronulla</strong> <strong>Sutherland</strong> Junior League for their<br />

assistance and to Salmon Buckets, Bullet Labour Hire and Douglas Maher Coleman, our junior representative sponsors for 2011,<br />

for their contribution and support.<br />

Darren Mooney<br />

General Manager Football<br />

Sponsors<br />

2011 saw the continuation of many valued sponsors. Hisense continued on as our naming rights sponsor, Pokerstars.net maintained<br />

their sleeve position, Shire Steel as the front of shorts sponsor and Blades continued as our official team wear supplier. The Sharks<br />

welcomed OnSite Cleaning as a rear of shorts sponsor on a 3 year contract. The Sharks would also like to show their appreciation to<br />

our many long term sponsors remaining with us in 2011, Toyota (Stadium Sponsor), Schweppes (Official Soft Drink) Carlton United<br />

Brewery (Official Beer), Gatorade (Official Hydration Drink), Body Science (Official Nutrition and Compression Supplier) and Sharkies<br />

Leagues Club (Official Home of The Sharks).<br />

We would again like to thank the large number of local businesses within The Shire who are the true backbone of our corporate<br />

hospitality program. The Sharks can be proud of their Game day corporate program boasting over 1,000 corporate attendee’s per home<br />

game, one of the highest attended programs within the NRL. The Sharks have benefitted from this loyal support from the local Shire<br />

businesses for many years, and we are truly appreciative.<br />

We would also like to thank the growing number of local and national businesses joining the signage program at Toyota Stadium. This<br />

program has been boosted with the addition of our new signage partner OAMM. OAMM have introduced many new businesses as<br />

signage partners over the last 12 months taking advantage of the media opportunities we offer.<br />

At a Junior Rugby League level, we would also like to thank Salmon Buckets, Bullet Labour Hire and Douglas Maher Coleman, for their<br />

continued support, it is due to these great companies that we have such as successful Junior League program.<br />

Peter Beaumont<br />

General Manager Commercial


CHAIRMAN’S REPORT CONTINUED<br />

Leagues Club<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

Thank you to the Club’s loyal members who have supported Sharkies through the last 12 months. The period has seen a lot of focus<br />

on the final design and approval for the proposed development on the Leagues Club site. Some rationalization has been required at<br />

Sharkies in recent times as we continue to service the Club’s loan facility and I would like to recognise the on-going contribution of our<br />

members over this uncertain time.<br />

It appears the development approval process is now close to conclusion, hopefully with a positive outcome. This will enable us to offer<br />

many features for Sharkies members in the future and reduce the Clubs debt levels.<br />

In acknowledgement of the on-going support from the member base, Sharkies will be launching a new Rewards Program –<br />

Sharkies Premier Rewards in September, a program that will recognise the contribution that you make to your Club.<br />

You will hear more about this ….<br />

I would also like to thank the Board, Management and staff for their assistance and support since I joined Sharkies as General Manager<br />

in May 2012. I look forward to working with them to develop an entertainment offering that is reflective of this Club’s proud history.<br />

Jeff Morris<br />

General Manager<br />

Community Support<br />

Football Club<br />

The Sharks continued to be heavily involved in numerous community and charity initiatives during 2011 while also making strong contributions<br />

to fundraising events throughout the course of the year.<br />

The Sharks enjoyed mutually beneficial community partnerships with a number of organisations, including the local PCYC, the David<br />

Peachey Foundation, the Men of League Foundation, the Cancer Council and the <strong>Sutherland</strong> Shire Early Childhood Support centre, among<br />

other worthwhile causes. They also supported the NRL’s One Community Program and its various initiatives during the year, visiting country<br />

areas, hospitals and attending charity events. The presence of the Sharks at these events helped to raise the profile and increase the<br />

awareness of the respective events and charity organisations.<br />

In addition the Sharks players also attended schools with and on behalf of ARLD to present the NRL’s Eat Well, Play Well, Stay Well<br />

campaign, were at local district junior rugby league presentation days and training sessions and visited both the <strong>Sutherland</strong> Hospital and<br />

Sydney Children’s Hospital at Randwick. They also had a considerable presence at a variety of local community events including village fairs,<br />

council celebrations and school fetes.<br />

Leagues Club<br />

During the year Sharkies provided community<br />

support of $62,080 through CDSE category 1<br />

funding to the following organisations:<br />

St John Ambulance $ 2,200<br />

Camp Quality $ 1,500<br />

<strong>Cronulla</strong> High School $ 500<br />

Woolooware High School $ 500<br />

Jannali High School $ 80<br />

<strong>Sutherland</strong> Shire council $ 300<br />

Smarty Grants<br />

St Andrews Anglican Church $ 1,500<br />

Rainbow Club Australia $ 10,000<br />

Wanda Surf Life Saving Club $ 2,000<br />

<strong>Cronulla</strong> School of Arts $ 10,000<br />

Civic Disorders Services $ 8,500<br />

<strong>Sutherland</strong> Early Support Services $ 5,000<br />

Caringbah YMCA $ 10,000<br />

Sylvanvale Foundation $ 10,000<br />

$ 62,080<br />

Sharkies also provided funding of $90,242 through CDSE category 2<br />

funding, with a further $186,820 of in kind donations to the following<br />

organisations:<br />

Cash<br />

CSDRLFC Referee’s association $5,000<br />

CSSC - uniforms $2,000<br />

Leader Small Business awards 2011 $4,500<br />

In Kind<br />

CSDRL Junior Football Club – Gym, Grounds, Utilities $25,000<br />

CSDRLFC Junior Players honorariums $27,314<br />

and medical expenses<br />

CSDRLFC Academy Junior Training Clinics $39,383<br />

Endeavour High School $4,545<br />

Leader Small Business awards 2010 $4,500<br />

Donated room hire – various $133,250<br />

CSSC – flags and equipment $2,000<br />

CSDRLFC Junior Rep Playing Gear $28,570<br />

CSDRLFC Junior Players $1,000<br />

Additional community support has been provided outside of the above<br />

CDSE payments.


FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2011 - DIRECTORS REPORT<br />

CRONULLA-SUTHERLAND NOTES TO FINANCIAL STATEMENTS FOR LEAGUES THE YEAR ENDED 31 CLUB OCTOBER 2011 LIMITED<br />

AND CONTROLLED ENTITY<br />

ABN 54 000 202 826<br />

FINANCIAL REPORT<br />

FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

CONTENTS<br />

DIRECTORS REPORT 2<br />

AUDITOR’S INDEPENDENCE DECLARATION 5<br />

STATEMENTS OF COMPREHENSIVE INCOME 6<br />

STATEMENTS OF FINANCIAL POSITION 7<br />

STATEMENTS OF CASHFLOWS 8<br />

STATEMENTS OF CHANGES IN EQUITY 9<br />

NOTES TO THE FINANCIAL STATEMENTS 10<br />

DECLARATION BY DIRECTORS 32<br />

INDEPENDENT AUDITOR’S REPORT 33<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED AND CONTROLLED ENTITY ABN 54 000 202 826<br />

1


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

The Directors present their report, together with the financial statements on the company and its Controlled Entity for the year ended<br />

31 October 2011.<br />

The following persons were Directors of the company during the whole of the financial year and up to the date of this report, unless<br />

otherwise stated:<br />

DIRECTORS<br />

Damian Irvine<br />

Keith Ward<br />

Ricky Surace<br />

Paul Walker<br />

Craig Douglas<br />

Jenny Reynolds (Resigned 23 August 2011)<br />

Denise Aldous (Resigned 23 August 2011)<br />

James Barnett<br />

Gregory Holland (Resigned 23 August 2011)<br />

Jonathan Docking (Appointed 23 August 2011)<br />

Peter Kerr (Appointed 23 August 2011)<br />

Phillip Tiernan (Appointed 23 August 2011)<br />

DIRECTORS REPORT<br />

OBJECTIVES<br />

The short-term objectives of the company are to:<br />

• Optimise the Clubs net cashflows from its operations.<br />

• Pursue the Part 3A Development Application over the Clubs properties.<br />

• Ensure compliance with the finance facility, entered into with St George Bank.<br />

• In the forthcoming year realise value created by the Part 3A process from the Clubs surplus property assets such as to allow<br />

the club to reduce its total debt level to a more sustainable level.<br />

• To continue to provide the benefits of a social club to its members.<br />

• To continue to provide financial and non-financial support to the Football Club.<br />

The Long-term objectives of the company are to:<br />

• Improve the value of the Clubs property holdings through the completion of the Part 3A Application process.<br />

• Realise value from some or all of the Clubs surplus property assets such as to allow the club to:<br />

- Reduce and ultimately eliminate all banking and excess trading debts.<br />

- Construct a social club venue which is attractive to members and is a benchmark for all entertainment venues in the Clubs<br />

catchment area.<br />

- Produce a financial return from the Clubs operations and from its property investments commensurate with maintaining<br />

the competiveness of the Clubs operations and sustainable funding to the football club.<br />

The short-term objectives of the <strong>Cronulla</strong>-<strong>Sutherland</strong> District Rugby League Football Club Limited (a controlled entity) are:<br />

• To conduct its operations at the lowest viable cost structures whilst maintaining a competitive NRL squad with maximum<br />

permissible NRL salary cap spend.<br />

• To operate at a cash flow neutral or positive position.<br />

The Long-term objectives of the <strong>Cronulla</strong>-<strong>Sutherland</strong> District Rugby League Football Club Limited (a controlled entity) are:<br />

• To create a self-funding business model which requires no Leagues Club grants.<br />

• To be a dominant force in the NRL with regular participation in the finals series.<br />

STRATEGY FOR ACHIEVING THE OBJECTIVES<br />

The company has adopted the following strategies:<br />

• Securing ongoing financial funding from bankers through until the anticipated realisation of a part 3A development application<br />

on the Club’s property holdings.<br />

• The ultimate realisation of the property holdings is anticipated to allow the Club to eliminate its bank debts, improve its<br />

trading revenues and the underlying cashflows.<br />

• Continuing management focus on improving net revenues derived from all sources including pursuing promotional activities<br />

designed to retain and build support from members and patrons.<br />

• To build revenue opportunities for this Club through the Clubs association with the Football Club, the Rugby League and wider<br />

sporting communities and Football Club sponsors.<br />

2 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

DIRECTORS REPORT (continued)<br />

The <strong>Cronulla</strong>-<strong>Sutherland</strong> District Rugby League Football Club Limited (a controlled entity) has adopted the following strategies:<br />

• Supporting the <strong>Cronulla</strong> <strong>Sutherland</strong> Leagues Club in the development of the property at Woolooware to create a secure and<br />

financially viable home for the Football Club.<br />

• Continuing management focus on improving revenue derived from all sources.<br />

• Pursuing promotional activities designed to retain and build support from fans and sponsors.<br />

• Focussing on identifying and developing local playing talent through the Sharks Academy.<br />

PRINCIPAL ACTIVITIES<br />

During the financial year the principal continuing activities of the company were to provide a licensed club for the benefit of<br />

members and their guests and for the promotion of Rugby League. To encourage, promote and control the development, playing and<br />

interests of Rugby League in the <strong>Cronulla</strong>-<strong>Sutherland</strong> District and participation in the NRL competition.<br />

PERFORMANCE MEASURES<br />

The company measures its performance in both the amount of revenue derived and the costs to service for all segments of its<br />

trading operations, the financial and non-financial support the Club provides to the Football Club and other sporting clubs and<br />

community organisations. Non-financial support includes the provision of venues at no or reduced costs.<br />

THE KEY PERFORMANCE MEASURES ARE:<br />

• Net gaming revenue<br />

• Net bar revenue<br />

• Total wages paid<br />

• Total grants paid to the Football Club and Community Organisations<br />

• Attendances at the club<br />

INFORMATION ON DIRECTORS<br />

Name:<br />

Damian Irvine<br />

Title:<br />

Chairman<br />

Qualifications:<br />

Diploma Hospitality Training, Diploma OHS, Qualified 5 star service trainer, Premiers Award for Services<br />

to NSW Tourism.<br />

Experience and Expertise: Club Director, Company Director, Hospitality and Retail Consultant, Board – CCPP a NGO.<br />

Special responsibilities: Chairman–Board of Directors; Member of Football subcommittee;<br />

Name:<br />

Keith Ward<br />

Title:<br />

Director<br />

Qualifications:<br />

M.Comm (Accting/Fin Mgt), Master Applied Finance, B.Comm (Hons),CPA, Fellow FINSIA Member, AICD.<br />

Experience and Expertise: Club Director, Company Director, Business Consultant.<br />

Special responsibilities: Director; Member of Finance subcommittee;<br />

Name:<br />

Ricky Surace<br />

Title:<br />

Director<br />

Qualifications:<br />

Diplomas in Business and Project Management.<br />

Experience and Expertise: lub Director, Managing Director.<br />

Special responsibilities: Director; Member of Football subcommittee;<br />

Name:<br />

Paul Walker<br />

Title:<br />

Director<br />

Qualifications:<br />

Bachelor of Physical Education, Member AICD, JP.<br />

Experience and Expertise: Club Director, NSWRL City Origin Selector, AIS Rugby League Board of Management, Rugby League<br />

Research Board.<br />

Special responsibilities: Director; Member of Football subcommittee; NSWRL General Committee – Sharks Delegate, Sharks<br />

Education and Welfare Committee;<br />

Name:<br />

Craig Douglas<br />

Title:<br />

Director<br />

Qualifications:<br />

Bachelor of Commerce (UNSW), Chartered Accountant.<br />

Experience and Expertise: Company Director, Club Director, Chartered Accountant, Business & Club Industry Consultant.<br />

Special responsibilities: Director; Chairman of Finance subcommittee;<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826<br />

3


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

DIRECTORS REPORT (continued)<br />

INFORMATION ON DIRECTORS (Continued)<br />

Name:<br />

Johnathan Docking<br />

Title:<br />

Director<br />

Qualifications:<br />

Bachelor of Arts (Sydney University), Diploma in Education.<br />

Experience and Expertise: Club Director, Company Director.<br />

Special responsibilities: Director;<br />

Name:<br />

Peter Kerr AM<br />

Title:<br />

Director<br />

Qualifications:<br />

LLB, MAppFin, Member Law Society of NSW, MAICD, Solicitor.<br />

Experience and Expertise: Law firm partner, Company Director, Chair and member of various local and international sport<br />

organisations and committees.<br />

Special responsibilities: Director;<br />

Name:<br />

James Barnett<br />

Title:<br />

Director<br />

Qualifications:<br />

LLB, Member NSW Bar Association.<br />

Experience and Expertise: Club Director, Barrister.<br />

Special responsibilities: Director;<br />

Name:<br />

Phillip Tiernan<br />

Title:<br />

Director<br />

Qualifications:<br />

Bachelor of Legal Studies BLegS; Master of Laws LLM.<br />

Experience and Expertise: Solicitor, Company Director.<br />

Special responsibilities: Director.<br />

MEETINGS OF DIRECTORS<br />

Full Board<br />

Attended Held<br />

Damian Irvine 11 11<br />

Keith Ward 10 11<br />

Ricky Surace 3 11<br />

Paul Walker 10 11<br />

Craig Douglas 11 11<br />

James Barnett 8 11<br />

Jonathan Docking 2 2<br />

Peter Kerr 2 2<br />

Phillip Tiernan 2 2<br />

Jenny Reynolds 7 9<br />

Denise Aldous 8 9<br />

Gregory Holland 7 9<br />

Represents the number of meetings held during the time the director held office.<br />

CONDITIONS ON WINDING UP<br />

In the event of the company being wound up, each member undertakes to contribute an amount not exceeding one dollar ($1.00) if<br />

the Club is wound up, while he or she is a member of the Club; or within one year of the date that he or she ceases to be a member<br />

for the payment of the debts and liabilities of the Club contracted before the member ceased to be a member; and costs, charges<br />

and expenses of winding up. At the date of this report there are 18,757 members of the Leagues Club.<br />

AUDITOR’S INDEPENDENCE DECLARATION<br />

The auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on the<br />

following page.<br />

Signed in accordance with a resolution of the Board of Directors, pursuant to section 298(2)(a) of the Corporations Act<br />

at <strong>Cronulla</strong> this 31st day of July 2012.<br />

D. Irvine C. Douglas<br />

Chairman<br />

Director<br />

4<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED AND CONTROLLED ENTITY ABN 54 000 202 826


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

Grant Thornton Audit Pty Ltd<br />

ACN 130 913 594<br />

Level 19, 2 Market Street<br />

Sydney NSW 2000<br />

GPO Box 2551<br />

Sydney NSW 2001<br />

T +61 2 9286 5555<br />

F +61 2 9286 5599<br />

E info.nsw@au.gt.com<br />

W www.grantthornton.com.au<br />

Auditor’s Independence Declaration<br />

To the Directors of <strong>Cronulla</strong>-<strong>Sutherland</strong> Leagues Club Limited<br />

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead<br />

auditor for the audit of <strong>Cronulla</strong>-<strong>Sutherland</strong> Leagues Club Limited for the year ended 31<br />

October 2011, I declare that, to the best of my knowledge and belief, there have been:<br />

a<br />

b<br />

no contraventions of the auditor independence requirements of the Corporations<br />

Act 2001 in relation to the audit; and<br />

no contraventions of any applicable code of professional conduct in relation to the<br />

audit.<br />

GRANT THORNTON AUDIT PTY LTD<br />

Chartered Accountants<br />

James Winter<br />

Partner - Audit & Assurance<br />

Sydney, 31 July 2012<br />

Grant Thornton Audit Pty Ltd<br />

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389<br />

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton<br />

Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.<br />

Liability limited by a scheme approved under Professional Standards Legislation<br />

5


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

GROUP<br />

LEAGUES CLUB<br />

Note 2011 2010 2011 2010<br />

$ $ $ $<br />

Revenue from sale of goods 2 3,896,316 4,122,439 3,249,441 3,466,904<br />

Revenue from rendering of services 2 9,881,771 10,458,044 8,940,403 9,459,137<br />

Other revenue 2 9,389,247 8,779,885 658,762 581,512<br />

Revenue from continuing operations 23,167,334 23,360,368 12,848,606 13,507,553<br />

Other income 3 198,375 170,975 144,088 155,658<br />

Cost of sales (1,597,086) (1,543,874) (1,372,174) (1,386,127)<br />

Bar and catering expenses (1,418,273) (1,504,936) (1,418,273) (1,504,936)<br />

Marketing expenses (2,957,277) (2,358,572) (705,052) (490,982)<br />

Occupancy expenses (1,707,657) (1,642,683) (925,289) (899,816)<br />

Administrative expenses (2,401,444) (2,219,725) (1,705,414) (1,471,927)<br />

Gaming expenses (1,573,596) (1,841,273) (1,573,596) (1,841,273)<br />

Gaming taxes (2,663,341) (2,973,683) (2,663,341) (2,973,683)<br />

Other expenses (1,991,412) (2,125,519) (1,991,412) (2,125,519)<br />

Football expenses (8,045,858) (7,879,488) - -<br />

(Deficit)/surplus before finance costs and grants paid (990,235) (558,410) 638,143 968,948<br />

Finance costs 4 (1,023,636) (811,189) (927,814) (794,906)<br />

Grants to Football Club - - (1,600,000) (250,000)<br />

Deficit before tax (2,013,871) (1,369,599) (1,889,671) (75,958)<br />

Income tax benefit 5 5,820 75,135 5,820 75,135<br />

Deficit after tax (2,008,051) (1,294,464) (1,883,851) (823)<br />

Other comprehensive income - - - -<br />

Total comprehensive income for the year (2,008,051) (1,294,464) (1,883,851) (823)<br />

The above statements of comprehensive income should be read in conjunction with the accompanying notes.<br />

6 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

STATEMENTS OF FINANCIAL POSITION FOR THE YEAR ENDED 31 OCTOBER 2011<br />

GROUP<br />

LEAGUES CLUB<br />

Note 2011 2010 2011 2010<br />

$ $ $ $<br />

ASSETS<br />

Current Assets<br />

Cash and cash equivalents 6 666,215 244,927 574,103 243,927<br />

Trade and other receivables 7 773,188 825,301 798,669 509,078<br />

Inventories 8 125,516 178,050 72,171 127,501<br />

Current Tax Receivable 5 71,881 66,061 71,881 66,061<br />

Total current assets 1,636,800 1,314,339 1,516,824 946,567<br />

Non-current assets<br />

Property, plant and equipment 9 31,259,275 32,514,621 19,289,700 20,065,229<br />

Total non-current assets 31,259,275 32,514,621 19,289,700 20,065,229<br />

Total assets 32,896,075 33,828,960 20,806,524 21,011,796<br />

LIABILITIES<br />

Current liabilities<br />

Trade and other payables 10 2,701,910 4,018,727 1,659,412 2,877,385<br />

Interest bearing liabilities 11 12,630,281 9,633,327 12,592,883 9,362,142<br />

Short term provisions 12 130,920 128,725 130,920 128,725<br />

Current tax liability 5 - - - -<br />

Income in advance 13 216,988 417,457 112,961 87,483<br />

Total current liabilities 15,680,099 14,198,236 14,496,176 12,455,735<br />

Non-current liabilities<br />

Interest bearing liabilities 11 272,260 644,612 229,885 555,029<br />

Deferred tax liabilities 5 813,047 813,047 813,047 813,047<br />

Long term provisions 12 50,217 84,562 32,771 69,489<br />

Total non-current liabilities 1,135,524 1,542,221 1,075,703 1,437,565<br />

Total liabilities 16,815,623 15,740,457 15,571,879 13,893,300<br />

Net assets 16,080,452 18,088,503 5,234,645 7,118,496<br />

EQUITY<br />

Accumulated funds 16,080,452 18,088,503 5,234,645 7,118,496<br />

Total equity 16,080,452 18,088,503 5,234,645 7,118,496<br />

The above statements of financial position should be read in conjunction with the accompanying notes.<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826 7


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

STATEMENTS OF CASHFLOWS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

GROUP<br />

LEAGUES CLUB<br />

Note 2011 2010 2011 2010<br />

$ $ $ $<br />

Cash flows from operating activities<br />

Cash receipts from customers and sponsors 20,253,659 22,185,083 12,971,657 14,845,831<br />

Grants from Leagues Club and NRL 3,825,000 3,598,333 - -<br />

Cash paid to suppliers and employees (25,204,859) (23,960,790) (12,629,313) (12,775,853)<br />

Grant paid to Football Club - - (1,600,000) (250,000)<br />

Other interest received 11,993 3,551 3,980 7<br />

Rent received 98,983 79,719 98,983 79,719<br />

Interest paid (1,023,636) (811,189) (927,814) (794,906)<br />

Income taxes (paid)/received 18,343 (22,330) 18,343 (22,330)<br />

Net cash inflow/(outflow) from operating activities (2,020,518) 1,072,377 (2,064,165) 1,082,468<br />

Cashflows from investing activities<br />

Purchase of property, plant and equipment (238,579) (376,276) (167,039) (331,681)<br />

Proceeds from sale of property, plant and equipment 11,727 - 11,727<br />

Net cash (outflow) from investing activities (238,579) (364,549) (167,039) (319,954)<br />

Cashflows from financing activities<br />

Proceeds from borrowings 4,346,896 - 4,346,896 -<br />

Repayment of borrowings - (412,500) - (412,500)<br />

Repayment of loan from related party - (400,000) 400,000<br />

Repayment of debentures (26,386) (26,386) (16,822)<br />

Repayment of capital element of finance leases (351,343) (318,680) (299,220) (283,685)<br />

Net cash (outflow)/inflow from financing activities 3,969,167 (731,180) 3,621,190 (313,007)<br />

Net (decrease)/increase in cash and cash equivalents 1,710,071 (23,352) 1,390,086 449,507<br />

Cash and cash equivalents at beginning of period (1,043,855) (1,020,503) (815,983) (1,265,490)<br />

Cash and cash equivalents at end of period 6 666,216 (1,043,855) 574,103 (815,983)<br />

The above statements of cashflows should be read in conjunction with the accompanying notes.<br />

8 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 OCTOBER 2011<br />

GROUP<br />

Accumulated<br />

Funds<br />

$<br />

LEAGUES CLUB<br />

Accumulated<br />

Funds<br />

$<br />

At 1 November 2009 19,382,967 7,119,319<br />

Loss for the year (1,294,464) (823)<br />

Other comprehensive income - -<br />

Total comprehensive income (1,294,464) (823)<br />

At 31 October 2010 18,088,503 7,118,496<br />

Accumulated<br />

Funds<br />

$<br />

Accumulated<br />

Funds<br />

$<br />

At 1 November 2010 18,088,503 7,118,496<br />

Loss for the year (2,008,051) (1,883,851)<br />

Other comprehensive income - -<br />

Total comprehensive income (2,008,051) (1,883,851)<br />

At 31 October 2011 16,080,452 5,234,645<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826<br />

9


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES<br />

CORPORATE INFORMATION<br />

These general purpose financial statements of <strong>Cronulla</strong>-<strong>Sutherland</strong> Leagues Club Limited for the year ended 31 October 2011 were<br />

authorised for issue in accordance with a resolution of the directors on 31st July 2012 and covers <strong>Cronulla</strong>-<strong>Sutherland</strong> Leagues Club<br />

Limited as an individual entity as well as the consolidated entity (Group) consisting of <strong>Cronulla</strong>-<strong>Sutherland</strong> Leagues Club Limited and<br />

its controlled entity, <strong>Cronulla</strong>-<strong>Sutherland</strong> District Rugby League Football Club Limited, as required by the Corporations Act 2001.<br />

The financial report is presented in the Australian currency.<br />

<strong>Cronulla</strong>-<strong>Sutherland</strong> Leagues Club Limited and its controlled entity <strong>Cronulla</strong>-<strong>Sutherland</strong> District Rugby League Football Club Limited<br />

are companies limited by guarantee.<br />

The address of the registered office and principal place of business is 461 Captain Cook Drive, Woolooware. NSW 2230<br />

The following is a summary of the material accounting policies adopted by the company in the preparation of the financial<br />

statements.<br />

In preparing the financial statements the consolidated entity have taken the exemptions available to non-profit entity.<br />

(a) Basis of Preparation<br />

The general purpose financial statements have been prepared in accordance with Australian Accounting Standards - Reduced<br />

Disclosure Requirements, other authoritive pronouncements of the Australian Accounting Standards Board and Corporations Act<br />

2001. The Company has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the<br />

Australian Accounting Standards Board (‘AASB’) that are made mandatory for the current reporting period.<br />

The Company has early adopted AASB 1053 ‘Application of Tiers of Australian Accounting Standards’ and AASB 2010-02<br />

‘Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements’. No other new, revised or<br />

amending Accounting Standards or Interpretations that are not yet mandatory have been early adopted.<br />

Any significant impact on the accounting policies of the company from the adoption of these Accounting Standards and<br />

Interpretations are disclosed in the relevant accounting policy.<br />

The adoption of these Accounting Standards and Interpretations did not have any impact on the financial performance or position<br />

of the company. The following Accounting Standards and Interpretations are most relevant to the company.<br />

AASB 1053 Application of Tiers of Australian Accounting Standards<br />

The Company has early adopted AASB 1053 from 1 November 2009. This standard establishes a differential financial reporting<br />

framework consisting of two Tiers of reporting requirements for preparing general purpose financial statements, being Tier 1<br />

Australian Accounting Standards and Tier 2 Australian Accounting Standards - Reduced Disclosure Requirements. The company<br />

being classed as Tier 2 continues to apply the full recognition and measurement requirements of Australian Accounting Standards<br />

with substantially reduced disclosure in accordance with AASB 2010-02.<br />

AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements<br />

The Company has early adopted AASB 2010-2 from 1 November 2009. These amendments make numerous modifications to a<br />

range of Australian Accounting Standards and Interpretations, to introduce reduced disclosure requirements to the pronouncements<br />

for application by certain types of entity in preparing general purpose financial statements. The adoption of these amendments has<br />

significantly reduced the company’s disclosure requirements.<br />

The Directors have determined the company is not for profit for the purposes of reporting and these financial standards do not<br />

comply with International <strong>Financial</strong> <strong>Report</strong>ing Standards as issued by the International Accounting Standards Board.<br />

The financial report has been prepared on the historical cost basis.<br />

(b) Basis of Consolidation<br />

Controlled Entities<br />

The consolidated financial statements comprise the financial statements of <strong>Cronulla</strong>-<strong>Sutherland</strong> Leagues Club Limited and its<br />

controlled entity <strong>Cronulla</strong>-<strong>Sutherland</strong> District Rugby League Football Club Limited at 31 October each year (“the Group”). A controlled<br />

entity is an entity controlled by the Leagues Club. Control exists where the Leagues Club has the capacity to dominate the decision<br />

making in relation to financial and operational policies of the entity so that the entity operates with the Leagues Club to achieve the<br />

objectives of the Leagues Club.<br />

All intercompany balances and transactions, including unrealised profits arising from intragroup transactions have been eliminated.<br />

10 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)<br />

(c) Revenue Recognition<br />

Revenue is recognised at the fair value of consideration received or receivable. Amounts disclosed as revenue are net of returns,<br />

trade allowances and duties and taxes paid. The following specific recognition criteria must also be met before revenue is<br />

recognised:<br />

Sale of Goods<br />

Revenue from gaming, entertainment, beverages, sponsorship and football games together with other services to members and<br />

their guests is recognised when the significant risks and rewards of ownership have passed to the buyer and can be reliably<br />

measured. Risks and rewards are considered passed to the buyer when goods have been delivered to the customer.<br />

Rendering of Services Membership and Sponsorship Revenue<br />

Revenue from gaming, advertising and football games together with other services to members and other patrons, along with<br />

sponsorship income are recognised when services are provided.<br />

Interest Revenue<br />

Revenue is recognised as interest accrues taking into account the effective yield on the financial asset.<br />

Rental Income<br />

Rental Income is accounted for on a straight line basis over the term of the lease.<br />

(d) Income Tax<br />

The income tax expense for the period is the tax payable on the current period’s taxable income based on the notional income tax<br />

rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the<br />

tax base of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.<br />

The consolidated entity adopts the above detailed policy however, <strong>Cronulla</strong>-<strong>Sutherland</strong> District Rugby League Football Club Limited<br />

(the “Football Club”) is exempt from income tax pursuant to Section 45-50 of the Income Tax Assessment Act (1997).<br />

Deferred tax assets and liabilities are recognised for all temporary differences, between carrying amounts of assets and liabilities<br />

for financial reporting purposes and their respective tax bases, at the tax rates expected to apply when the assets are recovered or<br />

liabilities settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. Exceptions are made<br />

for certain temporary differences arising on initial recognition of an asset or a liability if they arose in a transaction, other than a<br />

business combination, that at the time of the transaction did not affect either accounting profit or taxable profit.<br />

Deferred tax assets are only recognised for deductible temporary differences and unused tax losses if it is probable that future<br />

taxable amounts will be available to utilise those temporary differences and losses.<br />

(e) Impairment of Assets<br />

At each reporting date the Group assesses whether there is any indication that individual assets are impaired. Where impairment<br />

indicators exist, recoverable amount is determined and impairment losses are recognised in the profit or loss where the asset’s<br />

carrying value exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell and<br />

value in use. As the future economic benefits of all of the Leagues Club’s assets (other than poker machines and related equipment)<br />

are not primarily dependent upon their ability to operate net cash inflows and if deprived of the asset, the Club would replace the<br />

asset’s remaining future economic benefits, “value in use” is determined as the depreciated replacement cost of the asset, rather<br />

than by using discounted cashflows.<br />

For the purpose of assessing value in use for cash generating assets, the estimated future cashflows are discounted to their<br />

present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks<br />

specific to the asset.<br />

(f) Cash and Cash Equivalents<br />

Cash and cash equivalents includes cash on hand and at bank, deposits held at call with financial institutions, other short term,<br />

highly liquid investments with maturities of three months or less, that are readily convertible to known amounts of cash and which<br />

are subject to an insignificant risk of changes in value and bank overdrafts.<br />

(g) Trade and Other Receivables<br />

Trade receivables are recognised at original invoice amounts less an allowance for uncollectible amounts and have repayment<br />

terms between 30 and 60 days. Collectability of trade receivables is assessed on an ongoing basis. Debts which are known to be<br />

uncollectible are written off. An allowance is made for doubtful debts where there is objective evidence that the Group will not be<br />

able to collect all amounts due according to the original terms.<br />

Objective evidence of impairment includes financial difficulties of the debtor, default payments or debts greater than 60 days.<br />

On confirmation that the trade receivables will not be collectible the gross carrying value of the asset is written off against the<br />

associated provision.<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826<br />

11


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)<br />

(h) Inventories<br />

Finished Goods<br />

Inventories are stated at the lower of cost and net realisable value.<br />

(i) Property, Plant and Equipment<br />

Land and buildings are measured at cost less accumulated depreciation.<br />

All other plant and equipment is stated at historical cost, including costs directly attributable to bringing the asset to the location<br />

and condition necessary for it to be capable of operating in the manner intended by management, less depreciation and any<br />

impairment.<br />

Land is not depreciated. Depreciation on other assets is calculated on a straight-line basis over the estimated useful lives of the<br />

asset as follows:<br />

- Buildings 1.6%<br />

- Leasehold improvements 1.7 - 2.3%<br />

- Plant and equipment 5 - 33%<br />

- Leased plant and equipment 20 - 33%<br />

The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at each reporting date.<br />

Gains and losses on disposal are calculated as the difference between the net disposal proceeds and the asset’s carrying amount<br />

and are included in the profit or loss in the year that the item is derecognised.<br />

(j) Leases<br />

Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classified as<br />

finance leases and capitalised at inception of the lease at the fair value of the leased property, or if lower, at the present value of<br />

the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so<br />

as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to the profit or loss<br />

over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.<br />

Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.<br />

(k) Trade and Other Payables<br />

Trade and other payables represent liabilities for goods and services provided to the Group prior to the year end and which are<br />

unpaid. These amounts are unsecured and have 30-90 day payment terms.<br />

(l) Interest-Bearing Liabilities<br />

All loans and borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently<br />

measured at amortised cost. Any difference between the proceeds and redemption amount is recognised in the profit or loss over<br />

the period of the loans and borrowings using the effective interest method.<br />

All borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at<br />

least 12 months after the reporting date.<br />

(m) Borrowing Costs<br />

Borrowing costs include interest on bank loans and overdrafts and finance charges in respect of finance leases.<br />

Borrowing costs incurred for the construction of a qualifying asset are capitalised during the period of time that it is required to<br />

complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed when incurred.<br />

12<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)<br />

(n) Employee Benefit<br />

Wages and Salaries, Annual Leave and Sick leave<br />

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be<br />

settled within 12 months of reporting date are recognised in respect of services provided by employees to the reporting date and<br />

measured at amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised<br />

when leave is taken and measured at the actual rates paid or payable.<br />

Retirement Benefit Obligations<br />

The group has several defined contribution superannuation funds. Contributions are recognised as expenses as they become<br />

payable. The company has no legal or constructive obligation to fund any deficit.<br />

Long Service Leave<br />

Liabilities for long service leave are recognised as part of the provision for employee benefits and measured as the present value<br />

of expected future payments to be made in respect of services provided by employees to the reporting date. Consideration is given<br />

to expected future salaries and wages levels, experience of employee departures and periods of service. Expected future payments<br />

are discounted using national government bond rates at reporting date with terms to maturity and currency that match, as closely<br />

as possible, the estimated future cash outflows.<br />

(o) Lucky Members Draw and Reward Dollars<br />

Liabilities for lucky members draw and reward dollars are recognised as a provision at the present value. These provisions are<br />

recognised as expenses as they become payable.<br />

(p) GST<br />

Revenues and expenses are recognised net of GST except where GST incurred on a purchase of goods and services is not<br />

recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as<br />

part of the expense item.<br />

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to,<br />

the taxation authority is included as part of receivables or payables in the statement of financial position.<br />

Cashflows are included in the statement of cashflows on a gross basis and the GST component of cashflows arising from investing<br />

and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cashflows.<br />

(q) Going Concern<br />

The financial report has been prepared on a going concern basis which assumes continuity of normal business activities and<br />

realisation of assets and settlement of liabilities in the ordinary course of business.<br />

At year end the company’s current liabilities exceeded its current assets by $12,979,352 and the consolidated entity’s current<br />

liabilities exceed its current assets by $14,043,299. During the year ended 31 October 2011 the company incurred an operating<br />

loss of $1,883,851 and the consolidated entity incurred an operating loss of $2,008,051.<br />

The consolidated entity has incurred significant losses over recent years which have been funded by additional bank borrowings and<br />

from working capital sources. As a result of the continuing losses, the consolidated entity since the last report has either drawn<br />

down and/or regularly used the full extent of its agreed bank facilities.<br />

This Club and the Football Club have entered into a Multi-Party Deed and Forbearance Deed with St George regarding the finance<br />

facilities provided to the Clubs. These facilities provide for repayment of the refinanced amounts by the date being 3 months after<br />

the Part 3A approvals have been granted by the Part 3A authorities as detailed below and in Notes 17 and 19. Should a Part 3A<br />

approval not occur before 31 Aug 2012, the full finance facilities would expire on that date and become payable or be subject to<br />

renegotiation.<br />

During the year ended 31 October 2011 the Football Club incurred an loss of $124,200 (2010 $1,293,641 loss). In 2011 the<br />

Leagues Club grant to the Football Club was $1,600,000 (2010 $250,000). At 31 October 2011, the Football Club’s current<br />

liabilities exceeded its current assets by $1,063,947 (2010 $1,374,729).<br />

The Leagues Club has provided the Football Club a letter of support indicating, subject to securing an ongoing Finance Facility<br />

beyond 31 August 2012,that it will continue to provide financial support to the Football Club to enable it to continue as a Going<br />

Concern, for at least twelve months from the date of signing of this <strong>Financial</strong> <strong>Report</strong>.<br />

As indicated in Note 19, the Club is awaiting the Planning Assessment Commission’s determination of the development Concept<br />

Plan for the Club’s site at Woolooware following the release in June 2012 of the Department of Planning and Infrastructure’s report<br />

recommending that the Planning Assessment Commission approve the Concept Plan.<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826<br />

13


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)<br />

(q) Going Concern (continued)<br />

The ability of the company and its consolidated entity to continue as going concerns including paying their debts when due, settling<br />

their liabilities and realising their assets in the normal course of business at amounts stated in the financial report, is dependent<br />

upon the following:<br />

1. The ability of the Football Club to improve its operating performance so the funding requirement from the Leagues Club to the<br />

Football Club does not inhibit the Leagues Club’s ability to meets its debts as and when they fall due.<br />

2. The Leagues Club generating sufficient cash flow to enable it to meet its debts as and when they fall due.<br />

<strong>3.</strong> The Football Club drawing on a loan facility of $500,000 from the NRL by 31 July 2012 should cash flow require and meeting<br />

the repayment arrangements outlined in Note 19.<br />

4. The refinancing or extending of the current finance facilities prior to 31 August 2012.<br />

5. Part 3A Approval of the Development Plan by the Approval Date of 31 August 2012 as referred to in Note 19.<br />

6. The Property Consortium providing the $10,000,000 funds to enable the refinance payment to be made to St George by the<br />

Forbearance Date being 3 months after the Part 3A approvals have been granted by the Part 3A authorities, as referred to in<br />

Note 19.<br />

7. The company meeting the Forbearance Fee to St George Bank of $400,000 by the Forbearance Date being 3 months after the<br />

Part 3A approvals have been granted by the Part 3A authorities referred to in Note 19.<br />

8. The refinancing and extending of finance facilities of the company by 31 August 2012 as referred to in Note 19,<br />

9. The refinancing or extending of finance facilities of the company by 31 August 2012, should the Part 3A Approval not be<br />

received by 31 August 2012, the Property Consortium does not provide $10,000,000 in funds to enable the company to meet<br />

the $10,000,000 facility repayment by the Forbearance Date being 3 months after the Part 3A approvals have been granted by<br />

the Part 3A authorities, or should the company be unable to meet the $400,000 Forbearance fee payable to St George Bank by<br />

the Forbearance Date being 3 months after the Part 3A approvals have been granted by the Part 3A authorities (refer Note 19).<br />

The above creates significant uncertainty as to the ability of the company and the consolidated entity to continue to continue as going<br />

concerns.<br />

Should any of the following occur the company and the consolidated entity would require immediate, additional, alternate finance to<br />

enable them to meet their debts as and when they fall due and continue as Going Concerns:<br />

1. The company and the consolidated entity not generating sufficient profitability and immediate cash flows to enable the company<br />

and the consolidated entity to meet their debts as and when they fall due;<br />

2. The company being unable to provide financial support to the Football Club as and when required to allow that entity to pay its<br />

debts as and when they fall due, including the budgeted $750,000 grant for the 2012 year and continuing grants in 2013;<br />

<strong>3.</strong> The company and the Football Club being unable to refinance and extend the current finance facilities by 31 August 2012;<br />

4. Part 3A Approval not occurring by the Approval Date of 31 August 2012;<br />

5. The Property Consortium not providing funds to enable the Refinance Payment of $10,000,000 to occur by the Forbearance<br />

Date being 3 months after the Part 3A approvals have been granted by the Part 3A authorities; and<br />

6. The company not meeting the Forbearance Fee of $400,000 by the Forbearance Date being 3 months after the Part 3A<br />

approvals have been granted by the Part 3A authorities.<br />

The directors are of the opinion that there are reasonable grounds to believe the above requirements will be satisfied and accordingly<br />

have prepared the financial report on a going concern basis.<br />

The company and the consolidated entity do not have any agreements in place with financiers to provide immediate, additional,<br />

alternate financial support as and when required, including within the next twelve months, should the company and the consolidated<br />

entity require such funding.<br />

Should the company require immediate, additional, alternate financial support from financiers, there is significant uncertainty whether<br />

the company and the consolidated entity could obtain such finance and therefore continue as a going concern, and realise its assets<br />

and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.<br />

The financial report does not include adjustments relating to the recoverability and classification of recorded asset amounts or to<br />

the amounts and classification of liabilities that might be necessary should the company and the consolidated entity not continue as<br />

going concern.<br />

14 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)<br />

(r) Critical Accounting Estimates and Judgements<br />

The Directors’ estimates and judgements incorporated into the financial report are based on historical results and the best<br />

available current information. Estimates assume a reasonable expectation of future events and are based on current trends and<br />

economic data from internal and external sources.<br />

The Directors have assessed that the Leagues Club is a ‘not for profit’ entity, whose activities are:<br />

1) To provide a Licensed Club for the benefit of members and their guests; and<br />

2) To encourage, promote and control the development, playing and interests of rugby league in the <strong>Cronulla</strong>-<strong>Sutherland</strong> district.<br />

In carrying out the assessment at the reporting date as to whether individual assets are impaired, the Directors are required to<br />

consider and identify assets which are held exclusively to generate cash and those which are held to support the Club’s activities.<br />

At the reporting date:-<br />

- The Club’s poker machines and related equipment are assessed as held exclusively to generate cash;<br />

- All other assets are assessed as held to support the Club’s activities.<br />

- All of the Football Club’s assets have been assessed as held to support the Club’s activities.<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826<br />

15


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 2: REVENUE<br />

GROUP<br />

LEAGUES CLUB<br />

From continuing operations<br />

2011 2010 2011 2010<br />

$ $ $ $<br />

Sale of goods from operating activities<br />

Sale of goods 3,136,140 3,335,546 3,249,441 3,466,904<br />

Merchandising/Royalties 760,176 786,893 - -<br />

3,896,316 4,122,439 3,249,441 3,466,904<br />

Rendering of services from operating activities<br />

Gaming revenue 8,940,403 9,459,137 8,940,403 9,459,137<br />

Match revenue 916,890 949,798 - -<br />

Stadium Events 24,478 49,109 - -<br />

9,881,771 10,458,044 8,940,403 9,459,137<br />

Other revenue from operating activities<br />

Functions revenue 384,194 328,241 384,194 328,241<br />

Members subscriptions 857,572 849,771 88,343 90,110<br />

Sponsorship 3,948,243 3,686,835 - -<br />

Interest from other persons 14,993 3,551 3,980 7<br />

Rent received 98,983 79,719 98,983 79,719<br />

Commission - Tab 13,800 19,193 13,800 19,193<br />

Commission - Keno 69,462 64,242 69,462 64,242<br />

NSWRL Grant 150,000 150,000 - -<br />

NRL Grant 3,825,000 3,598,333 - -<br />

9,389,247 8,779,885 658,762 581,512<br />

16 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 3: OTHER INCOME<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

$ $ $ $<br />

Art Union - 1,329 - -<br />

Other income 198,057 156,101 143,770 142,113<br />

Profit from sale of assets 318 13,545 318 13,545<br />

198,375 170,975 144,088 155,658<br />

NOTE 4: EXPENSES<br />

GROUP<br />

LEAGUES CLUB<br />

(Deficit) before income tax includes the following<br />

specific expenses:<br />

2011 2010 2011 2010<br />

$ $ $ $<br />

Bad and doubtful debts<br />

Trade receivables 162,813 37,873 - 7,717<br />

162,813 37,873 - 7,717<br />

Finance Costs<br />

Interest paid/payable 956,956 731,303 872,030 728,272<br />

Finance charges under finance leases<br />

and hire purchase contracts 66,680 79,886 55,784 66,634<br />

1,023,636 811,189 927,814 794,906<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826<br />

17


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 5: CURRENT TAX LIABILITY<br />

The Income Tax Assessment Act, 1997 (amended) provides that under the concept of mutuality, clubs are only liable for<br />

income tax on income derived from non-members and from outside the entity.<br />

GROUP<br />

LEAGUES CLUB<br />

INCOME TAX EXPENSE<br />

Current tax expense<br />

2011 2010 2011 2010<br />

$ $ $ $<br />

Current tax (benefit)/expense (5,820) (75,135) (5.820) (75,135)<br />

Overprovision for previous years - - - -<br />

Total current income tax (benefit) (5,820) (75,135) (5,820) (75,135)<br />

Deferred tax expense - -<br />

Total income tax (benefit) in profit or loss (5,820) (75,135) (5,820) (75,135)<br />

Reconciliation of the effective tax rate<br />

(Deficit) before income tax expense (2,013,871) (1,369,599) (1,889,671) (75,958)<br />

Tax at the Australian tax rate of 30% (2009: 30%) (604,161) (410,880) (566,901) (22,787)<br />

Tax effect of Deficit in the Football Club<br />

(Income Tax exempt) 37,260 388,093 - -<br />

Non-deductible development cost impairment<br />

and controlled entity loan provision - - - -<br />

Income and expenditure of the Leagues Club<br />

subject to mutuality principal adjusted for<br />

non-deductible and specifically deductible items 561,081 (52,348) 561,081 (52,348)<br />

(5,820) (75,135) (5,820) (75,135)<br />

Over provision in prior years - - - -<br />

Income tax (benefit)/ expense in profit or loss (5,820) (75,135) (5,820) (75,135)<br />

DEFERRED TAX LIABILITIES<br />

Deferred tax liabilities comprise temporary<br />

differences attributable to:<br />

Amounts recognised directly in equity<br />

Revaluation of property, plant and equipment 813,047 813,047 813,047 813,047<br />

Total deferred tax liabilities 813,047 813,047 813,047 813,047<br />

CURRENT TAX LIABILITIES<br />

Current tax liability - - - -<br />

- - - -<br />

CURRENT TAX RECEIVABLE<br />

Current tax receivable 71,881 66,061 71,881 66,061<br />

71,881 66,061 71,881 66,061<br />

18 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 6: CASH AND CASH EQUIVALENTS<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

$ $ $ $<br />

Cash on hand 327,392 244,927 236,280 243,927<br />

Cash at bank 338,823 - 337,823 -<br />

666,215 244,927 574,103 243,927<br />

RECONCILIATION OF CASH<br />

The above figures are reconciled to the cash at the end of the financial year as shown in the statement of cashflows as follows:<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

$ $ $ $<br />

Balances as above 666,215 244,927 574,103 243,927<br />

Bank overdrafts (note 11) - (1,288,782) - (1,059,910)<br />

Balances per cash flow statements 666,215 (1,043,855) 574,103 (815,983)<br />

NOTE 7: TRADE AND OTHER RECEIVABLES<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

CURRENT $ $ $ $<br />

Trade receivables 559,846 407,145 607,028 300,394<br />

Allowance for doubtful debts (201,470) (48,883) - (7,717)<br />

358,376 358,262 607,028 292,677<br />

Other debtors 229,578 217,648 50,744 42,613<br />

Prepayments 185,234 249,391 140,897 173,788<br />

773,188 825,301 798,669 509,078<br />

NON-CURRENT<br />

Amount receivable from controlled entity - - 3,827,546 3,827,546<br />

Impairment of receivables from controlled entity - - (3,827,546) (3,827,546)<br />

Analysis of Allowance Account<br />

Opening balance (48,883) (11,000) (7,717) -<br />

Provisions for doubtful receivables (201,470) (48,883) - (7,717)<br />

Receivables written off during the year - - - -<br />

Reversal of amounts provided 48,883 11,000 7,717 -<br />

Closing balance (201,470) (48,883) - (7,717)<br />

Analysis of Allowance Account - controlled entity<br />

Opening balance - - (3,827,546) (3,827,546)<br />

Current year movement in allowance - - - -<br />

Closing balance - - (3,827,546) (3,827,546)<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826<br />

19


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 8: INVENTORIES<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

$ $ $ $<br />

Finished goods<br />

- at cost 125,516 178,050 72,171 127,501<br />

NOTE 9: PROPERTY, PLANT AND EQUIPMENT<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

$ $ $ $<br />

Freehold Land<br />

At deemed cost 3,850,000 3,850,000 3,850,000 3,850,000<br />

Property development costs - - - -<br />

Total land 3,850,000 3,850,000 3,850,000 3,850,000<br />

Buildings<br />

At deemed cost 6,520,000 6,520,000 6,520,000 6,520,000<br />

Accumulated depreciation (2,009,532) (1,905,212) (2,009,532) (1,905,212)<br />

4,510,468 4,614,788 4,510,468 4,614,788<br />

Building improvements<br />

At cost 26,470,465 26,399,047 11,694,739 11,680,881<br />

Accumulated amortisation (6,242,287) (5,691,809) (2,395,091) (2,169,883)<br />

20,228,178 20,707,238 9,299,648 9,510,998<br />

Total buildings 24,738,646 25,322,026 13,810,116 14,125,786<br />

Total freehold land and buildings 28,588,646 29,172,026 17,660,116 17,975,786<br />

Plant and equipment<br />

At cost 10,609,798 10,443,491 8,745,440 8,593,112<br />

Accumulated depreciation (8,365,872) (7,835,791) (7,487,084) (7,153,369)<br />

2,243,926 2,607,700 1,258,356 1,439,743<br />

Leased plant and equipment<br />

At cost 4,050,126 4,050,126 3,881,951 3,881,951<br />

Accumulated amortisation (3,623,423) (3,315,231) (3,510,723) (3,232,251)<br />

426,703 734,895 371,228 649,700<br />

Total plant and equipment 2,670,629 3,342,595 1,629,584 2,089,443<br />

Total non-current property, plant and equipment 31,259,275 32,514,621 19,289,700 20,065,229<br />

20 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 9: PROPERTY, PLANT AND EQUIPMENT (Continued)<br />

Reconciliations<br />

Reconciliations of the carrying amounts of each class of property, plant & equipment at the beginning and end of the current<br />

and previous financial year are set out below:<br />

Plant and Leased Plant<br />

2010 Freehold Land Buildings Equipment and Equipment Total<br />

$ $ $ $ $<br />

Group<br />

Carrying amount at beginning of financial year 3,850,000 25,322,026 2,607,700 734,895 32,514,621<br />

Additions - 72,325 245,438 - 317,763<br />

Disposals - - - - -<br />

Depreciation - (655,705) (530,212) (308,192) (1,494,109)<br />

Depreciation on disposals - - - -<br />

Reclassification - - (79,000) - (79,000)<br />

Carrying amount at end of financial year 3,850,000 24,738,646 2,243,926 426,703 31,259,275<br />

Plant and Leased Plant<br />

Leagues Club Freehold Land Buildings Equipment and Equipment Total<br />

$ $ $ $ $<br />

Group<br />

Carrying amount at beginning of financial year 3,850,000 14,125,786 1,439,743 649,700 20,065,229<br />

Additions - 14,765 231,459 - 246,224<br />

Disposals - - - - -<br />

Depreciation - (330,435) (333,846) (278,472) (942,753)<br />

Depreciation on disposals - - - - -<br />

Reclassification - - (79,000) - (79,000)<br />

Carrying amount at end of financial year 3,850,000 13,810,116 1,258,356 371,228 19,289,700<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826<br />

21


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 9: PROPERTY, PLANT AND EQUIPMENT (Continued)<br />

Plant and Leased Plant<br />

2009 Freehold Land Buildings Equipment and Equipment Total<br />

$ $ $ $ $<br />

Group<br />

Carrying amount at beginning of financial year 3,850,000 25,899,591 2,968,571 744,186 33,462,348<br />

Additions - 80,905 298,730 269,094 648,729<br />

Disposals - - (22,750) (58,595) (81,345)<br />

Impairment gains/losses - (658,470) (659,601) (278,385) (1,596,456)<br />

Depreciation - - 22,750 58,595 81,345<br />

Depreciation on disposals - - - - -<br />

Carrying amount at end of financial year 3,850,000 25,322,026 2,607,700 734,895 32,514,621<br />

Plant and Leased Plant<br />

Leagues Club Freehold Land Buildings Equipment and Equipment Total<br />

$ $ $ $ $<br />

Group<br />

Carrying amount at beginning of financial year 3,850,000 14,386,515 1,628,814 665,671 20,531,000<br />

Additions - 63,882 267,799 235,495 567,176<br />

Disposals - - (22,750) (58,595) (81,345)<br />

Impairment gains/losses - (324,611) (456,870) (251,466) (1,032,947)<br />

Depreciation - - 22,750 58,595 81,345<br />

Depreciation on disposals - - - - -<br />

Carrying amount at end of financial year 3,850,000 14,125,786 1,439,743 649,700 20,065,229<br />

22 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 10: TRADE AND OTHER PAYABLES<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

CURRENT $ $ $ $<br />

Trade payables 676,977 788,810 424,980 543,255<br />

Other payables 1,316,259 2,043,956 825,404 1,212,969<br />

Amount payable to wholly controlled entity - - - 400,160<br />

GST liability 508,774 918,247 277,354 497,146<br />

Annual leave 199,900 267,714 131,674 223,855<br />

2,701,910 4,018,727 1,659,412 2,877,385<br />

NOTE 11: INTEREST BEARING LIABILITIES<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

CURRENT $ $ $ $<br />

Unsecured<br />

Members deposits 101,824 128,210 101,824 128,210<br />

Secured<br />

Bank overdrafts - 1,288,782 - 1,059,910<br />

Bank loans - St George Bank Ltd 12,174,396 7,827,500 12,174,396 7,827,500<br />

Lease liabilities 354,061 388,835 316,663 346,522<br />

Total secured current financial liabilities 12,528,457 9,505,117 12,491,059 9,233,932<br />

Total current financial liabilities 12,630,281 9,633,327 12,592,883 9,362,142<br />

NON-CURRENT<br />

Secured<br />

Lease liabilities 272,260 644,612 229,885 555,0299<br />

Total secured non-current financial liabilities 272,260 644,612 229,885 555,029<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826<br />

23


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 11: INTEREST BEARING LIABILITIES (Continued)<br />

The carrying amounts of assets pledged as security for current and non-current interest-bearing liabilities are:<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

CURRENT Note $ $ $ $<br />

Floating charge<br />

Cash and cash equivalents 6 666,215 244,927 574,103 243,927<br />

Receivables 7 773,248 825,301 798,669 509,078<br />

Inventories 8 125,516 178,050 72,171 127,501<br />

Total current assets pledged as security 1,564,979 1,248,278 1,444,943 880,506<br />

NON-CURRENT<br />

First mortgage<br />

Freehold land 9 3,850,000 3,850,000 3,850,000 3,850,000<br />

Buildings 24,738,646 25,322,026 13,810,116 14,125,786<br />

28,588,646 29,172,026 17,660,116 17,975,786<br />

Finance leases<br />

Plant and equipment 9 426,703 734,895 371,228 649,700<br />

Floating charge<br />

Plant and equipment 9 2,243,926 2,607,700 1,258,356 1,439,743<br />

Total non-current assets pledged as security 31,259,275 32,514,621 19,289,700 20,065,229<br />

Total assets pledged as security 32,824,254 33,762,899 20,734,643 20,945,735<br />

Total assets pledged as security<br />

Current 1,564,979 1,248,278 1,444,943 880,506<br />

Non-current 31,259,275 32,514,621 19,289,700 20,065,229<br />

32,824,254 33,762,899 20,734,643 20,945,735<br />

24 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 12: PROVISIONS<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

CURRENT $ $ $ $<br />

Provision for lucky members draw - 1,364 - 1,364<br />

Provision for reward dollars - 34,229 - 34,229<br />

Provision for long service leave 130,920 93,132 130,920 93,132<br />

130,920 128,725 130,920 128,725<br />

NON CURRENT<br />

Provision for long service leave 50,217 84,562 32,771 69,489<br />

Non-current long service leave comprises amounts which are not vested at balance date and current long service leave represents<br />

the amount which is vested and the amount and timing of payments to be made when leave is taken is uncertain.<br />

GROUP<br />

LEAGUES CLUB<br />

Lucky Reward Lucky Reward<br />

Members Dollars Members Dollars<br />

Draw<br />

Draw<br />

CURRENT $ $ $ $<br />

Balance at beginning of the year 1,364 34,229 1,364 34,229<br />

Provisions made during the year 14,091 133,625 14,091 133,625<br />

Provisions used during the year (15,455) (167,854) (15,455) (167,854)<br />

Balance at end of year - - - -<br />

Current - - - -<br />

Non-current - - - -<br />

- - - -<br />

Lucky Members Draw and Reward dollars are prizes available to all members attending the club.<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826<br />

25


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 13: INCOME IN ADVANCE<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

CURRENT $ $ $ $<br />

Subscriptions in advance 33,958 32,767 33,958 32,767<br />

Income in advance 163,620 365,876 59,593 35,902<br />

Commission in advance 19,410 18,814 19,410 18,814<br />

216,988 417,457 112,961 87,483<br />

NOTE 14: CASH FLOW INFORMATION<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

$ $ $ $<br />

Non-cash financing and investing activities<br />

Acquisition of plant and equipment by means<br />

of finance leases - 269,094 - 235,495<br />

NOTE 15: RELATED PARTY TRANSACTIONS<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED - PARENT ENTITY<br />

<strong>Cronulla</strong>-<strong>Sutherland</strong> Leagues Club Limited is the parent entity of the Group. <strong>Cronulla</strong>-<strong>Sutherland</strong> District Rugby League Football Club<br />

Limited is the controlled entity of the Leagues Club.<br />

TRANSACTIONS WITH RELATED PARTIES<br />

TRANSACTIONS WITH DIRECTORS AND DIRECTOR RELATED ENTITIES<br />

The following transactions were on normal terms and conditions:<br />

Skin Deep Clothing, a business in which Damian Irvine holds an interest, purchased football sponsorship seats<br />

for $5,200 (2010:$5,200) at normal commercial rates.<br />

Douglas Maher Coleman, a business in which Craig Douglas holds an interest, purchased a football sponsorship box<br />

for $6,050 (2010:$11,935) at normal commercial rates.<br />

Douglas Maher Coleman, a business in which Craig Douglas holds an interest, provided accounting services<br />

for $8,239 (2010:$ 12,300) at normal commercial rates.<br />

B2B Commercial Outfits, a company in which Ricky Surace holds an interest, purchased a football sponsorship box<br />

for $61,450 (2010: $165,000) at normal commercial rates.<br />

Keith Ward purchased football season seats for $810 (2010: $810) at normal commercial rates.<br />

26 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 15: RELATED PARTY TRANSACTIONS (Continued)<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

$ $ $ $<br />

Group Companies<br />

In accordance with the objectives of the Leagues Club,<br />

to promote Rugby League, the Leagues Club has agreed<br />

to provide, free of charge, certain facilities to the<br />

Football Club. Such facilities include office facilities<br />

and other such facilities required by the Football Club<br />

from time to time.<br />

Transactions between the Leagues Club and its<br />

controlled entity, the Football Club during the financial<br />

year consist of:<br />

Sale of alcohol to related parties - - 113,301 131,358<br />

Sale of goods to the Football Club were made<br />

on an arm’s length basis.<br />

Cash grant made to the Football Club - - 1,600,000 250,000<br />

OUTSTANDING BALANCES<br />

The following balances are outstanding at reporting date in relation to transactions with the controlled entity (Football Club):<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

$ $ $ $<br />

Current receivables from:<br />

<strong>Cronulla</strong>-<strong>Sutherland</strong> District Rugby League<br />

Football Club Ltd - - 518,821 235,818<br />

Current payables to:<br />

<strong>Cronulla</strong>-<strong>Sutherland</strong> District Rugby League<br />

Football Club Ltd - - 60 400,160<br />

Non-Current receivables from:<br />

<strong>Cronulla</strong>-<strong>Sutherland</strong> District Rugby League<br />

Football Club Ltd - - 3,827,546 3,827,546<br />

The following balances are outstanding at<br />

reporting date in relation to transactions with<br />

the Board of Directors:<br />

Directors Honorariums - - - -<br />

Current receivables from:<br />

B2B Commercial – R Surace 39,822 - - -<br />

Amounts receivable from/owing to related parties for sale and purchases of goods and services are unsecured and interest free and<br />

are included in the balances of trade and other receivables (refer note 7) and trade and other payables (refer note 10) respectively.<br />

All sales and purchases with related parties were on normal commercial terms. No allowances for doubtful debts have been<br />

recognised on these outstanding balances, nor have any bad debt expenses been incurred.<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826<br />

27


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 15: RELATED PARTY TRANSACTIONS (Continued)<br />

Key management personnel compensation for non-disclosing entities<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

$ $ $ $<br />

Key Management Compensation 565,502 389,107 313,155 267,583<br />

Director Honorariums - - - -<br />

NOTE 16: DEED OF CROSS GUARANTEE<br />

<strong>Cronulla</strong>-<strong>Sutherland</strong> Leagues Club Limited and its controlled entity, <strong>Cronulla</strong>-<strong>Sutherland</strong> District Rugby League Football Club Limited<br />

are parties to a deed of cross guarantee to St George Bank Limited whereby each company guarantees the debts of the others.<br />

The Football Club borrowings total $79,773 (2010: $360,768).<br />

NOTE 17: CONTINGENCIES<br />

Contingent Liabilities - Leagues Club<br />

At 31 October 2011, The Leagues Club and controlled entity had contingent liabilities as set out below:<br />

Guarantees<br />

Cross-guarantees have been given by <strong>Cronulla</strong>-<strong>Sutherland</strong> Leagues Club Limited and <strong>Cronulla</strong>-<strong>Sutherland</strong> District Rugby League<br />

Football Club Ltd as described in note 16.<br />

Development Costs of consortium<br />

Bluestone Capital have advised its development costs incurred to 31 October 2011 were $1,114,313 (unaudited) and are<br />

estimated to be $1.5m (unaudited) at 30 June 2012. Under the development agreements, if the club commits an event of default,<br />

Bluestone Capital is able to terminate the agreements by notice in writing to the club and immediately seek to recover all reasonable<br />

development costs paid by Bluestone Capital prior to the default.<br />

28 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 18: COMMITMENTS<br />

GROUP<br />

LEAGUES CLUB<br />

2011 2010 2011 2010<br />

LEASE COMMITMENTS $ $ $ $<br />

Finance lease - non-cancellable<br />

Within one year 391,782 455,468 348,875 402,982<br />

Later than one year but not later than 5 years 286,132 696,294 238,967 595,678<br />

Total future minimum lease payments 677,914 1,151,762 587,842 998,660<br />

Total future finance charges (51,593) (118,315) (41,294) (97,109)<br />

Lease liabilities 626,321 1,033,447 546,548 901,551<br />

Lease liabilities are represented in the financial<br />

statements as follows:<br />

Current (note 11) 354,061 388,835 316,663 346,522<br />

Non-current (note 11) 272,260 644,612 229,885 555,029<br />

626,321 1,033,447 546,548 901,551<br />

The Football Club has a 10 x 5 year lease with the Leagues Club for the use of the playing field and associated facilities,<br />

which commenced 31 October 1994 for nil consideration.<br />

NOTE 19: SUBSEQUENT EVENTS<br />

On 28 June 2012 the St George Bank agreed to amend the company’s Facility Agreements totalling $13,424,000 by extending<br />

their expiry dates to 31 August 2012.<br />

In July 2012, the <strong>Cronulla</strong>-<strong>Sutherland</strong> Leagues Club Limited and the <strong>Cronulla</strong>-<strong>Sutherland</strong> District Rugby League Football Club<br />

Limited (the Clubs) entered into a variation to a Multi-Party Deed with St George Bank and St George Finance (the Bank) and<br />

the Property Consortium, Bluestone Capital Ventures No 1. The variation amends the Approval Date specified in the Mutli-Party<br />

Deed from 30 June 2012 to 31 August 2012, with the following effect:<br />

• The Approval Date by which the Part 3A Approvals must be obtained is 31 August 2012.<br />

• The Restructured Finance Facility’s expiring date is 31 August 2012.<br />

• The Forbearance Date by which the Refinance Payment of $10m and the Forbearance fee of $400k are payable is the<br />

date being 3 months after the Part 3A approvals have been granted by the Part 3A authorities.<br />

The Club entered into an Umbrella Deed and Development Agreements with Bluestone Capital on 22 March 2012 for the<br />

Development of the Club’s Land at Woolooware. As a result of these agreements the Club has provided a mortgage to<br />

Bluestone over the Club’s land securing obligations of the Club under the development agreements, including the estimate<br />

contingent liability included in Note 17 Contingent Liabilities.<br />

On 20 June 2012 the Football Club received confirmation of a loan facility from the NRL of $500,000 which if drawn is to be<br />

repaid commencing in January 201<strong>3.</strong><br />

In June 2012 the Department of Planning and Infrastructure concluded its Director-General’s Environmental Assessment <strong>Report</strong><br />

of the Concept Plan for a mixed use development of the Club’s site at Woolooware. The Department’s report recommends that<br />

the Planning Assessment Commission, as delegate for the Minister for Planning and Infrastructure, approve the Concept Plan.<br />

The Club is awaiting the determination of the Planning Assessment Commission.<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826<br />

29


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 20: RESTATEMENT OF COMPARATIVES<br />

Comparative reclassifications and restatements<br />

Certain comparatives have been reclassified and restated in the consolidated and the parent entity. The reclassifications and<br />

restatements have had no effect on the prior year deficit after tax nor net assets of the parent entity or the consolidated entity.<br />

In the statement of comprehensive income, the reclassification was due to the entity previously disclosing its expenses by a mix<br />

of nature and function and in the current year moving to disclose its expenses by nature only in line with accounting standards.<br />

The following table outlines the reclassifications:<br />

CONSOLIDATED<br />

Statement of Comprehensive Income 2011 2010<br />

$ $ $<br />

<strong>Report</strong>ed Adjustment Restated<br />

Total revenue 23,360,368 23,360,368<br />

Other income 170,975 170,975<br />

Cost of sales (1,543,874) (1,543,874)<br />

Bar & catering expenses (1,751,466) 246,530 (1,504,936)<br />

Marketing expenses (2,416,789) 58,217 (2,358,572)<br />

Occupancy expenses (1,971,287) 328,604 (1,642,683)<br />

Administrative expenses (1,904,756) (314,969) (2,219,725)<br />

Gaming expenses (2,701,296) 860,023 (1,841,273)<br />

Gaming taxes (2,973,683) (2,973,683)<br />

Operational expenses - (2,125,519) (2,125,519)<br />

Other expenses (947,114) 947,114 -<br />

Football expenses (7,879,488) (7,879,488)<br />

(Deficit)/surplus before finance costs and grants paid (558,410) - (558,410)<br />

Finance costs (811,189) - (811,189)<br />

Grants to Football Club - - -<br />

(Deficit) before tax (1,369,599) - (1,369,599)<br />

Income tax benefit 75,135 - 75,135<br />

(Deficit) after tax (1,294,464) - (1,294,464)<br />

30 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826


FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

NOTE 20: RESTATEMENT OF COMPARATIVES (Continued)<br />

PARENT<br />

Statement of Comprehensive Income 2011 2010<br />

$ $ $<br />

<strong>Report</strong>ed Adjustment Restated<br />

Total Revenue (per Sales Section) 13,507,553 - 13,507,553<br />

Other income 155,658 - 155,658<br />

Cost of sales (1,386,127) - (1,386,127)<br />

Bar & catering expenses (1,751,466) 246,530 (1,504,936)<br />

Marketing expenses (549,199) 58,217 (490,982)<br />

Occupancy expenses (1,228,420) 328,604 (899,816)<br />

Administrative expenses (1,156,958) (314,969) (1,471,927)<br />

Gaming expenses (2,701,296) 860,023 (1,841,273)<br />

Gaming taxes (2,973,683) - (2,973,683)<br />

Operational expenses - (2,125,519) (2,125,519)<br />

Other expenses (947,114) 947,114 -<br />

(Deficit)/surplus before finance costs and grants paid 968,948 - 968,948<br />

Finance costs (794,906) - (794,906)<br />

Grants to Football Club (250,000) - (250,000)<br />

(Deficit) before tax (75,958) - (75,958)<br />

Income tax benefit 75,135 - 75,135<br />

(Deficit) after tax (823) - (823)<br />

NOTE 21: MEMBERS GUARANTEE<br />

The Company is limited by guarantee. If the Company is wound up, the constitution states that each member is to contribute<br />

a maximum of $1 each towards meeting any outstanding obligations of the company. At 31st October 2011 the number of<br />

financial members totalled 18,757 (2010: 18,596).<br />

NOTE 22: REGISTERED OFFICE<br />

461 Captain Cook Drive, Woolooware New South Wales, 2230.<br />

CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826<br />

31


FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2011<br />

DECLARATION BY DIRECTORS<br />

The Directors of the Leagues Club declare that:<br />

1. The financial statements, comprising the Statements of Comprehensive Income, Statements of <strong>Financial</strong> Position,<br />

Statements of Cashflows, Statements of Changes in Equity and accompanying notes, are in accordance with the<br />

Corporations Act 2001 and:<br />

(a) (comply with Accounting Standards – Reduced Disclosure Requirement and the Corporations Regulations 2001; and<br />

(b) give a true and fair view of the Leagues Club’s financial position as at 31 October 2011 and of its performance for the<br />

year ended on that date.<br />

2. In the directors opinion on the basis of the matters described in Note 1(q) to the financial statements, in particular the<br />

continued financial support of its bankers and creditors; and the achievement of sufficient cash surpluses from operations<br />

and a return to profitability. At the date of this declaration there are reasonable grounds to believe that the Leagues Club will<br />

be able to pay its debts as and when they become due and payable.<br />

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by:<br />

D. Irvine C. Douglas<br />

Chairman<br />

Director<br />

Dated this 31st day of July 2012.<br />

32 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITIES ABN 54 000 202 826


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011<br />

Independent Auditor’s <strong>Report</strong><br />

To the members of <strong>Cronulla</strong>-<strong>Sutherland</strong> Leagues Club Limited<br />

Grant Thornton Audit Pty Ltd<br />

ACN 130 913 594<br />

Level 19, 2 Market Street<br />

Sydney NSW 2000<br />

GPO Box 2551<br />

Sydney NSW 2001<br />

T +61 2 9286 5555<br />

F +61 2 9286 5599<br />

E info.nsw@au.gt.com<br />

W www.grantthornton.com.au<br />

We have audited the accompanying financial report of <strong>Cronulla</strong>-<strong>Sutherland</strong> Leagues Club<br />

Limited, which comprises the statements of financial position as at 31 October 2011, the<br />

statements of comprehensive income, the statements of changes in equity and the<br />

statements of cash flows for the year then ended, notes comprising a summary of significant<br />

accounting policies and other explanatory information, and the directors’ declaration of the<br />

consolidated entity comprising the company and the entities it controlled at the year’s end or<br />

from time to time during the financial year.<br />

Directors’ Responsibility for the <strong>Financial</strong> <strong>Report</strong><br />

The directors of the company are responsible for the preparation of the financial report that<br />

gives a true and fair view in accordance with Australian Accounting Standards – Reduced<br />

Disclosure Requirements and the Corporations Act 2001 and for such internal control as<br />

the directors determine is necessary to enable the preparation of the financial report that is<br />

free from material misstatement, whether due to fraud or error.<br />

Auditor’s Responsibility<br />

Our responsibility is to express an opinion on the financial report based on our audit. We<br />

conducted our audit in accordance with Australian Auditing Standards. Those standards<br />

require that we comply with relevant ethical requirements relating to audit engagements and<br />

plan and perform the audit to obtain reasonable assurance about whether the financial<br />

report is free from material misstatement.<br />

An audit involves performing procedures to obtain audit evidence about the amounts and<br />

disclosures in the financial report. The procedures selected depend on the auditor’s<br />

judgement, including the assessment of the risks of material misstatement of the financial<br />

report, whether due to fraud or error.<br />

In making those risk assessments, the auditor considers internal control relevant to the<br />

entity’s preparation of the financial report that gives a true and fair view in order to design<br />

audit procedures that are appropriate in the circumstances, but not for the purpose of<br />

expressing an opinion on the effectiveness of the entity’s internal control. An audit also<br />

includes evaluating the appropriateness of accounting policies used and the reasonableness<br />

of accounting estimates made by the directors, as well as evaluating the overall presentation<br />

of the financial report.<br />

Grant Thornton Audit Pty Ltd<br />

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389<br />

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton<br />

Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.<br />

Liability limited by a scheme approved under Professional Standards Legislation<br />

33


We believe that the audit evidence we have obtained is sufficient and appropriate to provide<br />

a basis for our audit opinion.<br />

Independence<br />

In conducting our audit, we have complied with the independence requirements of the<br />

Corporations Act 2001.<br />

Opinion<br />

In our opinion the financial report of <strong>Cronulla</strong>-<strong>Sutherland</strong> Leagues Club Limited is in<br />

accordance with the Corporations Act 2001, including:<br />

(a) Giving a true and fair view of the company’s and consolidated entity’s financial<br />

position as at 31 October 2011 and of their performance for the year ended on that<br />

date; and<br />

(b) Complying with Australian Accounting Standards – Reduced Disclosure Requirements<br />

and the Corporations Regulations 2001.<br />

Material Uncertainty Regarding Continuation as a Going Concern<br />

Without qualifying our opinion, we draw attention to Note 1(q) in the financial report which<br />

indicates that the consolidated entity incurred a net loss of $2,008,051 (company $1,883,851)<br />

during the year ended 31 October 2011 and, as of that date, the consolidated entity’s current<br />

liabilities exceeded its current assets by $14,043,299 (company $12,979,352). These<br />

conditions, along with other matters as set forth in Note 1(q), indicate the existence of a<br />

material uncertainty which may cast significant doubt about the company’s and the<br />

consolidated entity’s ability to continue as going concerns and whether the company and the<br />

consolidated entity will realise their assets and extinguish their liabilities in the normal course<br />

of business and at the amounts stated in the financial report.<br />

GRANT THORNTON AUDIT PTY LTD<br />

Chartered Accountants<br />

James Winter<br />

Partner – Audit & Assurance<br />

Sydney, 31 July 2012<br />

34


PROPOSED PROPERTY DEVELOPMENT<br />

VIEW LOOKING SOUTH TO CLUB DECK AND RESTAURANTS FROM THE RETAIL<br />

ENTRY FORECOURT TO RETAIL ON CAPTAIN COOK DRIVE


Shire Steel Supplies<br />

<strong>Cronulla</strong>-<strong>Sutherland</strong><br />

Leagues and Football Club<br />

Captain Cook Drive,<br />

Woolooware, NSW 2230<br />

Phone: 02 9523 0222<br />

A<br />

White background:<br />

Black / dark coloured background:<br />

SIGNAGE:<br />

Shire Steel<br />

S U P P L I E S<br />

STEEL CUT TO SIZE<br />

RHS / ANGLES /FLATS / PIPE / STRUCTURAL

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