Annual Report - The Greens The Entrance

The Entrance Bowling Club Limitedt/a The Greens The EntranceAnnual ReportFor the Financial YearEnded 30th June 2011To be presented at theAnnuAL GEnERAL MEETinGsundAY 30Th OCTOBER, 2011 AT 9.00AMPhone (02) 4332 5955Warrigal street, The Entrance nsW 2261ABn 29 000 956 052 - ACn 000 956 052

THE ENTRANCE BOWLING CLUB LIMITEDOFFICE BEARERSPATRONSMrs I Watkins, Mr J. Grant, Mr R. SmithCHAIRMANJ. O’ ConnellVICE CHAIRMANM. TerelinckTREASURERA.J. RussDIRECTORSC. Fitzgerald, R. Sonter, S. Gemmell, B. WilliamsC.E.O.T. HaynesBOWLS MANAGERTony ScottWELFARE OFFICERC. Fitzgerald

NOTICE OF MEETINGTake note that the fortieth Annual General Meeting of The Entrance Bowling Club Limited will beheld at the registered office of the club on Sunday 30th October, 2011 at 9.00 am.This notice is given in accordance with Clause 33.5 of the Constitution and is posted upon theNotice Board of the Company at the registered office by Friday 16th September, 2011 in accordancewith Clause 33.7.AGENDA1. To receive and confirm the Minutes of the thirty ninth A.G.M. of The Entrance Bowling ClubLimited held on 24th October 2010.2. To receive and consider reports of the Board.3. To receive and consider the Financial Report of the Club, Directors’ Report and the Auditors’Report.4. To declare the result of the election of Office Bearers for the ensuing year.5. To approve the following yearly allowance payment to be paid to Directors• Chairman - $3,000.00 Vice Chairman - $2,000.00• Treasurer - $3,000.00 Other directors - $1,500.006. To consider and if thought fit approve the Ordinary Resolutions set out in the attached Noticeof Ordinary Resolutions for the Annual General Meeting.7. To deal with any business of which due notice has been given, including the Resolutions inthe Notice herewith.8. To deal with any other business that the meeting may approve of which due notice has notbeen given.ATTENTION MEMBERSMembers are requested to advise the Chief Executive Officer, in writing, seven (7) days prior to thedate of The Annual General Meeting of any query relating to the Financial Accounts on which furtherinformation may be required. Such information will be extracted from the records and be available atthe Annual General Meeting.By Order of the BoardJ. O’ConnellChairmanBoard of Directors** VOTING - Voting will take place in the Club premises onFriday 28th October 2011 – between 3pm & 7pm & Saturday29th October, 2011 - between 9 am and 6pm. Members mustproduce their current membership card to receive a ballot paper.Annual Report displayed on www.thegreenstheentrance.com.au1

Notice of Ordinary Resolutions for Annual General MeetingNote To MembersPursuant to section 10 of the Registered Clubs Act, a member cannot derive directly or indirectly anyprofit, advantage or benefit that is not offered equally to all members. There are some exceptionsto this Rule. One of those is set out in Section 10(6A) of the Registered Clubs Act where differentbenefits for different classes of members have been approved by the members in a general meetingprior to the benefit being provided.The following ordinary resolutions are submitted to members in accordance with the RegisteredClubs Act.Each resolution must be voted on as a whole and may not be amended by way of motion from thefloor of the meeting.To be carried, each motion must receive a minimum of 50% of votes from those members entitled toattend and vote in person at the meeting.First Ordinary ResolutionThat pursuant to the Registered Clubs Act:1. The members hereby approve and agree to expenditure by the Club up until the next AnnualGeneral Meeting of an amount not exceeding $2,000.00 for the reasonable cost of providingfor Directors, a Club uniform, or other apparel, for use by the Directors when representingthe Club, as approved by the Board.2. The members acknowledge that the benefits in paragraph (1) above are not available tomembers generally but only for those who are directors of the Club.Second Ordinary ResolutionThat pursuant to the Registered Clubs Act:1. The members hereby approve and agree to expenditure by the Club not exceeding$2,500.00 until the next Annual General Meeting of the Club for the following activities ofdirectors:(a) The reasonable cost of a meal and beverage for each Director immediately before orimmediately after a Board or Committee meeting on the day of that meeting when thatmeeting corresponds with a normal meal time.(b) Reasonable expenses incurred by Directors in relation to such other duties including2

entertainment of special guests of the Club and other promotional activities performedby Directors which are approved by the Board before payment is made on production ofreceipts, invoices or other proper documentary evidence of such expenditure.2. The members acknowledge that the benefits in paragraph (1) above are not available tomembers generally but only for those who are Directors of the Club.Third Ordinary Resolution1. That the members hereby approve and agree to expenditure by the Club not exceeding$10,000.00 for the professional development and education of directors until the next AnnualGeneral Meeting and being:(a) The reasonable cost of directors attending industry conferences.(b) The reasonable cost of Directors attending seminars, lectures, trade displays and othersimilar events as may be determined by the Board from time to time;(c) The reasonable cost of Directors attending other registered clubs for the purposeof viewing and assessing their facilities and methods of operation, provided suchattendances are approved by the Board as being necessary for the betterment of theClub.2. The members acknowledge that the benefits in paragraph (1) above are not available tomembers generally but only for those who are Directors of the Club.By Order of the BoardJ. O’ConnellChairman3

CHAIRMAN’S REPORTDear Members,Thank you for the opportunity to present my first Annual Report as Chairman.I am very pleased to report that 2010/2011 has been an excellent financial year, with a Trading Profitof $148,352 with a further figure of some $300,000 of debt reduction. This has been achieved withthe help of a professional and dedicated CEO in Mr Trevor Haynes, a committed Board of Directorsand devoted Staff, who have all worked as a team for the betterment of our club.Key Trading Areas:Poker Machine Revenue was up by $235,715 on 2009/10.Unfortunately Bar Trading was down by $77,438 on 2009/10. Some of this downturn could beattributed to the number of wet days, with no bowls. Treasurer John Russ has further elaborated inhis report.Star Buffet and the new Garnish Café continue to provide good service and fine cuisine. I ask allmembers to support each of these catering offerings.The Greens The Entrance continues to support many charities and other sporting clubs. Thebenefits afforded to these organisations including local surf clubs, junior football and the Bateau BayMen’s shed far exceed the clubs liability under the State Government community development andexpenditure scheme.Your Board is committed to undertake a long overdue facelift of the ground floor areas of the club,and hope to commence works prior to the end of the year.I wish to sincerely thank our CEO Mr Trevor Haynes, Vice Chairman Mick Terelinck, Treasurer JohnRuss, Directors Sue Gemmell, Ray Sonter, Clarrie Fitzgerald and Brett Williams for their continuedsupport.Thanks also to Lyn and Sue in Admin for keeping our club on the straight and narrow. To all theSupervisors and bar staff, I believe you are “simply the best”.Thanks also go to Bowls Manager Tony Scott, Past Ladies Club President Pat Thornton, incomingLadies President Pam Russ and each of your Committees, Volunteers and Bowlers for supportingour Club.Congratulations to all Club and District winners; both Men and Women and to all bowlers whoentered these events.Thanks to our Greenkeepers Graham, Greg and Josh - for providing our bowlers and visitors withtop class bowling greens.A special thanks to our Club Patrons Mrs. Ilma Watkins, Mr. Jack Grant and Mr. Reg Smith for themany years of dedication to your Club.4

A big thanks to Clarrie Fitzgerald, Sue Gemmell and Mick Terelinck for their commitment to Fridayand Sunday Raffles. Special thanks to Clarrie, for his duties as Welfare Officer.We have provided entertainment in the form of Bingo, free live music, Karaoke and raffles. This yearwe have seen the introduction of an old favourite, the Prawn & Chicken Nights. These nights haveproven to be very popular with both Members and Guests. Ray Sonter needs to be thanked for hishard work putting these nights together.Thanks to the Dart Club for their continuing support. The Dart Club plays every Monday night andwould welcome anyone wishing to join.In closing I thank you the Members for your support. Without it there would be no Club.Good Health & Good Bowling.John O’ConnellChairman5

CHIEF EXECUTIVE OFFICER’S REPORTTo the Members,It is indeed a privilege as Chief Executive Officer to present my first Annual Report to the membersof our Club.The Treasurer has provided members with a detailed trading and cash analysis for the year underreview. This report reflects the financial achievements of your Club. It is pleasing to present afinancial report that not only represents an increase on the previous year result, but also moreimportantly demonstrates the reliability of the club to achieve a positive cash flow. The current andprevious Board of Directors and CEO should be congratulated for their efforts.Successful planning is among the greatest challenges presented to a club board at any time, andyour Board of Directors have dedicated significant resources in strategic financial planning to assistthe club in the process to realise the potential that is in the clubhouse and the Club’s assets as awhole.Congratulations to the respective Match Committees for the way in which you have effected yourcompetitions and to the players who grace our greens. Champion players come and go, but it is therank and file that enables the champions to rise to the top.I extend my sincerest appreciation to the Board capably led by President John O’Connell. Thank youfor the ongoing leadership that you have offered during my first year at the club.Thank you to our contractors and your respective staff. I urge members to support each of thecatering outlets and the bowls shop within the club. Each of these contractors provides essentialservices to members and they should be respected by your patronage.To all staff from each area of the club, thank you for your individual efforts and ongoing support ofour membership.The Greens is indeed fortunate to have generous sponsors. To all our sponsors, those that havebeen associated with the club for a number of years and those who have recently joined us, I thankyou on behalf of members and the Board of Directors and look forward to a continuing relationship.Members, when looking for goods and services I ask that you consider supporting those that supportyour club.To all our Members and volunteers, thank you for your good work over the past year. Your effortstruly make up the spirit of a successful club and I look forward to your continued support.To each Member who has lost a loved one throughout the year, you hold our deepest sympathy.See you in the ClubTrevor HaynesChief Executive Officer6

TREASURER’S REPORTIt is with pleasure that I present to you my report for the 2010/2011 financial year.During the period under review the Club operated for a period without a CEO or Bowls Coordinator.The efforts of the previous and current Directors should be recognised for the way they executedthese roles during this time.The Boards focus this year was to consolidate debt. At the commencement of this financial year, ourtotal indebtedness was $1,546,000. This has now been reduced by $307,623 to $1,238,377.In maintaining our debt reduction, we were able to record a profit for the year ending 30th June 2011of $148,351.55. This is our best result since 1999.I recall writing in our 2003 Annual Report my concern at the declining number of bowling members.In that year the Club had 399 male and female bowling members. As at 30th June 2011 numbershave declined to 306 male and female bowlers. The Board seeks continuing support from allmembers to help with recruitment in future membership drives.The Board recently met with a reputable Property Services Consultant about planning andpossible development of club assets. It is worth noting that this consultation was free and withoutcommitment.The Board looks forward to further exploring all options available, and undertake to ensure memberswill be kept abreast of any likely further developments.Brief summary of trading centres for the period under review2011 2010 VarianceBar Net Profit $ 521,959 $ 599,397 $(77,438) or (13%)The main contributor to the decline in bar profit is due to a change in policy, which lead to a changein the percentage allocation of staff wages to gaming activities. This change has caused animbalance in comparable figures.Poker Machine Net 2011 2010 VarianceClearances $2,098,226 $1,959,085 $139,141 or 7.1%Poker Machine Trading Net $1,335,519 $1,104,804 $230,715 or 20.9%The main contributor to the increase in poker machine profit is due to an increase in net clearancesof 7.1%. The Board policies, which lead to a change in the percentage allocation of staff wages togaming activities has again distorted comparable figures.Combined bar and poker machine wages represents a reduction of some 4.6% on the previousperiod.7

2011 2010 VarianceKeno $ 45,385 $ 38,833 $ 6,552 or 16.9%TAB $ 36,912 $ 33,044 $ 3,868 or 11.7%Whilst the pleasing financial result gives the Board some confidence heading into a new period,your Board is aware of the current political, economic and competitor environment, any of which cansubstantially affect the clubs ability to maintain quality services to members.I look forward to your continued support of your club.John RussTreasurerMENS BOWLSWell what a first year at the Greens. It is a great honour to be working for such a proud club.Firstly a big thank you to, President John O’Connell and his board and the CEO, Trevor Haynes, forthe way you have welcomed me to the club.It has been a mixed year for success on the green. Our pennant sides took to the greens with adesire to win, only to find that the opposition had the same idea…..that’s bowls. The effort was neverin question.A word of well done to all who dedicated their weekends to represent the Seahawks.Congratulations to the 2 Grade on making the Grand Final of the CCDBA No.2 Pennant.Unfortunately they were defeated by Halekulani but were far from disgraced, only going down in thelast couple of ends.Congratulations to all our players who had success in championships at club and district level. Youhave represented your club and its members with distinction.A word of well done to our representative players who featured in various zone and State events.Our social bowls programme was down on numbers this year. Weather certainly had an effect onmany days.Coming into spring we have some exciting events in the pipeline for both male and female bowlers.Hopefully this will see an increase in competitors on our greens.Welcome to all our new bowling members in 2011. I hope you enjoyed being coached as much as Ienjoy coaching. Once again welcome aboard and good luck in your new sport.Last but not least a big thank you to all who volunteered their services this year. Without your help8

and dedication, events would not be run as smoothly as they are.Hopefully the seed has been planted to establish a winning culture at the Greens and our 2012season will be very rewarding for not only the bowlers but the club as well.2010 Club Championship ResultsMajor Singles Winner Tony ScottRunner Up Dick ThorntonMinor Singles Winner Brett WilliamsRunner Up Fred FowlerMajor Pairs Winners Peter McCarten/Bill ConstantineRunner Up Lance Newton/Col StephensonMinor Pairs Winners Nathan Terelinck/Mick TerelinckRunners Up Merv Erskine/Mick McMahonClub Fours Winners Lance Newton/Peter McCarten/Phil Flippence/Bill ConstantineRunners Up Neil Pombart/Peter Redman/Warick Becroft/Grahame CanobieClub Triples are still in ProgressTony ScottBowls Co OrdinatorWOMEN’S BOWLSThe first thing I would like to do is thank all the Ladies who voted for me. I am very proud to havebeen elected President of The Entrance Women’s Bowling Club. It means a great deal to me as Ihave been a member for quite a few years and I am proud of our club and our members.With the help and support of our Vice Presidents Margaret and Phyllis, our Secretary Lorraine,Treasurer Denise and the rest of the Committees, I hope to keep our club a happy and enjoyableclub to belong to.On behalf of our members I would like to congratulate Margaret Saunders, Dot Dorrington, JulieGrant and Jan Hiron on winning the 2011 District Fours Championship and the Group Playoffs. Theyare now on their way to play in the NSW State Playoffs at Tuncurry in October. We wish you all goodluck and good bowling, I know you will make us proud.9

I would also like to congratulate Denise Ellison on making it to the final of the District Champion ofChampions. Denise defeated some very tough opponents to reach the final. Unfortunately Denisewas defeated in the final and came home runner up. Well done Denise we are all very proud of you.To the Chairman of the Board, John O’Connell and the Board of Directors, I would like to say thankyou for all the support given to our Ladies club over the last twelve months. Thank you to all the stafffor your help when ever our ladies needed it. To our greenkeepers Graham, Greg and Josh thankyou for looking after our greens, you have done a great job.Congratulations to all our Club Championship winners for 2010 – 2011:Club Triples: 2010 Winners Nicole Parker, Julie Grant, Margaret OliverRunners Up Kath Rea, Wendy Heath, Margaret SaundersMinor Singles: 2010 Winner Nicole ParkerRunner Up Kath LeesonMinor Pairs: 2010 Winners Donna Elliss, Sharon CrokerRunners Up Sharon Colwell, Kath LessonClub Pairs: 2011 Winners Dot Dorrington, Jan HironRunners Up Kaylene Erskine, Margaret OliverClub Singles: 2011 Winner Denise EllisonRunner Up Dot DorringtonClub Fours: 2011 Winners Margaret Saunders, Dot Dorrington, Julie Grant, JanHironRunners Up Jan Reid, Nicole Parker, Denise Ellison, PatriciaThorntonWishing you all Good Health and Good Bowling.Pamela RussPresident10

MINUTES OF THE 39 TH Annual General Meetingof The Entrance Bowling Club LimitedHELD SUNDAY 24 th October 2010Meeting Opened: 9.07amAttendance:Attendance: Full Bowling members (Male and Female) 72Social Members (Male and Female) 33-----105Apologies: Brett Williams, Harry and Nancy Kowe, J. Crutcher, Len and Betty Grindley, DickThornton, John Horton and John Bambury.Dedication: One (1) minutes silence for deceased members.Trevor Haynes newly appointed General Manager introduced to members.Patrons: Ilma and Jack Grant (nominated and accepted at AGM 14th October 2007 and 26thOctober 2008, 25th October 2009 and 24th October 2010.Minutes: Receive and confirm minutes of 2009 Annual General Meeting of The Entrance BowlingClub held 25th October, 2009.Moved R. Smith (517) Seconded B. Toovey (659) “that the Minutes of the Annual General Meetingheld Sunday 25th October, 2009 as circulated in the Annual report be received and adopted”.Carried.Business Arising: Nil.To receive and consider the Financial Report of the Club, Directors’ Report and the Auditors’report:Moved K. Owen (676) seconded B. Gibbons (339) “that the Directors Report and DirectorsDeclaration as circulated in the Annual Concise Report Pages 21, 22, 23,24 and 33 be received andadopted”.Carried.To receive and consider the Financial Report and Auditors report as circulated in the AnnualConcise Report pages 25, 26, 27, 28, 29, 30, 31, 32, 34 and 35.John Ellison gave a verbal report in addition to his Treasurer’s report in the Annual Report Book :-Prior to the motion being put to receive the annual financial reports, I would like to expand a little onmy Treasurer’s report.Before I commence, I would like to point out that no written requests in relation to any querypertaining to the Financial Accounts have been received by our Office Manager Lyn.11

In my Treasurer’s Report in the Annual Report I advised members that the club recorded a $24,691profit for the 2009/2010 financial year. This profit was only achieved due to the sale of 9 pokermachine entitlements for $145,000. These poker machine entitlements were surplus to our needsboth in the immediate and well into the indefinite foreseeable future. The club currently has 77poker machines in our gaming area (with neither the space nor the need to expand). We held 87entitlements, sold 9 and now retain 78 entitlements.At the time the decision was made to sell the entitlements in the May/June period, the clubwas coming into the winter months and we were experiencing some liquidity problems due to aprogressive downturn in trade (along with, might I say, many other clubs) particularly in the corebusiness activity of poker machine revenue. Extensive research and consultation with industryexperts ascertained that the value of poker machine licences was diminishing and the time was rightto sell our surplus numbers. Any asset has to derive income but these surplus entitlements weresimply in the background and lying dormant.The Government is actively reducing licences and many of the big clubs, along with medium sizedclubs like ours, have been reducing their entitlements. The old idea that bigger is better has lost itscredence and we accepted the recommendations of industry experts who were of the firm opinionthat less machines working more effectively is by far the preferred option.To illustrate how fortuitous the timing of our decision turned out to be, the recent policy statementsmade by the Prime Minister in appeasing Independent and Green MP’s anti gaming machineagendas, has resulted in the value of poker machine entitlements plummeting. What this meansis that in the highly unlikely event, and I stress “highly unlikely”, that should we wish to increaseour machine numbers then poker machine licences/entitlements will be able to be purchasedsubstantially cheaper than our disposal price.Now I am sure most members would have done their maths and realised that had we not sold thesurplus poker machine entitlements we would have incurred a loss for the financial year in thevicinity of $120,000.This is disappointing after a run of 7 consecutive years’ losses (2 of which were over $100,000 in2005 and 2007) we managed last financial year to make an $80,000 profit.As I stressed in my Treasurer’s report, the club industry in general continued to experience toughtimes in 2009/2010 with many clubs closing their doors permanently and others being forced intoamalgamations. Following our renovations we enjoyed consistent growth in the key areas of clubrevenue for 20 consecutive months up until June 2009 when reverse trends commenced andcontinued for 11 months until June 2010 when the downward spiral stabilised.The club industry is a very competitive one at the best of times but in this part of the Central Coastwith such a comparatively large number of competitors in a pretty small geographic patch, forexample Diggers, Bateau Bay Sports, The Entrance Leagues, Mingara, Tuggerah Lakes Golf Club,Bateau Bay Hotel, The Lakes Hotel, The Entrance Hotel, we are all competing for our share of themarket, particularly visitors and holiday makers.I would like to reassure members that during this tough year the Board and the former CEO,recognising and being concerned about the loss in club patronage, worked tirelessly to keep control12

of costs whilst simultaneously pursuing new avenues to re-establish income growth.I firmly believe that some of these new initiatives have borne fruit as the last 3 months of July,August and September have all been up on last year so much so that our result for the first quarterof this financial year reflects a net profit of $49,898 compared to a net loss of $19,859 last year.Furthermore, based on the last 3 week’s trading figures, I can almost guarantee that this currentmonth of October will similarly be a profitable month. The outgoing Board therefore is handing overto the incoming Board a very healthy year to date profit for the first 4 months of the current financialyear.I am also confident that with our catering and general club facilities and an energetic and proactiveCEO and, hopefully, a Board of Directors committed to supporting the CEO and allowing him tomanage, the club will maintain the forward momentum and we will not only protect our identity,autonomy and assets but remain profitable.From a personal point of view, it was very disappointing to me that, although we religiously met our$20,000 per month offset against the principal amount of $1.4 million borrowed, we were requiredthrough the year to draw back all of this amount to pay bills and pay cash for a number of capitalexpenditure improvements we undertook. Thus the principal outstanding on the $1.4 million at 30June 2010 stood at $1,255,000, $35,000 greater than it was 12 months ago.I am pleased to advise members that, because of improved trading in the last 4 months, we havepaid $80,000 collectively off this principal in July, August, September and October so it now standsat $1,175,000 and we do have money in the bank. Indeed, our liquidity is solid due to the last fewmonths outstanding trading and the injection of funds emanating from the sale of the poker machineentitlements.Thank youBrian Hoscke asked the Treasurer John Ellison about The Star Buffet restaurant (Feastcorp) if theypaid rent and what the agreement was between them and The Club.John Ellison replied:- CATERERSI’m comfortable in explaining the rationale behind the Board’s decision, over 3 years ago, to allowthe club’s caterers, Feastcorp, to run their business in our premises rent free. This decision wasarrived at following contractual negotiations with Feastcorp’s two partners, Andrew Kong andAndrew Chan and their business advisor, Vic Smith.Before I go any further, I will now point out that, after approximately a 3 year rent free period,Feastcorp are now voluntarily paying $10,400 per annum in rent and, for those members whobelieve restaurant patrons do not contribute to club revenue, I will highlight that bar takings upstairsfor the year were well in excess of $100,000 and the keno terminal in the restaurant is a significantcontributor to our keno commission revenue.Let me emphasise that the caterers are not the enemy. Indeed, the Star Buffet is the number oneattraction to our club of social members and visitors and it is, by and large, the social members andvisitors who contribute the majority of the club’s revenue through the gaming lounge. Simply put,without the Star Buffet our club would severely struggle to survive.13

The predominant complaint I hear from members is that the vast majority of restaurant patrons donot stay in the club and just leave the club at the completion of their meal. That situation is NOT thefault of the caterers but, if anyone, the fault of the Board and management in not providing the rightattractions to have patrons want to stay on.It is a fact that good club caterers are essential in this industry to get people into the restaurant and,therefore into the club. Club management’s task is to keep as large a number of those people aspossible on the premises. Successful clubs ensure that their catering facilities attract patrons to theclub and they seek to ensure that they provide quality facilities and entertainment to ensure a goodpercentage stay on.Very few successful clubs charge rent to good caterers who fulfill their part of the deal in attractinglarge numbers of patrons and, in this regard, Feastcorp do not pay rent in any of the four other clubrestaurants they run in Bankstown, Mayfield, the Illawarra and Central Coast Leagues (although Iunderstand that they will commence paying rent in Gosford in June next year after a 3 year rent freeperiod).The contract signed with Feastcorp is a 43 page thorough and comprehensive legal document.Some clauses in the contract, which may be of interest to members, include:1. the caterers to pay for gas bills.2. the caterers to contribute 50% of the cost of all advertising and promotion3. the caterers to pay for their own waste removal and grease trap cleaning4. the caterers at their cost are to keep clean the restaurant and kitchen premises5. there is a requirement on the caterers of to maintain the provision of high quality meals usinghigh quality foodstuffs and presentationIn the original contract negotiations, Feastcorp’s two partners and their advisor pointed out a numberof factors as to why, from a common sense and business practicality point of view, they should beallowed to trade free of rent but meet such expenses as cleaning, gas bills, rubbish removal etc.Some of the points they made included:• Feastcorp met the cost of the restaurant fit out and construction to the extent of in excessof $500,000. This is extraordinary and almost without precedent in the club industry and itcould well be argued that this $1/2 million in construction and fit out costs to our premisesequates to numerous years of prepaid rent.• The core business activity of the club is gaming and bar trade. Both these activities aredependent on club patronage. As I have previously stated, club patronage is very muchcorrelated to the provision of attractive catering facilities.• Feastcorp, without the burden of a weekly rental, are more capable of being able to maintainthe quality of their food and keep prices at a reasonable level. With the benefit of the Club 83experience, the club is constantly monitoring food quality, price levels and service standardsin order to protect the flow on effect to our core business activities.14

It is also worth noting that those few clubs who continue to operate their own catering facilities, asopposed to employing contractors, invariably do so at a loss to the club and its bottom line.At the end of the day, when one sees and understands the importance to all licenced clubs of thetwo core business activities of gaming and bar trading, rental income is petty cash and simply notworth jeopardizing the success and survival of the club which, as I have stated, is reliant upon thesuccess of the Star Buffet.Moved K. Owen (676) seconded C. Fitzgerald (479) “that the Financial Report and Auditors reportbe received and adopted”.Carried.ELECTION RESULTSJohn Wright was the returning Officer from Metro-Poll and he delivered the election results to theAnnual Meeting.Results of the Election of Directors for The Entrance Bowling Club Limited 2010 are as follows:-ChairmanCandidateVotes ReceivedJohn O’CONNELL 202 ElectedRalph WHITFIELD 108Total Formal Vote 310Informal Ballot Papers 15I hereby declare John O’Connell elected as Chairman for 2010 - 2011Vice ChairmanCandidateVotes ReceivedRaymond SONTER 73Dick THORNTON 55Jim GIBBONS 46Mick TERELINCK 82 ElectedClarrie FITZGERALD 66Total Formal Votes 322Informal Ballot Papers 3I hereby declare Mick Terelinck elected as Vice Chairman for 2010 - 2011TreasurerCandidateVotes ReceivedJohn RUSS 186 ElectedSue GEMMELL 127Total Formal Vote 313Informal Ballot Papers 12I hereby declare John Russ elected as Treasurer for 2010 - 201115

DirectorsCandidateVotes ReceivedRaymond SONTER 166 ElectedClarrie FITZGERALD 185 ElectedBrett WILLIAMS 123 ElectedRalph WHITFIELD 117Dick THORNTON 112Sue GEMMELL 128 ElectedJohn BARTON 89Craig ROBERTS 82Nicky PARKER 59Jim GIBBONS 107Total Formals Votes 1168Informal Ballot Papers 33I hereby declare Clarrie Fitzgerald, Ray Sonter, Sue Gemmall and Brett Williams elected asDirectors for 2010 – 2011.Moved J. Gibbons (512) seconded J. Harris “that all ballot papers be destroyed by Metro-Poll”.Carried.John O’Connell thanked everyone on the outgoing Board and welcomed the incoming Board ofDirectors. John O’Connell also thanked Lyn ,Sue and staff and Bowls Committees and all Clubvolunteers for the work they have done for the past year.Yearly Expense Allowance Payment to DirectorsChairman $3,000.00Vice Chairman $2,000.00Treasurer $3,000.00Other Directors $1,500.00Moved K. Owen (676) seconded T. McNamara (1326) “that the yearly Expense Allowance Paymentto Directors as recommended be approved”.Carried.Notice of Ordinary Resolutions for Annual General MeetingNote To MembersPursuant to section 10 of the Registered Clubs Act, a member cannot derive directly or indirectly anyprofit, advantage or benefit that is not offered equally to all members. There are some exceptionsto this Rule. One of those is set out in Section 10(6A) of the Registered Clubs Act where differentbenefits for different classes of members have been approved by the members in general meetingprior to the benefit being provided.16

The following ordinary resolutions are submitted to members in accordance with the RegisteredClubs Act.Each resolution must be voted on as a whole and may not be amended by way of motion from thefloor of the meeting.To be carried, each motion must receive a minimum of 50% of votes from those members entitled toattend and vote in person at the meeting.First Ordinary ResolutionThat pursuant to the Registered Clubs Act:1. The members hereby approve and agree to expenditure by the Club up until the next AnnualGeneral Meeting of an amount not exceeding $2,000.00 for the reasonable cost of providingfor Directors, a Club uniform, or other apparel, for use by the Directors when representingthe Club, as approved by the Board.2. The members acknowledge that the benefits in paragraph (1) above are not available tomembers generally but only for those who are directors of the Club.Moved J. Gibbons (512) seconded C. Fitzgerald (479) “that Ordinary Resolution 1, as presented tothe members and circulated in the Annual Report be approved”.Vote unanimous.Second Ordinary ResolutionThat pursuant to the Registered Clubs Act:1. The members hereby approve and agree to expenditure by the Club not exceed $2,500.00until the next Annual General Meeting of the Club for the following activities of directors:(a) The reasonable cost of a meal and beverage for each Director immediately before orimmediately after a Board or Committee meeting on the day of that meeting when thatmeeting corresponds with a normal meal time.(b) Reasonable expenses incurred by Directors in relation to such other duties includingentertainment of special guests of the Club and other promotional activities performedby Directors which are approved by the Board before payment is made on production ofreceipts, invoices or other proper documentary evidence of such expenditure.2. The members acknowledge that the benefits in paragraph (1) above are not available tomembers generally but only for those who are Directors of the Club.Moved M. McLure (2153) seconded K. Owen (676) “that Ordinary Resolution 2, as presented to themembers and circulated in the Annual Report be approved”.Third Ordinary ResolutionVote unanimous.1. That the members hereby approve and agree to expenditure by the Club not exceeding17

The Entrance Bowling Club LimitedABN 29 000 956 052Annual ReportFor The Year Ended30 June 2011119

The Entrance Bowling Club LimitedABN 29 000 956 052Annual ReportFor The Year Ended 30 June 2011Directors' report ..................................................................................................................... 21 3Auditor’s Independence Declaration ..................................................................................... 24 6Statement of Comprehensive Income .................................................................................. 25 7Statement of Financial Position ............................................................................................ 26 8Statement of Changes to Members Funds .......................................................................... 27 9Statement of Cash Flows .................................................................................................... 10 28Notes to the Financial Statements ...................................................................................... 11 29Directors’ Declaration .......................................................................................................... 23 41Independent Auditor’s Report ............................................................................................ 24 42220

The Entrance Bowling Club LimitedABN 29 000 956 052Directors' ReportYour directors present their report together with the financial report of the company for the yearended 30 June 2011 and the auditor’s report thereon.DirectorsThe names of the directors in office at any time during or since the end of the year are:NameQualifications and period of directorshipJohn O'Connell Chairman, Retired. Appointed in 2009Michael Terelinck Vice Chairman, Retired. Appointed in 2010John Russ Treasurer, Company Director. Appointed in 2010Clarrie Fitzgerald Director, Retired. Appointed in 2008Sue Gemmell Director, Retired. Appointed in 2009Brett Williams Director, Sales Manager. Appointed in 2010Raymond Sonter Director, Concreter. Appointed in 2009Ralph Whitfield Director, Coal Miner. Ceased to act October 2010John Ellison Director, Retired Accountant. Ceased to act October 2010.John Horton Director, Ganger. Ceased to act October 2010Directors have been in office since the start of the financial year to the date of this report unlessotherwise stated.Directors’ MeetingsThe number of directors’ meetings including special meetings of directors and the number ofmeetings attended by each of the directors of the company during the financial year are:Board MeetingsNumber of Number ofMeetings MeetingsDirector Attended HeldJohn O'Connell 13 13Michael Terelinck 9 10John Russ 9 10Clarrie Fitzgerald 13 13Sue Gemmell 11 13Brett Williams 9 10Raymond Sonter 12 13Ralph Whitfield 3 3John Ellison 2 3John Horton 1 3MembershipThe company is a company limited by guarantee and is without share capital. The number ofmembers as at the date of this report is 6,757 (2010:6,216 )321

The Entrance Bowling Club LimitedABN 29 000 956 052Directors' ReportOperating ResultThe net profit for the year amounted to $148,352 compared with $24,691 for the prior year. Thisresulted after charging $304,901 (2010: $354,883) for depreciation.ObjectivesShort TermThe short term objectives of the company are to maintain the current level of services providedto members and their guests while reducing the company’s loans. The club will continue topromote and develop its bowling and social activities to ensure that the Club meets the needsof its members and the local community.Long TermThe long term strategic objective of The Entrance Bowling Club Limited is to conduct itsbusiness activities in a sound and responsible manner ensuring relevance to the membershipand community providing the facilities and amenities that improve the financial and futureviability of the company.Strategy for achieving the objectivesThe main strategy to achieve the Club’s objectives is through sound financial management andthe use of financial ratios and key performance indicators (KPIs) to ensure that business plans,budgets and cash flows are current and relevant. Business activities are managed to ensurethat the goals, objectives and business strategies are achieved.The club continually reviews its operations and assesses latest trends and opportunities todetermine if they can be of benefit to the club and its members.Performance measurement and key performance indicatorThe trading reports are reviewed monthly by the executive and the board of directors.Variances are reviewed and changes to operations are made if the variances indicates thatchanges are required.Principal ActivitiesThe principal activities of the company during the year were to provide sporting, social andentertainment activities and amenities to the members of the Company and guests fromconducting the business of a licensed bowling club.422

Principal Activities (Continued)The Entrance Bowling Club LimitedABN 29 000 956 052Directors' ReportThere have been no significant changes in the nature of these activities during the year.Liability of members on winding upThe Company is incorporated and domiciled in Australia as a company limited by guarantee. Inaccordance with the Constitution of the Company, every member of the Company undertakesto contribute an amount limited to $5 per member in the event of the winding up of theCompany during the time that he/she is a member or within one year thereafter. As at the dateof this report there were 6,757 members.Proceedings on behalf of the companyNo person has applied for leave of Court to bring proceedings on behalf of the company orintervene in any proceedings to which the company is party for the purposes of takingresponsibility on behalf of the company for all or any part of those proceedings.The company was not a party to any such proceedings during the year.Auditor’s Independence DeclarationA copy of the auditor’s independence declaration as required under section 307C of theCorporations Act 2001 is set out on page 24.Signed in accordance with a resolution of the directors.Dated at The Entrance this 15th day of August, 2011J O'ConnellDirectorJ RussDirector523

Auditor’s Independence DeclarationTo the Directorsof The Entrance Bowling Club LimitedAs lead auditor for the audit of The Entrance Bowling Club Limited for the year ended 30 June2011, I declare that to the best of my knowledge and belief there have been:(i)(ii)no contraventions of the auditor independence requirements in relation to the audit; andno contraventions of any applicable code of professional conduct in relation to the audit.Fortunity AssuranceT R DavidsonPartner155 The Entrance RoadErina NSW 225015th August, 2011624

Revenue and Income from operationsThe Entrance Bowling Club LimitedABN 29 000 956 052Statement of Comprehensive IncomeFor The Year Ended 30 June 2011Note 2011 2010$ $Sale of goods revenue 1,704,743 1,728,587Rendering of services revenue 2,637,750 2,505,824Other income 44,847 160,629__________ ___________Total revenue and income from operations 2 4,387,340 4,395,040__________ ___________ExpensesCost of goods sold (727,369) (736,890)Employee benefits expense (971,538) (1,093,358)Poker machine tax, licences and donations (338,611) (302,382)Entertainment and promotions (259,855) (325,300)Property costs (554,353) (525,438)Other expenses (971,596) (927,281)__________________(3,823,322) (3,910,649)__________________Earnings before depreciation & finance costs 564,018 484,391Depreciation (304,901) (354,883)Finance costs (110,765) (104,817)__________________Profit before income tax expense 148,352 24,691Income tax expense - -__________________Net profit after income tax 148,352 24,691Other Comprehensive Income - -__________________Total comprehensive income for the year 148,352 24,691__________________The accompanying notes form part of these financial statements.725

The Entrance Bowling Club LimitedABN 29 000 956 052Statement of Financial PositionAs At 30 June 2011Note 2011 2010$ $AssetsCurrent AssetsCash and cash equivalents 4 278,189 153,246Other receivables 5 8,939 169,004Inventories 6 45,792 44,842Prepayments 7 50,673 33,162__________________Total Current Assets 383,593 400,254__________________Non-Current AssetsProperty, plant and equipment 8 3,641,561 3,786,294Investment property 9 1,350,800 1,337,425__________________Total Non-current Assets 4,992,361 5,123,719__________________Total Assets 5,375,954 5,523,973__________________Current LiabilitiesTrade and other payables 10 178,707 178,405Financial liabilities 12 117,124 150,003Short-term provisions 13 150,565 138,505Other liabilities 11 22,324 21,935__________________Total Current Liabilities 468,720 488,848__________________Non-current LiabilitiesFinancial liabilities 2 1,115,988 1,376,951Long-term provisions 60,203 75,483__________________Total Non-Current Liabilities 1,176,191 1,452,434__________________Total Liabilities 1,644,911 1,941,282__________________Net Assets 3,731,043 3,582,691__________________Members’ FundsReserves 353,327 353,327Retained earnings 3,377,716 3,229,364__________________3,731,043 3,582,691__________________The accompanying notes form part of these financial statements.826

The Entrance Bowling Club LimitedABN 29 000 956 052Statement of Changes in Members FundsFor the Year Ended 30 June 201RetainedCapital TotalProfitsProfitsReserve$ $ $Balance 1 July 2009 3,204,673 353,327 3,557,800Profit for the year 24,691 - 24,691________ _______ ________Balance 30 June 2010 3,229,364 353,327 3,582,691Profit for year 148,352 - 148,352________ _______ ________Balance 30 June 2011 3,377,716 353,327 3,731,043________ _______ ________The accompanying notes form part of the financial statements.927

The Entrance Bowling Club LimitedABN 29 000 956 052Statement of Cash FlowsFor Year Ended 30 June 2011Note 2011 2010$ $InflowsInflows(Outflows) (Outflows)Cash flows from operating activitiesReceipts from customers 4,387,340 4,396,480Payments to suppliers and employees (3,914,346) (4,412,344)Interest received - 353Rent received 120,801 92,889________Net cash provided by operatingactivities 14 593,795 77,378________Cash flows from investing activitiesPayments for property, plant & equipment (175,010) (197,312)Proceeds from sale of assets - -________Net cash used in investing activities (175,010) (197,312)________Cash flows from financing activitiesRepayments of borrowings (315,319) (189,724)Proceeds from borrowings 21,477 271,464________Net cash provided by financingactivities (293,842) 81,470________Net (decrease)/increase in cash held 124,943 (38,194)Cash at the beginning of the financial year 153,246 191,440________Cash at the end of the financial year 278,189 153,246________1028

The accompanying notes form part of these financial statements.The Entrance Bowling Club LimitedABN 29 000 956 052Notes to the Financial StatementsFor The Year Ended 30 June 2011The financial statements are for The Entrance Bowling Club Limited as an individual entity,incorporated and domiciled in Australia. The Entrance Bowling Club Limited is a companylimited by guarantee.Note 1.Summary of Significant Accounting PoliciesBasis of PreparationThe Entrance Bowling Club Limited has elected to early adopt the pronouncementsAASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010-2:Amendments to Australian Accounting Standards arising from Reduced DisclosureRequirements to the annual reporting period beginning 1 January 2010.The financial statements are general purpose financial statements that have beenprepared in accordance with Australian Accounting Standards – Reduced DisclosureRequirements of the Australian Accounting Standards Board and the Corporations Act2001.Australian Accounting Standards set out accounting policies that the AASB hasconcluded would result in financial statements containing relevant and reliable informationabout transactions, events and conditions. Material accounting policies adopted in thepreparation of these financial statements are presented below and have beenconsistently applied unless otherwise stated.The financial statements have been prepared on an accruals basis and are based onhistorical costs, modified, where applicable, by the measurement at fair value of selectednon-current assets, financial assets and financial liabilities.Accounting Policies(a)InventoriesInventories are measured at the lower of cost and net realisable value.(b)Income TaxThe company is exempt from income tax, as it is an organisation that solely encouragesand promotes the game of lawn bowls in accordance with Section 50-45 of the IncomeTax Assessment Act (1997). The Directors believe that for the current financial year thecompany has preserved its exempt status.1129

The Entrance Bowling Club LimitedABN 29 000 956 052Notes to the Financial StatementsFor The Year Ended 30 June 2011Note 1.Statement of Significant Accounting Policies (cont’d)(c)Property, Plant and EquipmentEach class of property, plant and equipment is carried at cost or fair value less, whereapplicable, any accumulated depreciation and impairment losses.PropertyFreehold land is measured on the cost basis. Buildings are measured on the cost basisless depreciation and impairment losses.Plant and EquipmentPlant and equipment are measured on the cost basis less depreciation and impairmentlosses.The carrying amount of plant and equipment is reviewed annually by directors to ensure itis not in excess of the recoverable amount from these assets. The recoverable amount isassessed on the basis of the expected net cash flows that will be received from theassets employment and subsequent disposal. The expected net cash flows have beendiscounted to their present values in determining recoverable amounts.The cost of fixed assets constructed within the company includes the cost of materials,direct labour and borrowing costs. Subsequent costs are included in the asset’s carryingamount or recognised as a separate asset, as appropriate, only when it is probable thatfuture economic benefits associated with the item will flow to the company and the cost ofthe item can be measured reliably. All other repairs and maintenance are charged to theincome statement during the financial period in which they are incurred.DepreciationThe depreciable amount of all fixed assets including building and capitalised leaseassets, but excluding freehold land, is depreciated on a straight-line basis over theiruseful lives to the economic entity commencing from the time the asset is held ready foruse.1230

The Entrance Bowling Club LimitedABN 29 000 956 052Notes to the Financial StatementsFor The Year Ended 30 June 2011Note 1.Statement of Significant Accounting Policies (cont’d)(c)Property, Plant and Equipment (cont'd)The depreciation rates used for each class of depreciable assets are:Class of Fixed AssetDepreciation RateBuildings 2.5%Poker Machines 20 – 33%Plant & equipment 15 - 20%Leased plant 20%Motor vehicles 33%The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, ateach balance sheet date.An asset’s carrying amount is written down immediately to its recoverable amount if theasset’s carrying amount is greater than its estimated recoverable amount.(d)LeasesGains and losses on disposals are determined by comparing proceeds with the carryingamount. These gains and losses are included in the income statement.Leases of fixed assets which are not legally owned by the company, but wheresubstantially all the risks and benefits incidental to ownership have been transferred tothe company are classified as finance leases.Finance leases are capitalised by recording an asset and a liability at the lower of theamounts equal to the fair value of the leased property or the present value of theminimum lease payments, including any guaranteed residual values. Lease paymentsare allocated between the reduction of the lease liability and the lease interest expensefor the period.Leased assets are depreciated on a straight-line basis over their estimated useful lives.(e)Financial InstrumentsRecognitionFinancial instruments are initially measured at cost on trade date, which includestransaction costs when the related contractual rights or obligations exist. Subsequent toinitial recognition these instruments are measured as set out below.1331

The Entrance Bowling Club LimitedABN 29 000 956 052Notes to the Financial StatementsFor The Year Ended 30 June 2011Note 1.Statement of Significant Accounting Policies (cont’d)(e)Financial Instruments (cont'd)Available-for-sale financial assetsAvailable-for-sale financial assets are reflected at fair value. Unrealised gains and lossesarising from changes in fair value are taken directly to equity.Financial liabilitiesNon-derivative financial liabilities are recognised at amortised cost, comprising originaldebt less principal payments and amortisation.(f)Impairment of AssetsAt each reporting date, the company reviews the carrying values of its assets todetermine whether there is any indication that those assets have been impaired. If suchan indication exists, the recoverable amount of the asset, being the higher of the asset’sfair value less costs to sell and value in use, is compared to the assets carrying value.Any excess of the assets carrying value over its recoverable amount is expensed to theincome statement.(g)Employee BenefitsProvision is made for the company’s liability for employee benefits arising from servicesrendered by employees to balance date. Employee benefits that are expected to besettled within one year have been measured at the amounts expected to be paid whenthe liability is settled, plus related on-costs. Employee benefits payable later than oneyear have been measured at the present value of the estimated future cash outflows tobe made for their benefits.(h)Cash and Cash EquivalentsCash and cash equivalents include cash on hand, deposits held at call with banks, otherbank accounts and bank overdrafts. Bank overdrafts are shown within short-termborrowings in current liabilities on the balance sheet.1432

The Entrance Bowling Club LimitedABN 29 000 956 052Notes to the Financial StatementsFor The Year Ended 30 June 2011Note 1.Statement of Significant Accounting Policies (cont’d(i)RevenueRevenue from the sale of goods, services and gaming is recognised upon the sale tocustomers and members.Interest revenue is recognised upon receipt.All revenue is stated net of the amount of goods and services tax (GST).(j)Goods and Services Tax (GST)Revenues, expenses and assets are recognised net of the amount of GST, except wherethe amount of GST incurred is not recoverable from the Australian Tax Office. In thesecircumstances, the GST is recognised as part of the cost of acquisition of the asset or aspart of an item of the expense. Receivables and payables in the balance sheet areshown inclusive of GST.(k)Goods and Services Tax (GST) (cont’d)Cash flows are presented in the cash flow statement on a gross basis, except for theGST component of investing and financing activities, which are disclosed as operatingcash flows.(l)Comparative FiguresWhen required by Accounting Standards, comparative figures have been adjusted toconform to changes in presentation for the current financial year.(m)Members SubscriptionsMembers subscriptions received in advance are amounts received from members inrespect of subscriptions for 2012 and subsequent years, and are shown in the balancesheet under trade and other payables.(n)Limitation of Members’ LiabilityIn accordance with the Club’s Constitution the liability of members in the event of the Clubbeing wound up would not exceed $5 per member.1533

The Entrance Bowling Club LimitedABN 29 000 956 052Notes to the Financial StatementsFor The Year Ended 30 June 2011Note 2. Revenue2011 2010$ $Operating activitiesNet clearances 2,098,226 1,959,085Bar sales 1,704,743 1,728,587Member bowls 56,071 81,353Ladies bowls 49,372 41,622Market nights, functions 148,126 168,349TAB & Keno commissions 104,301 97,631Commissions received 6,674 8,463Interest received - 353Members subscriptions 30,909 34,354Rents 120,801 92,889Telephone receipts 1,773 1,822Rebates 21,497 19,903Sundry income 44,847 160,629__________________Total Revenue 4,387,340 4,395,040__________________Non-operating activitiesGain on disposal of assets - 21,657__________________Note 3. ExpensesCost of sales 727,369 736,890Finance costs- external 110,765 104,817Depreciation 304,901 354,883__________________1634

Note 4. Cash and cash equivalentsThe Entrance Bowling Club LimitedABN 29 000 956 052Notes to the Financial StatementsFor The Year Ended 30 June 20112011 2010$ $Cash at bank and in hand 278,189 153,246__________________Reconciliation of cashCash at the end of the financial year as shownin the statement of cash flows is reconciled toitems in the balance sheet as follows:Cash and cash equivalents 278,189 153,246__________________Note 5. Other receivablesOther debtors 8,939 169,004__________________Note 6. InventoriesStock on hand 45,792 44,842__________________Note 7. Other Current AssetsPrepayments 50,673 33,162__________________1735

Note 8. Property Plant and EquipmentThe Entrance Bowling Club LimitedABN 29 000 956 052Notes to the Financial StatementsFor The Year Ended 31 December 20102010 2009$ $Leasehold improvements – at cost 4,891,840 4,852,375Less accumulated depreciation (1,759,786) (1,629,461)__________________3,132,054 3,222,914__________________Plant and equipment – at cost 2,384,791 2,346,621Less accumulated depreciation (1,951,485) (1,868,985)__________________433,306 477,636__________________Furniture and fittings – at cost 380,918 356,167Less accumulated depreciation (304,717) (270,423)__________________76,201 85,744__________________Total Property Plant and Equipment 3,641,561 3,786,294__________________ReconciliationsReconciliations of the carrying amounts for each class of property, plant and equipment areset out below:Leasehold ImprovementsCarrying amount at beginning of year 3,222,914 3,310,342Additions 39,465 46,761Disposals - -Depreciation (130,325) (134,189)_________ __________3,132,054 3,222,914_________ __________1836

The Entrance Bowling Club LimitedABN 29 000 956 052Notes to the Financial StatementsFor The Year Ended 30 June 2011Note 8. Property, Plant and Equipment (cont’d)2011 2010$ $Plant and equipmentCarrying amount at beginning of year 477,636 511,196Additions 162,814 149,046Disposals (1,467) (41,000)Depreciation (205,677) (141,606)_________________433,306 477,636_________________Furniture and FittingsCarrying amount at beginning of year 85,744 108,691Additions 24,751 9,873Disposals - -Depreciation (34,294) (32,820)_______________76,201 85,744_______________Note 9. Investment property (Cost model)Rental properties - at cost 1,459,772 1,440,176Less: accumulated depreciation (108,972) (102,751)_________________1,350,800 1,337,425_________________The cost model is applied to all investment property. A recent valuation of the properties hasnot been undertaken. Based on local market values, the Directors are of the opinion that thevalue of the properties on an individual basis is well in excess of the book value. TheDirectors believe that if the Club's adjoining rental properties were to be combined for thepurpose of a future commercial development, the value would be significantly in excess ofthe book value.ReconciliationReconciliation of the carrying amounts for rental properties are set out below:1937

The Entrance Bowling Club LimitedABN 29 000 956 052Notes to the Financial StatementsFor The Year Ended 30 June 2011Note 9. Investment property (cont'd)2011 2010$ $Rental propertiesCarrying amount at beginning of year 1,337,425 1,341,140Additions 19,596 2,595Disposals - -Depreciation (6,221) (6,310)__________________1,350,800 1,337,425__________________Note 10. Trade and other payablesTrade creditors 24,232 22,564GST Payable 60,500 69,400Accruals 93,975 86,441__________________178,707 178,405__________________Note 11. Other LiabilitiesIncome in advance 22,324 21,935______________Note 12. Financial LiabilitiesCurrentBusiness loan - secured 49,528 45,795Hire purchase liabilities - secured 67,596 104,208__________________117,124 150,003__________________Non-CurrentBusiness loan - secured 1,075,472 1,319,205Hire purchase liabilities - secured 40,516 57,746_________ __________1,115,988 1,376,951_________ __________2038

Note 12. Financial Liabilities (cont'd)Secured LiabilitiesThe Entrance Bowling Club LimitedABN 29 000 956 052Notes to the Financial StatementsFor The Year Ended 30 June 20112011 2010$ $(i)Secured by Registered First Mortgage over the Company’s freehold land and anEquitable Mortgage over the assets of the Company.Note 13. Employee BenefitsCurrent employee benefits 150,565 138,505Non-current employee benefits 60,203 75,483__________________210,768 213,988__________________Note 14. Cash Flow Information(a)Reconciliation of Cash Flow fromOperations with Profit from OrdinaryActivities after Income TaxProfit from ordinary activities afterIncome tax 148,352 24,691Non-cash flows in profit from ordinaryActivitiesDepreciation 304,901 343,810Net loss on disposal of assets 1,467 1,147Net sale of poker entitlements - (145,000)Changes in assets and liabilities(Increase)/decrease in other debtors 160,065 (12,434)(Increase)/decrease in inventories (950) (12,227)(increase)/decrease in other assets (17,511) 4,942Increase/(decrease) in payables 302 (112,883)Increase/(decrease) in provisions (3,220) (12,658)Increase/(decrease) in other liabilities 389 (2,010)__________________Cash flow from operations 593,795 77,378__________________2139

The Entrance Bowling Club LimitedABN 29 000 956 052Notes to the Financial StatementsFor The Year Ended 30 June 20112011 2010$ $Note 15. Related Party DisclosuresThe directors also purchased goods from the company on the same terms and conditionsavailable to members, guests and employees.Note 16. Financial Reporting By SegmentsThe Club operates predominantly in one industry. The principal activity of the Club is thatof a Licensed Club registered under the Registered Club Act, 1976. The Club operatespredominantly in one geographical area, being The Entrance, NSW.Note 17. Financial InstrumentsThe company’s financial instruments consist mainly of deposits with banks, accountsreceivable and payable and borrowings.The totals for each category of financial instruments, measured in accordance with AASB139 as detailed in the accounting policies to these financial statements, are as follows:Financial assetsCash and cash equivalents 278,189 153,254Receivables 8,939 169,004_________________287,128 322,258_________________Financial liabilitiesTrade payables 178,707 178,405Borrowings 1,233,112 1,526,954________________1,411,819 1,705,359________________The company does not have any derivative instruments at 30 June 2011.Note 18. Registered OfficeThe registered office address of the company is:Warrigal StreetThe Entrance NSW 22612240

The Entrance Bowling Club LimitedABN 29 000 956 052Directors' DeclarationFor The Year Ended 30 June 2011The directors of the company declare that:-1. The financial statements and notes, as set out on pages 25 to 40 are in accordance withthe Corporations Act 2001 and:(a)(b)comply with Australian Accounting Standards; andgive a true and fair view of the financial position as at 30 June, 2011 and of theperformance for the year ended on that date:2. In the directors’ opinion there are reasonable grounds to believe that the company will beable to pay its debts as and when they become due and payable.Signed in accordance with a resolution of the directors.Signed at The Entrance this 15th day of August, 2011.J O'ConnellDirectorJ RussDirector2341

Report on the Financial ReportIndependent Auditor’s Report To The MembersOf The Entrance Bowling Club LimitedWe have audited the accompanying financial report of The Entrance Bowling Club Limited (thecompany), which comprises the statement of financial position as at 30 June 2011, thestatement of comprehensive income, statement of changes in members funds and statement ofcash flows for the year then ended, notes comprising a summary of significant accountingpolicies and other explanatory information, and the directors’ declaration.Directors’ Responsibility for the Financial Report.The directors of the company are responsible for the preparation and fair presentation of thefinancial report that gives a true and fair view in accordance with Australian AccountingStandards – Reduced Disclosure Requirements (including)in accordance with the CorporationsAct 2001. This includes responsibility for the maintenance of adequate accounting records andinternal controls that are designed to prevent and detect fraud and error, and for the accountingpolicies and accounting estimates inherent in the financial report.Audit ApproachWe conducted an independent audit in order to express an opinion to the members of thecompany. Our audit was conducted in accordance with Australian Auditing Standards, in orderto provide reasonable assurance as to whether the financial report is free of materialmisstatement. The nature of an audit is influenced by factors such as the use of professionaljudgement, selective testing, the inherent limitations of internal control, and the availability ofpersuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that allmaterial misstatements have been detected.We performed procedures to assess whether in all material respect the financial report presentsfairly, in accordance with the Corporations Act 2001, including compliance with AccountingStandards and other mandatory financial reporting requirements in Australia, a view which isconsistent with our understanding of the company’s financial position, and of its performance asrepresented by the results of its operations and cash flows.We formed an audit opinion on the basis of these procedures, which included:- examining on a test basis, information to provide evidence supporting the amounts anddisclosures in the financial report; and- assessing the appropriateness of the accounting policies and disclosures used and thereasonableness of significant accounting estimates made by the directors.2442

Independent Audit Report To The MembersOf The Entrance Bowling Club LimitedWhile we considered the effectiveness’ of managements internal controls over financialreporting when determining the nature and extent of our procedures, our audit was notdesigned to provide assurance on internal controls.IndependenceIn conducting our audit, we followed applicable independence requirements of Australianprofessional ethical pronouncements and the Corporations Act 2001.Audit OpinionIn our opinion, the financial report of The Entrance Bowling Club Limited is in accordance withthe Corporations Act 2001, including:(i) giving a true and fair view of the company’s financial position as at 30 June 2011and of its performance for the year ended on that date; and(ii)complying with Accounting Standards in Australia and the CorporationsRegulations 2001;(b)other mandatory financial reporting requirements in Australia.Fortunity AssuranceT R DavidsonPartner155 The Entrance RoadERINA NSW 2250, 20112543

VALE1st July 2010 to 30th June 2011Kenneth BaylissJohn WoodsNorma LechfeldtJulie AllanDonald ElliottBetty DoverTed KnightEsther ArmourBrad McQuirterHarry SchofieldNeville SouthRonald Hickey SrDorothea KeoghDonald MastersonAilsa GearyRaymond JudgeBeryl BanksSamuel HamptonRoger O’ConnerAlan LemmingMerleen BaylissHenry Dorrington

CLUB TRADING HOURSMonday 10.00 am ~ 10.00 pmTuesday 10.00 am ~ 10.00 pmWednesday 10.00 am ~ 11.00 pmThursday 10.00 am ~ 11.30 pmFriday 10.00 am ~ 12.00 pmSaturday 10.00 am ~ 12.00 pmSunday 10.00 am ~ 10.00 pm