Cowra Bowling and Recreation Club Limited ABN Directors Report for the Year Ended 30 June 2015

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2 ABN Directors Report for the Year Ended 30 June 2015 The directors present this report on the company for the financial year ended 30th June 2015 Directors The following persons held office of director as at balance date: Norman Egan (elected 3 year term 2012) Brian Wright (elected 3 year term 2012) Myrna Peterson (elected 3 year term 2013) Steve Treasure (elected 3 year term 2013) Robert Oliver (elected 3 year term 2012) Kevin Day (elected 3 year term in 2014) Brian Duff (elected 3 year term in 2014) David Bohanna (elected 3 year term in 2014) The following persons resigned from the office of Director during the year; Charlie Browne (September 2014) Wayne Davenport (September 2014) Garry Lea (March 2015) Company Secretary The following person held the position of company secretary at the end of the financial year: Bruce Oliver has held the position of Secretary since 13 January Net Profit After Income Tax The profit of the company for the financial year after providing for income tax was 525,058 ( ,307). No provision for income tax was made as the Company is not liable for income tax. The Rules of the Company prohibit distribution of its income among its members and no dividends have been or will be paid. Review of Operations A Review of the company operations during the financial year and the results of those operations are as follows; Bar Sales increased from 893,769 last year to 979,121 this year an increase of 85,352. Gross Profit percentage for the year was 54.78% compared to 53.81% last year. Direct Costs have increased from 221,039 last year to 230,565 this year, an increase of 9,526. These factors have contributed to an increased Profit from Bar Trading of 305,790 (up by 45,922). Poker Machine takings have increased from 1,428,022 in 2014 to 1,654,979 this year (an increase of 226,957). Direct Costs have increased from 411,564 in 2014 to 521,374 this year (an increase of 109,810). Poker Machine profit for the year was 1,150,798 compared to 1,033,655 last year, an increase of 117,143. The profit from the Social Club was 5,572 compared to a profit last year of 6,373. The loss from TAB trading for this year was 1,185 compared to a loss of 4,688 last year.

3 ABN Directors Report for the Year Ended 30 June 2015 The profit from Keno for the year was 35,558 compared to a profit of 23,300 last year. The loss from Bingo trading for this year was 16,801 compared to a loss of 17,207 last year. The restaurant sales increased from 653,248 in 2014 to 703,948 this year (an increase of 50,700). Gross profit percentage was 52.13% compared to 52.50% last year. Direct costs have increased from 300,499 in 2014 to 346,985 this year, an increase of 46,486. Restaurant Trading profit for the year was 19,994 compared to 42,488 last year. Other income for the year was 277,067 compared to 230,766 last year. Expenses for the Club have increased by 87,487 with increases in the following:- Increases occurred for the year in Repairs & Maintenance - Kitchen of 9,296, Superannuation Contributions of 29,757, Wages Bus Driver of 15,015, Pay TV Monthly Services of 8,960, Sick Leave of 12,283. The major decreases in expenses throughout the year were Salaries Secretary Manager & Admin. of 24,266, Depreciation Buildings of 8,989. The company's operations during the year performed as expected in the opinion of the directors. Significant Changes in State of Affairs There have been no significant changes in the state of the company's affairs during the financial year. Principal Activities The principal activities of the company during the course of the year were: Licensed Bowling Club There have been no significant changes in the nature of these activities during the year. After Balance Date Events Details of matters or circumstances which have arisen since the end of the financial year which significantly affected or may significantly affect the company's operations, the results of those operations or the state of affairs of the company in subsequent financial years are as follows; There are no significant events since the end of the financial year. Future Developments The company expects to maintain the present status and level of operations and hence there are no likely known developments in future financial years. Core and Non Core Property Core property is defined as any real property owned by the club that comprises the defined premises of the club or any facility provided by the club for the use of its members and their guests. Core property of the club consists of land occupied by the Clubhouse, bowling greens and car parks at 27 Vaux Street, Cowra NSW Non-core property of the club means any real property owned by the club that is not core property. Non-core property consists of 16 & 22 Brougham Street, 29 Vaux Street, 79 & 83 Brisbane Street, Cowra NSW 2794.

4 ABN Directors Report for the Year Ended 30 June 2015 Information on Directors The particulars of the qualifications, experience and special responsibilities of the Directors of the company are as follows: Norman Egan Chairperson Club Member since 1990, Committee 1990, 1995 and Kevin Day Deputy Chairperson Club Member since 1975, Committee and Brian Wright Treasurer Club Member since 2000, Committee Life Member Inductee in Chairperson of Poker Machine Committee. Myrna Peterson Club Member since 1995, Committee Steve Treasure Club Member since 1990, Committee Robert Oliver Club Member since 2003, Committee and Brian Duff Club Member since 2007, Committee David Bohanna Club Member since 1982, Committee and Director Related Transaction During the year transactions occurred between the club and the following directors or related entities: SR & C Treasure - General repairs & maintenance All transactions occurred within a normal customer relationship on conditions no more favourable than those available to other customers. Environmental Issues The club's operations are subject to significant environmental regulation under the laws of the Commonwealth and the State. The club does not use any product that is not environmentally friendly. Dividends The constitution of the company prohibits distribution of its income among its members and no dividends have been or will be paid.

5 ABN Directors Report for the Year Ended 30 June 2015 Dividends The constitution of the company prohibits distribution of its income among its members and no dividends have been or will be paid. Auditor's Independence Declaration A copy of the auditors independence declaration as required under section 307C of the Corporations Act 2001 follows this report Indemnities Granted During or since the end of the financial year the company has paid insurance premiums to cover all the officers and directors for any actions undertaken by the officers and directors on behalf of the club. The insurance coverage is for 1 million. Membership At the date of this report membership is as follows: Male Members 146 Female Members 74 Social Members 3,082 Meetings Attendance at meetings Ordinary Norm Egan 13/13 Charles Browne 2/4 Brian Wright 10/13 Steve Treasure 13/13 Garry Lea 9/9 Myrna Peterson 12/13 Wayne Davenport 3/4 Robert Oliver 12/13 Kevin Day 13/13 Brian Duff 8/9 David Bohanna 8/9 Norm Egan Director Brian Wright Director Dated this day of.., 2015.

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11 Notes to the Financial Statements For the Year ended 30th June STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial report is a general purpose financial report and it has been prepared in accordance with Accounting Standards, Urgent Issues Group Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act The financial report has been prepared on an accruals basis and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets. Unless otherwise stated the accounting policies have been consistently applied. The following is a summary of the material accounting policies used by Cowra Bowling and Recreation Club Limited in the preparation of the financial report. (a) Cash and Cash Equivalents For the purpose of the statement of cash flows, cash includes the following, net of bank overdrafts, all cash on hand, at call deposits with banks or financial institutions and investments in money market instruments maturing within less than three months. (b) Provisions Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at reporting date (c) Employee Entitlements Provision is made for the liability due to employee entitlements arising from services rendered by employees but unpaid as at balance date. Employee entitlements expected to be settled within one year and entitlements arising from wages & salaries, sick leave and annual leave which will be paid after one year have been measured at their nominal amount. Other entitlements payable later than one year are measured at the present value of the estimated future cash outflows for those entitlements. (d) Property, Plant & Equipment Property, plant and equipment are carried at cost, less any accumulated depreciation or amortisation applicable. The directors review annually the carrying amount of property, plant and equipment to ensure it is not in excess of the recoverable amount of those assets. Excluding freehold land the depreciable amount of all fixed assets including buildings are depreciated on a diminishing value or straight line basis over their useful lives.

12 Notes to the Financial Statements For the Year ended 30th June 2015 The depreciation rates used for each class of assets are: Building Improvements - prime cost 3.33%-12.5% and diminishing value 20-36% Building at Valuation - prime cost 3.33% Cottage at Valuation - prime cost 10% Furniture & Fittings - prime cost 10% and diminishing value 20-25% 29 Vaux Street - prime cost 2.5% and diminishing value 20% Plant & Equipment - prime cost 5-25% and diminishing value 20-40% Kitchen - prime cost % and diminishing value 20-25% Poker Machines - prime cost % Greenkeepers Shed - prime cost 2.5% (e) Land & Buildings The Clubhouse, Cottage & Land were revalued at 30th June, 1985 by the Directors. Before 1985 Land & Buildings were listed together on the Balance Sheet, at cost. Following the revaluation these are now shown separately at the revalued amount. Other Land and Buildings purchased since 30th June, 1985 are shown at cost. (f) Inventories Inventories are measured at the lower of cost or net realisable value. (g) Income Tax No provision for income tax has been raised as the entity is exempt from income tax under Division of the Income Tax Assessment Act (h) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. (i) (j) Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the company. Key Estimates - Impairment The company assesses impairment at each reporting date by evaluating conditions specific to the company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.

13 Notes to the Financial Statements For the Year ended 30th June OPERATING PROFIT BAR TRADING Income Sales 979, , , ,769 Less Cost of Goods Sold Opening Stock 39,354 40,005 Purchases 437, , , ,216 Closing Stock 34,573 39, , ,862 Gross Profit (Loss) from Trading 536, ,907 Less Direct Costs Other 5,479 9,109 Wages 225, , , ,039 PROFIT FROM BAR TRADING 305, ,868 POKER MACHINES Income Takings less Prizes 1,654,979 1,428,022 Poker Machine Interest GST Assistance 17,180 17,180 1,672,172 1,445,219 Less Direct Costs Service 24,314 25,901 Taxation 227, ,010 Depreciation 172, ,112 Data Monitoring Service 24,445 23,308 Wages 72,654 68, , ,564 PROFIT FROM POKER MACHINE TRADING 1,150,798 1,033,655

14 Notes to the Financial Statements For the Year ended 30th June KENO ACCOUNT Income Keno Commission Received 60,688 47,835 Interest Received ,748 47,996 Less Expenses Stationery & Maintenance 3,427 4,258 Wages 21,763 20,438 25,190 24,696 PROFIT FROM KENO ACCOUNT 35,558 23,300 TAB TRADING Income TAB Commission 15,180 10,432 Interest Received ,221 10,482 Less Expenses Wages 14,732 13,835 TAB Expenses 1,674 1,335 16,406 15,170 PROFIT(LOSS) FROM TAB TRADING (1,185) (4,688) SOCIAL CLUB Income Raffle Sales 60,997 62,797 60,997 62,797 Less Expenses Prizes & Expenses 55,425 56,424 55,425 56,424 PROFIT(LOSS) FROM SOCIAL CLUB 5,572 6,373

15 Notes to the Financial Statements For the Year ended 30th June BINGO Income Bingo Income 15,702 15,143 15,702 15,143 Less Expenses Bingo Expenses 32,503 32,350 32,503 32,350 PROFIT(LOSS) FROM BINGO (16,801) (17,207) RESTAURANT TRADING Income Restaurant Sales 703, , , ,248 Less Cost of Goods Sold Opening Stock 9,505 9,309 Purchases 337, , , ,766 Closing Stock 9,820 9, , ,261 Gross Profit (Loss) from Trading 366, ,987 Less Direct Costs Wages 346, , , ,499 PROFIT (LOSS) FROM RESTAURANT TRADING 19,994 42,488

16 Notes to the Financial Statements For the Year ended 30th June INCOME Profit from Bar Trading 305, ,868 Profit from Poker Machine Trading 1,150,798 1,033,655 Profit from Keno Trading 35,558 23,300 Profit (Loss) from TAB Trading (1,185) (4,688) Profit (Loss) from Social Club 5,572 6,373 Profit (Loss) from Bingo (16,801) (17,207) Profit ( Loss) from Restaurant Trading 19,994 42,488 Subscriptions Received 13,231 13,513 Interest Received - Westpac 16,118 10,868 Interest Received - Commonwealth 6,945 1,524 Interest Received - NAB 13,577 15,376 Interest Received - CWCU 9,003 9,177 Interest Received - St George 21,475 23,195 Rent Received - Houses 37,120 34,227 Cigarette Commission ATM Rebate 16,874 14,084 Sales Coffee Machine 2,800 3,661 Profit on Sale of Non-current Assets 113,900 87,200 Commission - Amusement Machines 3,714 2,417 Maternity Leave Subsidy 11,539 - Sundry Income 10,546 15,216 1,776,793 1,574,555 Less Expenses A.G.M. Expenses 4,836 3,980 Advertising 28,313 27,298 Auditors Remuneration - Audit 11,700 11,700 Bad Debts Written Off Bank Charges 3,504 3,089 Coffee Machine Expenses Computer Expenses 9,733 10,240 Consulting Fees 1,725 - Depreciation - Buildings 45,119 54,108 Depreciation - Other 92,144 93,826 Directors' Emoluments 7,000 7,000 Donations (Note 16) 24,839 21,610 Electricity & Heating 76,897 76,821 Entertainment Expenses 38,336 36,140 Holiday Pay 57,708 45,206 Insurance 31,814 31,710 Laundry & Cleaning 14,398 13,628 Licences and Permits 14,786 7,480 Long Service Leave 12,947 12,754 Members' Amenities 32,866 34,868 Members Badge Draw 7,455 5,364 Payroll Tax 23,851 18,872 Pay TV Monthly Services 23,784 14,824 Printing, Stationery & Postage 7,528 10,353 Promotions 29,991 25,072 Rates - Shire 11,814 10,773 Rates - Water 11,162 7,932 RDO (4,210) 2,332 Repairs & Maintenance - Greens 17,307 15,595 Repairs & Maintenance - General 25,139 24,225

17 Notes to the Financial Statements For the Year ended 30th June Repairs & Maintenance - Kitchen 11,135 1,839 Repairs & Maintenance - Rental Properties 12,795 5,246 Salaries - Secretary Manager & Admin. 151, ,234 Security Costs 5,642 5,433 Sick Leave 28,235 15,952 Sky Channel 23,070 21,153 Staff Training 812 2,185 Workers Drinks & Entertainment 12,867 12,605 Subscriptions 13,255 14,131 Superannuation Contributions 133, ,718 Telephone 11,085 9,860 Uniforms 2,682 2,711 Wages - Cleaning 66,556 66,463 Wages - Greenkeepers 73,606 72,118 Wages - Bus Driver 15,015 - Waste Removal 4,462 3,785 Workers Compensation Expenses 22,015 23,396 1,251,735 1,164,248 Net Operating Profit (Loss) for the year 525, , CASH Cash on Hand 105,855 96,566 Cash at Bank 26, ,660 Social Bowls Club Chq A/c 17,105 25,431 Cash at Bank - TAB 10,135 20,495 Cash at Bank - Keno 19,801 19,639 Cash at Bank - Poker Machine 4,679 4,664 Maxi Direct Bank A/c 200, , , , RECEIVABLES Current Sundry Debtors 6,984 2,599 Prepaid Expenses 55,302 52,882 Accrued Interest 17,245 26,352 79,531 81, INVESTMENTS Current Shares & Licences 291, ,034 Westpac Term Deposit - 298,313 Commonwealth Bank T/D 636, ,000 NAB T/D 483, ,270 CWC Union T/D 279, ,499 St George T/D 638, ,457 2,329,664 2,039,573

18 Notes to the Financial Statements For the Year ended 30th June Inventories Current Stock on Hand - Bar - at Cost 34,573 39,354 Stock on Hand - Restaurant- at cost 9,820 9,505 Stock on Hand - Sundry - at Cost 12,389 9,023 56,782 57,882 Total Inventories 56,782 57, PROPERTY, PLANT & EQUIPMENT Building Improvements - at Cost 1,506,097 1,498,064 Less: Accumulated Depreciation 598, , , ,695 Cottage - at Valuation 10,000 10,000 Less: Accumulated Depreciation 10,000 10, Land - at Valuation 210, ,000 Land - at Cost 26,350 26, , ,350 Buildings - at Valuation 300, ,000 Less: Accumulated Depreciation 300, , Furniture & Fittings - at Cost 323, ,670 Less: Accumulated Depreciation 287, ,686 35,970 37,984 Office & Computer Equipment 63,873 52,567 Less: Accumulated Depreciation 52,397 47,173 11,476 5,394 Plant & Equipment - at Cost 1,135,280 1,105,656 Less: Accumulated Depreciation 875, , , ,631 Kitchen - at Cost 248, ,411 Less: Accumulated Depreciation 191, ,540 57,599 78,871

19 Notes to the Financial Statements For the Year ended 30th June Poker Machines - at Cost 1,462,523 1,280,997 Less Accumulated Depreciation 837, , , ,573 Greenkeepers Sheds - at Cost 87,930 87,930 Less Accumulated Depreciation 28,910 26,717 59,020 61, Vaux Street, Cowra - at Cost 86,184 86,184 Less Accumulated Depreciation 47,843 45,741 38,341 40, Brougham Street, Cowra 149, ,500 Less: Accumulated Depreciation 2,060 1, , , Brougham St, Cowra 187, , Brisbane Street, Cowra 178,960 - Less: Accumulated Depreciation , Brisbane St, Cowra (Fittings)- at Cost 1,098 - Less: Accumulated Depreciation Total Property Plant & Equipment 2,746,441 2,502, PAYABLES Current GST Liability 54,088 46,049 Income in Advance 6,136 - Sundry Creditors 170, ,428 Members Subs Paid in Advance 12,627 12,028 Sundry Accruals 12,909 13, , ,323

20 Notes to the Financial Statements For the Year ended 30th June Financial Liabilities Current Credit Card 962 1, ,810 Total Financial Liabilities 962 1, Provisions Current Provision for Holiday Pay 33,666 27,874 Provision for Long Service Leave 92,832 79,855 Provision for Sick Leave 106,361 88,539 Provision for RDO 4,523 8, , ,001 Total Provisions 237, , CAPITAL Uncalled Capital not capable of being called up except for the purpose of Winding up is limited to 1.00 per member. 12. RESERVES Asset Revaluation Reserve 290, , FINANCIAL RISK MANAGEMENT The company's financial instruments consist mainly of deposits with banks, local money market instruments, short term and long term investments, accounts receivable and accounts payable. Financial Management Risk Policies Consisting of senior committee members, the finance committee's overall risk management strategy seeks to assist the club in meeting its financial targets whilst minimising potential adverse effects on financial performance. Risk management policies are approved and reviewed by the finance committee on a regular basis. 14. Auditors Remuneration Steel Walsh & Murphy were the auditors of Cowra Bowling and Recreation Club Limited Auditors Remuneration - Audit 11,700 11,700 11,700 11,700

21 Notes to the Financial Statements For the Year ended 30th June BUSINESS DETAILS The registered office of the company is: Cowra Bowling and Recreation Club Limited 27 Vaux Street Cowra NSW 2794 The principal place of business is: Cowra Bowling and Recreation Club Limited 27 Vaux Street Cowra NSW DONATIONS Cowra Community Chest 3, Cowra Junior Cricket UGLY Leukaemia Foundation Cowra Gift Committee Cowra Mens Bowling Club 7, Cowra Womens Bowling Club Cowra Junior Soccer Club Relay for Life Various Other Local Charities & Organisations 10, Total 24,839.47

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