Rockdale Tennis Club Limited Financial Report Year Ended 30 June 2012

Rockdale Tennis Club Limited52 000 398 934

Financial Statements

For the Year Ended 30 June 2012


Contents30 June 2012

Page

Financial Statements

President's Report 1

Secretary's Report 2

Directors' Report 3

Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 6

Statement of Comprehensive Income 7

Statement of Financial Position 8

Statement of Changes in Equity 9

Statement of Cash Flows 10

Notes to the Financial Statements 11

Directors' Declaration 25

Independent Audit Report 26

Compilation Report 28

Profit and Loss Account 28

Rockdale Tennis Club Limited 52 000 398 934

President's Report

Dear Members,

The 2012 financial year has been and gone and during the year we have seen a dramatic turn around for the Club.

It is with great please that I can report to the members that even though the club has sustained a deficit for the third year,the deficit incurred in comparison with the 2011 year, has seen a net turn around in trading of $488,195. This turn aroundin trading has been as a direct result of actions taken by management with the boards support which has seen an increaserevenues to the tune of $215,150 and a reduction in expenses by $341,448.

When looking closely at the deficit incurred for the year of $183,827, and then adding back non cash transactions for theyear being depreciation and loss on disposal of assets, the club's deficit for the year is $32,156. I believe that this is a resultwe are all proud of in these hard economic times.

I would like to extend my thanks and that of the board to all staff, and to our volunteers Jack,Dianne, Sonia, Dave, andthose members who have given their time freely throughout the year.

Once again thanks are needed to be said to George, Toula and their staff for another year of great food and service.

To my fellow board members, I thank you for another year of dedication and support and look forward to your co-operation,support, interest and help in the forth coming 2012-2013 year.

Nick MitrevskiPresident

1


Secretary's Report

Dear Members,

It gives me great pleasure to present to you the annual financial report for the Club for the year ended 30 June 2012.

Though we have sustained a deficit for the 2012 year of $183,827, this result in comparison with the deficit sustained in the2011 year of $672,022, is a great result.

When looking at specific areas, the board has seen that bar takings have increased by 3% and poker machine takings havealso increased by 24% which is a pleasing result. Good results have also been realised with the Club's TAB and Kenooperations.

With regard to costs incurred in relation to the running of the club, through a concentrated approach we have been able toreduce costs to the tune of $341,000 in comparison with last year. As part of this cost cutting approach the staff of the clubassisted by cutting their rosters down, thereby effecting a reduction in wages and on costs incurred by the club, and to themwe thank them for their assistance in the cost cutting measures undertaken.

We anticipate that if the cost cutting measures that have been taken this year continue, the Club should be back in theblack by the 2013-2014 financial year.

Once again our restaurant continues to be very successful and we thank George, Toula and their staff for a great job as ourrestaurant is second to none.

I also take this opportunity to thank my fellow directors, our loyal staff, our volunteers Jack, Dianne, Sonia and Dave fortheir continual support and those other members who throughout the year have given their time freely.

May I wish you all a safe and happy Christmas and prosperous 2013.

Ralph JaunceyHonorary Secretary

2


Directors' Report30 June 2012

Your directors present their report on Rockdale Tennis Club Limited for the financial year ended 30 June 2012.

1. General information

Information on directors

The names of each person who has been a director during the year and to the date of this report are:

Nick Mitrevski

Qualifications Cabling Contractor/Director

Experience Director for 9 Years

Special responsibilities President

Ralph Douglas Jauncey

Qualifications Company Director/ST George TAFE


Special responsibilities Secretary

Paul Francis Roddy

Qualifications Tennis Coach


Norman Rogers

Qualifications Cable joiner


Jake Tuiara

Qualifications Qantas ground staff


David Shoemark

Qualifications Butcher

Experience Director for 1 Year

Steve Howells - Appointed 20 November 2011

Qualifications State Sales Manager

Experience Director for 1 Year

Kevin Baker - Resigned 20 November 2011

Qualifications Supervisor

Experience Previously a director for 12 Years

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

Principal activities

The principal activity of Rockdale Tennis Club Limited during the financial year wasthe provision of facilities for theplaying of the sport of tennis by members of the club with auxiliary facilities for the entertainment and recreation of themembers.

No significant changes in the nature of the entity's activity occurred during the financial year.

3



1. General information continuedShort term objectives

The company's short term objectives are to:

• promote sport in particular, tennis

• provide facilities for the entertainment and recreation of members and their family, and

• interact with the general community at large in relation to sporting activities provide at the club.

Long term objectives

The company's long term objectives are to:

• establish and maintain realtionships with the various tennis administrative groups and bodies to ensure that

tennis as a sport is being promoted correctly witin the tennis community as well as the community at large, and

• be sustainable for the continuation of the sport of tennis together with providing a venue whereby members,

theior families, guests and the community at large can have a venue for their recreation and entertainment.

Strategy for achieving the objectives

To achieve these objectives, the company has adopted the following strategies:

• the club stirves to attract and retain quality staff and volunteers who are committed to promotion of the sport of

tennis as well as the club, and this is evidenced by t low turonover of staff. The board and managmenet of the

club believe that by attracting and retaining quality trained and committed staff and volunteers, that this will be

the key to the club's success in both the short and long term.

• the adoption of consisitent standards of best practice thereby providing clear expectations fo the board,

management and staff of their professional accountabilities and rersponsibilities to all stakeholders in the club.

How principal activities assisted in achieving the objectives

The principal activities assisted the company in achieving its objectives by:

• increasing the number of members,

• providing a venue for members to enjoy various entertainment events that have been held during the year,

thereby increasing the frequenscy of members attending the club

Performance measures

The following measures are used within the company to monitor performance:

• Earnings before income tax, earnings before interest depreciation and impairments, ensuring that non-

members services are profitable, and ensuring that low debt (that is no debt) ratios are maintained.

4



1. General information continued

Members guarantee

Rockdale Tennis Club Limited is a company limited by guarantee. In the event of, and for the purpose of winding up ofthe company, the amount capable of being called up from each members and any person or association who ceasedto be a member in the year prior to the winding up, is limited to $ 20 for members, subject to the provisions of thecompany's constitution.

At 30 June 2012 the collective liability of members was $ 20,700 (2011: $ 21,280).

Meetings of directors

During the financial year, [insert number] meetings of directors (including committees of directors) were held.Attendances by each director during the year were as follows:

Directors' Meetings

Number eligible to

attend Number attended

Nick Mitrevski 12 9

Ralph Douglas Jauncey 12 11

Paul Francis Roddy 12 8

Norman Rogers 12 11

Jake Tuiara 12 12

David Shoemark 12 10

Steve Howells - Appointed 20 November 2011 7 7

Kevin Baker - Resigned 20 November 2011 5 5

Auditor's independence declaration

The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for theyear ended 30 June 2012 has been received and can be found on page 6 of the financial report.

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

Director:

Nick Mitrevski

Director:


Dated 25 October 2012

5


Auditor's Independence Declaration under Section 307C of theCorporations Act 2001 To the Board of Directors and Members RockdaleTennis Club Limited

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2012, there have been:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation tothe audit; and

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

W W Vick & Co

Chartered Accountants

Peter P VlahopolPartner

25 October 2012


Statement of Comprehensive IncomeFor the Year Ended 30 June 2012

Note

2012

$

2011

$

Revenue 13 1,535,062 1,277,811

Other income 13 84,496 85,302

Dividend income - 25,053

Interest 514 16,756

Changes in inventories of finished goods and work in progress (1,754) (2,378)

Raw materials and consumables used (350,846) (339,354)

Employee benefits expense (476,560) (555,976)

Depreciation (139,338) (153,091)

Poker Machine Trading Expenses (101,080) (50,034)

Tennis Court Expenses (14,543) (26,242)

Club and Social Expenses (202,052) (210,061)

TAB and Gamming Expenses (19,011) (6,993)

Tennis & Sports Promotion 1,310 (62,500)

Rental Property Expenses (411) (2,266)

Bar Trading Expenses (2,730) (2,420)

Other operating expenses (484,519) (495,327)

Finance costs (32) -

Profit before income tax (171,494) (501,720)

Income tax expense - -

Profit from continuing operations (171,494) (501,720)

Profit for the year (171,494) (501,720)

Other comprehensive income:

Fair value adjustments - 43,311

Loss on disposal of assets (12,333) -

(Loss) / Gain on disposal of non-current assets held for sale - 12,759

Impairments - (226,372)

Other comprehensive income for the year, net of tax (12,333) (170,302)

Total comprehensive income for the year (183,827) (672,022)

The accompanying notes form part of these financial statements.7


Statement of Financial Position30 June 2012

Note

2012

$

2011

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 2 182,111 213,788

Trade and other receivables 3 20,537 18,220

Inventories 4 31,583 33,337

Other assets 5 11,958 18,533

TOTAL CURRENT ASSETS 246,189 283,878

NON-CURRENT ASSETS

Property, plant and equipment 7 2,740,446 2,802,355

Investment property 6 486,619 486,923

Intangible assets 8 - 123,333

TOTAL NON-CURRENT ASSETS 3,227,065 3,412,611

TOTAL ASSETS 3,473,254 3,696,489

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 9 100,212 140,679

Current tax liabilities (3,636) (4,550)

Employee benefits 10 70,950 70,805

TOTAL CURRENT LIABILITIES 167,526 206,934

NON-CURRENT LIABILITIES

TOTAL LIABILITIES 167,526 206,934

NET ASSETS 3,305,728 3,489,555

EQUITY

Retained earnings 3,305,728 3,489,555

3,305,728 3,489,555

TOTAL EQUITY 3,305,728 3,489,555



Statement of Changes in EquityFor the Year Ended 30 June 2012

2012

Note

RetainedEarnings

$

Available forSale

RevaluationReserve

$

Total

$

Balance at 1 July 2011 3,489,555 - 3,489,555

(Loss) Profit attributable to members of the entity (171,494) - (171,494)

Total other comprehensive income for the year (12,333) - (12,333)

Sub-total (183,827) - (183,827)

Balance at 30 June 2012 3,305,728 - 3,305,728

2011

Note

RetainedEarnings

$

Available forSale

RevaluationReserve

$

Total

$

Balance at 1 July 2010 4,161,576 (21,108) 4,140,468

(Loss) Profit attributable to members of the entity (501,720) - (501,720)

- - -

Investment losses recognised directly in equity - 21,108 21,108

Total other comprehensive income for the period (170,301) - (170,301)

Sub-total (672,021) 21,108 (650,913)

Balance at 30 June 2011 3,489,555 - 3,489,555



Statement of Cash FlowsFor the Year Ended 30 June 2012

Note

2012

$

2011

$

CASH FLOWS FROM OPERATINGACTIVITIES:

Receipts from customers 1,621,875 1,525,416

Payments to suppliers andemployees (1,668,709) (1,852,314)

Interest received 514 41,816

Net cash provided by (used in)operating activities 17 (46,320) (285,082)

CASH FLOWS FROM INVESTINGACTIVITIES:

Proceeds from sale of available-for-sale investments - 566,986

Proceeds from sale of held-for-trading investments - 515,457

Purchase of property, plant andequipment (95,326) (870,069)

Net cash used by investing activities (95,326) 212,374

CASH FLOWS FROM FINANCINGACTIVITIES:

Net increase (decrease) in cash andcash equivalents held (141,646) (72,708)

Cash and cash equivalents atbeginning of year 2 213,778 286,486

Cash and cash equivalents at end offinancial year 2 72,132 213,778



Notes to the Financial StatementsFor the Year Ended 30 June 2012

The financial statements are for Rockdale Tennis Club Limited as a not-for-profit individual entity.

1 Summary of Significant Accounting Policies

(a) Basis of preparation

The financial statements are a general purpose financial statements that has been prepared in accordance withAustralian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001. Thecompany is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result infinancial statements containing relevant and reliable information about transactions, events and conditions.Material accounting policies adopted in the preparation of these financial statements are presented below andhave been consistently applied unless otherwise stated.

The financial statements have been prepared on an accruals basis and are based on historical costs modified,where applicable, by the measurement at fair value of selected non-current assets, financial assets andfinancial liabilities.

(b) Comparative figures

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

(c) Inventories

Inventories are measured at the lower of cost and net realisable value. Costs of purchased inventory aredetermined after deducting rebates and discounts.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs ofcompletion and selling expenses.

(d) Property, plant and equipment

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

Property

Land and buildings are measured at cost less accumulated depreciation and impairment losses.

Freehold land and buildings that have been contributed at no cost, or for nominal cost are valued andrecognised at the fair value of the asset at the date it is acquired.

Plant and equipment

Plant and equipment are measured on the cost basis less depreciation and impairment losses. Cost includesexpenditure that is directly attributable to the asset.

Plant and equipment that have been contributed at no cost, or for nominal cost are valued and recognised atthe fair value of the asset at the date it is acquired.

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1 Summary of Significant Accounting Policies continued

(d) Property, plant and equipment continued

Depreciation

The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excludingfreehold land, is depreciated on a reducing balance basis over the asset's useful life to the companycommencing from the time the asset is held ready for use. Leasehold improvements are depreciated over theshorter of either the unexpired period of the lease or the estimated useful lives of the improvements. Land is notdepreciated.

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

Class of Fixed Asset Depreciation Rate

Buildings 2.5 %

Plant and Equipment 7.5 % to 40 %

Furniture, Fixtures and Fittings 5.5 % to 25 %

Motor Vehicles 25 %

Poker Machines 30 % to 33.3 %

Court Lighting & Fixtures 7.5 5 to 20 %

Tennis Courts 10 %

The assets' residual values, depreciation methods and useful lives are reviewed, and adjusted if appropriate, atthe end of each reporting period.

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

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gainsand losses are included in the statement of comprehensive income.

(e) Financial instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractualprovisions of the instrument. For financial assets, this is the equivalent to the date that the company commitsitself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transactions costs, except where the instrument isclassified 'at fair value through profit or loss' in which case transaction costs are expensed to profit or lossimmediately.

Classification and subsequent measurement

Financial instruments are subsequently measured at either fair value, amortised cost using the effective interestrate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liabilitysettled, between knowledgeable, willing parties in an arm's length transaction. Where available, quoted pricesin an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

12




(e) Financial instruments continued

Amortised cost is calculated as:

(a) the amount at which the financial asset or financial liability is measured at initial recognition;

(b) less principal repayments;

(c) plus or minus the cumulative amortisation of the difference, if any, between the amount initiallyrecognised and the maturity amount calculated using the effective interest method; and

(d) less any reduction for impairment.

The effective interest method is used to allocate interest income or interest expense over the relevant periodand is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees,transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliablypredicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset orfinancial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carryingvalue with a consequential recognition of an income or expense in profit or loss.

The classification of financial instruments depends on the purpose for which the investments were acquired.Management determines the classification of its investments at initial recognition and at the end of eachreporting period for held-to-maturity assets.

The company does not designate any interest as being subject to the requirements of accounting standardsspecifically applicable to financial instruments.

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

Financial assets are classified at ‘fair value through profit or loss’ when they are either held for trading for thepurpose of short-term profit taking, derivatives not held for hedging purposes, or when they are designated assuch to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets ismanaged by key management personnel on a fair value basis in accordance with a documented riskmanagement or investment strategy. Such assets are subsequently measured at fair value with changes incarrying value being included in profit or loss.

(ii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed ordeterminable payments, and it is the company's intention to hold these investments to maturity. They aresubsequently measured at amortised cost.

Held-to-maturity investments are included in non-current assets, except for those which are expected to berealised within 12 months after the end of the reporting period, which will be classified as current assets.

If during the period the company sold or reclassified more than an insignificant amount of the held-to-maturityinvestments before maturity, the entire held-to-maturity investments category would be tainted and reclassifiedas available-for-sale.

13





(iii) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classifiedinto other categories of financial assets due to their nature, or they are designated as such by management.They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed ordeterminable payments.

Available-for-sale financial assets are included in non-current assets, except for those which are expected to besold within 12 months after the end of the reporting period.

(iv) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortisedcost. Fees payable on the establishment of loan facilities are recognised as transaction costs of the loan.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlementof the liability for at least 12 months after the reporting date.

Fair value

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

Impairment

Objective evidence that a financial asset is impaired includes default by a debtor, evidence that the debtor islikely to enter bankruptcy or adverse economic conditions in the stock exchange. At the end of each reportingperiod, the company assesses whether there is objective evidence that a financial asset has been impairedthrough the occurrence of a loss event. In the case of available-for-sale financial instruments, a significant orprolonged decline in the value of the instrument is considered to indicate that an impairment has arisen.

Where a subsequent event causes the amount of the impairment loss to decrease (e.g. payment received), thereduction in the allowance account (provision for impairment of receivables) is taken through profit and loss.

However, any reversal in the value of an impaired available for sale asset is taken through other comprehensiveincome rather than profit and loss.

Impairment losses are recognised through an allowance account for loans and receivables in the statement ofcomprehensive income.

Derecognition

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

14





Derecognition continued

When available-for-sale investments are sold, the accumulated fair value adjustments recognised in othercomprehensive income are reclassified to profit or loss.

(f) Impairment of non-financial assets

At the end of each reporting year, the company reviews the carrying values of its tangible and intangible assetsto determine whether there is any indication that those assets have been impaired. If such an indication exists,the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value inuse, is compared to the asset's carrying value. Value in use is either the discounted cash flows relating to theasset or depreciated replacement cost if the criteria in AASB 136 'Impairment of Assets' are met. Any excess ofthe asset's carrying value over its recoverable amount is expensed to the statement of comprehensive income.

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

Where an impairment loss on a revalued asset is identified, this is debited against the revaluation surplus inrespect of the same class of asset to the extent that the impairment loss does not exceed the amount in therevaluation surplus for that same class of asset.

(g) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquidinvestments with original maturities of three months or less which are convertible to a known amount of cashand subject to an insignificant risk of change in value, and bank overdrafts. Bank overdrafts are shown withinshort-term borrowings in current liabilities on the statement of financial position.

(h) Employee benefits

Provision is made for the company's liability for employee benefits arising from services rendered by employeesto the end of the reporting year. Employee benefits that are expected to be settled within one year have beenmeasured at the amounts expected to be paid when the liability is settled.

Employee benefits payable later than one year have been measured at the present value of the estimatedfuture cash outflows to be made for those benefits. In determining the liability consideration is given toemployee wage increases and the probability that the employee may not satisfy vesting requirements. Thosecash outflows are discounted using market yields on national government bonds with terms to maturity thatmatch the expected timing of cashflows.

Contributions are made by the company to an employee superannuation fund and are charged as expenseswhen incurred.

(i) Trade and other payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods andservices received by the company during the reporting period which remain unpaid. The balance is recognisedas a current liability with the amounts normally paid within 30 days of recognition of the liability.

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(j) Income tax

No provision for income tax has been raised as the company is exempt from income tax under Div 50 of theIncome Tax Assessment Act 1997.

(k) Revenue and other income

The company recognises revenue when the amount of revenue can be reliably measured, it is probable thatfuture economic benefits will flow to the entity and specific criteria have been met for each of Rockdale TennisClub Limited's activities as discussed below.

Revenue is measured at the fair value of the consideration received or receivable after taking into account anytrade discounts and volume rebates allowed. Any consideration deferred is treated as the provision of financeand is discounted at a rate of interest that is generally accepted in the market for similar arrangements. Thedifference between the amount initially recognised and the amount ultimately received is interest revenue.

Sale of goods

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

Interest revenue

Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets isthe rate inherent in the instrument.

Dividend revenue

Dividend revenue is recognised when the right to receive a dividend has been established.

Rental income

Investment property revenue is recognised on a straight-line basis over a period of the lease term so as toreflect a constant periodic rate of return on the net investment.

Subscriptions

Revenue from the provision of membership subscriptions is recognised on a straight line basis over thefinancial year.

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

(l) Goods and services tax (GST)

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

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

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(m) Critical accounting estimates and judgments

The directors evaluate estimates and judgments incorporated into the financial statements based on historicalknowledge and best available current information. Estimates assume a reasonable expectation of future eventsand are based on current trends and economic data, obtained both externally and within the company.

(n) Adoption of new and revised accounting standards

During the current year, the company adopted all of the new and revised Australian Accounting Standards andInterpretations applicable to its operations which became mandatory.

The adoption of these Standards has impacted the recognition, measurement and disclosure of certaintransactions. The following is an explanation of the impact the adoption of these Standards and Interpretationshas had on the financial statements of Rockdale Tennis Club Limited.

Standard Name Impact

AASB 1053 Application of Tiers of AustralianAccounting Standards and amending standards

The adoption of these standards resulting in theremoval of a number of disclosures in the generalpurpose financial statements in accordance with theReduced Disclosure Requirements. There was noimpact on the reported financial position andperformance

AASB 124 Related Party Disclosures and amendingstandard AASB 2009-12

No significant changes on adoption of this standard.

AASB 2009-14 Amendments to AustralianInterpretation – Prepayments of a Minimum FundingRequirement


AASB 2010-4 / 2010-5 Amendments and furtheramendments to Australian Accounting Standardsarising from the Annual Improvements Project


AASB 2010-6 Amendment to Australian AccountingStandards – Disclosures on transfers of financialassets


AASB 2010-9 / Amendment to Australian AccountingStandards – Severe hyperinflation and removal offixed dates for first-time adopters

No impact since the entity is not a first-time adopter ofIFRS.

AASB 1054 Additional Australian disclosures / AASB2011-1 Amendments to Australian AccountingStandards arising from Trans-Tasman convergence

Minimal impact since most of the disclosures requiredby AASB 1054 are already included within thefinancial statements.

AASB 2011 – 5 Amendments to Australian AccountingStandards – Extending Relief from Consolidation, theEquity Method and Proportionate Consolidation[AASB 127, AASB 128 & AASB 131]

The group does not have any not-for-profit entities andtherefore there is no impact from the adoption of thisstandard.

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2 Cash and Cash Equivalents

Note

2012

$

2011

$

Cash on hand 105,720 109,924

Cash at bank 76,391 103,864

182,111 213,788

3 Trade and Other Receivables

CURRENT

Mollie Harper Junior Development Fund 2,000 2,000

Other receivables - Monies Owing byISLT Assoc 8,597 -

Sundry and other debtors 9,940 16,220

Total current trade and otherreceivables 20,537 18,220

4 Inventories

CURRENT

At cost:

Alcohol, Soft Drinks & Bar Sundries 31,583 33,337

31,583 33,337

31,583 33,337

5 Other Assets

CURRENT

Prepayments 11,958 18,533

11,958 18,533

6 Investment Property

Balance at beginning of the period 488,431 488,431

Depreciation (1,812) (1,508)

Balance at end of the period 486,619 486,923

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7 Property, Plant and Equipment

2012

$

2011

$

Building

At cost 2,969,549 2,960,458

Accumulated depreciation (488,455) (417,574)

Total buildings 2,481,094 2,542,884

Total land and buildings 2,481,094 2,542,884

Plant and equipment

At cost 709,397 706,677


Total plant and equipment 76,566 100,115

Furniture, fixture and fittings

At cost 168,624 167,260


Total furniture, fixture and fittings 23,528 26,900

Motor vehicles

At cost 15,745 15,745


Total motor vehicles 7,860 11,798

Poker Machines

At cost 849,275 764,875


Total Poker Machines 63,888 14,883

Tennis Courts, Lighting and Fixtures

At cost 320,085 320,085


Total tennis courts, lighting and fixtures 87,510 105,775

Total plant and equipment 259,352 259,471

Total property, plant and equipment 2,740,446 2,802,355

19



7 Property, Plant and Equipment continued

(a) Movements in Carrying Amounts

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year:

Freehold Land& Buildings

$

ClubRenovations

1999

$

ClubRenovations

2001

$

ClubRenovations

2011

$

Plant andEquipment

$

Furniture,Fixtures and

Fittings

$

MotorVehicles

$

PokerMachines

$

Court Lighting& Fixtures

$

Total

$

Balance at 30 June 2012

Balance at the beginning of year 133,873 540,939 1,017,400 850,671 100,115 26,899 11,798 14,885 105,775 2,802,355

Additions - - - 9,090 2,720 1,364 - 84,400 - 97,574

Depreciation expense - (19,313) (29,918) (21,649) (26,269) (4,735) (3,938) (35,396) (18,265) (159,483)

Balance at 30 June 2012 133,873 521,626 987,482 838,112 76,566 23,528 7,860 63,889 87,510 2,740,446

(b) Core and Non-Core Property

Core Property

In accordance with the Registered Clubs Act 1976, under section 41J, the core property of the Club is the defined premises of the Club situated at 71 Chapel Street,Rockdale, NSW, 2216.

Non-Core Property

In accordance with the Registered Clubs Act 1976, under section 41J, the non-core property of the Club is the defined property located at 58 Chapel Street, Rockdale, NSW,2216.

20



8 Intangible Assets

2012

$

2011

$

Intangible assets - Poker MachineEntitlements

Cost - 349,705

Accumulated amortisation andimpairment - (226,372)

Net carrying value - 123,333

Total Intangibles - 123,333

9 Trade and Other Payables

CURRENT

Sundry payables and accrued expenses 100,212 140,680

100,212 140,680

10 Employee Benefits

CURRENT

Long service leave 62,800 70,805

Provision for employee benefits 8,150 -

70,950 70,805

11 Financial Risk Management

The main risks Rockdale Tennis Club Limited is exposed to through its financial instruments are credit risk and liquidityrisk.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in theaccounting policies to these financial statements, are as follows:

Note

Financial Assets


- at cost

Total financial assets 182,111 213,788

Financial Liabilities

Financial liabilities at amortised cost

- Trade and other payables 9 100,212 140,680

Total financial liabilities 100,212 140,680

21



11 Financial Risk Management continued

Net fair values

Fair value estimation

Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable,willing parties in an arm’s length transaction.

Fair values derived may be based on information that is estimated or subject to judgment, where changes inassumptions may have a material impact on the amounts estimated. Areas of judgment and the assumptions havebeen detailed below. Where possible, valuation information used to calculate fair value is extracted from the market,with more reliable information available from markets that are actively traded. In this regard, fair values for listedsecurities are obtained from quoted market bid prices. Where securities are unlisted and no market quotes areavailable, fair value is obtained using discounted cash flow analysis and other valuation techniques commonly used bymarket participants.

12 Members' Guarantee

The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the companyis wound up, the constitution states that each member is required to contribute a maximum of $ 20 each towardsmeeting any outstandings and obligations of the company. At 30 June 2012 the number of members was 1,035 (2011:1,064).

13 Revenue and Other Income

Revenue from continuing operations

2012

$

2011

$

Sales revenue

- sale of goods 591,067 576,664

591,067 576,664

Other revenue

- member subscriptions 5,793 5,168

- Net Poker Machine Takings 721,092 581,515

- Court Fees 170,960 80,793

- Miscellaneous other revenue - Incomefrom Raffles 46,150 33,671

943,995 701,147

Total Revenue 1,535,062 1,277,811

Other Income

Commissions 58,946 72,907

Rental income 25,550 12,395

Total Revenue and Other Income 84,496 85,302

22



14 Result for the Year

(a) Expenses

2012

$

2011

$

Depreciation and Amortisation

Club Renovations 70,881 55,925

Furniture and fittings 4,736 5,720

Plant and equipment 26,269 36,267

Poker Machones 35,395 23,070

Courts, lighting and fixtures 18,265 27,867

Courtesy Bus 3,938 3,936

Total Depreciation andAmortisation 159,484 152,785

Interest expense on financialliabilities not at fair value throughprofit and loss 32 -

Employee benefits expense 476,560 555,976

Rental expense on operatingleases

15 Interests of Key Management Personnel

The total of honorariums paid to the directors of the company is $3,500 (2011 : $26,750).

The total remuneration paid to key management personnel of the company is $ 97,850 (2011: $ 98,059).

16 Contingent Liabilities and Contingent Assets

In the opinion of the Directors, the company did not have any contingencies at 30 June 2012 (31 July 2010:None).

17 Cash Flow Information

(a) Reconciliation of cash

Note

Cash at the end of the financial year as shown in thestatement of cash flows is reconciled to items in the statementof financial position as follows:


182,111 213,788

23



17 Cash Flow Information continued

(b) Reconciliation of result for the year to cashflows from operating activities

Reconciliation of net income to net cash provided by operating activities:

2012

$

2011

$

Profit for the year (183,827) (672,020)

Cash flows excluded from profit attributable to operatingactivities

Non-cash flows in profit:

- depreciation 159,484 153,091

- impairment of intangibles - 226,372

- loss on disposal of assets 12,333 -

- changes to employee provisions 145 8,229

- available for sale write-off - (43,311)

- profit on sale of shares - (12,760)

Changes in assets and liabilities, net of the effects of purchaseand disposal of subsidiaries:

- (increase)/decrease in trade and other receivables (2,317) 24,424

- (increase)/decrease in other assets 6,575 (854)

- (increase)/decrease in inventories 1,754 2,377

- increase/(decrease) in trade and other payables (40,467) 29,370

Cashflow from operations (46,320) (285,082)

18 Events after the end of the Reporting Period

The financial report was authorised for issue on 25 October 2012 by the Board of Directors.

No matters or circumstances have arisen since the end of the financial year which significantly affected or maysignificantly affect the operations of the company, the results of those operations or the state of affairs of the companyin future financial years.

19 Company Details

The registered office of the company is:

Rockdale Tennis Club Limited

71 Chapel Street

Rockdale NSW 2216

24


Directors' Declaration

The directors of the company declare that:

1. The financial statements and notes, as set out on pages 3 to 24, are in accordance with the Corporations Act 2001and:

a. comply with Accounting Standards - Reduced Disclosure Requirement; and

b. give a true and fair view of the financial position as at 30 June 2012 and of the performance for the year ended onthat date of the company.

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

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

Director

Nick Mitrevski

Director


Dated 25 October 2012

25


Independent Audit Report to the members of Rockdale Tennis ClubLimited

Report on the Financial Report

We have audited the accompanying financial report of Rockdale Tennis Club Limited, which comprises the statement offinancial position as at 30 June 2012, the statement of comprehensive income, statement of changes in equity andstatement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and otherexplanatory information, and the directors' declaration.

Directors'' Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view inaccordance with Australian Accounting Standards- Reduced Disclosure Requirements and the Corporations Act 2001 andfor such internal control as the directors determine is necessary to enable the preparation of the financial report that gives atrue and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordancewith Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating toaudit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report isfree from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report.The procedures selected depend on the auditor’s judgement, including the assessment of the risks of materialmisstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considersinternal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to designaudit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentationof the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirmthat the independence declaration required by the Corporations Act 2001, which has been given to the directors ofRockdale Tennis Club Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.


Independent Audit Report to the members of Rockdale Tennis ClubLimited

Opinion

In our opinion the financial report of Rockdale Tennis Club Limited is in accordance with the Corporations Act 2001,including:

(a) giving a true and fair view of the company’s financial position as at 30 June 2012 and of its performance for the yearended on that date; and

(b) complying with Australian Accounting Standards- Reduced Disclosure Requirements and the CorporationsRegulations 2001.

W W Vick & CoChartered Accountants

Peter P VlahopolPartner

25 October 2012


Compilation Report30 June 2012

COMPILATION REPORT TO ROCKDALE TENNIS CLUB LIMITED

We have compiled the accompanying special purpose financial statements of Rockdale Tennis Club Limited, which comprise the statementof financial position as at 30 June 2012, and the statement of comprehensive income, statement of changes in equity and statement ofcash flows for the year then ended, a summary of significant accounting policies and other explanatory notes. The specific purpose forwhich the special purpose financial statements have been prepared is set out in Note 1.

The Responsibility of the Directors

The directors are solely responsible for the information contained in the special purpose financial statements and have determined that thebasis of accounting used is appropriate to meet their needs and for the purpose that the financial statements were prepared.

Our Responsibility

On the basis of the information provided by the directors we have compiled the accompanying special purpose financial statements in

accordance with the basis of accounting and APES 315: Compilation of Financial Information.

Our procedures use accounting expertise to collect, classify and summarise the financial information, which the directors provided, incompiling the financial statements. Our procedures do not include verification or validation procedures. No audit or review has beenperformed and accordingly no assurance is expressed.

The special purpose financial statements were compiled exclusively for the benefit of the directors. We do not accept responsibility to anyother person for the contents of the special purpose financial statements.

Peter P Vlahopol

Partner

25 October 2012



Profit and Loss Account

2012

$

2011

$

Income

Sale of goods 591,067 576,664

Commissions 58,946 72,907

Interest income 514 16,756

Dividend income - 25,053

Rental income 25,550 12,395

Member subscriptions 5,793 5,168

Net Poker Machine Takings 721,092 581,515

Court Fees 170,960 80,793

Other revenue 46,150 33,671

Total income 1,620,072 1,404,922

Less: Expenses

Advertising 302 1,376

Auditors remuneration 35,038 54,155

Bank charges 1,182 1,206

Body corporate and management fees 9,433 17,404

Cleaning 63,731 63,605

Computer expenses 470 1,980

Consulting and professional fees - 350

Directors Honoraria 3,500 26,750

Depreciation 139,338 153,091

Donations 5,450 3,460

Electricity and water 64,783 58,536

Fees and permits 2,028 420

Finance costs - external 32 -

Gas - 26

Insurance 40,178 48,046

Impairment - 226,372

Long service leave 145 8,229

Postage 534 809

Printing and stationery 4,057 4,421

Rates and taxes 13,378 14,124

Rebates 83,119 86,088

Repairs and maintenance 50,004 73,394

Salaries 430,885 459,496

Security costs 4,592 24,682

Sports Promotion - Subsidised Court Rentals 87,160 -

Subscriptions 3,109 3,977

Sundry expenses 460 -

Superannuation contributions 32,378 70,584

Telephone and fax 8,733 7,639

Travel - domestic 2,900 2,882

Uniforms 377 -

Workers compensation insurance 13,152 17,667

Changes in inventories of finished goods and work in progress 1,754 2,378

29



Profit and Loss Account

2012

$

2011

$

Liquor purchases and members discounts 350,846 339,354

Poker Machine Maintenance & Repairs 46,857 46,099

Poker Machine Duty 54,223 3,935

Court Maintenance 12,483 18,297

Caretaker Expenses 2,060 7,945

Entertainment Costs 160,857 179,822

Travel Costs & Sponsorship 21,466 6,479

Miscellaneous & Sundry Expenses 19,729 23,760

Keno Expenses 19,011 6,993

Tennis & Sports Promotion (1,310) 62,500

Non core property expenses 411 2,266

Stocktake Expenses 2,730 2,420

Total Expenses 1,791,566 2,133,014

(171,494) (728,092)

Other items:

Loss on disposal of assets (12,333) -

Fair value adjustments - 43,311

(Loss) / Gain on disposal of non-current assets held for sale - 12,759

(12,333) 56,070

Profit before income tax (183,827) (672,022)

30

Rockdale Tennis Club Limited Financial Report Year Ended 30 June 2012

Documents

financial year

the2011 year

year of dedication

year of great food

directors report

compilation report

annual financial report

rockdale tennis club