Financial Statements
CONTENTS Financial Statements Directors' Report 1 Auditor's Independence Declaration 6 Statement of Comprehensive Income 7 Statement of Financial Position 8 Statement of Changes in Equity 9 Statement of Cash Flows 10 11 Directors' Declaration 32 Independent Audit Report 33 Page
Directors' Report 31 October Your directors present this report on the company and its controlled entity for the financial year ended 31 October. Directors The names of each person who has been a director during the year and to the date of this report are: Names David Trodden (Chairman) Dr Leslie Glen (Deputy Chairman) Steve Lavers Danny Stapleton Dawn Fraser Mark Crowe Nicholas Di Girolamo 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 activities of the consolidated group during the financial year were the promotion of rugby league and operating licensed clubs. No significant change in the nature of these activities occurred during the financial year. Objectives The consolidated group's short-term objectives are to: - continue to grow junior league participation numbers; - develop rugby league players from junior representatives or 1st Division appropriate for eventual promotion to Wests Tigers; - operate the football club as a financially sustainable entity. 1
Directors' Report 31 October Objectives (continued) The consolidated group's long-term objectives are to: - continue to promote, maintain and protect our proud history; - provide the best opportunities and pathways possible for up and coming Balmain Tigers Rugby League players, coaches and administrators. Strategies To achieve these objectives, the consolidated group has adopted the following strategies: - provide support to grass root clubs enhancing their opportunity to attract junior players into Rugby League Football; - has 50% shareholding in Wests Tigers; - unite volunteers and community stakeholders to provide the best opportunities to develop rugby league players; - provide training facilities for rugby league players at all levels of the game; - work closely with its members to ensure member expectations are being met and often exceeded; - provide coaching and administrative facilities. Key Performance Measures The consolidated group uses financial and non-financial data to measure its performance on a continuous basis. This is achieved by: - comparing financial performance to budget and industry standards; and - the number of players developed from grass root level through the junior development programmes and onto Wests Tigers development programmes. 2
Directors' Report 31 October Information on Directors David Trodden Qualifications Chairman Bachelor of Commerce (UNSW), Bachelor of Laws (UNSW) Solicitor of Supreme Court of NSW since 1984, Senior Partner in DTA Lawyers Club Involvement Committee Member Finance Member of the Board since 1999, Chairman of the Board since 2002, Wests Tigers Board 2001 -, Chairman of Wests Tigers Board, NSWRL Board since 2010, ARL Board 2010 - Dr Leslie Glen Qualifications Club Involvement Deputy Chairman Consultant Surgeon Balmain District Hospital 1975-1993, Vila Central Hospital (Republic of Vanuatu) 1958-1988, Concord Repatrition General Hospital 1993-present Appointed to Board 1989, Resigned 1999, Reappointed 2000, West Tigers Board since 2001 Committee Member Football, Corporate Governance Steve Lavers Qualifications Director Player 1975-1982, Company Director, Advance Diploma of Business Management (University of Ballarat) Club Involvement Appointed to Board 1996, West Tigers Board since 2007 Committee Member Football, Corporate Governance Danny Stapleton Director Qualifications Player 1985-1994, Director of Priority Coatings Pty Limited Club Involvement Member of the Board since 2003, West Tigers Board since 2003 Committee Member Football (Chairman) Dawn Fraser AO MBE Director Qualifications Olympian 1956, 1960, 1964, Director of NRMA Motoring Services Ltd Club Involvement Member of the Board since 1997, West Tigers Board since 1999 3
Directors' Report 31 October Information on Directors (continued) Mark Crowe Qualifications Director Chief Executive Officer of Australian Marketing Institute, Bachelor of Commerce (UNSW) Club Involvement Member of the Board since 2004, Wests Tigers Board since Committee Member Finance (Chairman), Corporate Governance Nicholas Di Girolamo Director Qualifications Club Involvement Chairman of Australian Water Holdings, Chairman of Italian Chamber of Commerce, Member of NSW Government Italian Ministerial Consultative Committee, Board Director of European Australian Business Council, Member of UNSW Faculty of Science Advisory Council, Director of State Water Corporation. Member of the Board since, Wests Tigers Board, Chairman of Wests Tigers Board. Meetings of Directors During the financial year, 12 Board meetings and 12 Finance Committee meetings were held. Attendances by each director during the year were as follows: Board Meetings Finance committee meetings Number eligible to attend Number attended Number eligible to attend Number attended David Trodden 12 12 12 11 Dr Leslie Glen 12 11 - - Steve Lavers 12 12 - - Danny Stapleton 12 11 - - Dawn Fraser 12 6 - - Mark Crowe 12 12 12 12 Nicholas Di Girolamo 12 12 - - 4
Directors' Report 31 October Going Concern Refer to Note 1(b) in the notes to the financial statements. Members' Guarantee The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a maximum of 4 each towards any outstanding obligations of the company. At 31 October, the total amount that members of the company are liable to contribute if the company is wound up is 2,736 (: 7,544). Auditor's Independence Declaration The auditor's independence declaration for the year ended 31 October has been received and can be found on page 6. Signed in accordance with a resolution by the board of directors: Director:... David Trodden Dated this 25th day of February 2013 5
Auditor's Independence Declaration I declare that, to the best of my knowledge and belief, during the year ended 31 October there have been: (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) no contraventions of any applicable code of professional conduct in relation to the audit. Priestley & Morris Chartered Accountants P A Cordwell Partner Level 7 3 Horwood Place Parramatta NSW 2150 Dated this 25th day of February 2013 Liability limited by a scheme approved under Professional Standards Legislation 6
Statement of Comprehensive Income Note Revenue 7,354,561 6,645,741 982,618 1,335,159 Other income 915,000 200,000 - - Total revenue 2 8,269,561 6,845,741 982,618 1,335,159 Administrative and running costs (2,814,410) (2,794,815) (601,572) (745,455) Advertising, promotions, entertainment, and membership expenses (469,992) (713,098) - - Finance costs 3(a) (821,490) (789,750) (3,954) (11,560) Cost of food and beverages sold 3(a) (496,581) (482,438) - - Depreciation and amortisation 3(a) (564,616) (661,102) (44,855) (45,317) Poker machine duty and licences (1,385,521) (1,128,545) - - Employee benefits expense (1,879,818) (2,001,810) (209,809) (180,376) Grant to Wests Tigers Rugby League Football Pty Limited 3(b) (115,910) (335,154) (115,910) (335,154) Community support expenditure (21,301) (24,825) - - Restructuring and amalgamation costs 3(b) - (37,763) - - Other expenses (120,515) (83,805) (1,422) (5,346) Total expenses (8,690,154) (9,053,105) (977,522) (1,323,208) Profit (loss) before income tax (420,593) (2,207,364) 5,096 11,951 Income tax expense 4 - - - - Profit (loss) for the year (420,593) (2,207,364) 5,096 11,951 Other comprehensive income for the year, net of tax - - - - Total comprehensive income/ (loss) for the year (420,593) (2,207,364) 5,096 11,951 The accompanying notes form part of these financial statements 7
Statement of Financial Position 31 October Note ASSETS Current assets Cash and cash equivalents 5 305,707 260,101 42,414 300 Trade and other receivables 6 278,198 189,411 186,645 104,993 Inventories 7 51,848 64,746 8,050 11,893 Other assets 8 61,230 80,617 - - Total current assets 696,983 594,875 237,109 117,186 Non-current assets Trade and other receivables 6 - - 85,372 216,604 Financial assets 9 100 100 100 100 Property, plant and equipment 10 3,707,382 4,209,266 372,151 391,920 Total non-current assets 3,707,482 4,209,366 457,623 608,624 TOTAL ASSETS 4,404,465 4,804,241 694,732 725,810 LIABILITIES Current liabilities Trade and other payables 11 736,516 1,601,273 76,322 285,158 Borrowings 12 348,781 326,082 67,181 67,670 Provisions 13 152,347 234,139 20,777 39,072 Other liabilities 14 111,028 33,979 90,000 - Total current liabilities 1,348,672 2,195,473 254,280 391,900 Non-current liabilities Borrowings 12 9,592,218 8,849,164 244,379 294,622 Provisions 13 37,979 40,290 3,979 2,290 Other liabilities 14 210,451 83,576 150,000 - Total non-current liabilities 9,840,648 8,973,030 398,358 296,912 TOTAL LIABILITIES 11,189,320 11,168,503 652,638 688,812 NET ASSETS / (LIABILITIES) (6,784,855) (6,364,262) 42,094 36,998 EQUITY/ (DEFICIENCY) Retained earnings/(accumulated losses) (6,784,855) (6,364,262) 42,094 36,998 TOTAL EQUITY / (DEFICIENCY) (6,784,855) (6,364,262) 42,094 36,998 The accompanying notes form part of these financial statements 8
Statement of Changes in Equity Retained Earnings / (Accumulated Losses) Total Balance at 1 November 36,998 36,998 Profit attributable to the company 5,096 5,096 Balance at 31 October 42,094 42,094 Retained Earnings / (Accumulated Losses) Total Balance at 1 November 2010 25,047 25,047 Profit attributable to the company 11,951 11,951 Balance at 31 October 36,998 36,998 Retained Earnings / (Accumulated Losses) Total Balance at 1 November (6,364,262) (6,364,262) Loss attributable to the company (420,593) (420,593) Balance at 31 October (6,784,855) (6,784,855) Retained Earnings / (Accumulated Losses) Total Balance at 1 November 2010 (4,156,898) (4,156,898) Loss attributable to the company (2,207,364) (2,207,364) Balance at 31 October (6,364,262) (6,364,262) The accompanying notes form part of these financial statements 9
Statement of Cash Flows Note Cash from operating activities: Receipts from customers 8,295,700 7,388,154 930,796 732,225 Payments to suppliers and employees (8,984,054) (7,795,740) (1,219,503) (1,188,208) Interest received and reimbursed 867 839 393 - Finance costs (5,969) (309,542) (3,954) (11,560) Net cash used in operating activities (693,456) (716,289) (292,268) (467,543) Cash flows from investing activities: Proceeds from sale of poker machine entitlements 915,000 - - - Acquisition of property, plant and equipment (126,971) (237,912) (26,118) (1,141) Net cash used in investing activities 788,029 (237,912) (26,118) (1,141) Cash flows from financing activities: Proceeds from Balmain Leagues' Club Ltd - - 411,233 485,151 Proceeds from borrowings - 1,000,000 - - Repayment of borrowings (65,805) (48,517) (50,733) (32,817) Net cash provided by financing activities (65,805) 951,483 360,500 452,334 Net decrease in cash held 28,768 (2,718) 42,114 (16,350) Cash and cash equivalents at beginning of financial year 260,101 262,819 300 16,650 Cash and cash equivalents at end of financial year 5(a) 288,869 260,101 42,414 300 The accompanying notes form part of these financial statements 10
The financial statements include the consolidated financial statements and notes of Balmain Tigers Rugby League Football Club Limited and (the consolidated group) and the separate financial statements and notes of Balmain Tigers Rugby League Football Club Limited as an individual parent entity (parent entity). Balmain Tigers Rugby League Football Club Limited, a company limited by guarantee, is incorporated and domiciled in Australia. 1 Summary of Significant Accounting Policies Basis of preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board and the Corporations Act 2001. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial 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 and have been consistently applied unless otherwise stated. The financial statements, except for the cash flow information, 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 and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar. The financial statements were authorised for issue on 25 February 2013 by the directors of the company. Accounting policies (a) Principles of consolidation The consolidated financial statements incorporate the assets, liabilities and results of an entity controlled by Balmain Tigers Rugby League Football Club Limited at reporting date. A controlled entity is any entity over which Balmain Tigers Rugby League Football Club Limited has the power to govern the financial and operating policies so as to obtain benefits from its activities. In preparing the consolidated financial statements, all inter-group balances and transactions between entities in the consolidated group have been eliminated in full on consolidation. 11
1 Summary of Significant Accounting Policies (continued) (b) Going concern Company The company recorded a profit for the year of 5,096 ( - profit of 11,951), after receiving a grant of 280,000 ( - 588,500) from its controlled entity, Balmain Leagues' Club Ltd, had current liabilities in excess of current assets by 17,171 ( - 274,414) had a cash flow deficit from operations of 292,268 ( - 467,543) and is dependent on Balmain Leagues' Club Ltd to provide funding to meet its financial obligations. group The consolidated group recorded a loss for the year of 420,593 ( - 2,207,364), had current liabilities in excess of current assets by 651,689 ( - 1,600,598), had a cash flow deficit from operations of 693,456 ( - 716,289) and had total liabilities in excess of total assets by 6,784,855 ( - 6,364,262). These conditions indicate the existence of material uncertainty, which may cast significant doubt about the company s and the consolidated group s ability to continue as a going concern. The directors have prepared the financial report on a going concern basis for the following reasons: 1. The two venues, Tigers Five Dock and Tigers Sydney Markets, are currently meeting trading expectations. 2. The club has the option to sell gaming machine entitlements to accommodate further capital investment and cash requirements. 3. The directors have undertaken vigorous financial modelling to determine the feasibility of the business and long-term cash flows of the two venues. 4. The non-current loans are not repayable in the current financial year. The directors are satisfied that the going concern basis of preparation is appropriate and have not adjusted the financial report in relation to this uncertainty. Therefore the financial report has been prepared on a going concern basis, which assumes continuity of normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business. 12
1 Summary of Significant Accounting Policies (continued) (c) Revenue and other income Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods. Revenue from the rendering of a service is recognised upon the rendering of the service to customers. Interest revenue is recognised using the effective interest rate method. All revenue is stated net of the amount of goods and services tax (GST). (d) Income tax The parent entity is exempt from income tax. The consolidated group's charge for income tax expense is based on the profit adjusted for any non-assessable or disallowed items. It is calculated using the proportion of net income attributable to non-members and is provided at tax rates that have been enacted or substantially enacted as at the end of the reporting period. Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised. (e) Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other shortterm highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position. (f) Inventories Inventories are measured at the lower of cost and net realisable value. 13
1 Summary of Significant Accounting Policies (continued) (g) Property, plant and equipment Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and any impairment losses. Plant and equipment Plant and equipment is measured on the cost basis less depreciation and impairment losses. The carrying amount of plant and equipment is reviewed annually by the directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets' employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. Leasehold improvements Leasehold improvements are being written off over the period of the lease. Depreciation The depreciable amount of all fixed assets is depreciated on a straight-line basis over the asset's life commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Depreciation Rate Plant and Equipment 5-27% Leased plant and equipment 6.7-27% Leasehold improvements 3.33% The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of comprehensive income. 14
1 Summary of Significant Accounting Policies (continued) (h) Leases Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset (but not the legal ownership) are transferred to entities in the consolidated group are classified as finance leases. Finance leases are capitalised, recognising an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values. Leased assets are depreciated on a straight line basis over their estimated useful lives where it is likely that the company will obtain ownership of the asset. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are recognised as expenses on a straight line basis over the lease term. (i) Financial instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the consolidated group becomes a party to the contractual provisions of the instrument. For financial assets, this is the equivalent to the date that the consolidated group commits itself 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 is classified 'at fair value through profit or loss' in which case transaction costs are expensed to the statement of comprehensive income immediately. Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in arm's length transaction. 15
1 Summary of Significant Accounting Policies (continued) (i) Financial instruments (continued) (i) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. (ii) Financial liabilities Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. Gains or losses are recognised in the statement of comprehensive income through the amortisation process and when the financial liability is derecognised. Impairment At the end of each reporting period, the consolidated group assess whether there is objective evidence that a financial instrument has been impaired. Impairment losses are recognised in the statement of comprehensive income. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the consolidated group no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of noncash assets or liabilities assumed is recognised in the statement of comprehensive income. (j) Impairment of assets At the end of each reporting period, the consolidated group assesses whether there is any indication that an asset may be impaired. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset s fair value less costs to sell and value in use, to the asset s carrying amount. Any excess of the asset's carrying amount over its recoverable amount is recognised immediately to the statement of comprehensive income. Where it is not possible to estimate the recoverable amount of an individual asset, the consolidated group estimates the recoverable amount of the cash-generating unit to which the asset belongs. 16
1 Summary of Significant Accounting Policies (continued) (k) Trade and other payables Trade and other payables represent the liabilities outstanding at the end of the reporting period for goods and services received by the consolidated group during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. (l) Employee benefits Provision is made for the consolidated group s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured 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 estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. Those cash outflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows. (m) Provisions Provisions are recognised when the consolidated group 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 the end of the reporting period. (n) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are expensed in the statement of comprehensive income in the period in which they are incurred. 17
1 Summary of Significant Accounting Policies (continued) (o) 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 (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST component of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers. (p) Comparative figures Comparative figures have been adjusted to conform to changes in presentation for the current financial year. (q) Critical accounting estimates and judgments The directors evaluate estimates and judgments incorporated into the financial statements 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 consolidated group. Key estimates - impairment The consolidated group assesses impairment at the end of each reporting year by evaluating conditions specific to the consolidated group that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions. 18
2 Revenue and Other Income Revenue Revenue from sponsorships and football trading operations 552,876 551,069 552,876 551,069 Poker machine takings 5,398,944 4,728,883 - - Bar sales 986,580 918,579 - - Catering sales 9,009 9,927 - - Merchandising sales 14,158 3,420 2,357 250 Commissions 39,297 69,242 2,333 25,001 Interest received 867 839 393 - Rent 121,101 219,393 3,847 127,946 Member subscriptions 40,377 53,426 8,112 7,735 Management fees 65,000 10,000 65,000 10,000 Grant from Balmain Leagues' Club Ltd - - 280,000 588,500 Sundry revenue 126,352 80,963 67,700 24,658 7,354,561 6,645,741 982,618 1,335,159 Other income Gain on disposal of poker machine entitlements 915,000 - - - Proceeds from variation of call option - Rozelle Village Pty Limited - 200,000 - - Total Revenue and Other Income 8,269,561 6,845,741 982,618 1,335,159 3 Profit Before Income Tax (a) Expenses Cost of food and beverages sold 496,581 482,438 - - Finance costs - Interest expense 821,490 789,750 3,954 11,560 Depreciation and amortisation 564,616 661,102 44,855 45,317 Bad and doubtful debts - Trade debtors 5,789 8,926 - - Rental expense on operating lease 210,918 267,346 - - 19
3 Profit Before Income Tax (continued) (b) Significant Revenue and Expenses: The following significant revenue and expense items are relevant to explaining the financial performance: Revenue: Gain on sale of poker machine entitlements 915,000 - - - Proceeds from variation of call option - Rozelle Village Pty Limited - 200,000 - - Grant from Balmain Leagues' Club Ltd - - 280,000 588,500 915,000 200,000 280,000 588,500 Expenses: Grant to Wests Tigers Rugby League Football Pty Limited 115,910 335,154 115,910 335,154 Restructuring and amalgamation costs - 37,763 - - 115,910 372,917 115,910 335,154 4 Income Tax Expense Proportion of loss attributable to nonmembers (353,526) (426,881) - - Add: Other assessable income 1,069,693 335,113 - - Less: Other deductible expenses (152,065) (184,043) - - Recoupment of prior year tax losses not previously brought to account (564,102) (200,000) - - Income tax loss subject to income tax - (475,811) - - Income tax attributable to above (30%) - (142,743) - - Deferred tax asset not recognised - (142,743) - - Income tax attributable to loss - - - - 20
5 Cash and Cash Equivalents Cash on hand 162,571 175,610 300 300 Cash at bank 126,789 68,999 34,985 - Short-term bank deposits 16,347 15,492 7,129-305,707 260,101 42,414 300 (a) Reconciliation of Cash Note Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows: Cash and cash equivalents 305,707 260,101 42,414 300 Bank overdrafts 12 (16,838) - - - 288,869 260,101 42,414 300 6 Trade and Other Receivables CURRENT Trade receivables 156,796 131,555 60,710 65,109 Provision for impairment (5,789) (1,650) - (1,650) 151,007 129,905 60,710 63,459 Other receivables 127,191 59,506 125,935 41,534 NON-CURRENT 278,198 189,411 186,645 104,993 Amount receivable from: -controlled entity - - 85,372 216,604 21
(a) Provision for Impairment of receivables Movement in the provision for impairment of receivables is as follows: Provision for impairment as at 31 October 2010 56,200 41,500 Written off (54,550) (39,850) Provision for impairment as at 31 October 1,650 1,650 Charge for year 5,789 - Written off (1,650) (1,650) Provision for impairment as at 31 October 5,789-7 Inventories CURRENT At lower of cost and net realisable value Finished goods 51,848 64,746 8,050 11,893 8 Other Assets CURRENT Prepayments 61,230 80,617 - - 9 Financial Assets Interests in joint venture 100 100 100 100 22
10 Property Plant and Equipment PLANT AND EQUIPMENT Plant and equipment At cost 4,873,477 4,765,322 240,621 240,621 Less accumulated depreciation (3,924,947) (3,588,810) (227,449) (222,716) 948,530 1,176,512 13,172 17,905 Leased plant and equipment Capitalised leased assets 68,027 43,182 24,845 - Less accumulated depreciation (22,292) (11,395) (3,681) - 45,735 31,787 21,164 - Leasehold improvements At cost 3,626,171 3,687,678 704,070 704,070 Less accumulated amortisation (913,054) (686,711) (366,255) (330,055) 2,713,117 3,000,967 337,815 374,015 Total property, plant and equipment 3,707,382 4,209,266 372,151 391,920 23
(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: Plant and Equipment Leased Plant and Equipment Leasehold Improvements Balance at the beginning of year 17,905-374,015 391,920 Additions 1,273 24,845-26,118 Disposals (1,032) - - (1,032) Depreciation and amortisation (4,974) (3,681) (36,200) (44,855) Balance at 31 October 13,172 21,164 337,815 372,151 Total Plant and Equipment Leased Plant and Equipment Leasehold Improvements Balance at the beginning of year 1,176,512 31,787 3,000,967 4,209,266 Additions 100,426 24,845 1,700 126,971 Disposals (1,032) - (63,207) (64,239) Depreciation and amortisation (327,376) (10,897) (226,343) (564,616) Balance at 31 October 948,530 45,735 2,713,117 3,707,382 Total 24
11 Trade and Other Payables Note CURRENT Unsecured liabilities Trade payables 181,042 1,027,545 55,840 233,677 Sundry payables and accrued expenses 555,474 573,728 20,482 51,481 19 736,516 1,601,273 76,322 285,158 12 Borrowings CURRENT Unsecured liabilities Bank overdraft 16,838 - - - Other financial liabilities 72,262 73,364 - - Unsecured loans 248,332 245,445 64,255 67,670 337,432 318,809 64,255 67,670 Secured liabilities Lease liabilities 15 11,349 7,273 2,926 - NON-CURRENT 19 348,781 326,082 67,181 67,670 Unsecured liabilities Other loans 9,588,327 8,836,850 244,379 294,622 Secured liabilities Lease liabilities 15 3,891 12,314 - - 19 9,592,218 8,849,164 244,379 294,622 Total current and non-current secured liabilities: Lease liabilities 15,240 19,587 2,926-25
12 Borrowings (continued) (a) The consolidated group has unsecured non-current loans of 9,588,327 ( - 8,836,850) made up of: (i) Working capital facility 4,500,000 ( - 4,500,000). At 31 October, the facility was fully drawn. The loan is repayable no later than three years after commencement of the Rozelle Club lease. (ii) Refurbishment facility 3,100,000 ( - 3,100,000). At 31 October, the facility was fully drawn. The loan is repayable in November 2014. iii) Capitalised interest of 1,743,948 (: 942,228) on the working capital facility and the refurbishment facility which is payable as per (i) and (ii) above. (iv) Other loans 244,379 ( - 294,622). The loan is repayable by instalments until 2017. (b) Lease liabilities are secured by the underlying leased assets. 13 Provisions CURRENT Employee benefits 152,347 234,139 20,777 39,072 NON-CURRENT Employee benefits 37,979 40,290 3,979 2,290 190,326 274,429 24,756 41,362 (a) Movement in carrying amounts Employee Benefits Total Employee Benefits Opening balance at 1 November 274,429 274,429 41,362 41,362 Additional provisions raised during the year 216,909 216,909 9,273 9,273 Amounts used (301,012) (301,012) (25,879) (25,879) Balance at 31 October 190,326 190,326 24,756 24,756 Total 26
13 Provisions (continued) Provision for Long-term Employee Benefits A provision has been recognised for employee entitlements relating to long service leave. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based on historical data. The measurement and recognition criteria relating to employee benefits have been included in Note 1. 14 Other Liabilities CURRENT Subscriptions received in advance 21,028 33,979 - - Deferred income 90,000-90,000-111,028 33,979 90,000 - NON-CURRENT Subscriptions received in advance 60,451 83,576 - - Deferred income 150,000-150,000-210,451 83,576 150,000-15 Commitments (a) Joint Venture The consolidated group has a 50% interest in Wests Tigers Rugby League Football Pty Limited, a joint venture operation whose principal activity is the promotion and propagation of rugby league. Under the terms of the joint venture agreement with Western Suburbs Rugby League Football Group Pty Limited, the consolidated group is committed to fund 50% of Wests Tigers Rugby League Football Club Pty Limited's financial requirements with the contribution determined by unanimous agreement between the shareholders. The commitment may be satisfied by Wests Tigers Rugby League Football Pty Limited issuing shares, receiving loans or grants or by any other method agreed by the shareholders. The consolidated group's maximum commitment is undetermined for. However, with increased funding from the National Rugby League for 2013 and beyond, Wests Tigers Rugby League Football Pty Limited is anticipating future operating surpluses to be generated and contributions by shareholders to be minimal. 27
15 Commitments (continued) (b) Financial Lease Commitments Note Payable - minimum lease payments - no later than 12 months 12,710 9,746 2,964 - - between 12 months and 5 years 4,061 13,808 - - Minimum lease payments 16,771 23,554 2,964 - Less future finance charges (1,531) (3,967) (38) - Present value of minimum lease payments 12 15,240 19,587 2,926 - Finance leases relate to plant and equipment for periods of between 1-2 years. (c) Operating Lease Commitments Non-cancellable operating leases contracted for but not capitalised in the financial statements: Payable - minimum lease payments - not later than 12 months 240,961 434,125 - - - between 12 months and 5 years 67,556 271,250 - - 308,517 705,375 - - Operating leases relate to computers, point of sale equipment, gaming machines and lease of premises for periods up to 2 years. 28
16 Contingent Liabilities Interest on Relocation loan A contingent liability may exist in relation to interest on the Relocation loan. Interest has been calculated at a reasonable estimate of the concessional rate to be charged by the lender. As the actual concessional rate is still to be determined, in accordance with the loan agreement, it is not possible to estimate the financial effect of any contingent liability that may become payable. 17 Key Management Personnel Compensation The total remuneration paid to key management personnel of the company and the consolidated group is Nil and 434,247 ( - Nil and 313,493). 18 Related Party Transactions (a) The controlled entity provided financial assistance and grants to the parent entity as follows: Grants receivable - - 280,000 588,500 Amounts receivable - - 85,372 216,604 - - 365,372 805,104 (b) Transaction between the consolidated group and Wests Tigers Rugby League Football Pty Limited are as follows: Trade and other receivable 168,422-165,874 - Trade and other payable 37,928 165,878 37,793 165,878 Revenue 25,932 106,566 15,267 96,532 Grants paid 115,910 335,154 115,910 335,154 Other expenses paid 489,380 405,212 426,421 357,054 29
(c) Transactions between the consolidated group and other related parties on normal commercial terms: Note Danny Stapleton (Director) - Priority One Coatings Pty Ltd (painting works) - 50,814 - - Danny Munk (Interim CEO) - Munk Management Services Pty Ltd (contract management and agency fees on sale of poker machine entitlements) 77,550 - - - 19 Financial Risk Management The consolidated group's financial instruments consist mainly of deposits with banks, accounts receivable and payable, leases and other loans. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows: Financial Assets Cash and cash equivalents 5 305,707 260,101 42,414 300 Loans and receivables 6 278,198 189,411 272,017 321,597 Total Financial Assets Financial Liabilities Financial liabilities at amortised cost 583,905 449,512 314,431 321,897 - Trade and other payables 11 736,516 1,601,273 76,322 285,158 - Borrowings 12 9,940,999 9,175,246 311,560 362,292 Total Financial Liabilities 10,677,515 10,776,519 387,882 647,450 30
20 Economic Dependence The parent entity is dependent on its controlled entity to provide funding to meet its financial obligations. 21 Controlled Entities Subsidiary: Balmain Leagues' Club Ltd Country of incorporation: Australia 31
Directors' Declaration In accordance with a resolution of the directors of Balmain Tigers Rugby League Football Club Limited, the directors of the company declare that: 1. The financial statements and notes, as set out on pages 7 to 31, are in accordance with the Corporations Act 2001 and: (a) comply with Australian Accounting Standards; and (b) give a true and fair view of the financial position as at 31 October and of the performance for the year ended on that date of the company and consolidated group. 2. In the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. Reference should be made to Note 1(b). Director... David Trodden (Chairman) Dated this 25th day of February 2013 32
Independent Audit Report to the Members of Report on the Financial Report We have audited the accompanying financial report of Balmain Tigers Rugby League Football Club Limited (the company) and its controlled entity (the consolidated group), which comprises the statement of financial position as at 31 October, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory 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 in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001and for such internal control as the directors determine is necessary to enable the preparation of the financial report that 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 accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free 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 material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of 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 confirm that the independence declaration required by the Corporations Act 2001 was provided to the directors of Balmain Tigers Rugby League Football Club Limited on the same date as this auditor's report. Liability limited by a scheme approved under Professional Standards Legislation 33
Independent Audit Report to the Members of Auditor's Opinion In our opinion the financial report of controlled entity is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the company s and consolidated group's financial position as at 31 October and of their performance for the year ended on that date; and (b) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations 2001. Material Uncertainty Regarding Continuation as a Going Concern Company The company for the year ended 31 October incurred a net loss 5,096 after receiving a grant of 280,000 from its controlled entity (Balmain Leagues' Club Limited), incurred a cash flow deficit from operations of 292,268 and as of that date had current liabilities in excess of current assets by 17,171and is dependent on Balmain Leagues' Club Limited to provide funding to meet its financial obligations. Group The consolidated group during the year ended 31 October incurred a net loss of 420,593, incurred a cash flow deficit from operations of 693,456 and as of that date had current liabilities in excess of current assets by 651,689 and net deficiency of 6,784,855. These conditions, along with other matters as set forth in Note 1(b), indicate the existence of a material uncertainty which may cast significant doubt about the company s and the consolidated group s ability to continue as going concerns and whether they will realise their assets and extinguish their liabilities in the normal course of business and at the amounts stated in the financial report. Note 1(b) also sets out the directors' reasons for preparing the financial report on a going concern basis. No adjustments have been made in the financial report relating to the recoverability and classification of recorded asset amounts and the classification of liabilities that might be necessary if the company and consolidated group do not continue as going concerns. Priestley & Morris Chartered Accountants P A Cordwell Partner Level 7 3 Horwood Place Parramatta NSW 2150 Dated this 25th day of February 2013 Liability limited by a scheme approved under Professional Standards Legislation 34