2011 CHCC Annual Report

CASTLE HILL COUNTRY CLUB

ANNUAL REPORTAND

FINANCIAL STATEMENTSFOR THE YEAR ENDED 30TH JUNE, 2011

Annual Report 1Castle Hill Country Club LimitedABN 62 000 085 423

Castle Hill Country Club LimitedABN 62 000 085 423

PRESIDENT:

Roger Allsop

VICE–PRESIDENT:

Terry Greenhalgh

CAPTAIN:

Lindsay Verdon

VICE–CAPTAIN:

Bill Muter

TREASURER:

Paul Moynihan

DIRECTORS:

Alann JamesVacant

CHIEF EXECUTIVE OFFICER:

Stuart Fraser

BANKERS:

Westpac

AUDITORS:

D A Strati & Associates

SOLICITORS:

Snelgroves

Office bearers 2011

ADDRESS: Spurway Drive, Baulkham Hills NSW 2153

POSTAL ADDRESS: PO BOX 6767, Baulkham Hills NSW 2153

CONTACT DETAILS: Offi ce: 9634 2499 Pro Shop: 9634 2573 Golf Offi ce: 9894 4155 Fax: 9899 5086 Email: [email protected] Web: www.chcc.com.au

Castle Hill Country Club LimitedABN 62 000 085 423Annual Report2

Notice of Annual General Meeting

Notice is hereby given that the 61st Annual General Meeting of the Castle Hill Country Club Limited will be held at the Clubhouse, Windsor Road, Baulkham Hills on Tuesday, 25th October 2011, commencing at 7:30pm.

Business1. Apologies2. To receive the report of the President and Committee for

the year.3. To receive and consider the Balance Sheet and Income

and Expenditure Account for the year ended 30 June, 2011 together with the Reports of the Directors and Auditors thereon.

4. That pursuant to Section 10 (6) and 10 (6A) of the Registered Clubs Act 1976 the members approve and agree to the following expenditure and benefi ts for certain members of the Club during the period from the date of these resolutions to the date of the next Annual General Meeting.

Resolution 1The Directors to have the right to enter their names with three others on competition booking sheets prior to the issue of such sheets to the general membership.

Resolution 2Reserved car parking spaces for Directors and the Ladies Committee.

Resolution 3The reasonable cost of a meal and beverage for each Director during/after each Board Meeting.

Resolution 4The Annual Dinner for Board and Sub Committee Members and Partners – max cost $1850.

Resolution 5The Annual President’s lunch for Sponsors and Invited members – max cost $1850.

Resolution 6The Annual President’s Cocktail Party for members with 30 years membership.

Resolution 7The reasonable cost of expenses incurred by Directors when representing the Club, such expenses to be approved by the Board.

Resolution 8Provision of an expense account to the President and Captain to a maximum of $2,500 each p.a. All expenses incurred to be fully documented and approved by the Board.

The members acknowledge that the benefi ts in Resolution 1 to 8 inclusive are only for certain members and Directors of the Club.

5. To declare the result of the ballot for the election of the Board of Directors to hold offi ce for the ensuing year.

Special Resolution To consider and if thought fi t pass the following resolution that is proposed as a Special Resolution to amend the Constitution & Regulations of Castle Hill Country Club Ltd as follows;

Rule 40. (1) be amended to read “The Board shall be elected biennially at an Annual General Meeting as provided for inRule 41”.

Rule 40. (2) be amended to read “The Members of the Board shall hold offi ce until the conclusion of the second Annual General Meeting immediately following their election to the Board when they shall retire. All retiring Members shall be eligible for re-election”.

Rule 41. (i) be amended to read “The Members of the Board holding offi ce at the adoption of this Constitution shall subject to this Constitution continue in offi ce until the conclusion of the second Annual General Meeting of the Club, immediately following their election.

Stuart FraserChief Executive Offi cer

Note 1To enable properly researched replies to be prepared for the benefi t of members it would be appreciated if members who wish to raise any queries or seek information at the meeting concerning the annual Accounts, the Balance Sheet or Associated Statements or the affairs of the Club, give the Chief Executive Offi cer notice in writing of their queries by 1 th October 2011.

Note 2There is no requirement under the Corporations Law for the minutes of the previous General Meetings to be confi rmed by this meeting. Minutes of the 60th Annual General Meeting held on Monday 18th October 2010 are on display on the Club’s Notice Board, or they may be inspected in the Offi ce.

7


President’s Report

Dear Members,

This has been another diffi cult year throughout the golfi ng community. There are a number of NSW clubs in fi nancial diffi culty but fortunately we do not fall into that category. Our fi nances are in good shape and we are in a strong position to continue to move forward and implement improvements and plans for the future.

Income was down versus budget but in line with last year. During the year we had 10 more days compared to last year, where carts could not be used and an additional six days when the course was closed. This affected income by approximately $80,000.

Expenses were favourable versus budget and last year and our new member intake was up versus last year.

The profi t result was $145,890 Cash reserves as at 30th June were $1,845,413.

The course improvement program has continued throughout the year with the major emphasis on fi nishing the irrigation system. We now have the ability to water the full width of the fairways as well as the rough. The bunker program has been completed and we are now concentrating on the tee improvement program with the emphasis on the 14th, 3rd and 9th tees. The course is in good condition and will only improve as we continue into the grass growing season.

I would like to thank the Course Superintendent and his team for an excellent job throughout the year. When you consider what occurred during the year with the high number of frosts and huge rainfall and excessive winds, the course is in good condition and the best it has been in winter for many years. It is now in a condition that sets it up to look great going into the summer.

With the completion of the Tee Improvement Program, it is the Board’s intention to leave major course projects for a few years and let the members enjoy the course without disruption. We will be concentrating on facilities projects including, renovating the Sprig Bar, renovating the Main Bar and revamping the front entrance.

We are working on a Master Plan for the clubhouse to ensure the necessary projects are considered based on need and cost. This will be presented to members as we proceed project by project.

Members would have noticed signifi cant activity has started around the club boundaries. This has created a signifi cant workload for the Board and staff to ensure our rights are protected.

I would like to thank the Board for the efforts during the year. It has been a successful year that only happens through team work and commitment to the job. We have at our club, a strong and committed administration team. Thank you to Stuart Fraser, Libby Ingersole, Norman Nasser, Sandra Turner and Mirella Buckler for their efforts during the year.

I would also like to take this opportunity to thank the Pro Shop staff and Golf Offi ce staff for their contribution and commitment.

We are in good shape to handle the challenges going forward. We have a talented and committed team in place that has us in our current position and the ability to lead us into the future.

In conclusion we are a successful golf club with a committed Board and a strong management team. There are challenges going forward that will be managed appropriately to achieve the desired results.

I would like to thank all the members for their support and wish you continued good golfi ng.

Roger AllsopPresident


Captain’s report

The past twelve months has seen the largest job undertaken by our Club for some time, the total renewal of the course irrigation system. We only had the benefi ts of the system for a short time at the end of summer but I am sure that this time next year our golf course will be the envy of all western Sydney courses. We have some fi nal works to do on the system, such as raising some of the sprinkler heads that sank after ground settlement took place. This work will be completed during September, along with topping up the irrigation lines to fi nalise the project.

The new short game practise facility has proven very successful. The green’s surface is improving each month and it is our goal to have the green speed the equal of our other greens by the end of summer. We will continue to improve our practise facilities to encourage all members to enjoy the course and club on a regular basis.

We are currently renewing the 14th tee. The tee has been pushed further towards the boundary line and additional drainage has been included to deal with the high level of seepage coming from the adjoining property. With the success of the recently renovated 10th and 15th tees we felt a larger tee was needed for this hole. We will be planting additional trees along the boundary line each side of the water hazard at the end of the tee to stop the errant tee shot going over the fence when the adjoining land is developed. Other tees programmed for renovation are the 3rd and 9th tees towards the end of 2012.

Our goal for the next 2-3 years is to trim and manicure the course along with improving the many gardens. We will also be improving the boundary screening of holes such as the 2nd, 5th, 6th, 7th as these areas will see medium density housing begin to intensify. We are trying to screen out the neighbours and maintain the current peaceful environment.

To Martyn and his hard working team, thank you very much for the huge effort during the irrigation works and throughout the whole year. The Course is in the best condition for many years as a result of your passion and commitment to excellence.

Our Junior golfers have been supported for many years by Peter and Glenn Duncan’s sponsorship through their company, Pirtek. This year we have decided to extend our Junior Development Program by providing scholarships to four of our very promising juniors. Lachlan Crowl, Kurt Eckmann, Isabella Chan and Jack Gibbeson will receive these scholarships and we hope each of them will benefi t greatly from this opportunity. Our Juniors receive very good support from the Pro shop team as do all of the members. Thank you David, Shane and team for your support. Thank you also to Peter and Glenn for their continuing support. Our Junior golf has never been stronger at Castle Hill.

To all our representative teams, both male and female, congratulations on your efforts and sportsmanship. I believe 2012 will see Castle Hill’s name challenging for success in all areas. A very wise old golf pro once told me, winning is not a right, it is an attitude and if we work hard success will follow.

To all the winners of major competitions, congratulations, but ultimately we are all out there for the exercise, enjoyment and the challenge. Please continue to help maintain our course and support the good work Martyn and his team do, by raking

bunkers, repairing pitch and divot marks and taking care of the course each time you play. It is our course and we must treat it as our own. Enjoy your golf!

Club Championships 2010A Grade Martin CarmichaelA Reserve Matthew SeamonsB Grade Kenneth McWhirterC Grade Jack GibbesonJunior Kurt EckmannSenior Mark BurridgeColts

Gold Medals 2010A Grade Rodney McDonaldB Grade Ronan McCaffrey C Grade Roy Laverick

Castle Hill Spring Cup2011 Stephen Bevan

Foursomes Championship 2010 A Grade Paul Bardetta & Martin CarmichaelB Grade Paul Bell & John MathiesonC Grade Paul Moynihan & Bill Zubrycki

Mixed Foursomes 2011Not yet played

Mauri Greenhalgh Trophy 2011Not played yet

Bruce Cooper Memorial TrophyMarian Van Der Weegen and Joe Lele

Holes In One From 1 July 2010Member Date HoleC. Liney 17/9/10 17thD. Ford 18/9/10 11thR. Brown 17/11/10 11thP. Pryce 20/11/10 4thA. Wylie 20/11/10 17thT. Amery 22/11/10 17thM. Phelan 29/12/10 2ndR. Allsop 19/01/11 4thL. Miller 26/01/11 4thL. Wilson (Lady) 17/03/11 4thD. Nelson 06/04/11 4thP. Wright 09/04/11 2ndK. Romer (Lady) 10/04/11 4thR. Padmanabhan (Lady) 18/04/11 4thC. Woo 09/05/11 2ndF. Zulfi qar 14/05/11 11thM. Carmichael 03/07/11 4th

Lindsay Verdon Captain


Finance Report

The 2011 fi nancial year has proven to be a year of fl uctuations in the trading activity of the Club.

Despite the course being closed for 8 days, and members being unable to use carts for 23 days, I am pleased to report that the Club has returned a net profi t of $145, 890 for the year, compared with 2010 year profi t of $161,487. In that year the course was closed for only two days and carts were not allowed for 15 days, due to inclement weather.

Total revenue from operations was $5,411,970 which was almost identical to the previous year. The main revenue movements were:• Entrance fees up 2.9% to $249,352• Visitor green fees down 10% to $183,268• Corporate green fees down 3.2% to $181,900• Competition green fees down by 8.85% to $299,039• Income from carts up by 8.6% to $295,288• Main bar, Sprig Bar and restaurant income up 7.25% to

$1,198,855 (combined).

Although membership once again declined, albeit minimally, subscription income remained static. Gross Income from the Professional Shop, and Net Poker machine takings was also similar to those of the previous year.

While it improved by $22,577 during the year, the investment in the Perpetual Managed Fund is still $53,130 (10.63%) below the Club’s initial investment.

You will see that rental income is down by $42,725 to $46,805, but this has been more than offset by the increase in combined Main Bar, Sprig Bar and Restaurant takings of $81,109. I should like to pay a special tribute to Duncan Walker, Cherie Seminov, Cassie Robertson and all the staff associated with making the restaurant a success in its fi rst year of operation. A note of concern however, is that takings from the Main Bar dropped by 5.2% in the year.

Total expenses for the year of $5,266,080 were less than 1% up on last year, which is a pleasing result. Stuart Fraser and his team are to be commended on achieving this goal.

The main expense movements were:• Competition expenses down by 9.8% to $320,906• Main Bar, Sprig Bar and restaurant expenses up by 4.8% to

$1,149, 590 (combined)• House expenses up by 2.3% to $882,853• Pro Shop expenses up by 3.4% to $821,306

Capital expenditure for the years was $1,734,361 compared to $367,228 in 2010. The major item included under this heading was the replacement of the club’s irrigation system at a cost of $1,252,668. New clubhouse equipment totaling $202,188 is also included in this amount.

Cash available at 30 June 2010 was down by $688,166 to $1,845,413, which is a good result after taking into account the amount spent on new capital items.

Operating activities for the year generated a net cash increase on 2010 of $388,329 to $1,018,293.

The freehold land and golf course improvements were revalued upwards by $1,583,722 to $21,000,000 while the club buildings were revalued downwards by $138,391. Depreciation expense was up marginally to $578,150.

Overall the Net Assets of the club increased during the year by $1,729,612 to $31,867,997, which is a positive and pleasing result.

Finally, I would like to thank Stuart Fraser, Norman Nasser and Elizabeth Ingersole for their support during the year.

Paul MoynihanTreasurer


Membership and Social Report

available, allowing the club to appeal to a broader market to include weddings, private functions and meetings. This effort has certainly paid off with an increase in net restaurant profi t of 181%, despite only being open nine months of the fi nancial year, and a $12,000 increase in room hire fees.

With the launch of the new ACRES function room, the club also introduced fi nancial incentives for members holding functions at the club, including waiving the room hire fee, upgrades within the beverage packages and member drink pricing for functions.

As well as the private functions held in Acres, the club has hosted a very successful series of A la carte evenings on the third Friday of every month. These evenings have been very well received by members and their guests with attendances increasing every month since the fi rst dinner held for Valentines Day.

The Lounge Bar menu unfortunately did not prove as popular and was not well supported by members and was ceased in August, with an abbreviated Lounge Bar menu being available from the Sprig Bar. Blackboard specials will continue on Thursdays for the ladies competition where it has been very well supported.

This year’s Charity Golf Day was a great success with the weather holding off for a great day of golf, and a very successful auction in the evening hosted by Ray Hadley. Thank you to Ray for donating his time and expertise to this most worthwhile event.

Some highlights still to come on our Social Calendar this year are the Captain & Presidents Dinner, Major Trophy Presentation, the Kids Christmas Party and New Years Eve.

I would like to take this opportunity to thank the Social Committee for all their support and a particular thank you to Libby Ingersole and Mirella Buckler for all of their assistance and help.

Terry GreenhalghVice PresidentMembership Committee

MembershipThis year has certainly seen some changes in membership patterns within the club, with the most signifi cant increases being in the 6 Day Senior and Non-Play categories, which is a refl ection of our aging membership population, and decreases seen in 6 Day and 7 Day categories resulting in a net decrease of 2.9% of golfi ng members for the year.

The uncertainty of the current global economy will be one of our most diffi cult challenges in our effort to attract new members over the next 12 months, as potential new members become reluctant to engage in major purchases on luxury items such as golf club membership.

Recent discussions with the Ladies Committee to form new strategies in an effort to attract lady members without discounting or eliminating entrance fees, like some of our neighbouring clubs, will hopefully result in an increase in ladies membership. We hope to build our ladies membership numbers by promoting the club through an open day to be held in October and through further advertising of the Ladies Membership Promotion.

On a positive note Entrance Fees this fi nancial year exceeded last year’s total indicating the club is clearly still attracting new members. It will be our responsibility this coming year to continue to promote the benefi ts of continued membership and to attract new members to our magnifi cent club.

The introduction of the Pirtek Junior Scholarship Program will certainly assist in attracting and developing our Junior Program, which has seen considerable improvement in participation numbers over the last few years. This combined with the success of our junior teams at representative level and their own individual success through the Jack Newton Junior Golf Foundation is fantastic for building our members of the future.

SocialThis fi nancial year the club began operation of the restaurant facilities beginning with some much needed renovations to give it a more contemporary look and to increase the functional space

Description 2010 20117 Day Playing 452 4207 Day Senior 100 936 Day Playing 245 2166 Day Senior 48 645 Day Playing 190 173Junior Members 12 13Cadet Members 35 31Sub Cadet Members 4 3Country Members 28 22Non Playing Members 121 155House Members 9 11Corporate Members 10 15Life Members 3 3Special Members 5 5Ladies Promotion 8 8

Total Club Members 1270 1232Social Members 170 183

TOTAL 1440 1415 As at 31st August 2011


On behalf of the Ladies Committee I would like to present the 59th Annual report for your consideration. As this is my last year as President I would like to say thank you to all the Committee members I have had the pleasure to work with over the pastsix years.

To my present Committee of Vice President Anne Phelan, Captain Tammy Hayton, Vice Captain Susie Hunt and Secretary Claire Compton, I would like to say a big thank you to you all. It has been a pleasure working with you and having a great Committee has made it easy for me and I would like to wish you all every success for the coming years.

To all the lady members thank you for your support, your kindness and your generosity. I know you will continue to support the new committee.

Results of Major Events for 2011

Club Champion Jennie PridmoreDivision 2 Champion Katerina KimDivision 3 Champion Regina JangSingles K nockout Kendy DrummondVeteran Champion Julie CannonSuper Veteran Champion Jan HarrisonFourball Knockout Diane Schultz and Janet LienHarvey Memorial Trophy Lynne HaynesSilver Salver Julie CannonBronze Salver Danuta MathiesonJunior Champion Isabella ChanSummer Cup Lynne Papandrea

Congratulations to all the winners and also to everyone that competed in these events.

Presentation of minor trophies will take place on our closing day Thursday 17th November, and our major trophies will be presented at our Annual Dinner on Friday 18th November. These are always special events so please try and attend.

Congratulations to our Grade and Pennant Teams who all played well this year. Thank you to our junior players Alyx Kemp, Isabella Chan and Catherine Lee who played for our Grade team.

Thank you to the dedicated caddies for their time and effort during the year. Also to the Grade Captain Dawn Phillips and Caddie Captain Helen Howard thank you for all your work with the team.

This year we fi elded a junior girls Encourage Shield team with Avondale. The team consisted of Alyx Kemp, Sarah King and Shalysse Romer. The girls made it to the fi nals but were unsuccessful in the end. Congratulations to all the girls for their dedication and thank you to all the families for encouraging the girls and helping with transport etc. Thank you to Raina Laughton for coordinating the girl’s team.

Catherine Lee was awarded the most improved player. Congratulations Catherine.

The Goodwill Cup was played at Castle Hill with Castle Hill winning. Thank you to all the girls who played in that event.

Our interclub match against Pennant Hills was played at Pennant Hills this year with Pennant Hills winning the match.

Our fi rst Bonnie Castle Cup was held last October. It was a very successful day and we will be hosting it this year in October.

The Ladies Open Day was held again in January. It was a huge success with clubs from city and country areas participating.

The Pro Am will be held on the 25th November this year. Good luck to all players.

Our Friendship Day this year will be held on the 29th September. Thank you in advance to all the members and business owners who have generously donated gifts for our major raffl e. Without these donations, support for our charity Children’s Cancer Research Unit and specifi cally Neuroblastoma in Children would be diffi cult to achieve.

Thank you to the Friendship Committee Lynne Booth, Pam MacDonald, Jacqui Kahler, Bronwyn Burnett, Pip Ellis and Anne Phelan who have worked very hard all year to make this day such a success. Also thank you to Sue Mulligan, Judyanne Thrower for helping with the Friendship Committee.

Our sponsors for the ladies competitions have continued this year. Thank you to House of Fraser in Castle Towers and Mario Raymond Hair Salon in Baulkham Hills.

This year we have had a few lady members leave the club for various reasons. We wish them good luck in the future.

Also this year we have had a few lady members pass away. To all their families and friends we send our thoughts and best wishes.

To Karen in the golf offi ce, thank you so much for your help and patience. The Ladies Committee would not be able to work nearly as effi ciently without your help.

Thank you to all the members and staff of Castle Hill Country Club for your help and support of the Ladies and the Ladies Committee.

Lorraine WilsonLady President

Ladies Committee Report


Your Directors present their report on the Company for the fi nancial year ended 30 June 2011.

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

Name

Roger Allsop – Appointed 18 October 2010

David Geraghty – Resigned 18 October 2010

Lindsay Verdon

William Muter

Robert Hickson – Resigned 18 October 2010

Michael Roy Jones – Resigned 18 October 2010

Graham Hayton – Resigned 18 October 2010

Terrence Greenhalgh – Appointed 18 October 2010

Allan James – Appointed 18 October 2010

Paul Moynihan – Appointed 18 October 2010

Glen Byrnes – Appointed 18 October 2010, Resigned 31 January 2011

Directors have been in offi ce since the start of the fi nancial year to the date of this report unless otherwise stated.

Directors’ Report

Company SecretaryThe following person held the position of company secretary during the year and to date of this report: Stuart Norman Fraser – Bachelor of Arts (Human Movement Studies). Stuart Fraser has worked for the Castle Hill Country Club Limited for the past seven years, performing the role of Chief Executive Offi cer. Stuart was appointed company secretary on 1 March 2004.

Principal ActivitiesThe principal activity of the company during the fi nancial year was the operation of a golf club and its associated activities. No signifi cant changes in the nature of the company’s activity occurred during the fi nancial year.

Operating ResultsThe profi t of the company amounted to $145,890.

Dividends Paid or RecommendedThe company’s Constitution prohibits the payment of dividends.

Review of OperationsThe Operating Profi t of $145,890 is a decrease of 9.66% from the previous year ($161,487). Revenue increased by 0.30% ($16,314), and operating costs increased by 0.61% ($31,911). Cash reserves at 30 June 2011 totalled $1,845,413. Capital expenditure for the year was $1,734,361.

Signifi cant Changes in State of AffairsNo signifi cant changes in the company’s state of affairs occurred during the fi nancial year.

After Balance Date EventsNo matters or circumstances have arisen since the end of the fi nancial year which signifi cantly affected or may signifi cantly affect the operations of the company, the results of those operations, or the state of affairs of the company in future fi nancial years.

Future DevelopmentsThe company expects to maintain the present status and level of operations and hence there are no likely changes envisaged in the company’s operations in the forseeable future.

Environmental IssuesThe company’s operations are not regulated by any signifi cant environmental regulation under a law of the Commonwealth or of a state or territory. The directors believe that the company has adequate systems in place for the management of it environmental requirements and are not aware of any breach of those environmental requirements as they apply to the company.


Information on Directors

Roger AllsopQualifi cations: Bachelor of Science, MBAExperience: Retired, formerly Operations

Director. Special Responsibilities: President Appointed 18/10/2010

Finance Committee memberPlanning and Development Committee memberExecutive Remuneration Committee

David GeraghtyQualifi cations: Bachelor of Economics, Chartered

AccountantExperience: General Manager and Director.

Appointed 26/10/2004.Special Responsibilities: President Resigned 18/10/2010.

Finance Committee memberPlanning & Development Committee memberExecutive Remuneration Committee chairperson

Lindsay VerdonQualifi cations: Diploma of Architectural DraftingExperience: NSW Marketing Manager.

Appointed 26/10/2004.Special Responsibilities: Captain

Course Committee memberMatch Committee memberJunior Development Committee chairpersonExecutive Remuneration Committee

William MuterQualifi cations: Experience: Retired, formerly General Manager.

Appointed 26/10/2004.Special Responsibilities: Vice Captain

Course Committee memberMatch Committee memberJunior Development Committee member

Terrence GreenhalghQualifi cations: Electrical Contractor, Company

Director.Experience: Director Appointed 18/10/2010.Special Responsibilities: Vice President

Social Committee Chairperson Membership Committee Chairperson

Robert HicksonQualifi cations: Bachelor of Engineering, Graduate

Diploma in Business Management, Masters in Applied Finance

Experience: Operations Director. Resigned 18/10/2010.

Special Responsibilities: Vice President appointed 19/10/9 Planning and Development Committee chairpersonFinance Committee member

Paul MoynihanQualifi cations: Fellow Chartered Accountants Experience: Director Appointed 18/10/2010.Special Responsibilities: Treasurer

Chairperson of the Finance CommitteePlanning and Development Committee MemberExecutive Remuneration Committee

Michael Roy JonesQualifi cations: Bachelor of Science,

PHD in ScienceExperience: Senior Operations Executive.

Director. Resigned 18/10/2010.Special Responsibilities: Treasurer

Finance Committee Chairperson Membership/Social Committee member

Allan JamesQualifi cations: Managing Director of Steel

Fabrication CompanyExperience: Director Appointed 18/10/2010.Special Responsibilities: Finance Committee Member

Planning and Development Committee Chairperson Membership CommitteeSocial Committee

Glen BrynesQualifi cations: Advanced Certifi cate in Plumbing,

Company Director Experience: Director Appointed 18/10/2010. Special Responsibilities: Membership Committee

Social Committee MemberPlanning and Development Committee Member

Graham HaytonQualifi cations: Bachelor of Arts,

Graduate Diploma in Education Studies.

Experience: Director Resigned 18/10/2010.Special Responsibilities: Membership/Social Committee

Member

Directors’ Report continued


Meetings of DirectorsDuring the fi nancial year, 13 meetings of directors were held. Attendances by each Director were as follows:

Directors MeetingsDirector No. Eligible No. to Attend Attended

Roger Allsop 9 9

David Geraghty 4 4

Lindsay Verdon 13 12

Robert Hickson 4 4

William Muter 13 13

Michael Roy Jones 4 2

Graham Hayton 4 4

Terrence Greenhalgh 9 8

Alann James 9 6

Paul Moynihan 9 8

Glen Byrnes 5 3

Indemnifying Offi cers or AuditorNo indemnities have been given or insurance premiums paid, during or since the end of the fi nancial year, for any person who is or has been an auditor of the entity. During the fi nancial year the company has paid premiums to insure each of the directors against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of Director of the company, other than conduct involving a wilful breach of duty in relation to the company. The amount of the premium was $495 for each Director.

Proceedings on Behalf of the EntityNo person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.The company was not a party to any such proceedings during the year.

Auditor’s Independence DeclarationThe lead auditor’s independence declaration for the year ended 30 June 2011 has been received and can be found on page 26 of the Annual Report.

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

Roger Allsop – Director

Paul Moynihan – Director

Dated 31st day of August 2011

at Baulkham Hills

Directors’ Report continued


Note 2011 2010 $ $Revenue from operating activities 2 5,411,970 5,395,656

Employee benefi ts expense (2,446,404) (2,342,415)

Depreciation and amortisation 3 (578,150) (574,778)

Administration expenses (172,406) (186,516)

Other expenses (2,069,120) (2,130,460)

Profi t before income tax 145,890 161,487

Income tax expense – –

Profi t for the year 145,890 161,487

Other comprehensive income for the year, net of tax – –

Total comprehensive income for the year 145,890 161,487

Profi t attributable to members of the entity 145,890 161,487

Total comprehensive income attributable to members of the entity 145,890 161,487

Income Statementfor the year ended 30 June 2011

Statement of Comprehensive Incomefor the year ended 30 June 2011


Note 2011 2010 $ $ ASSETS

CURRENT ASSETS Cash and cash equivalents 4 1,845,413 2,533,579

Trade and other receivables 5 65,768 57,899

Inventories 6 234,214 237,842

Other current assets 7 89,672 131,210

TOTAL CURRENT ASSETS 2,235,067 2,960,530

NON-CURRENT ASSETS

Financial assets 8 446,870 424,292

Property, plant and equipment 9 31,085,511 28,353,824

TOTAL NON-CURRENT ASSETS 31,532,381 28,778,116

TOTAL ASSETS 33,767,448 31,738,646

CURRENT LIABILITIES

Trade and other payables 10 1,415,407 1,181,023

Short term provisions 11 484,044 419,238

TOTAL CURRENT LIABILITIES 1,899,451 1,600,261

TOTAL NON-CURRENT LIABILITIES – –

TOTAL LIABILITIES 1,899,451 1,600,261 NET ASSETS 31,867,997 30,138,385

EQUITY Retained earnings 13 3,928,780 3,782,890 Reserves 12 27,939,217 26,355,495 TOTAL EQUITY 31,867,997 30,138,385

Statement of Financial Positionas at 30 June 2011

The accompanying notes form part of these fi nancial statements.



Statement Of Changes in EquityFor The Year Ended 30 June 2011

Asset Capital Retained Revaluation Profi ts Total Earnings Reserve Reserve $ $ $ $

Balance at 1 July 2008 3,591,893 21,876,590 4,478,905 29,947,388

Profi t attributable to the entity 29,510 29,510

Balance at 30 June 2009 3,621,403 21,876,590 4,478,905 29,976,898


Balance at 30 June 2010 3,782,890 21,876,590 4,478,905 30,138,385


Revaluation increment 1,583,722 1,583,722

Balance at 30 June 2011 3,928,780 23,460,312 4,478,905 31,867,997


Note 2011 2010

$ $

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from customers 5,210,346 5,197,863

Payments to suppliers and employees (4,290,137) (4,665,760)

Interest received 98,084 97,861

Net cash generated from operating activities 14(a) 1,018,293 629,964

CASH FLOW FROM INVESTING ACTIVITIES

Proceeds from sale of property, plant and equipment 27,902 13,709

Payment for property, plant and equipment (1,734,361) (367,228)

Payment for investments – –

Net cash used in investing activities (1,706,459) (353,519)

Net (decrease) increase in cash held (688,166) 276,445

Cash at the beginning of the fi nancial year 2,533,579 2,257,134

Cash at the end of the fi nancial year 14(b) 1,845,413 2,533,579

Statement of Cash Flowfor the year ended 30 June 2011



Notes to the Financial Statementsfor the year ended 30 June 2011

Note 1Statement of Signifi cant Accounting PoliciesThe fi nancial statements are general purpose fi nancial statements that have been prepared in accordance with Australian Accounting Standards including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.The fi nancial report is for Castle Hill Country Club Limited as an individual entity, incorporated and domiciled in Australia. The following is a summary of the material accounting policies adopted by the entity in the preparation of the fi nancial report. The accounting policies have been consistently applied, unless otherwise stated.

Basis of PreparationReporting Basis and ConventionsThe fi nancial report has been prepared on an accruals basis and is based on historical costs.It does not take into account changing money values or, except where stated, current valuations of non current assets. Cost is based on the fair values of the consideration given in exchange for assets.

Accounting Policies(a) RevenueRevenue from the sale of goods is recognised at the time of sale to members and guests. Revenue from the rendering of a service is recognised upon the delivery of the service to members and guests. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the fi nancial assets. All revenue is stated net of the amount of goods and services tax (GST).

(b) InventoriesInventories are measured at the lower of cost or estimated replacement cost in the ordinary course of business.

(c) Property, Plant and EquipmentEach class of property, plant and equipment is carried at cost or fair values less, where applicable, accumulated depreciation and impairment losses.

PropertyFreehold land and buildings are shown at their fair value based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation reserve in equity. Decreases that offset previous increases of the same classes of assets are charged against revaluation reserves directly in equity; all other decreases are charged to the income statement.

Plant and EquipmentPlant and equipment are measured on the cost basis less depreciation and impairment losses. The carrying amount of plant and equipment is reviewed annually by 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 fl ows that will be received from the assets employment

and subsequent disposal. The expected net cash fl ows have not been discounted to their present values in determining recoverable amounts.

DepreciationThe depreciable amount of all fi xed assets including buildings and capitalised lease assets, but excluding freehold land, is depreciated on a straight line or diminishing value basis over their useful lives to the entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation rates used for each class of depreciable assets are:Buildings 2-10%Course Plant 5-33%Clubhouse Equipment 5-40%Poker Machines 10-33%Leased Equipment 15-20%Fixtures and Fittings 5-40%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset classes carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. 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. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

(d) LeasesLeases of fi xed assets, where substantially all the risks and benefi ts incidental to the ownership of the asset, but not the legal ownership, are transferred to the entity, are classifi ed as fi nance leases.Finance leases are capitalised, recording 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 entity 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 the risks and benefi ts remain with the lessor, are charged as expenses in the period in which they are incurred.Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.

(e) Financial InstrumentsRecognitionFinancial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Loans and ReceivablesLoans and receivables are non-derivative fi nancial assets with fi xed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.



Held-to-maturity DepositsThese investments have fi xed maturities, and it is the entity’s intention to hold these investments to maturity. Any held-to-maturity investments held by the entity are stated at cost.

Financial liabilitiesNon-derivative fi nancial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation.

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

Financial Instruments ImpairmentAt each reporting date, the entity assesses whether there is objective evidence that a fi nancial instrument has 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 in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the Income Statement.

(f) Impairment of AssetsAt each reporting date, the entity reviews the carrying values of its tangible and intangible assets to 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 in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the Statement of Comprehensive Income.Where the future economic benefi ts of the asset are not primarily dependent upon the assets ability to generate net cash infl ows and where the entity would, if deprived of the asset, replace its remaining future economic benefi ts, value in use is depreciated replacement cost of an asset. Where it is not possible to estimate the recoverable amount of an asset class, the entity estimates the recoverable amount of the cash-generating unit to which the class of assets belong.

(g) Employee Benefi tsProvision is made for the entity’s liability for employee benefi ts arising from services rendered by employees at balance date. Employee benefi ts that are expected to be settled within 1 year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefi ts payable later than one year have been measured at the present value of the estimated future cash outfl ows to be made for those benefi ts. Contributions are made by the entity to employee superannuation funds and are charged as expenses when incurred.

(h) Cash and Cash EquivalentsCash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts.

(i) 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 Taxation Offi ce. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the Balance Sheet are shown inclusive of GST. The net amount of GST recoverable from, or payable to, the Australian TaxationOffi ce is included as a current asset or liability in the balance sheet. Cash fl ows are presented in the cash fl ow statement on a gross basis, except for the GST component of investing and fi nancing activities, which are disclosed as operating cash fl ows.

(j) Income TaxNo provision for income tax has been raised as the entity is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(k) IntangiblesSoftwareSoftware is recorded at cost. Software has a fi nite life and is carried at cost less accumulated amortisation and impairment losses. It has an estimated useful life of between one and two years. It is assessed annually for impairment.

(I) ProvisionsProvisions are recognised when the entity has a legal or constructive obligation, as a result of past events, for which it is probable that an outfl ow of economic benefi ts will result and that outfl ow can be reliably measured.

(m) Comparative FiguresWhere required by Accounting Standards comparative fi gures have been adjusted to conform to changes in presentation for the current fi nancial year.

(n) Trade and Other PayablesTrade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the company 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.

(o) Critical Accounting Estimates and JudgmentsThe directors evaluate estimates and judgments incorporated into the fi nancial 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 company.

(p) Key Estimates – ImpairmentThe freehold land and buildings were independently valued at 21 June 2011 by Hymans Asset Management Pty Ltd. The valuation was based on the fair value less cost to sell. The critical assumptions adopted in determining the valuation included the location of the land and buildings, the current strong demand for land and building in the area and recent sales data for similar properties. The valuation resulted in a revaluation increment of $1,583,722 being recognised for the year ending 30 June 2011. At 30 June 2011 the directors reviewed the key assumptions made by the valuer at 21 June 2011. They have concluded that these assumptions remain materially unchanged and are satisfi ed that carrying value does not exceed the recoverable amount of land and buildings at 30 June 2011.


2011 2010 $ $

Note 2: RevenueOperating ActivitiesSubscriptions 1,815,983 1,813,890Entrance Fees 249,352 242,014Visitors Green Fees 183,268 203,043Corporate Green Fees 181,900 187,992Competition Fees 299,039 328,010Cart Income 295,288 271,843Main Bar Sales 485,856 512,429Sprig Bar Sales 326,095 551,270Restaurant Sales 386,904 54,047Professional Shop Sales 722,740 723,964Poker Machine Takings (Net) 155,160 156,146Interest Received 98,084 97,861Clubhouse Receipts 124,148 85,496Rental Income 46,805 89,530Gain on Perpetual Fund Investment 22,577 57,659 Unused Bar credits 18,771 20,462 5,411,970 5,395,656

Note 3: Profi t from Ordinary ActivitiesProfi t from Ordinary Activities has been determined after: (a) Expenses Depreciation and Amortisation of: – Buildings 138,392 181,074 – Plant & Equipment 439,758 393,704 578,150 574,778

Movement in Provisions Employee Benefi ts 64,806 20,297

(b) Signifi cant Revenue and Expenses Revenue: Property, Plant & Equipment Proceeds on disposal 19,657 13,709

Note 4: Cash Assets WBC Operating Account 355,657 268,448 WBC Investment Maxi Account 991,053 926,410 WBC Term Deposit – 300,000 Suncorp Metway 466,893 1,009,441 Cash On Hand 22,750 21,250 Automatic Teller Machine 9,060 8,030 1,845,413 2,533,579

Note 5: Receivables Trade Receivables 50,722 49,963 Security Deposits 15,046 1,410 Interest Receivable – 6,526 65,768 57,899




Note 6: Inventories Goods Held for Resale – at Cost 234,214 237,842

Note 7: Other Current Assets Prepayments Current 89,672 29,894 Non Current – 101,316 89,672 131,210

Note 8: Financial Assets Available-for-sale fi nancial assets Perpetual Trustees Investment – at cost 500,000 500,000 Add: reinvestment of distributions received 30,799 30,799 Less: Diminution in market value (83,929) (106,507) 446,870 424,292

The Club made a long term investment in units in Perpetual Investment Management Limited Charitable and Community Investor Fund on 9 January 2008. The initial investment cost was $500,000 with a further $30,799 reinvested from fund earnings. Due to reductions in the value of units held by the Fund for the period 30 June 2011 the market value as at that date was $446,870. The movement in market value of the investment is shown in the income statement.

The Club intends to retain this investment for the long term however as the Fund does not have a fi xed maturity date, Accounting Standards require it to be classifi ed as an available for sale fi nancial asset.

Note 9: Property, Plant & Equipment Freehold Land and Golf Course Improvements at Independent Valuation – 2011 21,000,000 19,355,849 Accumulated Depreciation – Improvements – (9,398) 21,000,000 19,346,451 Club Buildings at Independent Valuation – 2011 6,524,000 6,961,351 Accumulated Depreciation – (298,960) 6,524,000 6,662,391 Fixtures and Fittings at Cost 848,628 766,040 Accumulated Depreciation (94,811) (60,486) 753,817 705,554 Course Plant & Equipment at Cost 3,406,196 2,443,430 Accumulated Depreciation (1,469,217) (1,635,224) 1,936,979 808,206 Clubhouse Equipment at Cost 2,764,444 2,612,370 Accumulated Depreciation (1,925,223) (1,793,713) 839,221 818,657 Poker Machines at Cost 222,139 195,711 Accumulated Depreciation (190,645) (183,146) 31,494 12,565

Total Property, Plant and Equipment 31,085,511 28,353,824

2011 2010 $ $



2011 2010 $ $ Movement in the carrying amounts for each class of Property, Plant and Equipment between the beginning and the end of the current fi nancial year

Freehold Land and Golf Course Improvement Balance at the beginning of the year 19,346,451 19,271,756 Additions 69,828 81,510 Revaluation 1,583,721 – Depreciation – Improvements – (6,815) Carrying amount at the end of the year 21,000,000 19,346,451

Club Buildings Balance at the beginning of the year 6,662,392 6,811,872 Additions – Revaluation – Depreciation Expense (138,392) (149,480) Carrying amount at the end of the year 6,524,000 6,662,392

Fixtures & Fittings Balance at the beginning of the year 705,553 737,147 Additions 82,588 – Disposals – – Depreciation Expense (34,324) (31,594) Carrying amount at the end of the year 753,817 705,553

Course Plant & Equipment Balance at the beginning of the year 808,206 896,548 Additions 1,345,229 102,932 Disposals (6,503) – Depreciation Expense (209,953) (191,274) Carrying amount at the end of the year 1,936,979 808,206

Clubhouse Equipment Balance at the beginning of the year 818,657 814,108 Additions 202,188 182,786 Depreciation Expense (180,635) (178,237) Disposals (989) Carrying amount at the end of the year 839,221 818,657

Poker Machines Balance at the beginning of the year 12,565 29,943 Additions 34,528 – Depreciation Expense (14,846) (17,378) Disposals (753) Carrying amount at the end of the year 31,494 12,565

Total Balance at the beginning of the year 28,353,824 28,561,374 Additions 1,734,361 367,228 Revaluations 1,583,721 – Disposals (8,245) – Depreciation Expense (578,150) (574,778) Carrying amount at the end of the year 31,085,511 28,353,824

Note 9: Property, Plant & Equipment (continued)

In accordance with the Registered Clubs Act 1976, “core property” is any real property owned or occupied by the club that comprises the defi ned premises of the club or any facility provided for the use of its members and guests. The freehold land, golf course improvements and club buildings are the “core property” of Castle Hill Country Club. The club does not hold any non-core real property.


2011 2010 $ $

Note 10: Trade and Other Payables Trade Payables 392,738 252,871 Members Subscriptions in Advance 965,975 880,990 Charity Day Account 8,035 20,872 Other Deposits 48,659 26,290 1,415,407 1,181,023

Note 11: Provisions Employee Entitlements Long Sevice Leave 181,266 154,902 Leave On Costs 71,549 63,951 Annual Leave 216,229 200,385 Sick Leave 15,000 484,044 419,238

Note 12: Reserves Asset Revaluation Reserve 23,460,312 21,876,590 Capital Profi ts Reserve 4,478,905 4,478,905 27,939,217 26,355,495

Note 13: Retained Surplus Retained Surplus at beginning of fi nancial year 3,782,890 3,621,403 Profi t from ordinary activities 145,890 161,487 Retained Surplus at end of fi nancial year 3,928,780 3,782,890

Note 14: Cash Flow Information (a) Reconciliation of cash fl ow from operations with profi t from ordinary activities

Profi t (Loss) from ordinary activities 145,890 161,487 Non cash fl ows in profi t from ordinary activities Depreciation 578,150 574,778 Unrealised Loss (Gain) on Investment (22,577) (57,659) Net gain on disposal of fi xed assets (19,657) (13,709) Changes in Assets and liabilities (Increase)/Decrease in trade and other receivables (7,869) 29,197 (Increase)/Decrease in inventories 3,628 (20,023) (Increase)/Decrease in other current assets 41,538 (119,759) Increase/(Decrease) in trade and other payables 234,384 55,355 Increase/(Decrease) in short-term provisions 64,806 20,297 1,018,293 629,964

(b) Reconciliation of Cash Cash at the end of the fi nancial year as shown in the statement of cash fl ows is reconciled to the related items in the statement of fi nancial position as follows:

Cash on Hand and at Bank 387,467 297,728 At call and short term deposits with banks 1,457,946 2,235,851 1,845,413 2,533,579




Note 15: Interests of Key Management Personnel

The name of each person holding the position of Director of the club during the fi nancial year is listed in the Directors Report.

No Director has entered into a material contract with the company since the end of the previous fi nancial year and there were no material contracts involving directors’ interests existing at year end.

Directors’ Remuneration All Directors positions are honorary. The directors received no remuneration or retirement benefi ts from the Club.

Key Management Personnel The following were key management personnel of the company at any time during the reporting period:

Executive Management Stuart Fraser – Chief Executive Offi cer Duncan Walker – House ManagerMartyn Black – Superintendent

Transactions with Key Management Personnel The key management personnel remuneration included in “employee benefi ts expense” is as follows: 2011 2010 $ $ Short term employee benefi ts Salaries, allowances and fringe benefi ts 439,758 436,546 Post employment benefi ts Superannuation 41,710 42,228

Note 16: Related Party Transactions Transactions between related parties are on normal commercial terms and conditions no more favourable than those available

to other parties unless otherwise stated. During the year the club commenced business dealings with a fi rm called “On Bit Sure Shot” whose Director, Alan Hickson is the brother of company director Robert Hickson.

Transactions with related parties: Other Related Parties – Purchases from On Bit Sure Shot 3,300 5,422

Note 17: Capital Commitments Payable not later than 12 months New Irrigation System 1,065,184 New air conditioning system 268,000 268,000 1,065,184

Note 18: Auditors Remuneration Remuneration of the Auditor of the company for: – Auditing the fi nancial report 17,750 17,120 – Preparation of statutory fi nancial report 4,100 4,100 21,850 21,220



Note 19: Segment Reporting Castle Hill Country Club operates as a Golf Club, providing facilities for Golf and associated social activities.

Note 20: Member’s Guarantee The company is limited by guarantee. If the company is wound up, the Constitution and Regulations state that each member is

required to contribute a maximum of $2 each towards meeting any outstanding obligations of the company. At 30 June 2011 the number of members was 1,502 (1,506 at 30 June 2010).

Note 21: Poker Machine Entitlements The company acknowledges that the Poker Machine Entitlements now have a value. The value of these entitlements is the

market value determined by the trading of such entitlements. Clubs NSW has provided a deemed value of $13,000 for each entitlement. The club currently holds seventeen (17) poker machine entitlements. No amount for these entitlements has been provided for in the fi nancial report of the company.

Note 22: Company Details The registered offi ce of the company is: Castle Hill Country Club Limited RMB 49 Windsor Road Baulkham Hills NSW 2153

Note 23 Financial Instruments

(a) Financial Risk Management The company’s fi nancial instruments consist mainly of deposits with banks, long-term investments, bank bill investments,

accounts receivable and accounts payable.

The main purpose of non-derivative fi nancial instruments is to raise fi nance for company operations. The company does not have any derivative instruments at 30 June 2011.

Financial Risks The main risks the company is exposed to through its fi nancial instruments are interest rate risk, liquidity risk and

credit risk. (i) Interest rate risk The company exposure to interest rate risk arises predominantly from assets and liabilities bearing variable interest

rates, as the company intends to hold fi xed rate assets and liabilities to maturity. For further details on interest rate risk refer to Note 23(b).

(ii) Liquidity risk The company manages liquidity risk by monitoring forecast cash fl ows and ensuring that adequate unutilised borrowing

facilities are maintained. (iii) Credit risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to

recognised fi nancial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the fi nancial statements. The company does not have any material credit risk exposure to any single receivable or group of receivables under fi nancial instruments entered into by the company.


Note 23 Financial Instruments (continued)

(b) Interest Rate Risk The company’s expsoure to interest rate risk, which is the risk that a fi nancial instrument’s value will fl uctuate as a result

of changes in market interest rates and the effective weighted average interest rates on those fi nancial assets and fi nancial liabilities, is as follows:

Weighted Average Effective

Interest Rate

Floating Interest Rate

Fixed Interest Rate

MaturingWithin Year

Fixed Interest Rate

Maturing1 to 5 Years

Non Interest Bearing

Total

2011 %

2010 %

2011$

2010$

2011$

2010$

2011$

2010$

2011$

2010$

2011$

2010$

Financial Assets

Cash & Cash Equivalents 5% 5% 1,845,413 2,533,579 1,845,413 2,533,579

Investments 446,870 424,292 446,870 424,292

Trade & Other Receivables – – 65,768 57,899 65,768 57,899

Total Financial Assets 1,845,413 2,533,579 512,638 482,191 2,358,051 3,015,770

Financial Liabilities

Trade & Other Payables 1,415,407 1,181,023 1,415,407 1,181,023

Short Term Borrowings – – – –

Total Financial Liabilities – – – – 1,415,407 1,181,023 1,415,407 1,181,023

(c ) Net Fair Values The net fair values of listed investments have been valued at the quoted market bid price at balance date adjusted for transaction

costs expected to be incurred. For other assets and other liabilities the net fair value approximates their carrying value. No fi nancial liabilities are readily traded on organised markets in standarised form other than listed investments. Financial assets where the carrying amount exceeds net fair values have not been written down as the company intends to hold these assets to maturity. The agregate net fair values and carrying amounts of fi nancial assets and fi nancial liabilities are disclosed in the balance sheet and in the notes to the fi nancial statements.



Directors’ Declaration

The Directors of the entity declare that:

1. The fi nancial statements and notes, as set out on pages 11 to 23, are in accordance with the Corporations Act 2001:(a) comply with Accounting Standards and the Corporations Regulations 2001; and(b) give a true and fair view of the fi nancial position as at 30 June 2011 and of the performance for the year ended on that

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 and when they become due and payable.

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

Dated this 31st day of August 2011

............................................................................... Roger Allsop – Director

............................................................................... Paul Moynihan – Director


SCOPEThe fi nancial report and Directors’ responsibility

The fi nancial report comprises the balance sheet, income statement, cash fl ow statement, statement of changes in equity, a summary of signifi cant accounting policies and other explanatory notes and the Directors’ declaration for Castle Hill Country Club Limited for the fi nancial year ended 30 June 2011 as set out on pages 11 to 24.

The Directors of the company are responsible for the preparation and true and fair presentation of the fi nancial report in accordance with Accounting Standards in Australia and the Corporations Act 2001. This includes responsibility for the maintenance of adequate fi nancial records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the fi nancial report.

Audit ApproachWe have conducted an independent audit of the fi nancial report in order to express an opinion on it to the members of the company. Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the fi nancial report is free of material misstatement. The nature of an audit is infl uenced by factors such as the use of professional judgment, selective testing, the inherent limitations of internal controls, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.

We performed procedures to form an opinion whether, in all material respects, the fi nancial report is presented fairly in accordance with Accounting Standards in Australia and the Corporations Act 2001 so as to present a view which is consistent with our understanding of the company’s fi nancial position and performance as represented by the results of its operations, changes in equity and cash fl ows.

Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the fi nancial report, and the evaluation of accounting policies and signifi cant accounting estimates made by the directors.

While we considered the effectiveness of management’s internal controls over fi nancial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls.

The audit opinion expressed in this report has been formed on the above basis.

Audit OpinionIn our opinion, the fi nancial report of Castle Hill Country Club Limited is in accordance with the Corporations Act 2001,including:

(a) giving a true and fair view of the company’s fi nancial position as at 30 June 2011 and of its performance for the year ended on that date; and

(b) complying with Accounting Standards in Australia and the Corporations Regulations 2001.

D A STRATI & ASSOCIATESCertifi ed Practising Accountants

Domenic StratiLevel 3, 376 Bay StreetBrighton Le Sands NSW 2216

Dated: 31st August 2011

Independent Audit ReportTo the Members of Castle Hill Country Club Limited


Auditor’s Independence Declaration Under Section 307c Of The Corporations Act 2001

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2011 there have been:

a) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

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

Name of Firm D A STRATI & ASSOCIATES

Name of Partner Domenic Strati

Date 24th August 2011

Address Level 3, 376 Bay Street BRIGHTON LE SANDS NSW 2216


SCOPEOn the basis of information provided by the Directors of Castle Hill Country Club Limited, we have compiled in accordance with APS 9: Statement on Compilation of Financial Reports the special purpose report, being a Detailed Profi t and Loss Statement of Castle Hill Country Club Limited for the year ended 30 June 2011.

The specifi c purpose for which the special purpose fi nancial report has been prepared is to provide private information to the Directors. The extent to which Accounting Standards and other mandatory professional reporting requirements have or have not been adopted in the preparation of the special purpose fi nancial report is set out in Note 1.

The Directors are solely responsible for the information contained in the Detailed Profi t and Loss Statement and have determined that the accounting policies used are consistent and are appropriate to satisfy the requirements of the Directors.

Our procedures use accounting expertise to collect, classify and summarise the fi nancial information, which the Directors provided, into a fi nancial report. Our procedures do not include verifi cation or validation procedures. No audit or review has been performed and accordingly no assurance is expressed.

To the extent permitted by law, we do not accept liability for any loss or damage, which any person, other than the Company, may suffer arising from any negligence on our part. No person should rely on the Detailed Profi t and Loss Statement without having an audit or review conducted.

The Detailed Profi t and Loss Statement was prepared for the benefi t of the Company and its members and the purpose identifi ed above. We do not accept responsibility to any other person for the contents of the Detailed Profi t and Loss Statement.

D A STRATI & ASSOCIATESCertifi ed Practising Accountants

Domenic StratiBrighton Le Sands

Dated this 31st day of August 2011

Compilation ReportTo the Members of Castle Hill Country Club Limited


Detailed Profit and Loss Statementfor the year ended 30 June 2011

2011 2010

Income Note $ $Subscriptions 1,815,983 1,813,890Entrance Fees 249,352 242,014Visitors Green Fees 183,268 203,043Corporate Green Fees 181,900 187,992Competition Fees 299,039 328,010Cart Income 295,288 271,843Main Bar Trading 485,856 512,429Restaurant Trading 386,904 54,047Sprig Bar Trading 326,095 551,270Professional Shop Trading 722,740 723,964Unused Bar Credit 18,771 20,462Poker Machines (Net) 155,160 156,146Interest Received 98,084 97,861Profi t on Sale of Fixed Assets 19,657 13,709Rent Received 46,805 89,530Sundry Income 24 104,491 71,787Unrealised Profi t on Investment 22,577 57,659Net Operating Revenue 5,411,970 5,395,656

ExpensesCourse 25 1,327,469 1,363,256Competition 26 320,906 355,518Main Bar Trading 27 558,294 572,927Restaurant Trading 28 299,656 51,239Sprig Bar Trading 29 290,640 472,849Poker Machines 30 27,654 29,449House 31 882,853 862,986Administration 32 737,302 732,135Professional Shop 33 821,306 793,810Net Operating Expenses 5,266,080 5,234,169

Operating Profi t (Loss) 145,890 161,487

These fi nancial statements should be read in conjunction with the attached Compilation Report.


2011 2010

Note 24: Sundry Income $ $ Keno Commissions 2,384 2,971 Locker Fees 5,617 5,857 Room Hire 15,743 14,393 Sponsorship Income 26,955 24,136 Training Rebates 1,500 – Other Sundry Income 52,292 24,430 104,491 71,787

Note 25: Course Expenditure Wages and Associated Costs 818,233 826,054 Depreciation Expense 209,953 197,015 Repairs & Maintenance 68,737 67,113 Materials 140,046 150,293 Course Improvements 51,202 76,987 Other Costs 39,298 45,794 1,327,469 1,363,256

Note 26: Competition Expenditure Wages and Associated Costs 86,111 95,051 Ball Competition & Trophies Expense 152,492 146,328 Golf Cart Costs 27,565 41,732 Affi liation Fees 26,622 44,712 Other Costs 28,116 27,695 320,906 355,518

Note 27: Main Bar Expenditure Wages and Associated Costs 316,615 317,467 Cost of Goods Sold 189,626 206,348 Repairs & Maintenance 4,432 5,733 Other Costs 47,621 43,379 558,294 572,927

Note 28: Restaurant Expenditure Wages and Associated Costs 131,501 – Cost of Goods Sold 156,784 25,826 Repairs & Maintenance 11,371 3,733 Service Fee – 21,680 299,656 51,239

Note 29: Sprig Bar Expenditure Wages and Associated Costs 146,160 203,680 Cost of Goods Sold 132,854 236,272 Repairs & Maintenance 8,111 12,171 Other Costs 3,515 20,726 290,640 472,849

These fi nancial statements should be read in conjunction with the attached Compilation Report

Notes to the Detailed Profit and Loss Statementfor the year ended 30 June 2011


Notes to the Detailed Profit and Loss Statementfor the year ended 30 June 2011

2011 2010

Note 30: Poker Machine Expenditure Depreciation Expense 14,846 17,377 Repairs and Maintenance 5,254 4,877 Other Costs 7,554 7,195 27,654 29,449

Note 31: House Expenditure $ $ Wages and Associated Costs 64,629 51,385 Depreciation Expense 331,802 323,290 Repairs & Maintenance 84,189 92,084 Insurance 75,758 70,449 Utilities 135,483 119,127 Rates 28,608 29,362 Cleaning Services 14,744 20,745 Security Costs 25,517 27,197 Members Benefi ts & Associated Costs 26,631 30,651 Function Expenses 24,525 30,396 Service Contracts 29,592 34,147 Other Costs 41,375 34,153 882,853 862,986

Note 32: Administration Expenditure

Wages and Associated Costs 564,896 545,619 Audit & Professional Fees 28,132 33,378 Legal Expenses – 4,335 Printing, Postage & Offi ce Supplies 30,258 34,584 Telephone 17,985 19,544 Bank, EFTPOS Charges & Interest 20,576 22,247 Computer Charges 26,933 25,666 Subscriptions & Licences 9,269 10,816 Directors & CEO Expenses 10,942 10,954 Other Costs 28,311 24,992 737,302 732,135

Note 33: Professional Shop Expenditure

Wages and Associated Costs 318,259 303,159 Cost of Goods Sold 454,415 450,308 Other Costs 48,632 40,343 821,306 793,810

These fi nancial statements should be read in conjunction with the attached Compilation Report


Nomination for Board of Directors

The following nominations have been received for positions as Directors of Castle Hill Country Club Limited:

Mr Roger Allsop President

One to be elected

Mr David Geraghty President

Mr Terry Greenhalgh Vice President

One to be elected

Mr Phil Moore Vice President

Mr Lindsay Verdon Captain Elected unopposed

Mr Bill Muter Vice Captain

One to be elected

Mr John Dakin Vice Captain

Mr Paul Moynihan Treasurer Elected unopposed

Mr John Kelly Director

Mr Ray Campbell Director

Ms Celestine Michel Director

Two to be elected

Mr Alann James Director

Mr Terry Greenhalgh Director

Mr Graham Hayton Director


Notes

Documents

2011 CHCC Annual Report