HAWKESBURY RACE CLUB LIMITED ABN 18 088 … RACE CLUB LIMITED ABN 18 088 383 466 DIRECTORS’ REPORT (continued) During the financial year 11 meetings of directors were held. Attendances

HAWKESBURY RACE CLUB LIMITED ABN 18 088 383 466

DIRECTORS’ REPORT

Your directors present their annual report on the company for the financial year ended 30 June 2016. The names of the directors in office at any time during or since the end of the year are as follows: Ken Quigley Saidley Peter Kelly OAM Gerry Commerford Greg Stevens Dr.Phillip Chen John Gollan Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. The Directors’ qualifications, experience & special responsibilities are as follows: KEN QUIGLEY – Chairman Life Member Managing Director. Racehorse owner. Member of Hawkesbury Race Club for 28 years. 9 years on the Committee of Hawkesbury Race Club Ltd and 16 years Director of the company. Member of Racing Sub-Committee. SID KELLY OAM - Vice Chairman Company Director. Local racehorse owner and breeder. Chairman of Australiana Pioneer Village. Member of A.T.C. for 28 years. Member of Hawkesbury Race Club Ltd for 23 years. Chairman of Administration Sub-Committee. Past President of Windsor Rotary Club. Chairman of Fundraising Committee San Miguel. Director of the company since 28 April 2004.

GERRY COMMERFORD – Treasurer Life Member Company Director. Member of S.C.G. Member of Hawkesbury Race Club for 37 years. 9 years on the Committee of Hawkesbury Race Club Ltd and 16 years Director of the company. Member of Administration Sub-Committee.

GREG STEVENS Managing Director. Racehorse owner. Member of S.C.G. Member of Hawkesbury Race Club for 32 years. Member of Administration Sub-Committee. Director of the company since 15 October 2003. DR PHILIP CHEN General Practitioner in Penrith and North Richmond for 25 years. Racehorse owner and breeder. Honorary Hawkesbury Race Club Doctor 25 years. Member of the ATBC. Member of RACGP. Member of AMA. Chairman of Racing Sub-Committee. Director of the company since December 2009. JOHN GOLLAN Accountant, Company Director, Business Director Australiana Pioneer Village, Life Member Parramatta Eels RLFC. Past President of Rotary Club of Windsor. Member of Hawkesbury Race Club for 21 years. Director of the company since August 2014.

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


DIRECTORS’ REPORT (continued)

During the financial year 11 meetings of directors were held. Attendances were as follows:

Number of Meetings Eligible to Attend

Number of Meetings Attended

Kenneth Lionel Quigley (Chairman) 10 10 Saidley Peter Kelly OAM (Vice Chairman) Gerald Commerford (Treasurer)

10 10

9 10

Greg Stevens 10 9 Dr.Philip Chen 10 10 John Gollan 10 9 The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. The company has ordinary members & life members. The total number of members of the company including life members was 626. Should the company be wound up, the members of the company are liable to contribute no more than ten dollars. The collective liability of members was $6,260 (last year $6,350).

The principle activity of the company is the conduct of provincial horse racing at Clarendon NSW. The company also provides tracks & facilities for training, operates a motel & provides facilities for social functions, exhibitions & displays.

The long term objectives of the company are as follows:

• To conduct healthy & vibrant middle tier horse race meetings of a high standard.

• To encourage participation & provide the facilities necessary to ensure enjoyment in the sport of horse racing for members, their guests, owners, breeders, trainers, on-course & off-course customers & other industry participants.

• To constantly maintain & improve the tracks for racing & training.

• To keep a low debt regime.

• To continue to return funds to the industry including owners, breeders, trainers. The short term objectives of the company are as follows:

• Conduct race meetings of a standard that is satisfactory to all industry participants.

• Construction of a synthetic training track

• Promote non race day functions and conferences.

• Increase motel patronage & keep abreast of changes in hospitality expectations. To achieve these objectives, the company has adopted the following strategies:

• Conduct race meetings profitably and with sufficient cash flow to meet those objectives.

• Receive the financial support of Racing NSW & the State Government for racing & future developments.

• Marketing including sponsorship for race meetings.

• Focus on ensuring a return on non-racing investments to supplement revenue.

• To employ staff that are competent in the positions they hold & who focus on providing satisfaction to customers.

• Provide a variety of food & beverage venues of a satisfactory standard.

• Develop & maintain relationships with all industry bodies.

• To operate a facility of high standard accommodation in close proximity to the race course.


DIRECTORS’ REPORT (continued)

The company measures its performance based on financial & non-financial indicators. The financial indicators extracted from financial information of the company are a combination of internal performance data & comparison of other provincial & other race clubs of similar operation in total & on a per meeting basis. Key performance indicators include

• Number of races

• Number of starters

• TAB turnover

• Bookmakers turnover

• Prizemoney

A copy of the auditor’s independence declaration for the year ended 30 June 2015, as required under section 307C of the Corporations Act 2001 was received and is attached. Signed in accordance with a resolution of the Board of Directors Ken Quigley Chairman Dated: 26th September 2016

HAWKESBURY RACE CLUB LIMITED

ABN 18 088 383 466

DIRECTORS’ DECLARATION

In accordance with a resolution of the directors of Hawkesbury Race Club Limited, the Directors of the company

declare that:

1. The financial statements and notes, being the Statement of Financial Position, Statement of Profit or

Loss and Other Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows and

Notes to the Financial Statements are in accordance with the Corporations Act 2001 and:

a. comply with Australian Accounting Standards – Reduced Disclosure Requirements; and

b. give a true and fair view of the financial position of the company as at 30 June 2016 and of its

performance for the year ended on that date.

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.

Kenneth Quigley

Director

Dated this 26 September 2016

AUDITOR’S INDEPENDENCE DECLARATION

UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

TO THE DIRECTORS OF HAWKESBURY RACE CLUB LIMITED

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2016 there have been no

contraventions of:

i. the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

ii. any applicable code of professional conduct in relation to the audit.

DK AUDIT ACCOUNTANTS PTY LTD

Chartered Accountants

Director: David Kean

Registered Company Auditor

Signed at 97 Francis Street, Richmond, NSW


NOTE 2016 2015

$ $

INCOME & TRADING

Profit from Racing 2,198,639 2,184,826

Profit from Beverage Trading 64,042 65,292

Profit from Motel Operations 467,184 319,421

Profit (Loss) from Catering & Functions 11,705 (86,037)

Members' Subscriptions 34,140 35,356

Rent, Hire & Other Income 10,485 9,381

Interest Received 75,060 64,084

Racing NSW Track & Improvements Funding - 147,668

Profit (Loss) on Disposal of Plant & Equipment 11,250 (1,328)

TOTAL INCOME & TRADING 2,872,505 2,738,663

EXPENDITURE

General Operating Expenses 1,292,942 1,031,172

Occupancy Costs 223,871 210,815

Finance Costs 19,043 30,709

TOTAL EXPENDITURE 1,535,856 1,272,696

NET PROFIT BEFORE INCOME TAX, DEPRECIATION

& IMPAIRMENT 1,336,649 1,465,966

Less: Depreciation 640,262 614,315

Less: Impairment Expense - 415,807

640,262 1,030,122

PROFIT BEFORE INCOME TAX 696,387 435,845

Less: Income Tax Expense - -

PROFIT AFTER INCOME TAX 696,387 435,845

Items That Will Not be Reclassified Subsequently to Profit or Loss

Gains on Revaluation of Land and Buildings - -

Items That May be Reclassified Subsequently to Profit or Loss

Fair Value Gains/(Losses) on Available For Sale Financial Assets - -

OTHER COMPREHENSIVE INCOME FOR THE YEAR - -

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 696,387 435,845

PROFIT (LOSS) ATTRIBUTABLE TO MEMBERS OF THE ENTITY 696,387 435,845

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO MEMBERS 696,387 435,845

FOR THE YEAR ENDED 30 JUNE 2016

The accompanying notes form part of the financial statements


ABN 18 088 383 466

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

2016 2015

RACING $ $

Race Meetings Held 25 (Last Year 24)

Revenue

Racing NSW Distributions 4,853,754 4,844,210

Racing NSW Oncourse Incentives 69,683 56,157

Racing NSW International Product Fee 242,057 199,055

Racing NSW Prizemoney Contributions 1,987,725 1,887,857

Trophies, Donations & Sponsorship 1,457,208 1,293,361

Broadcast Rights 872,879 909,802

Training Fees & Barrier Trials 314,741 305,499

Overseas Telecasting 251,740 167,467

TAB Digital Wagering 106,669 -

TAB Oncourse Betting Fee 63,250 66,000

Nominations & Acceptances 92,832 97,355

Metro & Provincial Meetings Held 622,500 622,500

Other Racing Income 69,138 105,296

Expenses

Prizemoney 4,987,127 4,755,511

Wages 841,693 815,039

Advertising, Promotion & Entertainment 492,673 414,134

Jockeys' Riding Fees 388,600 402,506

Video Replay 163,917 182,480

Jockeys' Insurance & Fees 177,316 181,424

Stewards & Other Race Officials 124,984 126,734

Superannuation 102,164 106,910

Veterinary Fees and Farriers 79,139 83,781

Insurances 58,116 60,466

Ambulance Fees 59,202 60,172

Payroll Tax 43,171 33,889

Trophies & Sashes 30,309 38,614

Other Racing Expenses 1,257,126 1,108,075

BEVERAGE TRADING

Sales 465,663 431,199

Cost of Sales 208,033 188,731

Gross Profit 257,630 242,468

Expenses 193,588 177,176

CATERING & FUNCTIONS

Catering Sales 657,116 463,206

Function Income 369,120 334,200

Total Catering & Function Revenue 1,026,236 797,406

Cost of Sales 379,996 335,201

Expenses 634,535 548,243

MOTEL OPERATIONS

Revenue 1,157,678 926,053

Expenses 690,494 606,632


ABN 18 088 383 466

EXTRACTS FROM TRADING STATEMENTS


NOTE 2016 2015

$ $

CURRENT ASSETS

Cash and Cash Equivalents 4 3,615,986 2,390,441

Trade and Other Receivables 5 2,028,066 1,834,132

Inventories 6 62,401 67,528

TOTAL CURRENT ASSETS 5,706,453 4,292,100

NON-CURRENT ASSETS

Property, Plant and Equipment 7 12,140,228 12,656,447

Financial Assets 8 - 750

TOTAL NON-CURRENT ASSETS 12,140,228 12,657,197

TOTAL ASSETS 17,846,681 16,949,298

CURRENT LIABILITIES

Trade and Other Payables 9 1,570,268 1,270,998

Short Term Provisions 11 195,544 266,808

Borrowings 10 - 22,659

TOTAL CURRENT LIABILITIES 1,765,812 1,560,464

TOTAL NON-CURRENT LIABILITIES

Trade and Other Payables 9 - -

Long Term Provisions 11 61,626 32,258

Borrowings 10 - 33,719

TOTAL NON-CURRENT LIABILITIES 61,626 65,977

TOTAL LIABILITIES 1,827,438 1,626,441

NET ASSETS (LIABILITIES) 16,019,244 15,322,857

EQUITY

Revaluation Surplus 397,009 397,009

Capital Profits Reserve 304,401 304,401

Retained Earnings 15,317,834 14,621,447

TOTAL EQUITY 16,019,244 15,322,857

AS AT 30 JUNE 2016



ABN 18 088 383 466

STATEMENT OF FINANCIAL POSITION

Retained Earnings

Revaluation

Surplus

Capital Profits

Reserve Total

$ $ $

Economic Activity

Balance at 1 July 2014 14,185,602 397,009 304,401 14,887,012

Total Other Comprehensive Income - -

Net Profit attributable to entity 435,845 435,845

Balance at 1 July 2015 14,621,447 397,009 304,401 15,322,857

Total Other Comprehensive Income - -

Net Profit attributable to entity 696,387 696,387

Balance at 30 June 2016 15,317,834 397,009 304,401 16,019,244




ABN 18 088 383 466

STATEMENT OF CHANGES IN EQUITY

2016 2015

$ $

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from all participants in the race & motel industries 13,538,921 12,584,098

Less: Payments to all participants in the racing and motel industries & employees (12,188,973) (11,317,926)

Interest Received 75,060 64,084

Finance Costs (19,043) --------------(30,709)

Net cash provided by (used in) operating activities 1,405,965 1,299,546

CASH FLOW FROM INVESTING ACTIVITIES

Payments for property, plant and equipment (124,043) (448,415)

Proceeds from disposal of property, plant & equipment

& investments - -

Net cash provided by (used in) investing activities (124,043) (448,415)

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from borrowings - -

Borrowing repayments (56,377) (14,359)

Net cash provided by (used in) financing activities (56,377) (14,359)

Net increase (decrease) in cash held 1,225,545 836,773

Cash at the beginning of the year 2,390,441 1,553,668

CASH AT THE END OF THE YEAR 3,615,986 2,390,441



ABN 18 088 383 466

STATEMENT OF CASH FLOWS


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

Hawkesbury Race Club Limited applies Australian Accounting Standards - Reduced Disclosure Requirements as

set out in AASB 1053: Application of Tiers of Accounting Standards and AASB 2010-2: Amendments to Australian

Accounting Standards arising from Reduced Disclosure Requirements.

The financial report is a general purpose financial report that has been prepared in accordance with Australian

Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board and the

Corporations Act 2001. The company is a not-for-profit entity for financial reporting purposes under Australian

Accounting Standards.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial

statements containing relevant and reliable information about transactions, events and conditions. Material accounting

policies adopted in the preparation of this financial report are presented below and have been consistently applied

unless otherwise stated.

The financial statements, except for cash flow information, have been prepared on an accrual basis, and is based on

historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial

assets and financial liabilities.

The financial statements were authorised for issue on 26 September 2016 by the directors of the company.

Accounting Policies

(a) Property, Plant & Equipment

Each class of property, plant and equipment is carried at cost or fair value as indicated, less, where applicable

accumulated depreciation and impairment losses.

Freehold Property

Freehold land, buildings, leasehold improvements and tracks are shown at fair value based on periodic, valuations by

external independent valuers, less subsequent depreciation for buildings.

In periods where the freehold land and buildings are not subject to an independent valuation, the directors conduct

directors' valuations to ensure the carrying amount is not materially different to the fair value.

Increases in the carrying amount arising on revaluation of land and buildings are recognised in other comprehensive

income and accumulated in the revaluation surplus in equity. Revaluation decreases that offset previous increases of

the same class of assets shall be recognised in other comprehensive income under the heading of revaluation surplus.

All other decreases are recognised in profit or loss.


ABN 18 088 383 466

NOTES TO THE FINANCIAL STATEMENTS


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

(a) Property, Plant & Equipment continued

Plant and equipment

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset

and the net amount restated to the revalued amount of the asset.

Freehold land and buildings that have been contributed at no cost, or for nominal cost are valued at the fair value of

the asset at the date it is acquired.

Plant and Equipment

Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation

and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than its

estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount

and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment loss

relates to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are

present (refer note 1(j) for details of impairment).

Plant and equipment that have been contributed at no cost, or for nominal cost are valued at the fair value of the

asset at the date it is acquired.

Depreciation

The depreciable amount of all fixed assets including buildings but excluding freehold land is depreciated on a straight

line basis over their estimated useful life commencing from the time the asset is held ready for use.

The depreciation rates used for each class of asset are:

Leasehold Improvements, Buildings and Tracks 2% - 10%

Track Improvements 2% - 10%

Plant & Equipment 5% - 40%

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 and

losses are recognised in profit or loss in the period which they arise. When revalued assets are sold, amounts

included in the revaluation surplus relating to that asset are transferred to retained earnings.

(b) Employee Benefits

Short-term Employee Benefits

Provision is made for the company's obligation for short-term employee benefits. Short term employee benefits

(other than termination benefits) that are expected to be settled wholly within 12 months after the end of the annual

reporting period in which the employees render the related service, including wages and salaries. Short-term


ABN 18 088 383 466


FOR THE YEAR ENDED 30 JUNE 2016 Continued


(b) Employee Benefits continued

employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled.

The company's obligations for short-term employee benefits such as wages and salaries are recognised as a part of

current trade and other payables in the statement of financial position.

Other Long-term Employee Benefits

The company classifies employee's long service leave and annual leave entitlements as other long-term employee

benefits as they are not expected to be settled wholly within 12 months after the end of the annual reporting period

in which the employees render the related service. Provision is made for the company's obligation for other

long-term employee benefits, which are measured at the present value of the expected future payments to be made

to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service

and employee departures, and are discounted at rates determined by reference to market yields at the end of the

reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Upon

the remeasurement of obligations for other long-term employee benefits, the net change in the obligation is

recognised in profit or loss.

The company's obligations for long-term employee benefits are presented as non-current liabilities in its statement

of financial position, except where the company does not have an unconditional right to defer settlement for at least

12 months after the end of the reporting period, in which the obligations are presented as current liabilities.

(c) Income Tax

No 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.

(d) Cash and Cash Equivalents

Cash 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. Bank overdrafts are shown within

short term borrowings in current liabilities on the statement of financial position.

(e) Inventories

Inventories are measured at the lower of cost and current replacement cost.

Inventories held for distribution are measured at cost adjusted, when applicable for any loss of service potential.

Inventories acquired at no cost, or for nominal consideration are valued at the current replacement cost as at the

date of acquisition.

(f) Revenue

Revenue from the conduct of race meetings and Racing NSW distributions is recognised in the relevant financial

year to which it relates.

At the previous balance date, an unsecured loan from Racing NSW was recorded as a liability in the financial report.

This is an interest free, indeterminable loan only repayable if one of the conditions outlined in Note 14 is triggered.

The directors are of the opinion that the circumstances in Note 14 are unlikely to occur in the ordinary course

of trading. Accordingly, this amount has been recognised as income in the current reporting period.

Revenue from the sale of goods is recognised upon delivery of goods to customers. Interest revenue is recognised

on a proportional basis taking into account the interest rates applicable to the financial asset.


ABN 18 088 383 466




(f) Revenue continued

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

Members' Subscriptions in Advance, Deposits for Functions held after the end of the financial year will be brought

to account in the financial year in which it relates

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

(g) Financial Instruments

Initial Recognition and Measurement

Financial Assets and Financial Liabilities, are recognised when the entity becomes a party to the contractual

provisions of the instrument. For financial assets, this is equivalent to the date the company commits itself to either

purchase or sell the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs.

Classification and Subsequent Measurement

Finance instruments are subsequently measured at fair value or cost. Where available, quoted prices in an

active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

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. Gains or losses are recognised in profit or loss

through the amortisation process and when the financial asset is derecognised.

Financial Liabilities

Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost.

Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is

derecognised.

Available For Sale Investments

Available for sale Investments are non-derivative financial assets that are either not capable of being classified into

other categories of financial assets due to their nature or they are designated as such by management. They

comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or

determinable payments

Impairment

At each reporting date, the company assesses whether there is objective evidence that a financial instrument has

been impaired. A financial asset or group of financial assets is deemed to be impaired if, and only if, there is

objective evidence that impairment as a result of one or more events (a "loss event") has occurred, which has an

impact on the estimated future cash flows of the financial asset(s).

In the case of available for sale financial instruments, a prolonged decline in the value of the instrument is considered

to constitute a loss event. Impairment loss are recognised in profit or loss immediately. Also, any cumulative decline

in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point.


ABN 18 088 383 466




(g) Financial Instruments continued

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is

transferred to another party whereby the entity 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 expire. 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 non-cash assets

or liabilities assumed is recognised in profit or loss.

(h) Members’ Subscriptions

Members’ Subscriptions are payable in relation to the year commencing 1 July.

They are brought to account in the relevant financial year.

(i) Goods & 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 Office. Receivables and payables are stated inclusive of

the amount of GST. The net amount of GST recoverable from, or payable to, the Australian Taxation Office is

included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing

activities which are recoverable from, or payable to, the Australian Taxation Office are presented in operating cash

flows included in receipts from customers or payments to suppliers.

(j) Impairment of Assets

At the end of each reporting period the company 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, is compared to the

assets carrying amount. Any excess of the asset's carrying amount over its recoverable amount is recognised

immediately in profit and loss, unless the asset is carried at a revalued amount in accordance with another standard

(e.g. in accordance with the revaluation model in AASB 116). Any impairment loss of a revalued asset is treated as

a revaluation decrease in accordance with that other standard.

(k) Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in

presentation for the current financial year.

(l) Provisions

Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for

which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the

reporting period.




ABN 18 088 383 466

2016 2015

$ $


(m) Critical Accounting Estimates & Judgements

The Directors evaluate estimates and judgements incorporated into the financial report based on historical

knowledge and best available current information. Estimates assume a reasonable expectation of future events and

are based on current trends and economic data, obtained both externally and within the company.

(n) Economic Dependence

The company is dependent upon the continued support of Racing NSW for it's continued operation as a going

concern. At the date of this report the Board of Directors has no reason to believe Racing NSW will not continue to

support the company.

(o) Trade and Other Payables

Trade and Other Payables represent the liability for goods and services received by the company during the reporting

period that remain unpaid at the end of the reporting period.

2. REVENUE

Operating Activities

Racing Services 11,002,172 10,551,456

Motel Operations 1,157,678 926,053

Other Services 44,625 44,737

Sale of Goods 1,491,900 1,228,605

Fuel Tax Credits 2,004 3,104

Interest Received – Other persons 75,060 64,084

TOTAL REVENUE 13,773,439 12,818,039

Non-Operating Activities

Profit (Loss) from disposal of plant & equipment 11,250 (1,328)


11,250 146,340

13,784,689 12,964,379


ABN 18 088 383 466



2016 2015

$ $

3. PROFIT

(a) Expenses

Cost of Sales 588,030 523,932

Finance Costs - external 19,043 30,709

Auditor's Remuneration 30,072 31,264

(b) Significant Revenues & Expenses

Racing NSW Distributions 4,853,754 4,844,210


Racing NSW Prizemoney Contributions 1,987,725 1,887,857

Prizemoney Paid 4,987,127 4,755,511

Employee Remuneration and Benefits 2,735,102 2,472,188

Depreciation 640,262 614,315

Impairment - 415,807

4. CASH & CASH EQUIVALENTS

CURRENT

Cash on Hand 2,030 28,646

Cash at Bank 1,270,284 2,050,022

Bank Fixed Deposits 2,343,672 311,773

3,615,986 2,390,441

5. TRADE & OTHER RECEIVABLES

CURRENT

Trade Receivables 159,583 166,771

Provision for Impairment of Receivables (3,500) (3,500)

156,083 163,271

Receivables - Racing NSW & Tabcorp 1,689,468 1,619,026

Other Receivables 182,515 51,834

2,028,066 1,834,132

Provision for impairment of receivables

Movement in the provision for impairment of receivables is as follows:

Provision for impairment at the beginning of the year 3,500 3,500

Charged for Year 5,192 723

Written Off (5,192) (723)

Provision for impairment at the end of the year 3,500 3,500

ABN 18 088 383 466




2016 2015

$ $

6. INVENTORIES

CURRENT

at Cost

Food & Beverage 60,887 66,179

Food & Beverage - Motel 1,514 1,349

62,401 67,528

7. PROPERTY, PLANT & EQUIPMENT

Property

Freehold Land - at Directors’ valuation 535,165 535,165

Track & Ground Equipment & Improvements 8,460,394 8,437,319

Track Extension, Horse Stall Improvements & Trotting Track area in Progress 80,518 66,098

Less: Accumulated Depreciation (1,536,004) (1,241,118)

Less: Accumulated Impairment (601,908) (601,908)

6,403,000 6,660,391

Buildings - at cost 5,401,124 5,401,124

Less: Accumulated Depreciation (1,221,548) (1,113,990)

4,179,576 4,287,134

Plant & Equipment - at cost 2,130,531 2,091,380

Less Accumulated Depreciation (1,428,571) (1,295,076)

701,960 796,303

Motor Vehicles - at cost 234,556 187,160

Less: Accumulated Depreciation (154,531) (124,972)

80,026 62,188

Motel Equipment & Furniture - at cost 978,165 978,165

Less: Accumulated Depreciation (737,663) (662,899)

240,502 315,266

Total Property, Plant, Equipment & Vehicles 12,140,228 12,656,447

ABN 18 088 383 466




2016 2015

$ $

7. PROPERTY, PLANT & EQUIPMENT continued

Movements

Freehold Land

Balance at the beginning of the year 535,165 535,165

Disposals - -

Carrying amount at the end of the financial year 535,165 535,165

Track & Ground Equipment & Improvements

Balance at the beginning of the year 6,660,391 7,391,473

Additions 37,495 113,512

Transfers - -

Disposals - (136,328)

Impairment - (415,807)

Depreciation (294,886) (292,459)

Carrying amount at the end of the financial year 6,403,000 6,660,391

Buildings


Additions - -

Transfers - -

Disposals - -

Depreciation (107,558) (108,146)


Plant, Equipment & Vehicles


Additions 39,151 303,532

Transfers - -

Disposals - -

Depreciation (133,495) (109,617)


701,960

Motor Vehicles


Additions 47,397 6,000

Transfers - -

Disposals - -

Depreciation (29,559) (30,891)



ABN 18 088 383 466



2016 2015

$ $

7. PROPERTY, PLANT & EQUIPMENT continued

Motel Equipment & Furniture


Additions - 25,371

Transfers - -

Disposals - -

Depreciation (74,764) (73,201)


Total


Additions 124,043 448,415

Disposals - (136,328)

Impairment - (415,807)

Depreciation (640,262) (614,315)


8. FINANCIAL ASSETS

NON-CURRENT

Available for sale financial assets - 750

Available for sale financial assets comprise:

Shares in Unlisted Corporation at Cost - 750

Total available for sale financial assets - 750

Available for sale financial assets at the previous balance date comprised an

investment in the issued capital of an entity.

9. TRADE AND OTHER PAYABLES

CURRENT

Trade Payables 859,186 604,500

Accrued Expenses 191,968 161,400

Other Payable 280,347 300,807

Income in Advance 238,767 204,291

1,570,268 1,270,998


ABN 18 088 383 466



2016 2015

$ $

9. TRADE AND OTHER PAYABLES continued

NON - CURRENT

Other Payables - -

- -

Total Trade & Other Payables 1,570,268 1,270,998

Less: Deferred Income (238,767) (204,291)

Less: Accrued Expenses (191,968) (161,400)

Less: Other Payables (280,347) (300,807)

Financial Liabilities as trade and other payables 859,186 604,500

10. BORROWINGS

CURRENT

Chattel Mortgage - 22,659

- 22,659

NON - CURRENT

Chattel Mortgage - 33,719

Loan - Racing NSW - Unsecured - -

- 33,719

11. PROVISIONS

CURRENT

Provision for employee benefits: Annual Leave 92,056 101,495

Provision for employee benefits: Long Service Leave 103,488 165,313

195,544 266,808

NON - CURRENT

Provision for employee benefits: Long Service Leave 61,626 32,258

61,626 32,258

Opening balance at the beginning of the financial year 299,066 310,625

Additional provisions less amounts used (41,896) (11,559)

Balance at the end of the financial year 257,170 299,066




ABN 18 088 383 466

2016 2015

$ $

11. PROVISIONS continued

Provision for Employee Benefits

Provision for employee benefits represents amounts accrued for annual leave

and long service leave. The current portion for this provision includes the total

amount accrued for annual leave entitlements and the amounts accrued for

long service leave entitlements that have vested due to employees having

completed the required period of service. Based on past experience, the

company does not expect the full amount of annual leave or long service

leave balances classified as current liabilities to be settled within the next 12

months. However these amounts must be classified as current liabilities since

the company does not have an unconditional right to defer the settlement of

these amounts in the event employees wish to use their leave entitlement.

The non current portion for this provision includes amounts accrued for long

service leave entitlements that have not yet vested in relation to those

employees who have not yet completed the required period of service.

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 upon historical

data and judgement. The measurement and recognition criteria for employee

benefits has been discussed at note 1(b).

12. KEY MANAGEMENT PERSONNEL COMPENSATION

Key Management Personnel Compensation 822,581 764,715

13. CAPITAL AND LEASING COMMITMENTS

Leases - Finance and Operating

There are no finance and operating leases.

There are no capital expenditure commitments.

14. CONTINGENT LIABILITIES & CONTINGENT ASSETS

There are no Contingent Liabilities and Contingent Assets other than:

Racecourse Development Project

In previous reporting periods funding was provided to the company by

way of an unsecured, interest free, interminable loan from Racing NSW

for the purposes of the racecourse development project.


ABN 18 088 383 466



14. CONTINGENT LIABILITIES & CONTINGENT ASSETS continued

This loan is only repayable if one of the following conditions are triggered:

- The company conducts business activities in such a manner it becomes

financially unstable or insolvent;

-The company ceases to operate as a horse racing club;

-The company disposes of land or other freehold property without the

agreement of Racing NSW;

-The company merges, amalgamates or otherwise associates with any

other race club;

-The company amends its governance structure; or

-The company is in material breach of any of its obligations, duties and

functions under the funding agreement

The directors are of the opinion that the circumstances outlined above are

unlikely to occur in the ordinary course of business, therefore no liability

has been recorded at balance date. The maximum contingent liability at

balance date in respect of this loan is $4,945,220.

15. EVENTS AFTER THE BALANCE SHEET DATE

Other than the following, the directors are not aware of any significant events

since the end of the reporting period.

The club has signed a funding agreement with Racing NSW in relation to

the construction of a synthetic race track and additional stables.

The agreement provides for funding from racing NSW of up to

$2,200,000 for the synthetic track and $500,000 for additional stables .

The funding is to be may by way of an interest free interminable loan

The synthetic race track funding is only available once the company has

contributed at least $1,500,000 of its own funds to the project. Likewise

the funding for the additional stables is only available once the company

has contributed at least $500,000 of its own funds.

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

The company has contracted with businesses of Directors

who have a direct or indirect interest as follows:

Saidley Peter Kelly - Carpet Barrier Stalls 3,421.00

No Director received directly or indirectly remuneration in relation to their position

as directors during the reporting period.


ABN 18 088 383 466



2016 2015

$ $

17. COMPANY LIMITED BY GUARANTEE

The company is limited by guarantee with the liability of members limited to

$10 in accordance with the company's constitution. The number of

financial members at the end of the financial year was 626 which includes

10 Life Members.

18. SEGMENT REPORTING

The company operates predominantly in the horse racing industry.

The company also operates a motel.

The company is by definition, a not for profit entity & is not required to provide

financial information by segment.

19. FINANCIAL RISK MANAGEMENT

The company's financial instruments consist mainly of deposits with banks,

short term investments, accounts receivable and payable.

The total 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 Note

Cash & Cash Equivalents 4 3,615,986 2,390,441

Loans and Receivables 5 2,028,066 1,834,132

Available for Sale financial assets

- Shares in unlisted corporations 8 0 750.00

5,644,052 4,225,323

Financial Liabilities

Financial Liabilities at amortised cost

- Trade & Other Payables 9 859,186 604,500

- Borrowings 10 0 33,719

859,186 638,218

20. RESERVES

REVALUATION SURPLUS

The Revaluation Surplus records the revaluations of non current assets.

CAPITAL PROFITS RESERVE

The Capital Profits Reserve consists of capital gains from the sale of freehold land

and buildings.

ABN 18 088 383 466





ABN 18 088 383 466

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF


Report on the Financial Report

We have audited the accompanying financial report of Hawkesbury Race Club Limited (the company), which comprises the

Statement of Financial Position as at 30 June 2016, the Statement of Profit or Loss and Other 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.

The Trading Statements are additional financial information in accordance with the books and records of Hawkesbury Race Club

Limited which have been subjected to the auditing procedures applied in our statutory audit of the company for the year ended

30 June 2016. It will be appreciated that our statutory audit did not cover all details of the additional financial information.

Accordingly, we do not express an opinion on such financial information and no warranty of accuracy or reliability is given. In

accordance with our policy, we advise that neither DK Audit Accountants Pty Ltd nor any member or employee of the firm

undertakes responsibility arising in any way whatsoever to any person other than Hawkesbury Race Club Limited in respect of

such information, including any errors or omissions therein, arising through negligence or otherwise however caused.

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 2001 and 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 judgment, 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 of the financial report that gives a true and fair view 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 entity’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, which has been given to the directors of Hawkesbury Race

Club Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.

Opinion

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

(i) giving a true and fair view of the company’s financial position as at 30 June 2016 and of its performance for the year ended

on that date; and

(ii) complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations

2001.

DK AUDIT ACCOUNTANTS PTY LTD

Chartered Accountants

Director: David Kean

Registered Company Auditor

Signed at 97 Francis Street, Richmond, NSW


Documents

HAWKESBURY RACE CLUB LIMITED ABN 18 088 … RACE CLUB LIMITED ABN 18 088 383 466 DIRECTORS’ REPORT (continued) During the financial year 11 meetings of directors were held. Attendances