2020 Wenty Leagues Club Annual Report by Wenty Leagues

ANNUAL REPORT

2020

DIRECTORS

President: Ian McCann

Vice President: Trevor Simpson OAM

Adam Cromack

Laurie Capovilla

Alan Fowler

Justin Isaacs

David Mumford

Robert Willis

OFFICE BEARERS HONORARY LIFE MEMBERS

MANAGEMENT

L. L. Rigby

1980

Deceased

Chief Executive Officer

Glenn Kovacs

W. L. Archer

1981

Deceased

Chief Operations Officer

Stuart Jamieson

R. A. McIntosh

1982

Deceased

Interim Chief Financial Officer

Richard Cassar

R. L. Collison

1982

Deceased

R. N. Downing

1984

Deceased

Gaming Manager

Christie Wheeler

J. R. Scott

1986

Deceased

Commercial Manager

Mary McTaggart

R. R. Howard

1987

Facilities Manager

Paul Felice

Human Resources Manager

Rebecca Green

T. P. Donoghue 1988

Deceased

W. F. Webster OAM 1991

Deceased

D. R. Cromack

1992

Deceased

K. F. Darke

1992

Deceased

B. J. Doyle

1993

Deceased

R. L. Mavin

1995

J. Felstead

1999

L. Capovilla

1999

N. Stoddart

1999

Deceased Deceased

T. Simpson OAM 2001 B. Bowman

2002

Deceased

A. Downing

2009

Deceased

A. Branson

2011

Deceased

J. Stephenson

2013

A. Cromack

2019

Auditors KPMG Bankers

Australia and New Zealand Banking Group

Solicitors

Thomson Geer Lawyers

63 RD ANNUAL REPORT 2020

WENTWORTHVILLE LEAGUES CLUB LIMITED - ABN 25 000 244 459 50 Smith St, Wentworthville NSW 2145 Phone: 02 8868 9200 Fax: 02 8868 9290 Email: info@wentyleagues.com.au www.wentyleagues.com.au

Wentworthville Leagues Club Limited Contents

President report

Chief executive report

Constitutional reporting

Directors' report

Lead auditor's independence declaration

Independent auditor's report

Directors' declaration

Statement of profit or loss and other comprehensive income

Statement of financial position

Statement of changes in members' funds

Statement of cash flows

Notes to the financial statements

President’s Report Dear Members,

On behalf of the Board I am pleased to submit to members the 63rd Annual Report of Wentworthville Leagues Club. 2020 has certainly been a challenging year for us as a club. Wenty Leagues, for the first time in our rich history, was forced into a government imposed COVID-19 shutdown on the 23rd of March and was closed for over 2 months, only to be given the green light to reopen on Monday 1st June. The 10-week COVID shutdown placed unique financial challenges on us as a club. At a time when we were tasked with completing – and financing - the Master Plan redevelopment project, our overall revenues declined by 13% on 2019 levels. Despite this, we returned from shutdown strongly, even with significant social distancing restrictions in place, and accordingly we were able to return for the benefit of members a $6.0m profit before tax, at the same time growing our cash reserves by $11.1m during the year. During the year our members funds have grown by almost $17m to $124m as at the end of the 2020 year, indicating a strong balance sheet position as we move into the 2021 year. The forced COVID closure allowed Wenty Leagues to bring the Master Plan to its completion with the final stage of construction being our new events and functions centre, Wenty Events. Comprising of 4 large function rooms, a generous breakout area and designated bar, Wenty Events officially launch in early 2021. In addition, our new cocktail lounge, ENVY Bar is also the newest addition to our many dining offerings. As restrictions continued to ease towards the latter part of the year, we reopened all your favourite food and beverage outlets and returned many social, sporting, entertainment and promotion activities. I am confident this trend will continue as we meet the needs of our community with exceptional hospitality and the ‘home away from home’ atmosphere that you have all come to love and appreciate. Despite the limited ability to support as much as we liked through these challenges, our commitment towards the numerous initiatives in our local community remains strong. I wish to commend the efforts of our staff, led by CEO, Glenn Kovacs, who continued to stay connected to our local organisations by helping prepare hot meals, run clothing and toy drives that provide donations to assist the disadvantaged, vulnerable or sick children undergoing treatment and their families. The 2021 Annual General Meeting will be held on Sunday 30 May at Wentworthville Leagues Club, Blaxland Room at 10.00am. I look forward to seeing members at this meeting where the Board will report on our current financial position. To close, I thank our members, sporting clubs and local community organisations for your loyalty, support and understanding throughout the COVID closure and upon our reopening. To my fellow Board Members, thank you for your continued support and dedication to Wenty Leagues and for the highly professional manner serving as directors. I also thank the Management Team for their dedication and hard work overcoming the challenges of the year, plus I’d like to extend my thanks to the families of the Board and Management Team for their support, understanding and patience.

Ian McCann President

Chief Executive Officer’s Report Dear Members,

It was with great relief and excitement when the government gave the approval to reopen our doors on Monday 1st June from the COVID hibernation period. The unplanned closing of the club’s doors had a tremendous impact on the business as it brought an immediate need to review and work through several areas impacting all our operations. Everything from the temporary shutdown of our food and beverage outlets to membership benefits that expired during our closure all had to be managed. We were faced with an unprecedented situation, that was unpredictable and created an overall sense of uncertainty amongst everyone in the community. With no roadmap to guide us through, we remained resolute and committed to overcoming this challenging time. When we opened our front doors again, it was certainly refreshing to see the many smiling and familiar faces of our Wenty Leagues membership flow back in and returning to us. The numbers of members have continued to grow ever since. Reopening brought a new reality or ‘new normal’ that needed to be addressed. Operations had changed and everyone at Wenty Leagues had to continuously shift and become more agile. Tough decisions were made to review and rethink how best to deliver our weekly activities with the health and safety of our patrons being our number one priority. We were trekking into the unknown, constantly monitoring the situation and taking the guidance and recommendations of authorities to keep the club, members, staff and our community safe. While it was a huge adjustment period for everyone, I also believe that what we learned and able to accomplish showed the strength of Wenty Leagues set by the foundations of our rich history. Despite the considerable financial challenges, we had the opportunity to complete our 4 year $125m Master Plan Project. Thanks to the support of you, our members, and your guests, we returned a healthy operating profit for the financial year 2020. We continue to remain in a strong financial position, and we look forward to leveraging this in the coming year. Our support of local community initiatives remained strong, and I wish to acknowledge and say how very proud I am of our Staff & Management who remained committed to our core values, by continuing to be involved with the Club. An example being the ‘Keeping in Touch’ program to ensure we touched base with our elderly members whilst we were closed. It has been refreshing to see the entire club buzzing again with excitement as our patrons again get to experience all our delicious dining offerings from our food and beverage outlets returning to operations. In particular, the reintroduction of CHAR Steak and Seafood Restaurant and our brandnew ENVY Bar. I’m proud of the efforts of the entire Wenty Leagues team for not only getting the clubs doors open and trading again but bringing the club back to its normal vibrant self. Looking forward to a successful year, I would like to thank all our members and guests for their patience and understanding. I also wish to thank the Board of Directors for their ongoing support and the Management Team and staff who continue to strive to provide exceptional hospitality.

Glenn Kovacs Chief Executive Officer

Constitutional Reporting 2020 Member statement of benefit (Rule 70) The apportionment of the annual profit has been appropriated for improvements to the benefit for the members. Donation - Sporting bodies

376,241

Donation - Accredited incorporated sport and recreational clubs

79,051

Donations - Clubgrants and other

523,661

Ringrose Park & bowling greens

689,472

Subsidised entertainment (non-gaming and net of revenue)

604,827

Members expenses

312,960 2,586,212

Directors Honorariums (Rule 86: Allowance $57,000 + CPI) Position

Name

President

I McCann

Vice President

T Simpson OAM

7,498

Director

L Capovilla

7,498

Director

A Cromack

7,498

Director

A Fowler

7,498

Director

J Isaacs

7,498

Director

D Mumford

7,498

Director

R Willis

13,265

7,498 65,751

Directors expenses In accordance with the Constitution the total value of directors expenses under Rule 87 to Rule 93 (excluding Rule 92) for the year 2020 (indexed for CPI) is $158,316 (2019: $155,632). The actual expenditure for the year of $51,827 (2019: $85,263) is $106,489 and 67% below the amount allocated for the year and a decrease of $33,436 or 39% (decrease in 2019: $2,357 or -2%) below the costs of the prior year. In accordance with the Constitution the Rule 92 Special functions and Rule 94 Club attire do not have approved amounts of expenditure but rather apply a "reasonable expenditure" test. The base year for the CPI annual increases is a combination of the adoption of the original Constitution in the year 2000 and subsequent amendments in the year 2005.

CPI Base Period

Constitution

Approved

Actual

Allowance

Amount

Expenditure

Rule

Clubs NSW, Leagues Club Association and trade shows

Jan-05

36,000

51,882

1,757

Board meetings Club, charity and community attendance Jan-00

18,000

30,642

12,990

Partner club, charity or community attendance

Jan-05

9,500

13,691

Director & guest - In house dining

Jan-00

6,400

10,895

9,728

Annual sports, Board & AGM functions

Jan-00

25,000

42,559

21,429

Special function - service & achievement

N/A

Other expenses not specified in other rules

Jan-05

Uniform attire

N/A

6,000

8,647

5,627

100,900

158,316

296 51,827

Constitutional Reporting Directors expenses (continued)

2020 $

Professional development and education (Rule 87) Clubs NSW regional meetings, Gaming Expo conference and trade show and attendance other clubs.

1,757

Board meetings and community & charity attendance (Rule 88) Board meals & beverage

1,961

Cab charge

5,144

Club community & charity event

5,885 12,990

Partner attendance at community & charity events (Rule 89)

14,531

Directors entertainment in house dining facilities (Rule 90) Special functions (Rule 91) AGM

10,120

Board Election

9,700

Annual Board dinner

1,609 21,429 -

Special functions (Rule 92) Other expenditure (Rule 93)

824

Club attire (Rule 94)

296

Aggregate sum of the 6 highest paid officers of the club (Rule 156 (b)(i)) The aggregate sum representing the annual salaries, bonuses and emoluments paid (when taken together) to the 6 highest paid Officers of the club including the CEO without reference to name or title (2019: $1,240,863) Registered members (Rule 156 (b)(ii)) The number of members registered at the end of the club's financial year (2019: 69,383)

1,322,957

65,651

Wentworthville Leagues Club Limited Directors' report For the year ended 31 December 2020 The directors present their report together with the financial report of Wentworthville Leagues Club Limited (the Company or the Club) for the financial year ended 31 December 2020 and the auditor’s report thereon. Directors The Directors of the Company at any time during or since the end of the financial year are: Name

Experience, qualifications, special responsibilities and interest in contracts

I McCANN President

Director 14 years including President 12 years. Chairman of Board’s Remuneration Committee and Property Corporate and Investment Committee, Sponsorship Committee and Disciplinary Committee. Director of Leagues Club Association. Delegate of member bodies of Clubs NSW and member of Club Directors Institute. Member of Clubs Corporate Governance Working Group, Boards Representative at Sports Council. Member of all Sporting Associations and patron of Darts Club and Cricket Club. Life member of WDRLFC. Interest in contracts - Nil

T SIMPSON OAM Vice President

Director 21 years and Vice President 2 years. Honorary Life Member. Member of Board's Property Corporate and Investment Committee, Sponsorship Committee and Disciplinary Committee. Member of member bodies of Leagues Club Association, ClubsNSW and Club Directors Institute. Member of all Sporting Associations including, co-patron of Swimming, and co-patron and life member of Jujitsu and WUJRLFC. Recipient of Australian sports and Order of Australia medals and NSW senior achievement award. Leagues Club Australia’s Board and Managers Service Awards 15 years. Cumberland Council Citizen of the Year 2017 Recipient of the Paul Harris fellow for Holroyd Rotary. Holder of the Commonwealth Sports Medal Interest in contracts - Nil

L CAPOVILLA Director

Director 32 years. Honorary Life Member, Member of the Board’s Audit Risk and Compliance, Sponsorship Committee and Disciplinary Committee. Alternate at Sports Council, Delegate to Leagues Clubs Association and Member of ClubsNSW and Clubs Directors Institute. 30+ years’ service Leagues Club Australia. Member of all Sporting Associations and Patron of Wenty Leagues Golf Club and Life Member of WDRLFC and WUJRLFC. Delegate of Football Club Reunion Committee. Interest in contracts - Nil

A CROMACK Director

Director 18 years including past Vice President for 6 years. Member of Boards Remuneration Committee, Sponsorship Committee and Disciplinary Committee. and Chairman of Audit Risk and Compliance Committee. Member of member bodies of ClubsNSW and Club Directors Institute. Delegate of Leagues Club Association. Alternate at Sports Council. Member of all Sporting Associations, including Life Member of WDRLFC. Interest in Contract: Platinum Electricians

A FOWLER Director

Director 10 years, including past Vice President for 2 years. Member of Board’s Audit Risk and Compliance Committee, Remuneration Committee and Sponsorship Committee. Member of Member Bodies of Leagues Club Association and Club Directors Institute. Member of all Sporting Associations. Interest in Contracts: Laing and Simmons Real Estate

Wentworthville Leagues Club Limited Directors' report For the year ended 31 December 2020 Name

Experience, qualifications, special responsibilities and interest in contracts

J ISAACS Director

Director 12 years. Member of Board's Remuneration Committee and Audit, Risk and Compliance Committee, Sponsorship Committee and Disciplinary Committee. Member of member bodies of Leagues Club Association, ClubsNSW and Club Directors Institute. Member of all Sporting Associations including patron of Darts Club and Life member and President of Cricket Club and Member of the Monty Bennett Parks Trust. Board member of Parramatta District Cricket Association. Interest in contracts - Wentworthville Leagues Cricket Club.

D MUMFORD Director

Director 1 year. Member of Board's Audit Risk and Compliance Committee, Sponsorship Committee and Disciplinary Committee. Member of member bodies of Leagues Club Association, ClubsNSW and Club Directors Institute. Member of all Sporting Associations. Interest in contracts - Nil

R WILLIS Director

Director 6 years. Vice President of Cricket Club. Member of the Board's Property Corporate and Investment Committee, Sponsorship Committee and Disciplinary Committee. Member of member bodies of Leagues Club Association, ClubsNSW and Club Directors Institute. Life Member of the Cricket Club and Member of all Sporting Associations. Member of the Monty Bennett Parks Trust. Interest in contracts - Wentworthville Leagues Cricket Club

Wentworthville Leagues Club Limited Directors' report (continued) For the year ended 31 December 2020 SHORT AND LONG TERM OBJECTIVES To promote and encourage the sport of Rugby League in the Wentworthville district. To be the community's venue of choice, that special destination every day of the week for that memorable experience. STRATEGY FOR ACHIEVING OBJECTIVES The objectives will be achieved through providing a value offering in product and service while increasing profitability in a quality hospitality and entertainment venue. PRINCIPAL ACTIVITIES The principal activities of the Company during the course of the financial year were that of a licensed club. The purpose of the club is to promote and encourage the sport of Rugby League and to provide facilities and services to its members. ACTIVITIES IN ACHIEVING THE OBJECTIVES The principal activities provided a financial return sufficient to maintain the assets of the club, promote and encourage the sport of Rugby League in the Wentworthville district and provide, promote and develop an environment within the club directed towards good fellowship and social harmony amongst its members. MEASUREMENT OF PERFORMANCE The entity is measured against a financial budget, a strategic plan and a set of key performance indicators that are assigned to its senior management team. In addition, research is carried out to assess the team's performance with regard to the demographic of the area and our competition. MEMBERSHIP The company is limited by guarantee and without share capital. If the company is wound up, Rule 23 of the Constitution states that each member at that time, or within one year afterwards is required to contribute a maximum of $1 each towards meeting any outstanding obligations of the company. As at 31 December 2020 there are 65,651 (2019: 69,383) current members across the following membership classes:-

Type Foundation life Honorary life Companion Life Twenty five year Fifty year Standard Concessional Staff

Number

29 9 4 1,959 471 49,615 13,522 42 65,651

RESULTS OF OPERATIONS The profit after tax for the financial year is $5,772,262 (2019: Loss $1,692,351).

Wentworthville Leagues Club Limited Directors' report (continued) For the year ended 31 December 2020 RESULTS OF OPERATIONS (continued) Comparative earning position 2020 Profit / (Loss) after tax 5,772,262 Add: Finance costs 3,605,251 Depreciation 9,626,420 Tax expense 259,947 Loss from disposal of plant, property 796 and equipment (Reversal)/Impairment of property, (546,304) plant and equipment Adjusted earnings

2019 (1,692,351) 3,847,983 7,883,583 1,302,997 284,401

18,718,372

11,626,613

DIRECTORS' MEETINGS The following table sets out the number of Director's meetings held and attended during the year. During the year, 15 board meetings were held. Under the Board's Charter for its Committee the Directors along with management combine to undertake the responsibilities of the Property Corporate and Investment Committee, Audit Risk and Compliance Committee, Sponsorship Committee, Disciplinary Committee and Remuneration Committee meetings. The directors have also attended other meetings and functions in fulfilling their duties, inclusive but not limited to industry professional bodies, sporting associations, councils and political representatives functions and sporting club committees throughout the year.

Director Ian McCann Trevor Simpson OAM Laurie Capovilla Adam Cromack Alan Fowler Justin Isaacs David Mumford Robert Willis

Board meetings and Charter Committees Available Attendance 32 31 32 32 36 34 36 36 36 35 36 36 7 7 32 32 247 243

Other meetings 11 7 6 6 6 6 1 8 51

DIRECTORS' AND EXECUTIVES' REMUNERATION Remuneration of directors is in accordance with Rule 86 of the Constitution. Details of remuneration provided to directors is as follows:Directors I McCann (President) T Simpson OAM (Vice President) L Capovilla A Cromack A Fowler J Isaacs D Mumford R Willis

Honorarium 13,265 7,498 7,498 7,498 7,498 7,498 7,498 7,498

Wentworthville Leagues Club Limited Directors' report (continued) For the year ended 31 December 2020 DIRECTORS' AND EXECUTIVES' REMUNERATION (CONTINUED) Officers of the company The executive's remuneration package may contain the key elements of salary, superannuation and long service leave with benefits including motor vehicles and performance based incentive scheme. In accordance with Rule 159 (b) of the Constitution, the aggregate remuneration representing the annual salaries, bonuses and emoluments provided to the 6 highest paid officers of the company is $1,322,957 (2019: $1,240,863). AUDITOR'S INDEPENDENCE DECLARATION The auditor's independence declaration is included on page 10. Signed in accordance with a resolution of the directors made pursuant to s298(2) of the Corporations Act 2001.

I McCann Director Dated at Sydney, 22nd day of April 2021

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Wentworthville Leagues Club Ltd I declare that, to the best of my knowledge and belief, in relation to the audit of Wentworthville Leagues Club Ltd for the financial year ended 31 December 2020 there have been:

KPMG

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

ii.

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

Cameron Roan Partner Sydney 22 April 2021

Independent Auditor’s Report To the Members of Wentworthville Leagues Club Ltd Opinion We have audited the Financial Report of Wentworthville Leagues Club Ltd (the Company) In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: •

•

giving a true and fair view of the Company's financial position as at 31 December 2020 and of their financial performance for the year ended on that date; and complying with Australian Accounting StandardsReduced disclosure Requirements and the Corporations Regulations 2001.

The Financial Report comprises: • •

• •

Statements of financial position as at 31 December 2020; Statements of profit or loss and other comprehensive income, Statements of changes in members’ funds, and Statements of cash flows for the year then ended; Notes to the financial statement including a summary of significant accounting policies; Directors' Declaration.

Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Company in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the Code. Other Information Other Information is financial and non-financial information in Wentworthville Leagues Club Ltd’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information. The Other Information we obtained prior to the date of the Auditor’s Report was the Constitutional Reporting and the Directors’ Report. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report.

Responsibilities of the Directors for the Financial Report The Directors are responsible for: • • •

preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001. implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. assessing the Company's ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Financial Report Our objective is: •

to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and

•

to issue an Auditor’s Report that includes our opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf. This description forms part of our Auditor’s Report.

KPMG

Cameron Roan Partner Sydney 22 April 2021

Wentworthville Leagues Club Limited Directors' declaration In the opinion of the directors of Wentworthville Leagues Club Limited (the Company): (a) the Company is not publicly accountable; (b) the financial statements and notes, set out on pages 14 to 37, are in accordance with the Corporations Act 2001, including: (i)

giving a true and fair view of the Company's financial position as at 31 December 2020 and of its performance for the financial year ended on that date; and

(ii) complying with Australian Accounting Standards - Reduced Disclosure Regime and the Corporations Regulations 2001; and (c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of directors.

_________________________________ Ian McCann Director Dated at Wentworthville this 22nd day of April 2021

Wentworthville Leagues Club Limited Statement of profit or loss and other comprehensive income For the year ended 31 December 2020 Note

In AUD

Revenue Other income Raw materials and consumables used Poker machine compliance costs Personnel expenses Impairment on property, plant and equipment Loss from disposal and write-off of non current assets Change of inventories of finished goods Donations Entertainment, advertising and promotions Repairs, consumables and maintenance Legal, consulting and auditor fees Utilities and government charges Reversal of prior year impairment loss recognised Other expenses Profit before depreciation, income tax and finance costs

4 4

2020

2019

56,513,116 3,924,000 (3,189,223) (12,568,772) (15,356,932) (796) 106,750 (958,841) (2,598,253) (2,070,163) (188,854) (2,470,621) 546,304 (2,442,953) 19,244,762

69,713,928 (5,348,650) (14,416,798) (20,303,991) (284,401) (1,302,997) (88,975) (1,491,883) (4,664,848) (2,211,446) (270,100) (2,959,145) (6,576,360) 9,794,334

Depreciation and amortisation Results from operating activities

(9,626,420) 9,618,342

(7,883,583) 1,910,751

Finance income Finance expenses Net finance costs

19,118 (3,605,251) (3,586,133)

46,142 (3,847,983) (3,801,841)

6,032,209

(1,891,090)

(259,947) 5,772,262

198,739 (1,692,351)

11,118,281 16,890,543

(1,692,351)

5 4

Profit/(Loss) before income tax 7

Income tax (expense)/benefit Profit/(Loss) for the year Other comprehensive income Gain on asset revaluation after tax Total comprehensive income/(loss) for the year

The notes on pages 18 to 37 are an integral part of these financial statements.

Wentworthville Leagues Club Limited Statement of financial position As at 31 December 2020 Note

In AUD

Assets Cash and cash equivalents Trade and other receivables Inventories Other assets Total current assets Property, plant and equipment Deferred tax assets Intangibles Investments Total non-current assets Total assets

Borrowings Lease liability Employee benefits Deferred tax liabilities Trade and other payables Provisions Total non-current liabilities Total liabilities Net assets

17,491,360 85,467 198,066 572,718 18,347,611

6,319,131 567,112 304,816 698,073 7,889,132

214,626,644 1,790,717 14,822 216,432,183 234,779,794

193,675,281 250,654 1,790,717 19,439 195,736,091 203,625,223

14 16 20 15 19

8,816,073 7,285,352 53,328 1,747,861 574,611 18,477,225

7,658,419 4,593,279 1,753,667 534,547 14,539,912

16 20 15

85,431,217 1,137,483 164,163 4,740,116 143,826 207,520 91,824,325 110,301,550 124,478,244

80,950,499 174,073 160,673 212,365 81,497,610 96,037,522 107,587,701

11,118,281 113,359,963 124,478,244

107,587,701 107,587,701

14 19

Members' funds Revaluation surplus Retained profits Total members' funds

The notes on pages 18 to 37 are an integral part of these financial statements. *For details of the restatement, refer to Note 26.

2019 Restated*

8 9 10 12

13 11

Liabilities Trade and other payables Borrowings Lease liability Employee benefits Provisions Total current liabilities

2020

Wentworthville Leagues Club Limited Statement of changes in members' funds As at 31 December 2020

In AUD

Retained profits

Balance at 1 January 2019

109,280,052

(1,692,351) (1,692,351)

Balance at 31 December 2019

107,587,701

Balance at 1 January 2020

107,587,701

5,772,262 5,772,262

11,118,281 11,118,281

113,359,963

11,118,281

Total comprehensive income for the period Loss for the year Other comprehensive loss Total comprehensive loss for the period

Total comprehensive income for the period Profit for the year Other comprehensive income Total comprehensive income for the period Balance at 31 December 2020

The notes on pages 18 to 37 are an integral part of these financial statements.

Revaluation surplus

Wentworthville Leagues Club Limited Statement of cash flows For the year ended 31 December 2020 Note

In AUD

2020

2019

Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees Cash generated from operations Dividends received Interest paid and other finance costs paid Income tax refund/(paid) Net cash from operating activities

62,194,436 (41,750,079) 20,444,357 504 (3,634,901) 420,430 17,230,390

76,234,997 (63,514,683) 12,720,314 2,792 (1,902,258) (442,377) 10,378,471

Cash flows from investing activities Proceeds from sale of property, plant and equipment Acquisition of property, plant and equipment Interest received Net cash flows used in investing activities

77,437 (12,972,253) 19,118 (12,875,698)

213,441 (37,187,361) 46,142 (36,927,778)

Cash flows from financing activities Proceeds from borrowings Repayment of borrowings Net cash flows from financing activities

8,099,490 (1,281,953) 6,817,537

26,101,665 (1,420,259) 24,681,406

Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

11,172,229 6,319,131 17,491,360

(1,867,901) 8,187,032 6,319,131

The notes on pages 18 to 37 are an integral part of these financial statements.

Wentworthville Leagues Club Limited Notes to the financial statements For the year ended 31 December 2020 1

Reporting entity Wentworthville Leagues Club Limited (the Company) is a company limited by guarantee incorporated and domiciled in Australia. The address of the Company's registered office is 50 Smith Street, Wentworthville, NSW, 2145. The financial statements of the Company are as at and for the year ended 31 December 2020.

2 (a)

Basis of preparation Statement of compliance In the opinion of the directors, the Company is not publicly accountable. The financial statements are Tier 2 general purpose financial statements which have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements adopted by the Australian Accounting Standards Board and the Corporations Act 2001. These financial statements comply with Australian Accounting Standards – Reduced Disclosure Requirements. The financial statements were approved by the Board of Directors on 22nd of April 2021.

(b) Basis of measurement The financial statements have been prepared on the historical cost basis, with the exception of some financial instruments which is measured on fair value basis, and component of property, plant and equipment which is measured on revaluation model basis. (c)

Going concern The financial statements have been prepared on a going concern basis, which contemplates the continuity of normal business operations and realisation of assets and settlement of liabilities in the ordinary course of business. The Company has generated a net profit after tax of $5,772,262 for the year ended 31 December 2020 (2019: loss of $1,692,351) and, as at that date, is in a net current liability position of $129,614 (2019: $6,650,780) and in a net asset position of $124,478,244 (2019: $107,587,701). Based on the above, the Directors consider that the Company will be able to continue to fulfil all obligations as and when they fall due for the foreseeable future, being at least twelve months from the date of approval of these financial statements, and that the Company's financial statements should be prepared on a going concern basis.

(d)

Functional and presentation currency These financial statements are presented in Australian dollars, which is the Company's functional currency.

Wentworthville Leagues Club Limited Notes to the financial statements For the year ended 31 December 2020 2 (e)

Basis of preparation Changes in accounting policy The Company has reclassified residential properties that were previously held as Investment Property as Property, Plant and Equipment which is considered more appropraite given the strategic nature of the underlying assets. This change is voluntary and has been done in the earliest accounting period in these set of financial statements and accordingly the financial statements have been restated to show consistent adoption of accounting treatment. Refer to Note 26 for further details. The Company has elected to measure the residential property (land) asset class held in Property, Plant and Equipment using a revaluation model in the financial year ended 31 December 2020 which represents a change in accounting policy for this asset class previously measured at cost. The Company has elected to adopt this change in accounting policy to provide more reliable and relevant information about the Company's financial position. All other classes in Property, Plant and Equipment are measured on a cost model and there have been no changes in accounting policies in respect of those asset classes. As a result of the changes in accounting policy, the residential property land asset class have now been measured at fair value. The increase in an asset class' carrying amount as a result of a revaluation is recognised in other comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase shall be recognised in profit or loss to the extent that it reverses a revaluation decrease of the asset class previously recognised in profit and loss. The initial application of the accounting policy to revalue assets in accordance with AASB 116 Property, Plant and Equipment is not applied retrospectively in accordance with the requirements of AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.

(f)

Use of estimates and judgements The preparation of financial statements in conformity with AASBs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes: • Note 13 • Note 18 • Note 25

Intangible assets Property, plant and equipment - residential property land Contingencies

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 3

Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

(a) (i)

Financial instruments Recognition and initial measurement Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(ii)

Classification and subsequent measurement On initial recognition, a financial asset is classified as measured at: amortised cost; fair value through other comprehensive income - debt investment: fair value through other comprehensive income - equity investment: or fair value through profit and loss. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at fair value through profit • it is held within a business model whose objective is to hold assets to collect contractual cash flows: and • its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. All financial assets not classified as measured at amortised cost or fair value through other comprehensive income as described above are measured at fair value through profit and loss. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Financial assets at fair value through profit and loss These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. Financial assets at amortised cost These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 3 (a) (iii)

Significant accounting policies Financial instruments (continued) Derecognition Financial assets The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. The Company enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised. Financial assets at fair value through profit or loss. Financial liabilities The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

(b) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, except residential property - land which is measured on revaluation model. As a result of the changes in accounting policy, the residential property land asset class have now been measured at fair value. The increase in an asset class' carrying amount as a result of a revaluation is recognised in other comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase shall be recognised in profit or loss to the extent that it reverses a revaluation decrease of the asset class previously recognised in profit and loss. Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of the property, plant and equipment and is recognised net in profit or loss. A gain arising from revaluation is recognised within other comprehensive income. A loss arising from revaluation is recognised within profit or loss to the extent that it exceeds any existing revaluation surplus for the asset.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 3 Significant accounting policies (b) Property, plant and equipment (continued) (ii) Reclassification from investment property to property, plant and equipment Residential properties are held to meet service delivery objectives and strategic purposes rather than to earn rental or capital appreciation. Accordingly the property will not meet the definition of investment property under AASB 140 Investment Property and will be accounted for as Property, Plant and Equipment under AASB 116, Property, Plant and Equipment. Refer to note 26 for the restatement. (iii)

Subsequent costs Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Company. Ongoing repairs and maintenance are expensed as incurred.

(iv) Depreciation Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use. Depreciation is calculated to write off the cost of property, plant and equipment less their estimated residual values using the straight-line basis over their estimated useful lives. Depreciation is generally recognised in profit or loss, unless the amount is included in the carrying amount of another asset. Land is not depreciated. The estimated useful lives for the current and comparative years of significant items of property, plant and equipment are as follows: • • • • • • •

Buildings including residential property buildings Leasehold improvements Plant and equipment Equipment under finance lease Furniture, fixtures and fittings Office machines Motor vehicles

40 years 11 years 5 - 10 years 3 years 5 - 10 years 3 - 5 years 8 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (c)

Intangible assets Poker machine entitlements Poker machine entitlements that are acquired by the Club, which have infinite useful lives, are measured at cost less accumulated impairment losses. Subsequent expenditure Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred. Impairment Poker machine entitlements have indefinite useful lives as they have no expiry date. Accordingly, such intangible assets are not amortised but are systematically tested for impairment at each reporting date (see note 3(f)).

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 3 Significant accounting policies (d) Non-current assets held for sale Non-current assets, that are expected to be recovered primarily through sale rather than through continuing use, are classified as held for sale. Immediately before classification as held for sale, the assets are remeasured in accordance with the Club's accounting policies. Thereafter generally the assets are measured at the lower of their carrying amount and fair value less cost to sell. Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognised in profit or loss. Gains are not recognised in excess of any cumulative impairment loss. Property, plant and equipment once classified as held for sale are not depreciated. (e)

Inventories Inventories are measured at the lower of cost and net realisable value. The cost of inventories is calculated on a weighted-average cost basis, and includes expenditure incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated costs necessary to make the sale.

(f)

Impairment Non-derivative financial assets Financial instruments and contract assets The Company recognises loss allowances for expected losses on: • financial assets measured at amortised cost; • debt investments measured at fair value through other comprehensive income; and • contract assets. The Company measures loss allowances at an amount equal to lifetime expected credit losses. Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime expected credit losses. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company's historical experience and informed credit assessment and including forwardlooking information. The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. The Company considers a financial asset to be in default when: • the borrower is unlikely to pay its credit obligations to the Company in full, without recourse by the Company to actions such as realising security (if any is held): • or the financial asset is more than 90 days past due.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 3 (f)

Significant accounting policies (continued) Impairment (continued) Non-derivative financial assets (continued) 12-month expected credit losses are the portion of credit losses that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months). The maximum period considered when estimating expected credit losses is the maximum contractual period over which the Company is exposed to credit risk. Measurement of expected credit losses Credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Company expects to receive). Credit losses are discounted at the effective interest rate of the financial asset. Presentation of allowance for expected credit losses in the statement of financial position Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. For debt securities at fair value through other comprehensive income, the loss allowance is charged to profit or loss and is recognised in other comprehensive income. Write-off The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Company expects no significant recovery from the amount written off.

(g) Employee benefits (i) Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an employee benefit expense in profit or loss in the periods during which services are rendered by employees. (ii)

Other long-term employee benefits The Company’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods plus related on-costs; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on government bonds that have maturity dates approximating the terms of the Company’s obligations.

(iii)

Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(h) Provisions A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. 24

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 3 (i)

Significant accounting policies (continued) Revenue Revenue from contracts with customers Revenue is recognised at an amount that reflects the consideration to which the Company is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Company identifies the contract with a customer, identifies the performance obligations in the contract, determines the transaction price which takes into account estimates of variable consideration and the time value of money, allocates the transaction price to the separate performance obligations on the basis of the relative standalone selling price of each distinct good or service to be delivered, and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.

(i)

Goods sold Revenue from the sale of goods is recognised at the point in time the goods are provided and payment is collected.

(ii)

Rendering of services Revenue from gaming services is the net difference between gaming wins and losses, and is recognised upon the outcome of the game at the close of business.

(iii)

Rental income Rental income is recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease.

(iv) Dividend and interest revenue Dividend revenue is recognised on a receivable basis. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset. (j)

Leases At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: • the contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; • the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and • the Company has the right to direct the use of the asset. The Company has this right when it has the decisionmaking rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Company has the right to direct the use of the asset if either: • the Company has the right to operate the asset; or • the Company designed the asset in a way that predetermines how and for what purpose it will be used. At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 3 (j)

Significant accounting policies (continued) Leases (continued) For contracts entered into before, the Company determined whether the arrangement was or contained a lease based on the assessment of whether: • fulfilment of the arrangement was dependent on the use of a specific asset or assets; and • the arrangement had conveyed a right to use the asset. An arrangement conveyed the right to use the asset if one of the following was met: - the purchaser had the ability or right to operate the asset while obtaining or controlling more than an insignificant amount of the output; - the purchaser had the ability or right to control physical access to the asset while obtaining or controlling more than an insignificant amount of the output; or - facts and circumstances indicated that it was remote that other parties would take more than an insignificant amount of the output, and the price per unit was neither fixed per unit of output nor equal to the current market price per unit of output. As a lessee The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-ofuse asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date and plus any initial direct costs incurred. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, and the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Lease payments included in the measurement of the lease liability comprise the following: • fixed payments, including in-substance fixed payments; • variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; and • lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Company presents right-of-use assets and lease liabilities separately in the statement of financial position.

(k)

Finance income Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Finance cost on loans and borrowings is recognised in profit or loss using the effective interest method. 26

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 3 (l)

Significant accounting policies (continued) Income tax Tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.

(i)

Current tax Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax payable also includes any tax liability arising from the declaration of dividends.

(ii)

Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for temporary differences on the initial recognition of assets or liabilities in a transaction and that affects neither accounting nor taxable profit or loss. The measurement of deferred tax reflects the tax consequences that could follow the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. The Income Tax Assessment Act 1997 (amended) provides that under the concept of mutuality, clubs are only liable for income tax on income derived from non-members and from outside entities.

(m) Goods and services tax Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to the Australian Taxation Office (ATO) is included as a current asset or liability in the statement of financial position. Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 3 Significant accounting policies (continued) (n) Fair value measurement When measuring fair value of an asset or liability, the Company uses observable market data as far as possible. Fair values are categories into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities • Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs) The fair value assessment of the freehold land and buildings was carried out as at 31 December 2020 by Global Valuations Services Pty Limited (Certified practicing valuer no. 67391). The Company has elected to revalue only the land component associated with the residential properties, and has recognised buildings under residential properties (buildings) category on a cost model, refer to note 2(e) and 3(b). The following table details the assets which are measured and disclosed at fair value categorised under the three level hierarchy.

Assets Residential property - Land Measured at fair value

Level 1

Level 2

Level 3

31,035,000 31,035,000

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 4

Profit from operations 2020

In AUD

Revenue from continuing activities Revenue from rendering services Revenue from catering and beverage outlet sales Membership subscriptions Commissions Entertainment and promotion Property rentals Other revenue Total revenue from operations

46,756,549 7,987,443 221,383 432,312 178,836 902,662 33,931 56,513,116

52,040,586 14,949,051 214,502 497,197 848,102 998,462 166,028 69,713,928

(796) (796)

(281,428) (1,021,569) (1,302,997)

3,924,000 3,924,000

Loss from disposal and write-off of non current asset Loss from disposal of property, plant and equipment Write-off of capital work in progress

Other income JobKeeper income

Personnel expenses 2020

In AUD

Wages and salaries Payroll tax Workers compensation Contributions to defined contribution plans Other associated employee expenses

2019

13,113,156 587,533 294,464 984,905 376,874 15,356,932

2019

16,578,444 932,088 514,151 1,605,236 674,072 20,303,991

Finance income and finance costs 2020

In AUD

Interest income Finance income Interest expense Change in Financial assets at fair value through profit or loss Finance costs

2019

19,118 19,118

46,142 46,142

3,313,606 291,645 3,605,251

1,902,259 1,945,724 3,847,983

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 7

Tax expense 2020

In AUD

Current tax expense Movement in deferred tax asset Current tax liability/(asset) Income tax expense/(benefits)

225,547 34,400 259,947

2019

(114,510) (84,229) (198,739)

Numerical reconciliation between tax expense and pre-tax accounting profit The Income Tax Assessment Act 1997 (amended) provides that under the concept of mutuality, registered clubs are only liable for income tax on income derived from non-members and from outside entities. The amount set aside for income tax in the statement of profit or loss and other comprehensive income has been calculated as follows: 2020

In AUD

Profit/(Loss) from operations Income tax expense calculated at 30% Effect of revenue that is exempt from taxation Effect of expenses that are not deductible in determining taxable profit Adjustment relating to non-assessable income and non-deductible expenses Utilisation of prior period losses Under/(over) provided in prior years Income tax (benefit)/expense recognised in profit or loss 8

6,032,209

(1,891,090)

1,809,663 (14,138,007) 12,184,955 689,710 (150,230) (136,144) 259,947

(567,327) (17,466,946) 17,985,325 (65,562) (84,229) (198,739)

Cash and cash equivalents 2020

In AUD

Cash at bank Cash at call Cash floats Cash and cash equivalents 9

2019

1,576,567 11,327,477 4,587,316 17,491,360

2019

1,223,078 808,108 4,287,945 6,319,131

Trade and other receivables 2020

In AUD

Trade receivables Other receivable

85,467 85,467

2019

146,682 420,430 567,112

10 Inventories 2020

In AUD

Finished goods - at cost

198,066 198,066

2019

304,816 304,816

11 Investments 2020

In AUD

Shares in listed companies

14,822 14,822

2019

19,439 19,439

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 12 Other assets 2020

In AUD

Current Prepayments

572,718 572,718

2019

698,073 698,073

13 Intangible assets In AUD

2020

2019

Balance at the beginning of the year

1,790,717

Balance at the end of the year

1,790,717

Poker machine entitlements are stated at cost less accumulated impairment losses. Poker machine entitlements have an indefinite useful life given they have no expiry date, and accordingly are not amortised but are to be assessed annually for impairment.

14 Trade and other payables In AUD

2020

2019

Current Trade payables GST payable Other payables Accruals

5,144,637 422,497 715,848 2,338,469

4,566,053 29,201 510,920 2,388,028

Income tax payable Members' subscriptions in advance Non-Current Members' subscriptions in advance

34,400

160,222 8,816,073

164,217 7,658,419

143,826 143,826

160,673 160,673

15 Employee benefits In AUD

Current Liability for annual leave Liability for long service leave Non-current Liability for long service leave

2020

2019

1,094,968 652,893 1,747,861

1,070,783 682,884 1,753,667

164,163 164,163

174,073 174,073

16 Borrowings In AUD

2020

2019

Current Bills payable

5,340,000

2,670,000

Derivative liability

1,041,612

861,694

903,740

1,061,585

7,285,352

4,593,279

Equipment loan

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 16 Borrowing (continued) 2020

In AUD

2019

Non-Current Bills payable Derivative liability Equipment loan

82,862,280 1,908,905 660,032 85,431,217

77,898,090 1,797,177 1,255,232 80,950,499

17 Borrowing Facilities 2020

In AUD

The club has access to the following lines of credit: Market rate loan Business cards Financial guarantee Finance lease and equipment Electronic payaway facility Facilities utilised at balance date Market rate loan Business cards Financial guarantee Finance lease and equipment Electronic payaway facility Standby letter of credit or guarantee facility Overdraft facility Facilities not utilised at balance date Market rate loan Business cards Financial guarantee Finance lease and equipment Electronic payaway facility

2019

88,203,000 50,000 700,000 2,598,000 3,000,000 94,551,000

89,298,000 50,000 700,000 2,902,000 3,000,000 95,950,000

88,202,280 6,474 608,938 1,563,773 90,381,465

80,568,090 5,733 444,750 2,316,817 83,335,390

720 43,526 91,062 1,034,227 3,000,000 4,169,535

8,729,910 44,267 255,250 613,255 3,000,000 12,642,682

The bank overdraft facility, the bank loans and lease liabilities are secured by a combination of a registered first mortgage over the club premises at Smith Street Wentworthville and specific freehold property and a registered first equitable mortgage over the club's entire assets and undertakings including uncalled capital. Security consists of: Registered first mortgage by Wentworthville Leagues Club Limited over club premises situated at Wentworthville Leagues Club, Smith Street, Wentworthville, NSW, 2145. A first registered equitable mortgage by Wentworthville Leagues Club Limited over the whole of its assets and undertakings including uncalled capital. Registered first mortgage by Wentworthville Leagues Club Limited over 40 properties situated in Wentworthville.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 18 Property, plant and equipment

In AUD

Cost Balance at 1 January 2020 Restated* Additions Disposals Transfers Reversal of previously recognised impairment loss Revaluation Balance at 31 December 2020 Depreciation Balance at 1 January 2020 Restated* Depreciation for the year Disposals Balance at 31 December 2020 Carrying amounts At 1 January 2020 At 31 December 2020

Freehold land & buildings (Club premises and residential buildings)

Residential properties land

Leasehold improvements

Plant and equipment

Furniture, fixtures and fittings

Office machines

Motor vehicles

Right of use asset

Capital work in progress

Total

137,322,719

14,605,437

2,572,871

38,689,291

16,354,266

2,051,393

117,652

23,707,876

235,421,505

453,708 29,792,913 -

1,284,885 (1,197,914) 3,071,163 -

48,271 (872) 1,803,872 -

108,647 14,267 -

1,253,405 -

11,076,742

546,304

(34,682,215) -

14,225,658 (1,198,786) 546,304

167,569,340

15,883,259 31,035,000

2,572,871

41,847,425

18,205,537

2,174,307

117,652

1,253,405

102,403

15,883,259 264,877,940

14,743,207

838,329

18,487,501

6,394,636

1,244,553

37,999

41,746,225

3,432,937 18,176,144

138,202 976,531

4,551,748 (1,121,303) 21,917,946

1,130,723 (46) 7,525,313

345,676 1,590,229

14,724 52,723

12,410 12,410

9,626,420 (1,121,349) 50,251,296

122,579,512 149,393,196

14,605,437 31,035,000

1,734,542 1,596,340

20,201,790 19,929,479

9,959,630 10,680,224

806,840 584,078

79,653 64,929 1,240,995

23,707,876 102,403

*For details of the restatement, refer to Note 26. O 3 2 1

193,675,280 214,626,644

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 19 Provisions 2020

In AUD

Current Linked poker machine jackpot Provision for mortality commitment Provision for player bonus points Non-Current Provision for mortality commitments

2019

263,471 18,668 292,472 574,611

286,641 12,516 235,390 534,547

207,520 207,520

212,365 212,365

Linked poker machine jackpot Poker machine link jackpots is the current balance of available jackpots that accumulate from turnover play on poker machines. These jackpots are returned to players by achieving the required combination for the link jackpot on the machine being played. Member mortality commitment Members who joined the club between 1970 and 1989 may have been eligible for a mortality payment. No external fund exists and all commitments are met out of current cash flow. The present value of the mortality commitment reflects managements estimates based upon similar lapse rates and discount rates to prior year Actuarial valuations. Rewards bonus points The best estimate of the commitment to members in relation to unredeemed bonus points is $292,472 (2019: $235,390). Earning rates, lapse rates and terms and conditions shall impact on future estimates. 20 Leases The Company holds a lease with Cumberland Council for the use of the Ringrose Oval adjacent to the property. (i)

Right of use asset Balance as at 1 January 2020

Additions

1,253,405

Depreciation expense

(12,410)

Balance as at 31 December 2020 (ii)

1,240,995

Amounts recognised in profit or loss Depreciation expense

12,410

Interest expense

1,015 13,425

(iii) Amount recognised in statement of cash flows Total cash outflows

63,610

(iv) Lease liability Current lease liability

53,328

Non-current lease liability

1,137,483 1,190,811

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020 21 Related party transactions The directors of the club may from time to time hold a director's role, have membership, life membership or be the patron of the various sport and recreational clubs and football clubs that are governed and controlled by the Leagues Club constitution. A Director of the Company is the principal of a business that has a contract for the provision of rental management of the residential property portfolio. The contract is on commercial terms. The rental management fees paid in the 2020 year were $51,472 (2019: $44,707). A Director of the Company is the principal of a business appointed from time to time to perform contract electrical work. Such appointments are made through a commercial tender process coordinated by Project Management and Building Contractors engaged by the Club. One Director of the Company during the year received honorariums as a Director of the Cricket Club. From time to time, Directors of the Company may purchase goods and engage in services that are provided by the Company and available to all members. These purchases are on the same terms and conditions as those available to all other members and may be in addition to allowances entitled by the Constitution and approved by the members at the AGM. Apart from the details disclosed in this note, no Director has entered into any contract with the Company since the end of the previous financial year and there were no contracts involving Directors interests at year end. Key management personnel compensation The aggregate compensation made to directors and other members of key management personnel of the company is set out below: In AUD

2020

2019

Short term employee benefits Post employment benefits

1,222,262 100,695 1,322,957

1,133,208 107,655 1,240,863

22 Financial reporting period The Company has always used a 52 week cycle for its reporting. The monthly reporting cycle is grouped by weeks and follows a 5, 4, 4 cycle resulting in uniforms days in the relative months across consecutive years with the exception of December. Consequently, the close off day for annual reporting purposes changes every year by a day and two days every leap year. The actual month end date for 2020 is 29 December 2020 and the 2019 actual close date was 31 December 2019.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020

23 Core properties Pursuant to Section 41J of the Registered Club Amendments Act 2006, the club categorises property as follows 2020

Core property

185,180,000 185,180,000

Core properties held by the Club are: 50 Smith Street, Wentworthville NSW 2145 2 Dawes Street, Wentworthville NSW 2145 3 Dawes Street, Wentworthville NSW 2145 4 Dawes Street, Wentworthville NSW 2145 5 Dawes Street, Wentworthville NSW 2145 6 Dawes Street, Wentworthville NSW 2145 7 Dawes Street, Wentworthville NSW 2145 8 Dawes Street, Wentworthville NSW 2145 9 Dawes Street, Wentworthville NSW 2145 10 Dawes Street, Wentworthville NSW 2145 11 Dawes Street, Wentworthville NSW 2145 12 Dawes Street, Wentworthville NSW 2145 13 Dawes Street, Wentworthville NSW 2145 14 Dawes Street, Wentworthville NSW 2145 15 Dawes Street, Wentworthville NSW 2145 16 Dawes Street, Wentworthville NSW 2145 17 Dawes Street, Wentworthville NSW 2145 19 Dawes Street, Wentworthville NSW 2145 432 Great Western Hwy, Wentworthville NSW 2145 430b Great Western Hwy, Wentworthville NSW 2145 3 Jewelsford Street, Wentworthville NSW 2145 5 Jewelsford Street, Wentworthville NSW 2145 7 Jewelsford Street, Wentworthville NSW 2145 9 Jewelsford Street, Wentworthville NSW 2145 11 Jewelsford Street, Wentworthville NSW 2145 13 Jewelsford Street, Wentworthville NSW 2145 15 Jewelsford Street, Wentworthville NSW 2145 17 Jewelsford Street, Wentworthville NSW 2145 19 Jewelsford Street, Wentworthville NSW 2145 21 Jewelsford Street, Wentworthville NSW 2145 27 Jewelsford Street, Wentworthville NSW 2145 31 Jewelsford Street, Wentworthville NSW 2145 51 Smith Street, Wentworthville NSW 2145 68 Smith Street, Wentworthville NSW 2145 70 Smith Street, Wentworthville NSW 2145 72 Smith Street, Wentworthville NSW 2145 74 Smith Street, Wentworthville NSW 2145 76 Smith Street, Wentworthville NSW 2145 78 Smith Street, Wentworthville NSW 2145 80 Smith Street, Wentworthville NSW 2145

2019

167,840,000 167,840,000

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2020

24 Commitments 2020

In AUD

Capital works Capital works contracted for but not yet completed

2019

11,167,491 11,167,491

25 Contingent assets and contingent liabilities The directors are of the opinion that provisions are not required in respect of these matters, as it is not probable that a future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement. 2020

In AUD

2019

Guarantees Bank guarantees

608,938

444,750

26 Restatement In these financial statements the Company has restated previously reported balances in respect of the period ended 31 December 2019 to give recognition to: - Correction of the classification of residential properties currently recorded in Property, Plant and Equipment which were previously classified under Investment Property This has resulted in a restatement to the Property, Plant and Equipment and Investment Property balances within the statement of financial position. There was no impact on the statement of profit or loss and other comprehensive income as a result of this restatement. The following summarises the financial statement captions and notes affected by the restatement: 31 December 2019

Previously reported

2019 Adjustment

2019 Restated

15,744,458 (15,744,458) -

193,675,281 193,675,281

In AUD

Property, plant and equipment Investment property Non-current assets

177,930,823 15,744,458 193,675,281

27 Members guarantee The Company is limited by guarantee. If the Company is wound up, Rule 23 of the Constitution states that each member at that time, or within one year afterwards is required to contribute a maximum of $1 each towards meeting any outstanding obligations of the company. At 31 December 2020 the number of members were 65,651 (2019: 69,383). 28 Coronavirus Covid-19 The coronavirus Covid-19 has had an impact on the Company's operations and activities during the year, however is not expected to materially affect the operations of the Company. It is not possible to accurately determine the nature or extent of the impacts or the time over which the Company will be impacted, however it is possible that it could be material to the Company as the effects and consequences are outside the Company’s control and are far reaching in Australia and globally. Based on the current available information, the Directors believe that the Company will remain a going concern. 29 Events subsequent to reporting date There have been no other events subsequent to reporting date which would have a material effect on the Company’s financial statements at 31 December 2020.

Wenty Leagues in Partnership with the Community Wenty Leagues has a proud record of supporting welfare, charitable and sporting organisations within our community.

The following were the beneficiaries of financial and in-kind support in 2020:

• Youth Off The Streets

• Ringrose Public School

• Vision Australia

• Anzac Schools Initiative

• The Shepherd Centre for Deaf Children

• Girraween Public School

• Learning Links

• Cassia Community Centre - Pendle Hill

• Hilltop Road School Parents & Citizens Association

• Blues Wheelchair Basketball Club

• The Humour Foundation

• Spinal Muscular Atrophy

• Miracle Babies Foundation Ltd

• Our Lady Queen of Peace Primary

• Careflight Limited

• Scouts Australia-Greater Western Sydney Region

• Parramatta Mission

• Cumberland Council

• Kids Safe NSW

• Mitchell District Bowling Association

• Parramatta Chamber of Commerce

• Westmead Public School

• Ronald McDonald House Charities,

• Camden Rams Old Boys • Our Lady of Mt Carmel Primary Association Parents and Friends Association

Greater Western Sydney

WENTWORTHVILLE LEAGUES CLUB LIMITED For The Financial Year Ended 31 December 2016

Wentworthville Leagues Club Limited

50 Smith St, Wentworthville NSW 2145

59th Annual Report 2016

Wentworthville Leagues Club Limited

2020 Wenty Leagues Club Annual Report

Articles inside

Notes to the financial statements

Statement of cash flows

Directors' report

President report

Independent auditor's report

Chief executive report

Statement of financial position