Annual Report

CASTLE HILL COUNTRY CLUB

ANNUAL REPORTAND

FINANCIAL STATEMENTSFOR THE YEAR ENDED 30TH JUNE, 2010

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

Castle Hill Country Club Limited ABN 62 000 085 423

PRESIDENT:

David Geraghty

VICE–PRESIDENT:

Robert Hickson

CAPTAIN:

Lindsay Verdon

VICE–CAPTAIN:

vacant

TREASURER:

Roy Jones

DIRECTORS:

Graham HaytonWilliam Muter

CHIEF EXECUTIVE OFFICER:

Stuart Fraser

BANKERS:

Westpac

AUDITORS:

D A Strati & Associates

SOLICITORS:

Snelgroves

Office bearers 2010

ADDRESS: Spurway Drive, Baulkham Hills NSW 2153

POSTAL ADDRESS: PO BOX 6767, Baulkham Hills NSW 2153

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

Castle Hill Country Club LimitedABN 62 000 085 423Annual Report2

Notice of Annual General Meeting

Notice is hereby given that the 60th Annual General Meeting of the Castle Hill Country Club Limited will be held at the Clubhouse, Windsor Road, Baulkham Hills on Monday, 18th October 2010, commencing at 7:30pm.

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

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

and Expenditure Account for the year ended 30 June, 2010 together with the Reports of the Directors and Auditors thereon.

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

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

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

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

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

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

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

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

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

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

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

Stuart FraserChief Executive Officer

Note 1To enable properly researched replies to be prepared for the benefit of members it would be appreciated if members who wish to raise any queries or seek information at the meeting concerning the annual Accounts, the Balance Sheet or Associated Statements or the affairs of the Club, give the Chief Executive Officer notice in writing of their queries by 11th October 2010.

Note 2There is no requirement under the Corporations Law for the minutes of the previous General Meetings to be confirmed by this meeting. Minutes of the 59th Annual General Meeting held on Monday 19th October 2009 are on display on the Club’s Notice Board, or they may be inspected in the Office.


President’s Report

Dear Members,

This year marks the 60th anniversary of the formation of Castle Hill Country Club Limited. The Club has grown from strength to strength over those years and has justifiably become one of the top 10 Sydney metropolitan courses. The last couple of years have not been easy for families and business, with greater pressure being put on our time and finances. On behalf of the Board I would like to thank our members for their support of the Club and assure each of you that your Club continues to remain financially secure and is well positioned to tackle the challenges that lay ahead of us.

I am pleased to inform you that this year we are reporting a net profit of $161,487 which is a welcome improvement on the $29,510 profit last year. There has been a noticeable change in the structure of our membership with a number of members opting to avail themselves of the House and Non Play categories. Whilst there is an obvious resultant drop in subscription income, it is pleasing that those members have chosen to maintain their contact with the Club and, in doing so, secure the ability to move back to a playing category at a future point in time.

Whilst our expenses have been kept in check throughout the year, income sources outside of subscriptions have shown a marked improvement. Whilst every effort is being made to minimise operational expenditure, it is important to focus on our ability to increase our income sources. Our course is by far our greatest asset and this year has seen one of the largest commitments of funds to the course in many years with the replacement of our irrigation system. The benefits of the new system include greater water use efficiency, reduced maintenance costs and, more notably for those who play on the course, a more expansive and healthier coverage of grass. The specification and tendering process for the irrigation system was very time consuming, as it was important to ensure that the final product was the most suitable for our application and that the pricing was fair. Weather delays have extended our anticipated completion date, and we now expect the project to be completed by the end of October 2010.

The operation of the restaurant area is now under the direct management of the Club following negotiations with the proprietors of Ginnivans. New challenges are present with the operation of the restaurant. The recent member survey asked for feedback on catering options for that area and, at the time of writing, indications are that bistro style food is most preferred. Over the coming months you will notice cosmetic changes to the restaurant area. These changes are being made to freshen up the restaurants presentation and make it more appealing and comfortable for patrons.

At the last AGM, members approved expenditure for an upgrade of the air-conditioning system within the Club. With the vacation of Ginnivans, we now have an opportunity to modify the entire floor space of the upstairs area of the Club. We have commissioned the preparation of a master plan for the entire upstairs area of the Club and, once the final design is decided upon (after

consultation with members), we can more appropriately address the air-conditioning and future furnishing of the area. For a detailed explanation of the status of the air-conditioning project I refer you to the Vice President’s report in the August edition of Fairways. In the meantime, we will continue to maintain our existing air-conditioning system. I thank you for your patience and rest assured that it is our intention to end up with the most appropriate long term solution for the Club.

The development of land surrounding the Club is forging ahead. We have been in regular consultation with Council and developers to ensure that the Club’s interests pertaining to safety, amenity and setbacks are protected. At the time of writing this report we are only a couple of weeks away from lodging our DA with Council for the subdivision of No 2 Fairway Drive. Once a DA has been granted we will register the subdivision and embark upon the sale of a portion of the subdivided land as approved by members at our EGM earlier this year.

Many members will be aware of our recent ranking amongst Australia’s top 100 courses at position 97. Whilst it is pleasing that we remain in the top 100, I believe we certainly have scope not to just hold our place in the top 100, but rather to improve our ranking. We have a wonderful golfing facility and, amongst other things, it is the attention to detail which I believe will improve our ranking. Throughout the last year Martyn Black, his team and the Course Committee have been identifying and working on areas requiring improvement. The course has stood up exceptionally well to the cold of winter. The cooler months has enabled us to progress with our bunker improvement programme and provide you with better and more consistent bunkers. I would like to thank Martyn Black and his team for all their hard work in preparing and maintaining our course in such wonderful condition throughout the last year.

By the time you read this report, nominations for elected positions will have closed. I would like to take this opportunity to remind all candidates, that Board members have a legal fiduciary duty to act in good faith and in the best interests of the members and it is essential to maintain confidentiality and objectivity at all times.

The operation and successful management of our Club is an ongoing process. There are many goals to achieve during the coming months and years, some of which will require additional cash and others pure committed manpower – we have both. Members funds need to be managed with care and diligence and I believe that we, your Board, have done just that in the last year and will continue to do so into the future.

I would like to take this opportunity to thank my fellow Board members, management and staff for their commitment throughout this last year. I look forward to the challenges that await us in the year ahead and thank you, the members for your continued support.

David GeraghtyPresident


Captain’s report

Dear Members,

The past 12 months have seen many changes to golf at Castle Hill. Step 1 of a new handicapping system was introduced, there were course rating system changes and a new course irrigation system. All this has made for a very interesting time. We have also continued to work on our 5 Year Strategic Plan to deliver a better golf course for all members.

This is the first time I have had the chance to formally thank Keith Watson for all his hard work over the many years as both Director and Captain. I wish he and Glenda all the best for many years to come and assure Keith that his efforts will never be forgotten.

Course

For the last 12 months our weather pattern has taken us from one extreme to another. The total year’s rainfall was 933.5mm however it tended to fall in large quantities over a very short period making management of our course a difficult task. We have however seen our course presented at all times in a manner of which we can be proud. Of course, we can and will do better – that is our goal for 2010/2011 and onwards with our new irrigation system assisting to make this possible.

The continuation and completion of the bunker rebuilding program has given us a group of bunkers that are well formed, well drained, have reasonably flat sand bases and are accessible. It has seen the time to have the bunkers back in play after adverse weather greatly reduced. We are now replenishing all bunkers with the same sand to ensure similar playing conditions throughout the course. Ongoing maintenance will be easier as a result of the completion of this program.

Another significant activity over the last 12 months has been the pruning and thinning of tree foliage throughout the course. This has been done to improve the amount of sunlight we get to fairways and tees, allowing for better grass coverage and growth. We have also ensured that additional trees have been strategically planted to protect our boundaries and improve the beautification of our course.

The rebuild of the 6th, 10th and 15th tees throughout the last year will be continued over the next 2 years where needed. The larger flat tees will allow more even wear throughout the year.

As this report goes to print, our new irrigation system continues to be installed. The main irrigation ring main lines have been installed, the ring mains to each green will be completed by early September, then the teeing areas will have the new irrigation system connected. The final stage will see the fairways completed by the end of October. This new system will enable us to present the course to members in a different way to ever before.

Match

I would like to take the opportunity to congratulate all winners of major events held throughout 2009 and 2010. All winners are listed next column.

Club Championships 2009A Grade: Martin CarmichaelA Reserve: Ryan HobbsB Grade: Geoff WatkinsonC Grade: Col HughesJunior: Rowan FurlongSenior: Tony PagliaroColts: Stephan Bevan

Gold Medals 2009A Grade: John Barbara B Grade: Graham Foxcroft C Grade: Luke Kang

Castle Hill Spring Cup2009 Colin Gallagher (Concord)2010 Martin Carmichael

Foursomes Championship 2009 A Grade: Rod McDonald & Mark ThomsonB Grade: Klaus Lewandowski & Peter WeberC Grade: Barry Evans & David Mansley

Mixed Foursomes 2010Ashley Cramond & Nabil Abdul

Mauri Greenhalgh Trophy 2010Jan Conyers & Paul Scuglia

Bruce Cooper Memorial TrophyNot yet played

Holes In One From 3 June 2008

G McGhee 26/09/09 4thD Bell 21/10/09 4thL Bessant 25/10/09 4thB Zubrycki 21/11/09 4thS Chang 06/12/09 4thE Cho 21/12/09 4thT Cruise 27/12/09 2ndM J Lee 11/01//10 4thM Johnston 20/01/10 17thP Hill 30/01/10 17thC Wright 21/02/10 11thS Collins 13/03/10 2ndJ Potts 26/04/10 4thJ South 02/05/10 2ndI Motala 02/06/10 2ndM Hogg 09/06/10 4thJ Lele 20/06/10 11thJ Colombo 14/07/10 11thJ Reynolds 17/07/10 2ndC Wittenberg 13/08/10 17thC Northcott 15/08/10 11thB Phillips 25/08/10 2nd

Lindsay Verdon

Captain


Finance Report

As the recovery from the global financial crisis continued, revenues grew by $147,069 (2.8%) over the previous year. Declining membership and members moving to cheaper categories saw subscriptions fall by 3.4% over the previous year. The fall in subscriptions was more than offset by new member entrance fees which grew by 78.3% over the previous year to $242,014.

Other revenue movements for the year are detailed in Note 2 of the annual financial statements. The highlights being:• Visitorgreenfeesup5.3%to$203,043• Corporategolfupby9.9%to$187,992• Cartincomegrewby18%to$271,843mainlyduetothe

initiative from club management to offer cart hire to other golf clubs for their corporate days.

• Foodandbeveragesalesgrewby6.1%to$1,117,746• Interest receiveddeclinedby28.9%to$97,861reflecting

the decline in interest rates nationally for the first six months of the financial year.

Net profit for the year is reported at $161,487, which is up on last year ($29,510) as a result of; the increasing revenues, and the improved returns from the Perpetual Managed Fund which was up by $57,659 (15.7%) but remains $75,708 (15.1%) below the club’s initial investment.

Total expenses for the year were $5,234,169 up 0.3% on last year ($5,219,077) but down 1.2% on budget ($5,299,619). Major increases in expenses from last year included:• CourseMaterials($150,293);up$34,436(29.7%)• Repairs&Maintenance($92,084);up$25,749(38.8%)• Utilities($119,127);up$20,085(20.3%)

Course expenses at $1,363,256 (including depreciation) were only $2,989 above last year ($1,360,267) which was a great result as the recent members survey rated highly the quality of the course.

Net cash generated from operating activities for the year at $629,964 increased by $272,095 over last year ($357,869). Capital expenditure for the year was $367,228 versus last year $813,290. However, the $350,000 approved by members for the upgrade of the air conditioning for the clubhouse has not been spent. Club management with the help of external engineers are determining the best way to improve climatic conditions in the clubhouse. Free cashflow after capital improved by $276,445 which is again a good result.

The cash at the end of the financial year was $2,533,579 compared to last year $2,257,134.

Maintaining our cash position in year 2010/2011 will be a challenge as the expenditure on the course irrigation and the air conditioning remain to be completed.

I would like to thank the management of the club and the Finance Committee comprising David Geraghty, Robert Hickson, Stuart Fraser and Norman Nasser for their support and valued contributions throughout the year.

Roy JonesTreasurer


Social Report

Finally, allow me to point out that this year’s busy social program could not exist without the support of members or the energetic efforts of our bar and service staff.

Special thanks must go to Mirrella Buckler our Events Coordinator, and her predecessor, Michaele Bradley for their contribution and organising abilities. Our thanks also to Duncan, Matt, and their staff of hard working ladies and gents, and to the musicians, casual bar and service staff, chefs and general organizers who have helped to make the current year a success socially at Castle Hill Country Club.

Finally, I wish to acknowledge the contribution and support for the club made by the members of the Social Committee.

Graham HaytonDirectorChairman – Social Committee

2010 has seen some changes to the social program at Castle Hill Country Club and it has been pleasing to note that the efforts of the Social Committee, Events Coordinator and the staff have been rewarded by strong attendances at most of the planned social functions.

We have attempted to re-invigorate the monthly Friday night socials and have been pleased to have attracted 70 – 90 members and guests to these functions. Our early difficulties in serving meals from the Sprig Bar kitchen were overcome thanks largely to the enthusiastic involvement of the bar and service staff. The change to table service and a limited menu has resulted in a steady improvement in service and quality with several pleasant evenings and well satisfied attendees. We have tried to incorporate a 9 hole golf program with these social nights and while we were successful in attracting a number of golfers in the warmer weather, this plan was abandoned in winter due to a lack of support. We do intend to resume the 9 hole events with bistro meals, during spring … watch for the advertising.

Our core events, the wine tastings, Pro Am, Christmas in July, Charity Golf Day and Night Golf have all been enjoyed enthusiastically by those who have attended and will continue into the 2011 program of events.

During the year, it was necessary to cancel two events because of a poor response and while we could have “taken a risk” and proceeded with the planning it was felt prudent to make the hard decision rather than incur booking penalties for late cancellation of musicians and the like. Members can assist the staff in avoiding future cancellations by booking early for an event. For our part, we will learn from these instances and improve our planning and implementation of advertising to give adequate time for your support for each event.

The very recent introduction of our new Lounge Bar Menu has implications for our future development of social activities at Castle Hill Country Club. It is envisaged that the social scene will change with more regular socials incorporating fine food, live music, golfing activity and some dancing for all members of the family. The club’s Member Survey, though still being analysed at this stage, has influenced our thinking for the future of our social program. How far these changes and the new influences extend is entirely dependent on the membership and the amount of support each event receives. What can be said without doubt is that on current indications our “social future” is full of promise and good cheer.

Between now and years end we will be hosting the 30 Year Members Cocktail Party, the Captains and Presidents Dinner, the club Major Presentation Night, Melbourne Cup Lunch, the Kids Christmas Party and of course our New Year’s Eve celebration and we look forward to record attendances at each of these events.


On behalf of the ladies committee I would like to present the 60th Annual report for your consideration.

Results of Major Events for 2009 that had not been played before last years report:

Club Champion Darrie NightingaleDivision 2 Champion Tammy HaytonDivision 3 Champion Sharen Mitchell

Results of Major Events for 2010

Club Champion Jenni PridmoreDivision 2 Champion Gillian HislopDivision 3 Champion Diane SchultzFoursomes Julie Cannon & Lynne Papandrea Bronze Foursomes Jan Conyers and Gail MahonyFourball Knockout Tammy Hayton and Arelene Thorn Harvey Memorial Trophy Carolyn JamesSilver Salver Lauren Hibbert [Pennant Hills]Bronze Salver Lesley JenkinsJunior Champion Alyx Kemp Summer Cup Marian Van Der Weegen

Congratulations to all the winners and also to everyone that competed in these events. Presentation of minor trophies will take place on our closing day Thursday, 25th November, and our major trophies will be presented at our Annual Dinner on Friday, 26th November. These are always special events so please try and attend.

Congratulations to our Pennant Teams who all played well this year. Our Grade team consisting of Julie Cannon, Jan Harrison, Raina Laughton, Darrie Nightingale, Lynne Papandrea, Jenni Pridmore, Toni Smillie, Alison Storey and Marian Van Der Weegen. A wonderful effort. Thank you to the dedicated caddies for their time and effort during the year.

This year we fielded a junior girls Encourage Shield team. The team consisted of Amy and Taryn Farrington, Alyx Kemp, Sarah King and Corynne Van Veen. The girls won their division but were unsuccessful in the finals. Congratulations to all the girls for their dedication and thank you to all the families for encouraging the girls and helping with transport etc. Thank you to Raina Laughton for coordinating the girl’s team. Claudia Lim was awarded the most improved player. Congratulations Claudia.

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

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

This year we are joining with Bonnie Doon Golf Club for a friendly match to be held at Bonnie Doon on the 8th October.

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

Our Friendship day this year will be held on the 7th October. Thank you in advance to all the members and business owners who have generously donated gifts for our major raffle. Without these donations, support for our charities The Prostate Foundation and Riding for the Disabled would be difficult to achieve. Thank you to the Friendship committee Lynne Booth, Jacqui Kahler, Bronwyn Burnett and Anne Phelan, who have worked very hard all year to make this day such a success. Also thank you to Sue Mulligan, Judyanne Thrower and Arelene Thorn for helping with the Friendship Committee. Thank you to all our ladies who have knitted, sewn, cooked etc for all their hard work.

Our major sponsors for the ladies competitions have continued this year. Thank you to Robert Cliff Master Jeweller of Castle Towers, for their sponsorship of three $500 vouchers being for the Best Net Score in a medal round in 2010 for the three Divisions. Also, thank you to Mario Raymond Hair Salon of Baulkham Hills who sponsor our nearest the pin prize of a $50 voucher once a fortnight. Also to Dennis Byrne, a member of our club who has donated golf balls for nearest the pin on the alternate fortnight. Lastly to Contours Norwest for a monthly voucher entitling the winner to one month’s free membership and a personal training session at Contours Norwest. It is awarded for the Best Net Score in the monthly medal. Thank you to all our sponsors.

To Karen in the golf office, congratulations on being presented with the Pride of Workmanship Award from Glenhaven Rotary this year. Karen deserves to win it every year as she works tirelessly all the time to make sure our golf games run smoothly. She is always available to help and never complains no matter what we ask of her.

Unfortunately we have lost some long time members this year, when they each decided not to renew their membership. These ladies are Beryl Auld, Clem Fugar and Alice Howard. We wish them all the best of luck.

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

Lorraine WilsonLady President

Ladies Committee Report


Maintaining membership and attracting new members is undoubtedly one of the great challenges for golf clubs, around the country. As living costs increase and personal finances are stretched, we compete in a market that sees golf club membership as a luxury. In a busy world, many who are time poor shy away from golf because of the time our game consumes.

At Castle Hill, we have had another challenging year with our membership with decline noted in some of the categories (see comparative data above). Taken overall however, we seem to have reduced the attrition rate and our losses in 2010, while regrettable, indicate a significant slowing down to those recorded in recent years.

So that we are better informed as to our membership losses we have refined and implemented a definite exit strategy whereby members who do not renew are contacted by letter and finally with a follow-up phone call which serves two purposes: firstly to ensure that members fully understand each category of membership that could be applied to them and secondly to provide us as a club, with an information base about our offerings and their suitability and applicability to each member. It is only in this way that we will be well enough informed to attempt to meet the requirements of those who see themselves as potentially lost to our club.

Significantly, the changes made to our Non Playing membership category, has now attracted 121 members as people who choose to retain their links with Castle Hill Country Club, use the clubhouse facilities but not play on the course. This has provided them with the time to assess their membership before making any final decision, or to recover their health while retaining the option to play again. Similarly, the new House membership allows full use of our practice facilities and clubhouse without playing rights which has appeal to some golfers working nearby.

At the time of writing we have achieved a membership attrition rate of 1% of playing members which compares quite favourably to last year.

We are happy that applications for new individual memberships continue to be received at a steady rate throughout the year for most categories and we have had recent additions to corporate membership as well.

We have extended our member referral scheme to include additional benefits to existing members who refer a new player and our advertising of the scheme will be kept at the forefront of our effort over the next year. We will also continue to explore the potential of the increased commercial workforce in the Norwest Business precinct and plan to conduct another Norwest Open Day in March 2011.

We area also happy to continue our relationship with property developers in the area as a potential source of new members, especially now that the Balmoral Estate really begins to expand.

The membership committee this year has also undertaken a review of the Dress Code of the club with the twofold aim of aligning the rules for women and men more closely than before and giving due recognition to the changes in fashionable apparel that inevitably occur over time. These new changes will be communicated to members shortly and will be accompanied by a revision of the signage and photo boards related to the Dress Code that are throughout the clubhouse area.

Finally, I would like to thank the members of the Membership Committee for the contribution to our tasks this year and for their commitment to the ongoing development of our club with special thanks to Sandra Turner who keeps the administration wheels of membership turning so smoothly.

Graham HaytonChairman – Membership Committee

Description 2009 2010

7 Day Playing 476 4527 Day Senior 93 1006 Day Playing 261 2456 Day Senior 38 485 Day Playing 199 190Junior Members 10 12Cadet Members 32 35Sub Cadet Members 10 4Country Members 42 28Non Playing Members 93 121House Members 9 9Corporate Members 7 10Life Members 3 3Special Members 5 5Ladies Promotion 9 8

Total Club Members 1287 1270Social Members 176 170

TOTAL 1463 1440 As at 31st August 2010

Membership Report


Your Directors present their report on the Company for the financial year ended 30 June 2010.

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

Name

Roger Allsop – Resigned 19 October 2009

David Geraghty

Keith Watson – Resigned 19 October 2009

Lindsay Verdon

William Muter

Robert Hickson

Celestine Michel – Resigned 19 October 2009

Michael Roy Jones – Appointed 19 October 2009

Patrick Carr – Appointed 19 October 2009, Resigned 27 January 2010

Graham Hayton – Appointed 19 October 2009

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

Directors’ Report

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

Principal ActivitiesThe principal activity of the company during the financial year was the operation of a golf club and it’s associated activities. No significant changes in the nature of the company’s activity occurred during the financial year.

Operating ResultsThe profit of the company amounted to $161,487.

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

Review of OperationsThe club’s Operating Profit of $161,487 is an increase of 447.23% from the previous year ($29,510). Revenue increased by 2.80% ($147,069), and operating costs increased by 0.29% ($15,092). Cash reserves at 30 June 2010 totalled $2,533,579. Capital expenditure for the year was $367,228.

Significant Changes in State of AffairsNo significant changes in the company’s state of affairs occurred during the financial year.

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

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

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


Directors’ Report continued

Information on Directors

Roger AllsopQualifications: Bachelor of Science, MBA

Experience: Retired, formerly Operations Director.

Special Responsibilities: President Resigned 19/10/2009 Finance Committee member

Planning and Development Committee member

David GeraghtyQualifications: Bachelor of Economics, Chartered

Accountant

Experience: General Manager and Director. Appointed 26/10/2004.

Special Responsibilities: President Appointed 19/10/2009. Finance Committee member Planning and Development Committee member Executive Remuneration Committee chairperson

Keith WatsonQualifications: Extensive sales experience

Experience: Retired, formerly National Sales Manager.

Special Responsibilities: Captain Resigned 19/10/2009 Course Committee member Match Committee chairperson

Lindsay VerdonQualifications: Diploma of Architectural Drafting

Experience: NSW Marketing Manager. Appointed 26/10/2004.

Special Responsibilities: Captain appointed 19/10/2009 Course Committee chairperson Match Committee chairperson Junior Development Committee chairperson Executive Remuneration Committee member

William Muter

Qualifications:

Experience: Retired, formerly General Manager. Appointed 26/10/2004.

Special Responsibilities: Director Course Committee member Match Committee member Junior Development Committee member

Robert HicksonQualifications: Bachelor of Engineering, Graduate

Diploma in Business Management, Masters in Applied Finance

Experience: Operations Director. Appointed 17/11/2003.

Special Responsibilities: Vice President appointed 19/10/9 Planning and Development Committee chairperson Finance Committee member Executive Remuneration Committee member

Celestine MichelQualifications: Masters in Project Management

Experience: Director. Appointed 20/10/2008. Resigned 19/10/2009.

Special Responsibilities: Treasurer

Finance Committee chairperson

Membership/Social Committee member

Planning and Development Committee member

Michael Roy JonesQualifications: Bachelor of Science,

PHD in ScienceExperience: Senior Operations Executive.

Director. Treasurer appointed 19/10/2009.

Special Responsibilities: Finance Committee Chairperson Membership/Social Committee member Executive Remuneration Committee member

Patrick Carr

Qualifications: Licensed Real Estate AgentExperience: Director Appointed 19/10/2009.

Resigned 27/01/2010.Special Responsibilities: Match Committee Member

Course Committee Member Junior Development Committee Member

Graham Hayton

Qualifications: Bachelor Of Arts Graduate Diploma in Education Studies

Experience: Director Appointed 19/10/2009.Special Responsibilities: Membership/Social Committee

chairperson


Directors’ Report continued

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

Directors MeetingsDirector No. Eligible No. to Attend Attended

Roger Allsop 3 3

David Geraghty 13 12

Keith Watson 3 3

Lindsay Verdon 13 12

Robert Hickson 13 11

William Muter 13 12

Celestine Michel 3 3

Michael Roy Jones 10 8

Patrick Carr 3 3

Graham Hayton 10 10

Indemnifying Officers or AuditorNo indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who is or has been an auditor of the entity.

During the financial year the company has paid premiums to insure each of the directors against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director of the company, other than conduct involving a wilful breach of duty in relation to the company. The amount of the premium was $678 for each director.

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

Auditor’s Independence DeclarationThe lead auditor’s independence declaration for the year ended 30 June 2010 has been received and can be found on page 27 of the Annual Report.

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

David Geraghty – Director

Michael Roy Jones – Director

Dated 25th day of August 2010

at Baulkham Hills


Note 2010 2009 $ $Revenue from operating activities 2 5,395,656 5,248,587

Employee benefits expense (2,342,415) (2,312,930)

Depreciation and amortisation 3 (574,778) (553,391)

Administration expenses (186,516) (195,155)

Other expenses (2,130,460) (2,157,601)

Profit before income tax 161,487 29,510

Income tax expense – –

Profit for the year 161,487 29,510

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

Total comprehensive income for the year 161,487 29,510

Profit attributable to members of the entity 161,487 29,510

Total comprehensive income attributable to members of the entity 161,487 29,510

Income Statement for the year ended 30 June 2010

The accompanying notes form part of these financial statements.


Note 2010 2009 $ $ ASSETS

CURRENT ASSETS Cash and cash equivalents 4 2,533,579 2,257,134

Trade and other receivables 5 57,899 87,096

Inventories 6 237,842 217,819

Other current assets 7 131,210 11,451

TOTAL CURRENT ASSETS 2,960,530 2,573,500

NON-CURRENT ASSETS

Financial assets 8 424,292 366,633

Property, plant and equipment 9 28,353,824 28,561,374

TOTAL NON-CURRENT ASSETS 28,778,116 28,928,007

TOTAL ASSETS 31,738,646 31,501,507

CURRENT LIABILITIES

Trade and other payables 10 1,181,023 1,125,668

Short term provisions 11 419,238 398,941

TOTAL CURRENT LIABILITIES 1,600,261 1,524,609

TOTAL NON-CURRENT LIABILITIES – –

TOTAL LIABILITIES 1,600,261 1,524,609 NET ASSETS 30,138,385 29,976,898

EQUITY Retained earnings 13 3,782,890 3,621,403 Reserves 12 26,355,495 26,355,495 TOTAL EQUITY 30,138,385 29,976,898

Balance Sheet as at 30 June 2010



Statement Of Changes in EquityFor The Year Ended 30 June 2010


Asset Capital Retained Revaluation Profits Total Earnings Reserve Reserve $ $ $ $

Balance at 1 July 2007 3,378,432 37,079,771 4,478,905 44,937,108

Profit attributable to the entity 251,276 251,276

Retrospective adjustment to leave provisions (37,815) (37,815)

Revaluation decrement (15,203,181) (15,203,181)

Balance at 30 June 2008 3,591,893 21,876,590 4,478,905 29,947,388


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


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


Note 2010 2009

$ $

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from customers 5,197,863 7,414,088

Payments to suppliers and employees (4,665,760) (7,191,357)

Interest received 97,861 135,138

Net cash generated from operating activities 14(a) 629,964 357,869

CASH FLOW FROM INVESTING ACTIVITIES

Proceeds from sale of property, plant and equipment 13,709 30,650

Payment for property, plant and equipment (367,228) (813,290)

Payment for investments – –

Net cash used in investing activities (353,519) (782,640)

Net (decrease) increase in cash held 276,445 (424,771)

Cash at the beginning of the financial year 2,257,134 2,681,905

Cash at the end of the financial year 14(b) 2,533,579 2,257,134

Cash Flow Statement for the year ended 30 June 2010



Notes to the Financial Statements for the year ended 30 June 2010

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

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

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

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

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

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

Plant and EquipmentPlant and equipment are measured on the cost basis less depreciation and impairment losses.The carrying amount of plant and equipment is reviewed annually

by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have not been discounted to their present values in determining recoverable amounts.

DepreciationThe depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, is depreciated on a straight line or diminishing value basis over their useful lives to the entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.The depreciation rates used for each class of depreciable assets are:Buildings 2 – 10%Course Plant 5 – 33%Clubhouse Equipment 5 – 40%Poker Machines 10 – 33%Leased Equipment 15 – 20%The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.An asset classes carrying amount is written down immediately to its recoverable amount if the assetís carrying amount is greater than its estimated recoverable amount.Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

(d) LeasesLeases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to the entity, are classified as finance leases.Finance leases are capitalised, recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values.Leased assets are depreciated on a straight line basis over their estimated useful lives where it is likely that the entity will obtain ownership of the asset. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the period in which they are incurred.Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.

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



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

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

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

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

Financial Instruments ImpairmentAt each reporting date, the entity assesses whether there is objective evidence that a financial instrument has been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the assets fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the Income Statement.

(f) Impairment of AssetsAt each reporting date, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the assets fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the Income Statement.Where the future economic benefits of the asset are not primarily dependent upon the assets ability to generate net cash inflows and where the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is depreciated replacement cost of an asset.Where it is not possible to estimate the recoverable amount of an asset class, the entity estimates the recoverable amount of the cash-generating unit to which the class of asset belongs.

(g) Employee BenefitsProvision is made for the entity’s liability for employee benefits arising from services rendered by employees to Balance Sheet date. Employee benefits arising from wages and salaries, annual leave and long service leave have been measured at their nominal amount plus on costs.Employee entitlements for sick leave have not been provided for in the accounts. The Directors consider that the sick leave is non-vesting in the employees and therefore believe that any future

liabilities are not material and are to be absorbed as an overhead in the period in which the expense is incurred.Contributions are made by the entity to employee superannuation funds and are charged as expenses when incurred.

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

(i) Goods and Services Tax (GST)Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the Balance Sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a net basis. In prior years, cash flows were presented in the cash flow statement inclusive of GST.

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

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

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

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

(n) Critical Accounting Estimates and JudgmentsThe Directors evaluate estimates and judgments 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.

Key estimates – ImpairmentThe entity assesses impairment at each reporting date by evaluation conditions specific to the entity that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Fair value less costs to sell or current replacement cost calculations performed in assessing recoverable amounts incorporate a number of key estimates.


2010 2009 $ $

Note 2: RevenueOperating Activities Subscriptions 1,813,890 1,877,528 Entrance Fees 242,014 135,729 Visitors Green Fees 203,043 192,739 Corporate Green Fees 187,992 170,984 Competition Fees 328,010 320,229 Cart Income 271,843 230,380 Main Bar Sales 512,429 477,342 Sprig Bar Sales 551,270 506,238 Restaurant Bar Sales 54,047 69,844 Professional Shop Sales 723,964 715,995 Poker Machine Takings (Net) 156,146 190,633 Interest Received 97,861 137,495 Clubhouse Receipts 85,496 102,443 Rental Income 89,530 103,285 Gain on Perpetual Fund Investment 57,659 – Unused Bar credits 20,462 17,723 5,395,656 5,248,587

Note 3: Profit from Ordinary ActivitiesProfit from Ordinary Activities has been determined after: (a) Expenses Depreciation and Amortisation of: – Buildings 181,074 178,372 – Plant & Equipment 393,704 375,019 574,778 553,391

Movement in Provisions Employee Benefits 20,297 78,091

(b) Significant Revenue and Expenses Revenue: Property, Plant & Equipment Proceeds on disposal 13,709 27,864

Note 4: Cash Assets WBC Operating Account 268,448 301,604 WBC Investment Maxi Account 926,410 472,509 WBC Term Deposit 300,000 1,453,291 Suncorp Metway 1,009,441 – Cash On Hand 21,250 21,050 Automatic Teller Machine 8,030 8,680 2,533,579 2,257,134

Note 5: Receivables Trade Receivables 49,963 80,216 Other Receivables – 3,112 Security Deposits 1,410 1,410 Interest Receivable 6,526 2,358 57,899 87,096




Note 6: Inventories Goods Held for Resale – at Cost 237,842 217,819

Note 7: Other Current Assets Prepayments Current 29,894 11,451 Non Current 101,316 – 131,210 11,451

Note 8: Financial Assets Available-for-sale financial assets Perpetual Trustees Investment – at cost 500,000 500,000 Add: reinvestment of distributions received 30,799 12,799 Less: Diminution in market value (106,507) (146,166) 424,292 366,633

The Club made a long term investment in units in Perpetual Investment Management Limited Charitable and Community Investor Fund on 9 January 2008. The initial investment cost was $500,000 with a further $30,799 reinvested from fund earnings. Due to reductions in the value of units held by the Fund for the period 30 June 2010 the market value as at that date was $424,292. The movement in market value of the investment is shown in the income statement.

The Club intends to retain this investment for the long term however as the Fund does not have a fixed maturity date, Accounting Standards require it to be classified as an available for sale financial asset.

Note 9: Property, Plant & Equipment Freehold Land and Golf Course Improvements at Independent Valuation – 2008 19,355,849 19,274,338 Accumulated Depreciation – Improvements 9,398 2,582 19,346,451 19,271,756 Club Buildings at Independent Valuation – 2008 7,727,391 7,727,391 Accumulated Depreciation 359,446 178,372 7,367,945 7,549,019 Course Plant & Equipment at Cost 2,443,430 2,400,461 Accumulated Depreciation 1,635,224 1,503,913 808,206 896,548 Clubhouse Equipment at Cost 2,612,370 2,429,585 Accumulated Depreciation 1,793,713 1,615,477 818,657 814,108 Poker Machines at Cost 195,711 195,712 Accumulated Depreciation 183,146 165,769 12,565 29,943

Total Property, Plant and Equipment 28,353,824 28,561,374

2010 2009 $ $


Note 9: Property, Plant & Equipment (continued)

2010 2009

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

Freehold Land and Golf Course Improvement Balance at the beginning of the year 19,271,756 19,000,000 Additions 81,510 274,338 Revaluation – – Depreciation – Improvements (6,815) (2,582) Carrying amount at the end of the year 19,346,451 19,271,756

Club Buildings Balance at the beginning of the year 7,549,019 7,700,000 Additions – 27,391 Revaluation – – Depreciation Expense (181,074) (178,372) Carrying amount at the end of the year 7,367,945 7,549,019

Course Plant & Equipment Balance at the beginning of the year 896,548 895,555 Additions 102,932 195,988 Disposals – – Depreciation Expense (191,274) (194,995) Carrying amount at the end of the year 808,206 896,548

Clubhouse Equipment Balance at the beginning of the year 814,108 679,491 Additions 182,786 290,988 Depreciation Expense (178,237) (156,371)) Carrying amount at the end of the year 818,657 814,108

Poker Machines Balance at the beginning of the year 29,943 26,429 Additions – 24,585 Depreciation Expense (17,378) (21,071) Carrying amount at the end of the year 12,565 29,943

Total Balance at the beginning of the year 28,561,374 28,301,475 Additions 367,228 813,290 Revaluations – – Disposals – – Depreciation Expense (574,778) (553,391) Carrying amount at the end of the year 28,353,824 28,561,374



2010 2009 $ $

Note 10: Trade and Other Payables Trade Payables 252,871 216,879 Members Subscriptions in Advance 880,990 899,898 Charity Day Account 20,872 4,267 Other Deposits 26,290 4,624 1,181,023 1,125,668

Note 11: Provisions Employee Entitlements Long Sevice Leave 154,902 140,427 Leave On Costs 63,951 60,855 Annual Leave 200,385 197,659 419,238 398,941

Note 12: Reserves Asset Revaluation Reserve 21,876,590 21,876,590 Capital Profits Reserve 4,478,905 4,478,905 26,355,495 26,355,495

Note 13: Retained Surplus Retained Surplus at beginning of financial year 3,621,403 3,591,893 Profit from ordinary activities 161,487 29,510 Retained Surplus at end of financial year 3,782,890 3,621,403

Note 14: Cash Flow Information (a) Reconciliation of cash flow from operations with profit from ordinary activities

Profit (Loss) from ordinary activities 161,487 29,510 Non cash flows in profit from ordinary activities Depreciation 574,778 553,391 Unrealised Loss (Gain) on Investment (57,659) 75,903 Net gain on disposal of fixed assets (13,709) (30,650) Changes in Assets and liabilities (Increase)/Decrease in trade and other receivables 29,197 (34,073) (Increase)/Decrease in inventories (20,023) 184 (Increase)/Decrease in other current assets (119,759) 9,114 Increase/(Decrease) in trade and other payables 55,355 (323,601) Increase/(Decrease) in short-term provisions 20,297 78,091 629,964 357,869

(b) Reconciliation of Cash Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial position as follows:

Cash on Hand and at Bank 297,728 331,334 At call and short term deposits with banks 2,235,851 1,925,800 2,533,579 2,257,134


2010 2009 $ $



Note 15: Interests of Key Management Personnel

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

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

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

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

Executive Management Stuart Fraser – Chief Executive Officer Duncan Walker – House Manager Martyn Black – Superintendent Transactions with Key Management Personnel The key management personnel remuneration included in “employee benefits expense” is as follows: 2010 2009 $ $ Short term employee benefits Salaries, allowances and fringe benefits 436,546 403,910 Post employment benefits Superannuation 42,228 36,965

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

to other parties unless otherwise stated. During the year the club commenced business dealings with a firm called “On-Pin GPS Golf Systems” whose Director, Alan Hickson is the brother of company Director Robert Hickson.

Transactions with related parties: Other Related Parties – Purchases from On-Pin GPS Golf Systems 5,422 –

Note 17: Capital Commitments Expenditure commitments arising from contract to supply and

install a new Irrigation system

Payable; – Not later than 12 months 1,065,184 –

Note 18: Auditors Remuneration Remuneration of the Auditor of the company for: – Auditing the financial report 17,120 16,500 – Preparation of statutory financial report 4,100 4,100 21,220 20,600



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

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

required to contribute a maximum of $2 each towards meeting any outstanding obligations of the company. At 30 June 2010 the number of members was 1,506 (1,547 at 30 June 2009).

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

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

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

Note 23 Financial Instruments (a) Financial Risk Management The company’s financial instruments consist mainly of deposits with banks, long-term investments, bank bill investments,

accounts receivable and accounts payable.

The main purpose of non-derivative financial instruments is to raise finance for company operations. The company does not have any derivative instruments at 30 June 2010.

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

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

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

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

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

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


Note 23 Financial Instruments (continued)

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

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

Weighted Average Effective

Interest Rate

Floating Interest Rate

Fixed Interest Rate

MaturingWithin Year

Fixed Interest Rate

Maturing1 to 5 Years

Non Interest Bearing

Total

2010 %

2009 %

2010$

2009$

2010$

2009$

2010$

2009$

2010$

2009$

2010$

2009$

Financial Assets

Cash & Cash Equivalents 5% 7% 2,533,579 2,257,134 2,533,579 2,257,134

Investments 424,292 366,633 424,292 366,633

Trade & Other Receivables – – 57,899 87,096 57,899 87,096

Total Financial Assets 2,533,579 2,257,134 482,191 453,729 3,015,770 2,710,863

Financial Liabilities

Trade & Other Payables 1,181,023 1,125,668 1,181,023 1,125,668

Short Term Borrowings – – – –

Total Financial Liabilities – – – – 1,181,023 1,125,668 1,181,023 1,125,668

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

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



Directors’ Declaration

The Directors of the entity declare that:

1. The financial statements and notes, as set out on pages 12 to 24, are in accordance with the Corporations Act 2001:(a) comply with Accounting Standards and the Corporations Regulations 2001; and(b) give a true and fair view of the financial position as at 30 June 2010 and of the performance for the year ended on that

date of the company.

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

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

............................................................................... David Geraghty – Director

............................................................................... Michael Roy Jones – Director

25th August 2010Dated: ...................................................................


SCOPEThe financial report and Directors’ responsibility

The financial report comprises the balance sheet, income statement, cash flow statement, statement of changes in equity, a summary of significant accounting policies and other explanatory notes and the Directors’ declaration for Castle Hill Country Club Limited for the financial year ended 30 June 2010 as set out on pages 12 to 25.

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

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

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

Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial report, and the evaluation of accounting policies and significant accounting estimates made by the Directors.

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

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

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

including:

(a) giving a true and fair view of the company’s financial position as at 30 June 2010 and of it’s performance for the year ended on that date; and

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

D A STRATI & ASSOCIATESCertified Practising Accountants

Domenic StratiLevel 3, 376 Bay StreetBrighton Le Sands NSW 2216

Dated: 25th August 2010

Independent Audit Report To the Members of Castle Hill Country Club Limited


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

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2010 there have been:

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

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

Name of Firm D A STRATI & ASSOCIATES

Name of Partner Domenic Strati

Date 17th August 2010

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


SCOPEOn the basis of information provided by the Directors of Castle Hill Country Club Limited, we have compiled in accordance with APS 9: Statement on Compilation of Financial Reports the special purpose report, being a Detailed Profit and Loss Statement of Castle Hill Country Club Limited for the year ended 30 June 2010.

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

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

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

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

The Detailed Profit and Loss Statement was prepared for the benefit of the Company and its members and the purpose identified above. We do not accept responsibility to any other person for the contents of the Detailed Profit and Loss Statement.

D A STRATI & ASSOCIATESCertified Practising Accountants

Domenic StratiBrighton Le Sands

Dated this 25th day of August 2010

Compilation Report To the Members of Castle Hill Country Club Limited


Detailed Profit and Loss Statementfor the year ended 30 June 2010

2010 2009

Income Note $ $Subscriptions 1,813,890 1,877,528Entrance Fees 242,014 135,729Visitors Green Fees 203,043 192,739Corporate Green Fees 187,992 170,984Competition Fees 328,010 320,229Cart Income 271,843 230,380Main Bar Trading 512,429 477,342Restaurant Bar Trading 54,047 69,844Sprig Bar Trading 551,270 506,238Professional Shop Trading 723,964 715,995Unused Bar Credit 20,462 17,723Poker Machines (Net) 156,146 190,633Interest Received 97,861 137,495Profit on Sale of Fixed Assets 13,709 27,864Rent Received 89,530 103,285Sundry Income 24 71,787 74,579Unrealised Profit on Investment 57,659 0Net Operating Revenue 5,395,656 5,248,587

ExpensesCourse 25 1,363,256 1,360,267Competition 26 355,518 416,485Main Bar Trading 27 572,927 560,814Restaurant Bar Trading 51,239 69,673Sprig Bar Trading 28 472,849 421,114Poker Machines 29 29,449 33,700House 30 862,986 797,471Administration 31 732,135 753,750Professional Shop 32 793,810 729,900Unrealised Loss on Investment 0 75,903Net Operating Expenses 5,234,169 5,219,077

Operating Profit (Loss) 161,487 29,510

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


2010 2009

Note 24: Sundry Income $ $ Keno Commissions 2,971 3,018 Locker Fees 5,857 6,318 Room Hire 14,393 8,809 Sponsorship Income 24,136 19,500 Training Rebates – 5,773 Other Food Income – 1,802 Other Sundry Income 24,430 29,359 71,787 74,579

Note 25: Course Expenditure Wages and Associated Costs 826,054 801,636 Depreciation Expense 197,015 197,577 Repairs & Maintenance 67,113 80,184 Materials 150,293 115,857 Course Improvements 76,987 107,653 Other Costs 45,794 57,360 1,363,256 1,360,267

Note 26: Competition Expenditure Wages and Associated Costs 95,051 99,628 Ball Competition & Trophies Expense 146,328 146,917 Golf Cart Costs 41,732 93,433 Affiliation Fees 44,712 45,273 Other Costs 27,695 31,234 355,518 416,485

Note 27: Main Bar Expenditure Wages and Associated Costs 317,467 306,844 Cost of Goods Sold 206,348 205,835 Repairs & Maintenance 5,733 4,980 Other Costs 43,379 43,155 572,927 560,814

Note 28: Sprig Bar Expenditure Wages and Associated Costs 203,680 197,371 Cost of Goods Sold 236,272 201,096 Repairs & Maintenance 12,171 3,952 Other Costs 20,726 18,695 472,849 421,114

Note 29: Poker Machine Expenditure Depreciation Expense 17,377 21,071 Repairs and Maintenance 4,877 5,633 Other Costs 7,195 6,996 29,449 33,700

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

Notes to the Detailed Profit and Loss Statementfor the year ended 30 June 2010


Notes to the Detailed Profit and Loss Statementfor the year ended 30 June 2010

2010 2009

Note 30: House Expenditure $ $ Wages and Associated Costs 51,385 64,888 Depreciation Expense 323,290 297,647 Repairs & Maintenance 92,084 66,335 Insurance 70,449 66,107 Utilities 119,127 99,042 Rates 29,362 31,309 Cleaning Services 20,745 18,456 Security Costs 27,197 26,357 Members Benefits & Associated Costs 30,651 25,051 Function Expenses 30,396 29,503 Service Contracts 34,147 38,588 Other Costs 34,153 34,188 862,986 797,471

Note 31: Administration Expenditure

Wages and Associated Costs 545,619 558,595 Audit & Professional Fees 33,378 24,121 Legal Expenses 4,335 1,740 Printing, Postage & Office Supplies 34,584 41,740 Telephone 19,544 19,444 Bank, EFTPOS Charges & Interest 22,247 20,345 Computer Charges 25,666 32,382 Subscriptions & Licences 10,816 7,596 Directors & CEO Expenses 10,954 8,469 Other Costs 24,992 39,318 732,135 753,750

Note 32: Professional Shop Expenditure

Wages and Associated Costs 303,159 283,968 Cost of Goods Sold 450,308 421,211 Other Costs 40,343 24,721 793,810 729,900

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


Nomination for Board of Directors

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

Mr Roger Allsop President Elected unopposed

Mr Terry Greenhalgh Vice President Elected unopposed

Mr Lindsay Verdon Captain Elected unopposed

Mr Bill Muter Vice Captain Elected unopposed

Mr Paul Moynihan Treasurer Elected unopposed

Mr Glen Byrnes Director Elected unopposed

Mr Alann James Director Elected unopposed

Documents

Annual Report