Eastern Suburbs Leagues Club Ltd by lindash

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									Eastern Suburbs Leagues Club Ltd
ABN 63 000 249 490

Concise Annual Report
Year ended 31 October 2007




                             Eastern Suburbs Leagues Club during the 1970s
                                                                                                                     50
Notice Of Annual General Meeting
Notice is given that the 48th Annual General Meeting of Eastern Suburbs Leagues Club Ltd (“the
Company”) will be held on Monday 17 March 2008 at 7.00pm at the Club’s premises, 93-97                                                                                        CONTENTS
Spring Street, Bondi Junction, New South Wales, to deal with the following business:

A.   Apologies.                                                                                                                                                       2       Executive Report 2007

                                                                                                                                                                      5       Great Community Clubs
B.   Confirmation of the Minutes of the 47th Annual General



C.
     Meeting held on 20 March 2007.

     To receive and consider the Statements of Financial Performance, Financial Position and Cash Flows
                                                                                                                        YEARS                                         6

                                                                                                                                                                      9
                                                                                                                                                                              Directors’ Report

                                                                                                                                                                              Auditor’s Independence Declaration
     for the year ended 31 October 2007, together with the Report of the Directors and Auditors therein.                                                            10        Statement of Financial Performance

D.   Members to approve the granting of the licence by the Club to Danewin Catering Group Pty Ltd                                                                   11        Statement of Changes in Equity
     for the first floor Asian restaurant to provide goods or services to the members and their guests                                                              12        Balance Sheet
     and to other members of the public in accordance with Clause 47I (3) (b) of the Registered Clubs
     Amendment Regulation 2007.                                                                                                                                     13        Statement of Cash Flows

                                                                                                                                                                    14        Discussion and Analysis
E.   To deal with business set out in the Agenda paper.
                                                                                                                                                                    15        Notes to the Financial Statements
Dated 3 January 2008                                                                                                                                                          Concise Financial Report
By the Direction of the Board
                                                                                                                                                                    16        Directors’ Declaration
R A Riddle                                                                                                                                                          17        Independent Audit Report on
Chief Executive Officer                                                                                                2008 is the 50th Anniversary of
                                                                                                                                                                              Concise Financial Report
                                                                                                                        Eastern Suburbs Leagues Club
                                                                                                                      (Easts), which officially began on            18        Disclaimer
                                                                                                                              10 October, 1958                      19        Operating Statement
                                                                                                                             See page 22 onwards                    20        Registered Clubs Amendment Act 2003
                                                                                                                               for a brief history                            Disclosures

                                                                                                                                                                     22       50 Years of Easts – The history of
                                                                                                                                                                              Eastern Suburbs Leagues Club

                                                                                                                                                                    The financial statements and other specific disclosures have been
                                                                                                                                                                    derived from Eastern Suburbs Leagues Club Ltd’s (the Company)
                                                                                                                                                                    full financial report for the financial year. Other information
                                                                                                                                                                    included in the concise financial report is consistent with the
                                                                                                                                                                    Company’s full financial report.

                                                                                                                                                                    The concise financial report does not, and cannot be expected
                                                                                                                                                                    to, provide as full an understanding of the financial performance,
                                                                                                                                                                    financial position and financing and investing activities of the
                                                                                                                                                                    Company as the full financial report.

                                                                                                                                                                    A copy of the Company’s 2007 Annual Financial Report, including
                                                                                                                                                                    the independent audit report, is available to all members and will
                                                                                                                                                                    be sent to members without charge upon request.


Eas tern Suburbs Leag u e s Cl u b L t d                                      C o n c i se A n n u a l R e p o r t   E a st e r n S u b u r b s Leagues C lub Ltd                                        C oncise A nnual R epor t
    Ex ecutive R eport 2 00 7                                                                                         E xe c u t i ve R e p o rt 2 0 0 7

    Dear Member,                                                                                                      Kingswood’s revenue was lower than last year ($20,719) and expenses higher ($45,352) resulting
    It is our pleasure to present the 48th annual report of the Eastern Suburbs Leagues Club Ltd for the              in a lower profit. Overheads increased mainly related to electricity & gas ($16,865), gaming duty
    financial year ending 31 October 2007.                                                                            ($13,612) and promotions and raffles ($65,000). Compared to the same period last year (July to
                                                                                                                      October) gaming revenue was down $8,286 (0.8%).
    This year has been a most challenging year, due primarily to the impact of the introduction of Total
    Non-Smoking in July and a further State gaming tax increase in September. The tax increase was                    Following is a pie graph which shows the extent of tax paid to the State Government from operating
    the final of four increases each September dating back to 2004. The good news is that these                       profit prior to any funds allocation to the Roosters. This details the base tax in 2004 which
    distracting issues are now behind us so we can continue to focus our full attention on providing                  includes the first increase followed by a further 3 increases over as many years. As it stands it is
    members with the best facilities and services available.                                                          clear that clubs have become a money collection agency for the Government. The challenge now
                                                                                                                      is to ensure we continue to provide members with excellent facilities, grow the business and still
    As predicted in previous reports the financial impact of these changes has meant a decline in the                 support our sporting bodies.
    Group’s operating profit this year against last year.
                                                                                                                                                            2007 Gaming Tax Impact
    The Financial Year in Review
    Group trading for the year ended 31 October 2007 produced a net profit of $4,294,734 before a
                                                                                                                       Sept 2004
    football grant of $4,200,000 and income tax of $7,657.                                                               0.6%                                                                      Operating Expenses
                                                                                                                       Total =26.4%
    The net performance of the Group (prior to service and management fees charged relative to
    Kingswood and Berkeley) are as follows:

                                                        2007               2006
        Bondi Junction                             2,970,319          3,494,799                                                                                                                            Grant
        Berkeley                                     922,075            799,050
        Kingswood                                    402,340            489,712
2                                                                                                                                                                                                                            3
                                                                                                                                Sept 2005                                                       Net Profit After Grant
                                                  $4,294,734        $4,783,561                                                    2.9%
                                                                                                                              Total =29.3%                   Sept 2006
                                                                                                                                                                1.9%         Sept 2007
    Bondi Junction’s profit from operations is lower (compared to last year) due to an increase in                                                         Total = 31.2%        4.7%
    expenditure leaving a net trading shortfall of ($524,480).                                                                                                             Total = 35.9%


    On a positive note Elix’r revenue grew by $231,250 or 33% which supports changes made to our                      2007 Changes and Future Direction
    2nd floor facility in 2005.                                                                                       Bondi Junction
                                                                                                                      During the year Scoozi Espresso Bar and Upper Fortunes Gaming areas were upgraded and smoking
    Post July to October (total non-smoking), gaming revenue fell by 4.6% ($450,014), whilst bar                      decks built adjacent to Spring Street entrance and on the western side of the Club adjoining the
    revenue declined by 2.26% ($55,471), for the fiscal year.                                                         laneway separating the Club and Eastgate.

    Expense increases related mainly to Entertainment & Promotion ($799,945), Finance ($488,709) and                  The first floor sports bar was demolished, making way for our new Asian Restaurant, Noble Court,
    Property & Occupancy costs ($102,997). Additional Entertainment & Promotions funds have been                      and banquet kitchen.
    spent ensuring Easts Bondi Junction provided better value to members in a highly competitive market.
    Finance costs increased due to higher debt following the purchase of retail premises in the Bondi                 There are a number of changes yet to be addressed which include upgrades for Spring Street
    Junction Mall plus the upgrade of Club facilities, including smoking decks. Property & Occupancy                  entrance, Level 1 Carvery and Grill, Bronte Road building façade and Kro Bar, however these
    costs increased due to increases in electricity, gas, depreciation and repairs and maintenance.                   projects will commence only when funds are available.

    Due to the facility upgrade in 2006 Berkeley was in a position to improve its profit position,                    Berkeley
    notwithstanding the introduction of Total Non-Smoking in July 2007. Most gains came prior to                      The impact on our 2006 refurbishment of the lounge, bar and terrace areas has been positive.
    July with increased gaming revenue of $405,361, beverage revenue $115,682 and food sales                          During the year more improvements were made to the gaming area in preparation for the July
    $187,319. Since July however, compared to the same period last year (July to October), gaming                     introduction of Total Non-Smoking. During 2008 minor changes to our back-of-house cool rooms
    revenue declined $119,049 (4.8%).                                                                                 and freezer area, plus TAB, will occur.

    Eas tern Suburbs Leag u e s Cl u b L t d                                   C o n c i se A n n u a l R e p o r t   E a st e r n S u b u r b s Leagues C lub Ltd                              C oncise A nnual R epor t
    Ex ecutive R eport 2 00 7                                                                                        G r e a t C o m m u n i t y C lubs

    Kingswood                                                                                                        The Easts Group of Clubs continues to have a widely respected community support focus and we
    By the time you receive this report the extension to the car park will have been completed,                      proudly exceed our regulatory obligations and charitable donations targets through our Community
    increasing car parking from 65 to 135 spaces. Also included are sufficient lighting and security                 Support program.
    monitoring to increase parking security. Kingswood will also receive an upgrade to the TAB and
    southern smoking terrace.                                                                                        Donations of money and sponsorship are made by the Club each year to a variety of groups, the
                                                                                                                     majority of which are locally based. This support may take the form of sponsorship, cash donations,
    Narellan                                                                                                         free use of room hire facilities, goods in kind or administration assistance.
    During the year Camden Council gave us conceptual and rezoning approval for our development and
    at the time of writing this report we are awaiting State Government endorsement of the rezoning.                 Through sponsorship and donations, Easts Group of Clubs supports many activities in the community
                                                                                                                     including charitable works, hobbies, and sporting activities. The support that the Club provides is
    Early in 2008 Camden Council will receive a Development Application for the Clubhouse and                        matched by the hundreds of hours of community service and charitable activities donated by the
    following approval we will be applying to the State Government for licensing approval for the                    many individuals who work tirelessly to make our local community a better place to live.
    project.
                                                                                                                     The   organisations that have been assisted through 2007 are
    Following this approval we will be in a position to commence construction subject to available funds                  Betsafe
    and finance approval.                                                                                                 Ted Noffs Foundation
                                                                                                                          Cancer Council
    General                                                                                                               Point Zero Youth Service
    We take this opportunity to thank our management and staff at all sites for their outstanding                         Junior Rugby League Development
    contribution during a difficult year. Due to sound planning and marketing we were in a solid                          Local Sporting Clubs
    position to meet the challenges which came with total non-smoking.                                                    City of Wollongong Aerial Patrol
                                                                                                                          St Philips Anglican Church
    Notwithstanding the downturn in gaming revenue due to non-smoking legislation, food services in                       Surf Clubs (Eastern Suburbs)
    our bistros and coffee shops continues to prosper. This is due to the committed teams at each Club                    Port Kembla Community Project
4                                                                                                                                                                                                                           5
    who continue to raise product and service standards.                                                                  St Vincent de Paul Society
                                                                                                                          Vision Australia
    Our sincere thanks to the Board of Directors for their support and contribution. These busy                           Wollongong City Council
    people give their time at no cost to ensure the future prosperity of the Company. During the year                     Luke Priddis Foundation
    we received the resignation of David Gyngell after 12 years of Directorship due to his relocation                     Muru Mittigar Ltd
    overseas as a result of work commitments. Our thanks to David for his significant contribution over
    these years. David has been replaced by Mark Fennessy, who, in a short period, has provided a                    These are only a few of the many organisations that were assisted throughout the year as part of our
    valuable contribution. Welcome Mark.                                                                             commitment to be great community clubs.

    And finally, thank you to all our members for your ongoing support, without which, nothing could be
    achieved.

    Nick Politis                     Rob Riddle
    Chairman                         Chief Executive Officer




    Eas tern Suburbs Leag u e s Cl u b L t d                                  C o n c i se A n n u a l R e p o r t   E a st e r n S u b u r b s Leagues C lub Ltd                              C oncise A nnual R epor t
    Di rectors’ R eport                                                                                                D i r e c t o r s’ R e p o r t

    Directors                                                                                                          Company Secretary
    Your Directors present their report together with the financial report of Eastern Suburbs Leagues                  The following person held the position of Company Secretary at the end of the financial year:
    Club Ltd (the Company) for the year ended 31 October 2007 and the Auditor’s report thereon.
                                                                                                                       Mr Robin Riddle
    The Directors of the Company in office at any time during or since the end of the financial year are:
                                                                                                                       Mr Riddle was appointed Company Secretary on 2 February 1998 and is also the Chief Executive
     Name and                    Age       Experience and special responsibilities                                     Officer of Eastern Suburbs Leagues Club Ltd.
     qualifications
                                                                                                                       Membership
     Chairman                                                                                                          The Company is a company limited by guarantee and is without share capital. The number of
     N G Politis,                66        Fifteenth year of directorship                                              members as at 31 October 2007 and the comparison with last year is as follows:
     B.Comm. & Ec.
     Vice Chairman                                                                                                                                              2007            2006
     M G Conn, L.L.B.            58        Sixteenth year of directorship, Judiciary Chairman                          Ordinary                               35,249          36,303
     Director                                                                                                          Life                                        8               6
     D L B Gyngell               42        Thirteenth year of directorship (Resigned December 2006)
     Director                                                                                                                                                 35,257          36,309
     P J Newton                  58        Seventh year of directorship
     Director                                                                                                          Operating Result
     B A Samphier                59        Sixth year of directorship, Sports Council Chairman                         The net profit before tax for the year amounted to $94,734 compared with $1,581,685 for the prior
                                                                                                                       year. This resulted after charging $3,983,539 (2006: $3,956,751) for depreciation/amortisation
     Director
     M L Bouris                  51        Fourth year of directorship                                                 and before charging $7,657 (2006: $277,012) for income tax.

     Director
6    M McInnes                   42        Third year of directorship
                                                                                                                       Review of Operations                                                                                     7
                                                                                                                       A review of the operations of the Company during the financial year and the results of these
     Director
                                                                                                                       operations are as follows:
     M Fennessy                  46        First year of directorship (Appointed May 2007)
                                                                                                                       The net profit before tax for the year amounted to $94,734 compared with $1,581,685 for the
    Directors’ Meetings                                                                                                prior year. The decrease of $1,486,951 was a result of an increase in revenues of $2,230,724
    The number of Directors’ meetings and number of meetings attended by each of the Directors of the                  mainly attributable to an increase in poker machine revenue and sale of goods revenue, offset by an
    Company during the financial year are:                                                                             increase in expenses of $3,716,675 particularly poker machine licences and taxes.

     Director                             Number of              Number of                  Leave of                   Significant Changes in the State of Affairs
                                        Meetings Held*        Meetings Attended          Absence Granted
                                                                                                                       There were no significant changes in the Company’s state of affairs that occurred during the
                                                                                                                       financial year.
     M L Bouris                                13                        6                         7

     D L B Gyngell                             2                         -                         2                   Principal Activities
                                                                                                                       The principal activity of the Company during the course of the financial year remained unchanged
     M G Conn                                  13                       12                         1
                                                                                                                       and was to provide members and their guests with the amenities and facilities usually associated
     M McInnes                                 13                        9                         4                   with social clubs. Further, the Company assists generally in the promotion, conduct and
                                                                                                                       propagation of rugby league football in the Eastern Suburbs and Illawarra area.
     P J Newton                                13                       13                         -

     N G Politis                               13                       11                         2                   There were no significant changes in the nature of the activities of the Company during the year.

     B A Samphier                              13                       11                         2
                                                                                                                       Events Subsequent to Reporting Date
     M Fennessy                                6                         6                         -                   There are no matters or circumstances that have arisen since the end of the financial year that have
                                                                                                                       significantly affected or may significantly affect the operations of the Company, the results of those
    *Number of meetings held during the time the director held office during the year.                                 operations or the state of affairs of the Company in future financial years.

    Eas tern Suburbs Leag u e s Cl u b L t d                                    C o n c i se A n n u a l R e p o r t   E a st e r n S u b u r b s Leagues C lub Ltd                                C oncise A nnual R epor t
    Di rectors’ R eport                                                                                                A u d i t o r ’s I n d e p endence D eclar ation

    Likely and Future Developments and Expected Results                                                                Lead Auditor’s Independence Declaration
    Likely developments in the operations of the Company in future financial years and the expected                    Under Section 307C of the Corporations Act 2001
    results of those operations are as follows:
                                                                                                                       To the Directors of Eastern Suburbs Leagues Club Ltd
        Government legislation regarding smoking regulations and poker machine duty rates continue
         to significantly affect the Club’s future profitability.
                                                                                                                       I declare that, to the best of my knowledge and belief, in relation to the audit for the year ended 31
    Environmental Regulation                                                                                           October 2007, there have been:
    The Company’s operations are not subject to any significant environmental regulation under a law of
    the Commonwealth or of a State or Territory.                                                                       i.    No contraventions of the auditor independence requirements as set out in the Corporations Act
                                                                                                                             2001 in relation to the audit; and
    The Board believes that the Company has adequate systems in place for the management of its
    environmental requirements and is not aware of any breach of those environmental requirements as                   ii.   No contraventions of any applicable code of professional conduct in relation to the audit.
    they apply to the Company.
                                                                                                                       PKF
    Dividends
    In accordance with the Constitution, no dividends can be paid and accordingly no dividends were
                                                                                                                       Paul Cheeseman
    paid or declared since the start of the financial year (2006: $Nil).                                               Partner
    Indemnification of Officers
    The Company has provided for and paid premiums during the year for Directors’ and Officers’
    liability and legal expenses’ insurance contracts.
                                                                                                                       1 Margaret Street
    The insurance premiums relate to:                                                                                  Sydney NSW 2000
                                                                                                                       19 December 2007
        Costs and expenses incurred by the relevant Officers in defending proceedings, whether civil or
8        criminal and whatever their outcome;                                                                                                                                                                                   9
        Other liabilities that may arise from their position, with the exception of conduct involving a
         wilful breach of duty or improper use of information or position to gain a personal advantage.

    The Directors have not included details of the nature of the liabilities covered or the amount of the
    premium paid with respect to the Directors’ and Officers’ liability and legal expenses’ insurance
    contract, as such disclosure is prohibited under the terms of the contract.

    Proceedings on Behalf of the Company
    No 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 party for the purposes 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 Declaration
    The Directors have received the Independence Declaration from the Auditors. The Declaration is
    attached as page 9.

    Signed in accordance with a resolution of the Directors.



    Dated at Bondi Junction this 19th day of December 2007.

    N G Politis
    Chairman

    Eas tern Suburbs Leag u e s Cl u b L t d                                    C o n c i se A n n u a l R e p o r t   E a st e r n S u b u r b s Leagues C lub Ltd                                C oncise A nnual R epor t
     St at ement of Financia l Pe r f o r ma n c e F o r t h e Ye a r E n d e d 3 1 O c t o b e r 2 0 0 7                          S t a t e m e n t o f C hanges in Equity For the Year Ended 3 1 O ctober 2 0 0 7

                                                                                         2007                      2006                                                                                    2007               2006
                                                                                           $                         $                                                                                       $                  $
     Revenue from continuing operations
                                                                                                                                   Total equity at the beginning of the financial year               43,557,263          42,252,590
     Sale of goods                                                                  7,193,200                 6,763,085
                                                                                                                                   Profit for the year                                                    87,077           1,304,673
     Rendering of services                                                         35,900,946               33,405,407
                                                                                                                                   Total recognised income and expense for the year                       87,077           1,304,673
     Other revenue                                                                  1,594,472                 2,289,402
                                                                                                                                   Total equity at the end of the financial year                     43,644,340          43,557,263
     Total revenue from continuing operations                                      44,688,618               42,457,894

     Expenses
     Cost of sales                                                                 (2,679,724)               (2,523,782)
     Employee benefits expense                                                    (12,138,540)              (11,399,106)
     Entertainment, marketing and promotional costs                                (5,020,301)               (4,186,597)
     Poker machine licences and taxes                                              (8,540,019)               (6,945,858)
     Occupancy expenses                                                            (4,595,813)               (4,356,344)
     Other expenses from ordinary activities                                       (2,107,909)               (2,417,131)

     Total Expenses                                                               (35,082,306)              (31,828,818)

     Earnings before depreciation and amortisation expense,
     finance costs and grants paid                                                  9,606,312               10,629,076

     Depreciation and amortisation expenses                                         (3,983,539)              (3,956,751)
     Finance costs                                                                  (1,328,039)                (840,640)
10   Grants paid                                                                    (4,200,000)              (4,250,000)                                                                                                                  11
     Profit before income tax expense                                                    94,734               1,581,685

     Income tax expense                                                                  (7,657)                (277,012)

     Net profit from continuing operations after
     income tax expense attributable to members                                          87,077               1,304,673

     The Statement of Financial Performance is to be read in conjunction with the discussion and
     analysis on page 14 and the notes to the financial statements set out on page 15.




     Eas tern Suburbs Leag u e s Cl u b L t d                                               C o n c i se A n n u a l R e p o r t   E a st e r n S u b u r b s Leagues C lub Ltd                               C oncise A nnual R epor t
     Bal an ce Sheet as at 31 Oc t o b e r 2007                                                                     C a sh Fl o w S t a t em ent For the Year Ended 3 1 O ctober 2 0 0 7

                                                            Note           2007                     2006                                                                                      2007              2006
                                                                             $                        $                                                                                         $                 $
     ASSETS                                                                                                         Cash Flows From Operating Activities
                                                                                                                    Receipts from customers                                             49,077,797         49,044,885
     Current Assets
                                                                                                                    Payments to suppliers and employees                                (41,418,120)       (39,557,644)
     Cash and cash equivalents                                         2,347,786               1,947,772
                                                                                                                    Interest received                                                       65,621             45,181
     Trade and other receivables                                         498,395                 495,061
                                                                                                                    Rent received                                                        1,076,884            756,736
     Inventories                                                         178,290                 161,784
                                                                                                                    Finance costs paid                                                  (1,328,039)          (840,640)
     Current tax assets                                                   62,575                       -
                                                                                                                    Grants paid                                                         (4,200,000)        (4,250,000)
     Other current assets                                                308,174                 397,028
                                                                                                                    Income taxes paid                                                     (274,006)          (336,192)
     Total Current Assets                                              3,395,220               3,001,645            Income taxes refunded                                                  139,989            111,013

     Non-Current Assets                                                                                             Net cash inflow from operating activities                              3,140,126         4,973,339
     Property, plant and equipment                                   51,190,307              48,415,173
                                                                                                                    Cash Flows From Investing Activities
     Investment property                                             19,320,236              13,482,008
                                                                                                                    Proceeds from sale of plant and equipment                              108,283             156,507
     Deferred tax assets                                                151,858                 110,302
                                                                                                                    Payment for property, plant and equipment                          (12,698,395)         (5,658,561)
     Total Non-Current Assets                                        70,662,401              62,007,483             Proceeds from sale of Narellan Properties                                    -           1,200,882

     Total Assets                                                    74,057,621              65,009,128             Net cash outflow from investing activities                         (12,590,112)         (4,301,172)

     LIABILITIES                                                                                                    Cash Flows From Financing Activities
                                                                                                                    Proceeds from borrowings                                               9,850,000       14,102,763
     Current Liabilities
                                                                                                                    Repayment of borrowings                                                        -      (14,168,732)
12   Trade and other payables                                         4,734,231                5,428,652                                                                                                                    13
     Financial liabilities                                           16,152,763                6,302,763            Net cash inflow/(outflow) from financing activities                    9,850,000           (65,969)
     Current tax liabilities                                                  -                   22,228
                                                                                                                    Net increase in cash and cash equivalents                               400,014            606,198
     Employee benefits                                                1,337,505                1,316,025
     Other current liabilities                                          131,298                   84,095            Cash and cash equivalents at the beginning of the financial year       1,947,772         1,341,574

     Total Current Liabilities                                       22,355,797              13,153,763             Cash and cash equivalents at the end of the financial year             2,347,786         1,947,772

     Non-Current Liabilities                                                                                        The Cash Flow Statement is to be read in conjunction with the discussion and analysis on page 14
     Financial liabilities                                             7,800,000               7,800,000            and the notes to the financial statements set out on page 15.
     Employee benefit                                                    195,445                 252,672
     Other                                                                62,039                 245,430

     Total Non-Current Liabilities                                     8,057,484               8,298,102

     Total Liabilities                                               30,413,281              21,451,865

     Net Assets                                                      43,644,340              43,557,263

     Members’ Funds
     Retained profits                                       2        43,644,340              43,557,263

     Total Members’ Funds                                            43,644,340              43,557,263

     The Balance Sheet is to be read in conjunction with the discussion and analysis on page 14 and the
     notes to the financial statements set out on page 15.


     Eas tern Suburbs Leag u e s Cl u b L t d                                C o n c i se A n n u a l R e p o r t   E a st e r n S u b u r b s Leagues C lub Ltd                                C oncise A nnual R epor t
     Di scussion and A nalys i s                                                                                          Notes to the Financial Statements Concise Financial Report For the Year Ended 31 October 2007

     Income Statement                                                                                                     1    Basis of Preparation of the Concise Financial Report
     The total revenue has increased by $2,230,724 (5.3%) since the prior year whilst expenses                            The concise financial report is an extract for the full financial report for the year ended 31 October
     including depreciation and amortisation finance costs and grants have increased by $3,717,675                        2007. The concise financial report has been prepared in accordance with Accounting Standard
     (9.1%) resulting in a net profit after tax of $87,077, compared to an after tax profit of $1,304,673                 AASB 1039: Concise Financial Reports and the Corporations Act 2001.
     for the previous year, a decrease of $1,217,596 (93.3%).
                                                                                                                          The financial statements, specific disclosures and other information included in the concise
     Individual items that impacted the 2007 result were:                                                                 financial report are derived from and are consistent with the full financial report of Eastern Suburbs
                                                                                                                          Leagues Club Ltd. The concise financial report cannot be expected to provide as detailed an
         Revenue from the sale of goods increased by $430,115 (6.4%) due to increases in catering                        understanding of the financial performance, financial position and financing and investing activities
          and beverage sales.                                                                                             of Eastern Suburbs Leagues Club Ltd as the full financial report.

         Revenue from rendering of services increased by $2,495,539 (7.5%) mainly due to increases                       The financial report of Eastern Suburbs Leagues Club Ltd complies with all Australian equivalents
          in net poker machine revenue of $2,192,254 (7%) and Elix’r revenue of $231,250 (33.2%).                         to International Financial Reporting Standards (AIFRS) in their entirety. The presentation currency
                                                                                                                          used in this concise financial report is Australian dollars.
         An increase in poker machine licences and taxes of $1,594,161 (23%) mainly due to higher
          duty rates and increased net clearances.                                                                        2    Retained Profits
                                                                                                                                                                                                  2007                 2006
         Increases in employee benefits expense of $739,434 (6.5%), entertainment, marketing and                         Retained profits at the beginning of the year                       43,557,263           42,252,590
          promotional costs of $833,704 (19.9%) and occupancy expenses of $239,469 (5.5%) and a                           Net profit attributable to members of the Company                       87,077            1,304,673
          decrease in other expenses of $309,222 (12.8%).
                                                                                                                          Retained profits at the end of the year                             43,644,340           43,557,263
         Finance costs have increased by $487,399 (58%) due to an increase in commercial bills
          whilst grants paid to the Football Club have decreased by $50,000 (1.2%).                                       3    Events Subsequent to Reporting Date
                                                                                                                          There are no matters or circumstances that have arisen since the end of the financial year that have
14                                                                                                                                                                                                                                 15
     Balance Sheet                                                                                                        significantly affected or may significantly affect the operations of the Company, the results of those
     The net assets increased by $87,077 (0.2%) since the previous year consisting of an increase in                      operations or the state of affairs of the Company in future financial years.
     total assets of $9,048,493 (13.9%) and a $8,961,416 (41.8%) increase in total liabilities.
                                                                                                                          4    Mutuality Principle
     The increase in total assets for the year is mainly due to an increase in cash and cash equivalents,                 Eastern Suburbs Leagues Club Ltd calculates its income in accordance with the mutuality principle
     property, plant and equipment and investment properties.                                                             which excludes from income, any amounts of subscriptions and contributions from members,
                                                                                                                          and payments received from members for particular services provided by the Club or association,
     The increase in total liabilities is mainly due to an increase in financial liabilities which are the                eg. poker machines, bar and dining room service in the case of social clubs. The Commissioner
     short-term commercial bills.                                                                                         of Taxation accepts this method of calculating income as appropriate for recognised clubs and
                                                                                                                          associations such as Eastern Suburbs Leagues Club Ltd.
     Statement of Cash Flows
     Operating activities provided net cash of $3,140,126, a decrease of $1,833,213 (36.9%) when                          Following the recent Full Federal Court decision in Coleambally Irrigation Mutual Co-operative
     compared to the previous year.                                                                                       Limited v FCT [2004] FCAFC 250, Tax Laws Amendment (2005 Measures No.6) Bill 2005 was
                                                                                                                          tabled in Parliament on 7 December 2005 to amend the Income Tax Assessment Act 1997 to
     Cash used in investing activities of $12,590,112 related to net payments for property, plant and                     restore the long standing benefits of the mutuality principle to those non-profit organisations
     equipment including capital work in progress and investment properties.                                              affected by the Coleambally decision.

     Cash provided from financing activities was $9,850,000 being proceeds from commercial bills.                         These amendments will ensure social clubs continue not to be taxed on receipts from contributions
                                                                                                                          and payments received from members.
     The above factors resulted in an overall increase of $400,014 in cash held.

     Cash at year end was $2,347,786 compared to $1,947,772 for the prior year.




     Eas tern Suburbs Leag u e s Cl u b L t d                                      C o n c i se A n n u a l R e p o r t   E a st e r n S u b u r b s Leagues C lub Ltd                                C oncise A nnual R epor t
     Di rectors’ D eclaration                                                                                         Independent Audit Report on the Concise Financial Report to the Members of Eastern Suburbs Leagues Club Ltd

     The Directors of Eastern Suburbs Leagues Club Ltd (the Company) declare that the concise                         Report on the concise financial report
     financial report of the Company for the financial year ended 31 October 2007, as set out on pages                The accompanying concise financial report of Eastern Suburbs Leagues Club Ltd (the Company)
     10 to 15:                                                                                                        comprises the balance sheet as at 31 October 2007, the income statement, statement of changes
                                                                                                                      in equity and cash flow statement for the year then ended and related notes, derived from the
     (a) complies with Accounting Standard AASB 1039: Concise Financial Reports; and                                  audited financial report of the Company for the year ended 31 October 2007, and the discussion
                                                                                                                      and analysis set out on pages 10 to 15. The concise financial report does not contain all the
     (b) is an extract from the full financial report for the year ended 31 October 2007 and has been                 disclosures required by the Australian Accounting Standards.
         derived from and is consistent with the full financial report of the Company.
                                                                                                                      Directors’ responsibility for the concise financial report
     This declaration is made in accordance with a resolution of the Board of Directors.                              The Directors are responsible for the preparation and presentation of the concise financial report
                                                                                                                      in accordance with Accounting Standard AASB 1039: Concise Financial Reports (including the
     Dated at Bondi Junction this 19th day of December 2007.                                                          Australian Accounting Interpretations), statutory and other requirements. This responsibility
                                                                                                                      includes establishing and maintaining internal control relevant to the preparation of the concise
     N G Politis                                                                                                      financial report; selecting and applying the appropriate accounting policies; and making accounting
     Chairman                                                                                                         estimates that are reasonable in the circumstances.

                                                                                                                      Auditor’s responsibility
                                                                                                                      Our responsibility is to express an opinion on the concise financial report based on our audit
                                                                                                                      procedures. We have conducted an independent audit, in accordance with Australian Auditing
                                                                                                                      Standards, of the financial report of the Company for the year ended 31 October 2007. Our audit
                                                                                                                      report on the financial report for the year was signed on 19 December 2007 and was not subject to
                                                                                                                      any modification. The Australian Auditing Standards require that we comply with relevant ethical
                                                                                                                      requirements relating to audit engagements and plan and perform the audit to obtain reasonable
                                                                                                                      assurance whether the financial report for the year is free from material misstatement.
16                                                                                                                                                                                                                                  17
                                                                                                                      Our procedures with respect to the concise financial report included testing that the information
                                                                                                                      in the concise financial report is derived from, and is consistent with, the financial report for the
                                                                                                                      year, and examination on a test basis, of evidence supporting the amounts, discussion and analysis,
                                                                                                                      and other disclosures which were not directly derived from the financial report for the year. These
                                                                                                                      procedures have been undertaken to form an opinion whether, in all material respects, the concise
                                                                                                                      financial report complies with Accounting Standard AASB 1039: Concise Financial Reports and
                                                                                                                      whether the discussion and analysis complies with the requirements laid down in AASB 1039:
                                                                                                                      Concise Financial Reports.

                                                                                                                      We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
                                                                                                                      for our audit opinion.

                                                                                                                      Independence
                                                                                                                      In conducting our audit, we have complied with the independence requirements of the Corporations
                                                                                                                      Act 2001. We confirm that the independence declaration required by the Corporations Act 2001,
                                                                                                                      was provided to the Directors of the Company on 19 December 2007.

                                                                                                                      Auditor’s opinion
                                                                                                                      In our opinion, the concise financial report including the discussion and analysis of the Company
                                                                                                                      for the year ended 31 October 2007 complies with Accounting Standard AASB 1039: Concise
                                                                                                                      Financial Reports.




     Eas tern Suburbs Leag u e s Cl u b L t d                                  C o n c i se A n n u a l R e p o r t   E a st e r n S u b u r b s Leagues C lub Ltd                                   C oncise A nnual R epor t
     Independent Audit Report on Concise Financial Report To the Members of Eastern Suburbs Leagues Club Ltd             O p e r a t i n g S t a t e ment For the Year Ended 3 1 O ctober 2 0 0 7

     PKF                                                                                                                                                                                                2007              2006
                                                                                                                                                                                                         $                 $
     Paul Cheeseman                                                                                                      Revenue
     Partner                                                                                                             TAB trading                                                               (40,713)             (61,015)
                                                                                                                         Rental properties                                                        (494,295)            (549,130)
     19 December 2007                                                                                                    Kingswood Sports trading                                                    5,944              110,912
                                                                                                                         Berkeley Sports trading                                                   426,223              386,894
                                                                                                                         Poker machine trading                                                  14,372,907           14,287,164
                                                                                                                         Bar trading                                                                12,876               73,502
     PKF is a national association of independent chartered accounting and consulting firms, each                        Catering trading                                                         (479,859)            (457,762)
     trading as PKF. PKF Australia Ltd is also a member of PKF International, an association of legally                  Easts Elix’r Gym                                                          513,474              275,400
     independent chartered accounting and consulting firms.                                                              Keno trading                                                               66,966               82,593
                                                                                                                         Sundry revenue                                                          2,576,275            3,222,308

                                                                                                                         Total Revenue                                                          16,959,798           17,370,866

     Di sclaimer                                                                                                         Expenditure
                                                                                                                         Administration                                                             3,811,128          4,072,899
     The additional financial data presented on page 19 is in accordance with the books and records of                   Entertainment and promotion                                                3,669,125          2,869,180
     Eastern Suburbs Leagues Club Ltd which have been subjected to the auditing procedures applied in                    Finance                                                                    1,427,649            938,940
     our statutory audit of the Company for the year ended 31 October 2007. It will be appreciated that                  Member amenities                                                             253,862            307,749
     our statutory audit did not cover all details of the additional financial data. Accordingly, we do not              Property and occupancy                                                     3,065,504          2,962,507
     express an opinion on such financial data and no warranty of accuracy or reliability is given.                      Human resources                                                              437,796            387,906

     In accordance with our Firm policy, we advise that neither the Firm nor any member or employee                      Total Expenses                                                         12,665,064           11,539,181
18                                                                                                                                                                                                                                    19
     of the Firm undertakes responsibility arising in any way whatsoever to any person (other than the
     Company) with respect to such data, including any errors or omissions therein, arising through
     negligence or otherwise however caused.                                                                             Total operating profit before tax and grant                                 4,294,734         5,831,685
                                                                                                                         Grant to football club                                                     (4,200,000)       (4,250,000)
     PKF                                                                                                                 Operating profit before income tax                                            94,734          1,581,685
                                                                                                                         Income tax benefit/(expense)                                                  (7,657)          (277,012)
     Sydney
     19 December 2007                                                                                                    Total Operating Profit After Tax                                              87,077          1,304,673




     Eas tern Suburbs Leag u e s Cl u b L t d                                     C o n c i se A n n u a l R e p o r t   E a st e r n S u b u r b s Leagues C lub Ltd                                     C oncise A nnual R epor t
     Regi stered C lubs Ame n d me n t Ac t 2003 Di s c l o s u r e s                                                  R e g i st e r e d C l u bs A m endm ent A ct 2 0 0 3 D isclosur es

     Eastern Suburbs Leagues Club Ltd                                                                                  (c) Director and employee overseas travel
                                                                                                                       Michael Pullin (to the value of $1,610) travelled overseas in his capacity as an employee.
          Location                       Serial Numbers
          Bondi Junction                        227103                                                                 (d) Employee loans
          Kingswood Sports                      241769                                                                 There were no loans made to employees during the year.
          Berkeley Sports                       244962
                                                                                                                       (e) Details of approved contracts
     31 October 2007                                                                                                   During the year, the Company did not enter into a contract with any of the Directors or top
                                                                                                                       executives, in which the Director or top executive has an interest.
     Registered Clubs Amendment Act 2003 Disclosures
     The following information is required to be disclosed by the Registered Clubs Amendment Act                       (f) Related parties
     2003 for the year ended 31 October 2007 and is important information for Club members. The                        During the year, the Company did not employ persons who are related to a Director or top executive.
     original declarations, disclosures and returns made pursuant to Sections 41C, 41D, 41E and 41F,
     and referred to below, are held with the Secretary of the Club. Such declarations, disclosures and                (g) Payments to consultants, exceeding $30,000
     returns are available for inspection by members on written application to the Secretary.                          During the year, the Company paid the following consulting fees which in total exceeded $30,000:

     (a) Disclosures, declarations and returns received under sections 41C to 41F                                           Name of consultant           Nature of service provided                  Amount paid $
     (i) Disclosure of interest in contracts (s41C)                                                                         Altis Architecture           Masterplan Drawings/Artist Impressions        $287,657
         No Director of the Company declared to have a material personal interest in a contract that
         relates to the affairs of the Company.                                                                        (h) Payments to consultants - other
                                                                                                                       During the year, the Company incurred $66,997 in consulting fees that were less than $30,000.
     (ii) Director and employee interest in hotels (s41D)
          No Director or any of the top 5 (by remuneration) Club employees holds any financial interest                (i) Legal settlements
          in a hotel.                                                                                                  There were no settlements made during the reporting period with a member of the Board or any
20                                                                                                                                                                                                                            21
                                                                                                                       employee of the Company as a result of a legal dispute.
     (iii) Gifts from affiliated bodies (s41E)
           No Director or top executive received a gift of $500 or more from an affiliated body during the             (j) Legal fees
           financial year.                                                                                             During the year, no legal fees were incurred by the Company on behalf of a member of the Board or
                                                                                                                       an employee.
     (iv) Gifts from organisations with a contract with the Company (s41F)
          During the year no Director or Employees received gifts to the value of greater than $500, from              (k) Net revenue from poker machine takings
          an organisation that is a party to a contract with the Company.                                              Net revenue from poker machine trading for the 12 month period ended 31 August 2007 amounted
                                                                                                                       $37,214,973.
     (b) Employee remuneration
     The top 5 employees of the Company whose income from the Company or any related party is                          (l) Community development and support
     greater than $100,000 falls within the following bands:                                                           The Company contributed an aggregate amount of $762,894 to community development and
                                                                                                                       support as required under Part 4 of the Gaming Machine Tax Act 2001 for the 12 month period
                                                       2007             2006                                           ended 31 August 2007.
                                                        No.              No.
          $100,001-$110,000                              -                1
          $110,001-$120,000                              -                -
          $120,001-$130,000                              2                -
          $140,001-$150,000                              -                1
          $150,001-$160,000                              2                -
          $330,001-$340,000                              -                1
          $400,001-$450,000                              1                -




     Eas tern Suburbs Leag u e s Cl u b L t d                                   C o n c i se A n n u a l R e p o r t   E a st e r n S u b u r b s Leagues C lub Ltd                               C oncise A nnual R epor t
     50 Years of Easts – T h e 1950s                                                                              5 0 Ye a r s o f E a sts – The R oyal S ur r ey Hotel 1 9 6 1 - 1 9 6 8

                                                10 October, 1958, was the official beginning of the               After the early stint at the Bondi Esplanade, on 15 September, 1961, Eastern Suburbs Leagues
                                                Eastern Suburbs Leagues Club. Before this time,                   Club opened in the premises previously known as the Royal Surrey Hotel.
                                                Club stalwarts met at a variety of locations including
                                                                                                                  The property was purchased with the assistance of Rod Miller, of Millers Brewery.
                                                other Clubs and pubs in the district. For a time in
                                                1957, Easts operated Thursday to Sunday, at Beach
                                                Court, a building on the beach front at North Bondi.                                                                                                   The property was
                                                However, it wasn’t long until the Club moved to the                                                                                                  purchased with the
                                                Bondi Esplanade, with Waverley Council granting a                                                                                                         assistance of
                                                lease to the first floor of the Bondi Beach Pavilion.
                                                This was the first officially licensed venue of the                                                                                                          Rod Miller
                                                Club.

                                                             Beach Court, North Bondi, early 1950s.
                        1957                               The first venue the Eastern Suburbs Rugby
                                                                                                                                                                                            Royal Surrey Hotel,
                                                                        League Club leased, in 1957.
                                                                                                                                                                                            195 Oxford Street, Bondi Junction.
                                                                                                                                                                                            (circa 1959)
                                                                                                                                                                                            Later, demolished and replaced by
                                                                                                                                                                                            Waltons Retail Store.




22                                                                                                                                                                                                                               23


                                                                                                                  The scene outside the Eastern Suburbs Leagues Club on the opening night, 15 September, 1961.


                                                                                                                                                                                                                   1961

                                                                         1958, Waverley Council
                                                                         grant Eastern Suburbs Rugby
         1958                                                            League Club a lease of the
                                                                         first floor of the Bondi Beach
                                                                         Pavilion.
                                                                         This was the first official
                                                                         licensed venue of the club.




     Eas tern Suburbs Leag u e s Cl u b L t d                              C o n c i se A n n u a l R e p o r t   E a st e r n S u b u r b s Leagues C lub Ltd                                       C oncise A nnual R epor t
     50 Years of Easts – Hi s t o r y o f Sp r i n g St r e e t s i t e                                                       5 0 Ye a r s o f E a sts – R ecent developm ent



     In April 21, 1968, Easts opened their new                                   The building is on the                       In 1975, Easts opened the tower                                           Above them were eight
     premises at 93-97 Spring Street, Bondi Junction.                                                                         block, which included three
                                                                               site of the former Bondi                       new floors for the Club, and an                                         storeys of offices, which
     The building is on the site of the former Bondi
     Junction Ice Rink, which operated in the early
                                                                                      Junction Ice Rink                       additional entrance from Bronte                                                  were later sold
                                                                                                                              Road. Above them were eight
     1960s. Prior to this, the site was home to
                                                                                                                              storeys of offices, which were
     Corkill’s Bakery.
                                                                                                                              later sold. (see illustration on
                                                                                                                              back page)                                     1989
                                                                                                                              In 1983, new offices were
                                                                                                                              built on the third floor to house
                                                                                                                              administration and senior staff.
                                                                                                                              In 1999, the facade of the Spring
                                                                                                                              Street entrance was significantly
                                                                                                                              remodelled.




                                                                                                                                                    Eastern Suburbs
                                                                                                                                               Leagues Club, (1989)
24   Corkill’s Bakery, Spring Street, Bondi Junction. (circa 1932)

                                                                                                                                                                The main entrance at Spring Street of Easts as it currently stands, (2008)

                                                  Demolition gangs prepare to tear down the old Bondi Junction Ice
                                                Skating Rink to make way for the new club in Spring Street. (1963)                2008




     Eas tern Suburbs Leag u e s Cl u b L t d                                          C o n c i se A n n u a l R e p o r t   E a st e r n S u b u r b s Leagues C lub Ltd                                    C oncise A nnual R epor t
                                               Eastern Suburbs Leagues Club Ltd
                                                                                       ABN 63 000 249 490
        93-97 Spring Street Bondi Junction NSW 2022 Australia. PO Box 124 Bondi Junction NSW 1355
                       Phone 61 2 9386 3200 Fax 61 2 9387 7779 Web www.eastleaguesclub.com.au




                                                          EASTS BRONTE ROAD DEVELOPMENT
In 1975, Easts opened the tower block, which included three new floors for the Club, and an additional
          entrance from Bronte Road. Above them were eight storeys of offices, which were later sold.
                                                                               Artist impression, 1974

								
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