AQUIS ENTERTAINMENT LIMITED
ABN 48 147 411 881
Annual Report
for the Financial Year Ended 31 December 2020
Page 1
CONTENTS
Financial Statements
Corporate Governance Statement
Shareholder Information
Corporate Directory
3
48
66
68
Page 2
AQUIS ENTERTAINMENT LIMITED
ABN 48 147 411 881
Financial Statements
for the Financial Year Ended 31 December 2020
Page 3
AQUIS ENTERTAINMENT LIMITED
DIRECTORS’ REPORT
The Directors present their report together with the consolidated financial statements for the financial year ended
31 December 2020. The consolidated financial statements comprise the financial statements of Aquis
Entertainment Limited (“Aquis” or “Company”) and its controlled entities (together referred to as the “Group” or
“Consolidated Entity”).
DIRECTORS
The names and details of the Company’s Directors in office during the financial year and until the date of this report
are set out below:
Tony Fung
Alex Chow
Russell Shields
Allison Gallaugher
Chairman
Non-Executive Director
Non-Executive Director
Executive Director
Current Directors
Tony Fung (Chairman)
Mr Tony Fung is the ultimate owner and controller of the Aquis Group. He has significant experience in corporate
finance and company administration, including running Sun Hung Kai & Co. Ltd, a leading Hong Kong-based non-
bank financial and securities holding company. Mr Fung has significant property investments in Hong Kong and
also in Australia.
Alex Chow (Independent Non-Executive Director)
Mr Chow Yu Chun, Alexander, is a senior non-executive director with over 35 years of experience in commercial,
financial and investment management in Hong Kong and Mainland China. He has served as an Independent Non-
executive Director of Top Form International Limited since February 1993 and retired in October 2019. He was a
Certified Public Accountant of the Hong Kong Institute of Certified Public Accountants until January 2019. Mr.
Chow is also currently an independent non-executive director of Playmates Toys Limited, China Strategic Holdings
Limited and Symphony Holdings Ltd, each of which are listed on the Hong Kong Stock Exchange.
Mr Chow is the Chair of the Audit and Risk Committee and a member of the Remuneration and Nomination
Committee.
Russell Shields (Independent Non-Executive Director)
Russell Shields is a senior non-executive director with more than 35 years’ experience in the financial services
industry. He was Chairman Queensland and Northern Territory of ANZ Bank for 6 years. Prior to joining ANZ, Mr
Shields held senior executive roles in Australia and Asia with HSBC including Managing Director Asia Pacific –
Transport, Construction and Infrastructure and State Manager Queensland, HSBC Bank Australia. He is currently a
non-executive director of ASX-listed Eclipx Group Limited, was a non-executive director of Retail Food Group
Limited (December 2015 to October 2018) and was Chairman of Onyx Property Group Limited until December
2015.
Mr Shields is the Chair of the Remuneration and Nomination Committee and a member of the Audit and Risk
Committee.
Allison Gallaugher (Executive Director)
Allison Gallaugher is a Chartered Accountant with over 20 years’ experience in the accounting industry, advising a
range of local and international listed and unlisted companies, across a broad range of industries.
Ms Gallaugher held senior management positions including at a top 5 accounting firm in Sydney, before returning
to Canberra where she joined the leading boutique accounting firm as an advisor to many of Canberra’s largest
businesses, predominantly in the property and development industry. Ms Gallaugher’s experience spans the full
range of business advisory, taxation and audit fields. Most recently, Ms Gallaugher was the Financial Controller of
a large club group, before joining Aquis on 24 March 2017 as Financial Controller.
Ms Gallaugher was appointed as a director on 28 June 2018 and was acting Chief Executive Officer from 1
January 2019. She was formally appointed as Chief Executive Officer effective from 27 February 2020.
Page 4
Company Secretary
The Company Secretary in office at the end of the reporting period was Company Matters practitioner, Kim
Bradley-Ware. Kim holds a Bachelor of Laws (LLB), a Bachelor of Commerce (B.Com), and is a full member of the
Australian Society of CPAs.
Kim has over 20 years of experience as a Company Secretary and CFO and has worked in the Company Matters
team since 2017, providing company secretarial, governance and chief financial officer services to Company
Matters clients across a range of different industries, including, retail, infrastructure and energy.
Kim has provided support to a large number of ASX companies including Elixinol Global Limited (ASX: EXL),
Energy Action Limited (ASX: EAX), People Infrastructure Ltd (ASX: PPE), as well as various Infrastructure Joint
Ventures and Private Company’s.
Prior to joining Company Matters, Kim was a Company Secretary and Chief Financial Officer at ASX listed Pan
Pacific Petroleum Limited (ASX: PPP) and prior to that, held various roles in accounting across a variety of different
industries including credit reporting, telecommunications and media.
INTERESTS IN SHARES AND OPTIONS
As at the date of this report, the interests of the Directors in the ordinary shares of Aquis were:
Directors
Ordinary Shares Unlisted Options
T Fung
A Chow
R Shields
A Gallaugher
163,871,874
-
-
-
-
-
-
-
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
The principal activity of the Consolidated Entity during the year was entertainment, gaming and leisure through the
ownership of Casino Canberra.
OPERATING AND FINANCIAL REVIEW
Operating results for the Year
The operating result for the consolidated entity for the year to 31 December 2020 was a profit of $798,201 (2019:
loss $3,957,193).
Operating revenue for the year amounted to $18,687,684, a 23.51% decrease from the 2019 result ($24,433,082).
Earnings before Interest Tax Depreciation and Amortisation (EBITDA) for the year was a profit of $4,819,796
(2019: profit $72,244).
Strategy
Aquis has a clear strategy to develop and manage quality destination integrated resorts in underserved areas of
Australia. Casino Canberra is the first such investment and has been used to demonstrate the Company’s ability to
significantly improve an underperforming operation by a combination of leadership and targeted investment in the
business.
Aquis advanced its strategy during the year by:
Focused marketing activities to streamline expenditure on profitable revenue streams within the gaming
department;
Continuing to improve the operations of Casino Canberra by engaging experienced management who are
focussed on improving revenue and customer service standards;
Continuation of a cost control program to minimise expenditure and streamline efficiencies in business
processes to improve economies of scale particularly in the post shutdown period;
Ongoing consideration of alternative and complementary business lines as opportunities arise; and
Effective hibernation of the business during the Government mandated Covid-19 shutdown, with
preparation and plans implemented on reopening to take advantage of competitive advantages of the
business location and floor plans.
Page 5
Operations
Revenue from operations for the year decreased 23.51% to $18,687,684 (2019: $24,433,082). The result was due
to an ACT Government mandated shutdown from 23 March 2020 to 9 August 2020 and capped patron visitation to
our premises as part of Canberra’s Covid-19 recovery roadmap. The operating profit includes a portion of
JobKeeper rebates received and offset against wages paid post reopening, as well as a refund of the annual
Casino licence fee from the ACT Government as part of their Covid-19 economic package. Operating expenses
including payroll related expenses decreased by 36.94% for the year, with the major decreases being in payroll
and marketing expenses, again due to the shutdown.
Post reopening, location and size advantages allowed for a strong recovery period which has continued through
the end of the year. Ongoing expenditure control and improvements in efficiencies have ensured a solid result for
the business post reopening.
Financial position
At 31 December 2020, the Group had cash reserves of $7,259,495 (2019: $5,105,943) and unused borrowing
facilities of $5,071,317. Following the end of the financial year no further drawdowns have been made and the
group has a positive net cashflow for the financial year. The balance sheet at 31 December 2020 shows a net
asset deficit of $19,809,879 (2019: $20,608,259 deficit).
Outlook
Directors are confident of the outlook for Aquis. The casino’s highly experienced operations leadership team
continue to execute the vision of attracting and servicing quality players. Ongoing internal restructures to improve
the alignment of teams within the group continues to improve efficiencies in our workforce, in addition to the
absorption of several roles on resignation of incumbent employees. Our Business Development team have
focused on mining of the existing customer database over the year, solidifying the efforts of the past several years
which were spent building its size and quality. This focus allowed for a decrease in expenditure, resulting in a
profitable VIP sector for the year. Customised offers to individual members have proved very successful in
maximising revenues while minimising costs, as all expenditure has been effective.
Legislation was enacted in 2018 to allow 200 electronic gaming machines (EGM’s) to operate within the casino.
During 2020 the planning for the redevelopment of Casino Canberra and further discussions with the Government
were paused due to the Covid-19 pandemic and shutdown, however as restrictions continue to ease, focus will
return to future plans for redevelopment and discussions surrounding the details of the legislated requirements for
the EGM’s will recommence to enable planning for the future.
Employees
The number of people employed by the Consolidated Entity at the reporting date was 206.
DIVIDENDS
The Directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a
dividend to the date of this report.
Directors’ and committee meetings
The number of meetings of the Company’s Board of Directors held during the period and the number of meetings
attended by each Director was:
Director
Board Meetings
Audit & Risk
Remuneration &
Nomination
Eligible to
Attend
Attended
Eligible to
Attend
Attended
Eligible to
Attend
Attended
T Fung
A Chow
R Shields
A Gallaugher
4
4
4
4
4
4
4
4
1
1
1
n/a
1
1
1
n/a
1
1
1
n/a
1
1
1
n/a
Page 6
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Company during the year, other than disclosed in
this report.
SIGNIFICANT EVENTS AFTER BALANCE DATE
Casino Canberra was an eligible employer under the Federal Government’s JobKeeper payment scheme. From 4
January 2021, it is no longer eligible to receive JobKeeper payments under phase three of this payment scheme.
Other than as set out in this report and the attached financial statements, no other matters or circumstances have
arisen since 31 December 2020, 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 subsequent financial years.
INDEMNIFICATION OF OFFICERS
The Company is required to indemnify Directors, and other officers of the Company against certain liabilities which
they may incur as a result of or by reason of (whether solely or in part) being or acting as an officer of the
Company.
During the financial year, the Company paid a premium to insure the Directors against potential liabilities for costs
and expenses incurred by them in defending legal proceedings arising from their conduct while acting in the
capacity of Director of the Company other than conduct involving wilful breach of duty in relation to the Company.
The amount of the premium is not disclosed as it is considered confidential.
The Company provides no indemnity to any auditor.
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 consolidated entity is a party for the purpose of taking responsibility on behalf of the
consolidated entity or any part of those proceedings.
ENVIRONMENTAL REGULATIONS
The Directors are mindful of the regulatory regime in relation to the impact of the organisation’s activities on the
environment.
There have been no known breaches of any environmental regulation by the Consolidated Entity during the
financial period.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
Aquis is an entertainment, gaming and leisure company which currently operates a casino business in Canberra.
Following the termination of the Blue Whale transaction, the company was released from the Implementation Deed
and will continue ahead with it’s own strategy, without the opportunities planned as a result of the proposed change
in majority shareholding under that deal.
The company still has intentions to update plans in relation to a proposed redevelopment, incorporating the 200
EGM’s for which approval has been legislated. There are several terms in the legislation which require clarification
prior to the company being able to settle any plans. Discussions have been held with the government in relation to
a plan as to clarification of these items, which will progress further through 2021. Following these clarifications, the
company will evaluate options and variables to determine a suitable and viable way forward with regard to the
redevelopment.
There are several other prospects available to the company, which have been deferred due to the Covid-19
pandemic, but will be investigated and evaluated in the future prior to reporting in due course.
The existing short to medium term strategy to improve service and gaming offerings, increase revenues and
minimise expenditure via improvements in processes and increased efficiencies continues from prior years and the
Page 7
current major focus is solidifying the performance of the company following the Covid-19 pandemic shutdown and
ongoing related trading restrictions.
The company remains committed to the operation of the casino and to advancing the strategy of creating a world
class entertainment precinct in the Canberra CBD with the casino as its centrepiece and believes that the post
Covid-19 refurbishment of the area surrounding the casino presents the perfect opportunity to do so.
SHARE OPTIONS
As at the date of this report, there were no unissued ordinary Aquis shares under option (2019: nil). Accordingly,
during the financial year and to the date of this report no options were exercised
No options have been issued in the period since year end to the date of this report.
INDEPENDENT PROFESSIONAL ADVICE
Directors of the Company are expected to exercise considered and independent judgement on matters before them
and may need to seek independent professional advice. A director with prior written approval from the Chairman
may, at
their
responsibilities.
the Company’s expense, obtain
independent professional advice
to properly discharge
NON-AUDIT SERVICES
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by
the auditor are outlined in note 31 to the financials.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by
another person or firm on the auditor’s behalf) is compatible with the general standard of independence for auditors
imposed by the Corporations Act 2001.
The directors are of the opinion that the services disclosed in note 31 of the financial statements do not
compromise the external auditor’s independence requirements of the Corporations Act 2001 for the following
reasons:
All non-audit services have been reviewed and approved to ensure that they do not impact the integrity
and objectivity of the auditor; and
None of the services undermine the general principles relating to auditor independence as set out in APES
110 Code reviewing or auditing the auditor’s own work, acting in a management or decision-making
capacity for the company, acting as advocate for the company or jointly sharing economic risks and
rewards.
AUDITOR INDEPENDENCE
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is
attached.
Page 8
REMUNERATION REPORT (AUDITED)
This Remuneration Report forms part of the Directors’ Report and has been prepared in accordance with Section
300A of the Corporations Act 2001 and has been audited as required by Section 308(3C) of that Act.
The Remuneration Report is set out under the following key headings:
A
B
C
D
E
Introduction
Principles used to determine the nature and amount of remuneration
Remuneration details
Service agreements
Other KMP disclosures
A.
Introduction
The Remuneration Report sets out information relating to the remuneration of the non-executive Directors,
executive Directors and senior management of the Company - collectively termed Key Management Personnel
(KMP). The KMP are the persons primarily accountable for planning, directing and controlling the affairs of the
Company. For the purposes of this report the executive Directors and senior management are referred to as
Executives.
Details of KMP for whom remuneration disclosures are included in this Report are as follows:
Current Non-Executive Directors
T Fung
A Chow
R Shields
Chairman
Non-Executive Director
Non-Executive Director
Current Executives
Name
A Gallaugher
Role
Relevant Dates
Financial Controller
Director
Chief Executive Officer (Acting)
Chief Executive Officer
Appointed 24 March 2017
Appointed 28 June 2018
Appointed 1 January 2019
Appointed 27 February 2020
Previous Directors and Executives
Name
J Mellor
Role
Chief Executive Officer
Director
R Bach
Vice President & General Manager
Relevant Dates
CEO to 31 December 2018
Resigned 21 February 2019
Appointed 2 July 2015
Resigned 7 June 2019
Except where otherwise stated, KMP held office from the commencement of the year.
B.
Principles used to determine the nature and amount of remuneration
Aquis’ corporate goal is to develop and manage quality integrated resorts in Australia. To achieve this, the Group
has sought to engage and retain experienced and talented Directors and Executives. The Group therefore aims to
offer Directors and Executives a competitive remuneration package which reflects individual duties and
responsibilities. The remuneration approach seeks to align Executive reward with the achievement of strategic
objectives and the creation of value for shareholders.
The Remuneration Committee will be responsible for determining and reviewing on-going remuneration
arrangements for its Directors and Executives. This Committee may seek advice of external remuneration
consultants in conducting its duties. Further information regarding the Committee is set out in the Corporate
Governance Statement.
The Group has established differing remuneration structures for Non-Executive Directors and Executives.
Page 9
Non-Executive Directors
Fees and payments to the Non-Executive Directors reflect the demands which are made on, and the
responsibilities of, these Directors. Non-Executive Director fees comprise a base salary plus statutory
superannuation. Non-Executive Directors are not entitled to receive share based payments or other performance
based incentives.
ASX listing rules require the aggregate non-executive directors remuneration be determined periodically by a
general meeting. The most recent determination was at the Annual General Meeting held on 26 November 2015,
where the shareholders approved an aggregate remuneration pool of $600,000.
Executives
Aquis aims to reward executives with a remuneration structure based on their position and responsibility, which has
both fixed and variable components.
Fixed remuneration
Fixed remuneration aims to provide a base level of remuneration and is determined with reference to available
market data, the scope of the executive’s responsibilities and their experience and qualifications.
Fixed remuneration, consists of base salary, superannuation and complementary privileges at Casino Canberra,
and may include other benefits where Executives may elect to sacrifice part of their salary to be contributed
towards any non-cash benefit including motor vehicles, accommodation costs etc.
Fixed remuneration for Executives is reviewed annually and approved by the Remuneration Committee.
Performance based remuneration
Short term incentives
The performance based component of Executive remuneration aligns the strategies set by the Board with the
individual targets of the Executives responsible for implementing those strategies.
Executives are entitled to receive short term incentives based on service and on the achievement of Key
Performance Indicators.
Long term incentive plan
At the Annual General Meeting of the Company held on 31 May 2017, Shareholders approved the implementation
of the Aquis Entertainment Limited Share Rights Plan (Plan). Under the Plan, Participants may become entitled to
receive Rights (which are entitlements on vesting to fully paid ordinary shares in Aquis Entertainment Limited). The
Rights would be granted for no monetary consideration and have no exercise price, unless otherwise determined
by the Board. One vested Right is an entitlement to one Share.
The Plan allows for three kinds of Rights, being:
•
•
•
Performance Rights which vest when performance conditions have been satisfied,
Retention Rights which vest after the completion of a period of service, and
Restricted Rights which are vested but subject to disposal restrictions.
At the date of this report, no Rights have been issued pursuant to the Plan.
Consolidated entity performance and link to remuneration
Remuneration for certain individuals is directly linked to performance of the consolidated entity. A portion of short
term incentive payments are dependent on achieving defined KPI’s. For the 2020 year, the KPI’s were set by the
Board and related to the achievement of revenue and profitability outcomes. These outcomes were to be driven by
the Board’s strategy to improve the overall product offered to customers including service standards and marketing
programs. Improvements in revenue generating capability and profitability will form the basis of providing long term
earnings growth for Casino Canberra and consequently for shareholder value growth.
Page 10
C.
Details of remuneration
Remuneration received or receivable by Key Management Personnel during the reporting period was as follows.
Post-
employment
benefits
super -
annuation
Other
long-
term
benefits
Share
based
payment
Total
Performanc
e based
remuneratio
n
Remun-
eration at
risk - STI
$
$
$
$
$
%
%
-
-
-
-
-
-
-
6,761
20,241
-
-
-
12,303
27,002
12,303
-
-
-
-
-
-
59,167
77,928
396,099
533,194
-
-
-
23%
-
-
-
23%
Post-
employment
benefits
super -
annuation
Share
based
payment
Total
Performance
based
remuneration
Remun-
eration at
risk - STI
$
$
$
$
%
%
-
-
9,975
5,776
10,164
19,135
45,050
-
-
-
-
-
-
-
-
105,000
114,975
124,415
149,548
249,327
743,265
-
-
-
-
-
15%
-
-
-
-
-
15%
Key
management
personnel
Fees
and/or
salary
Short-term benefits
Cash,
profit
sharing
/ other
bonuse
s
$
$
Other
2020
T Fung
A Chow
R Shields
A Gallaugher1
-
59,167
71,167
273,555
-
-
-
90,000
Totals
403,889
90,000
1 Appointed as CEO from 27 February 2020
Key
management
personnel
2019
T Fung
A Chow
R Shields
J Mellor1
R Bach2
A Gallaugher3
Fees
and/or
salary
Short-term Benefits
Cash,
profit
sharing /
other
bonuses
$
$
Other
-
105,000
105,000
109,039
116,785
191,221
-
-
-
-
-
38,365
-
-
-
9,600
22,599
606
Totals
627,045
38,365
32,805
1 Resigned 21 February 2019
2 Resigned 7 June 2019
3 Appointed as Director from 28 June 2018
D. Service agreements
Non-Executive Directors
Each Director has signed a letter of appointment which sets out the conditions of the appointment including the
remuneration for the position.
The Chairman and Vice Chairman have each elected to receive no remuneration for performing their Director roles.
The remaining Non-Executive Directors are entitled to the following remuneration:
A base fee of $80,000 per annum
$20,000 per annum for acting as the Chair of a Board Committee and
$5,000 per annum for serving on a Board Committee.
Statutory superannuation where required by law.
Page 11
Executives
Remuneration and other terms of employment for key management personnel are formalised in service
agreements. Details of these agreements are as follows:
Name
Title
Commencement Date
Term of Agreement
Annual Salary
Superannuation
Bonus
Post-employment restraint
Allison Gallaugher
Financial Controller 1 & CEO, 2,3
24-Mar-2017
Open
$192,500 from 7 January 2019 as Financial Controller
$300,000 from 2020 as CEO
Statutory superannuation
Maximum annual bonus = 20% (2019) 30% (2020) of Remuneration as
determined at the absolute discretion of the Board subject to KPI’s agreed
between the Executive and the Chair of the Remuneration Committee.
No bonus payment if Executive gives notice of termination prior to the
payment date or if terminated for cause
Company may impose restraint for various periods up to12 months and for
various regions
Termination Period
2 months either party
1 Was Financial Controller to 26 February 2020
2
Appointed acting CEO from 1 January 2019
3 Appointed CEO from 27 February 2020
Page 12
E.
Other KMP disclosures
Movements in share holdings
The movement during the year in the number of ordinary shares in the Company held directly,
indirectly or beneficially by each key management person, including their related parties, follows:
Name
2020
T Fung
Name
2019
Opening
Balance1
Acquired
on
Market
Disposed
Closing
Balance2
163,871,874
-
- 163,871,874
Opening
Balance1
Acquired
on
Market
Disposed
Closing
Balance2
T Fung
1
Opening balance includes balance at beginning of the period or at date of appointment
2 Closing balance includes balance at end of the period or at date of resignation
163,871,874
-
- 163,871,874
Other than as detailed in the table above, no shares were held in the Company either directly,
indirectly or beneficially by any key management personnel.
b) Movement in option holdings
There were no options over ordinary shares in the Company held directly, indirectly or beneficially
by key management personnel.
Loans to directors and executives
There were no loans to directors or executives at balance date.
Other transactions and balances with directors and executives
There were no other transactions with Directors or executives during the financial year. At the
reporting date, the Group had loans outstanding from entities related to Mr Tony Fung totalling
$37.4 million (2019: $38.4 million) inclusive of accrued interest.
End of audited remuneration report
Signed in accordance with a resolution of the directors.
Russell Shields
Director
Canberra
11 March 2021
Page 13
AQUIS ENTERTAINMENT LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
for the year ended 31 December 2020
Revenue and other income
Revenue
Other income
Total revenue and other income
Expenses from continuing operations:
Casino taxes
Employee benefit expenses
Other operating expenses
Finance charges
Depreciation
Amortisation
Profit / (Loss) before income tax
Income tax expense / (benefit)
Profit / (Loss) attributable to members of the
consolidated entity
Other comprehensive income for the year, net of tax
Total comprehensive profit / (loss) for the year
attributable to the members of the consolidated entity
Consolidated
Note
2020
$
2019
$
3
3
4
4
4
4
5
18,687,684
245,498
24,433,082
368,271
18,933,182
24,801,353
(1,951,035)
(8,251,025)
(3,896,394)
(2,244,286)
(1,766,606)
(25,635)
(2,644,989)
(15,655,937)
(6,389,903)
(2,253,670)
(1,788,412)
(25,635)
798,201
(3,957,193)
-
-
798,201
(3,957,193)
179
624
798,380
(3,956,569)
Basic and diluted earnings per share (cents per share)
6
0.43
(2.14)
The accompanying notes form part of these financial statements.
Page 14
AQUIS ENTERTAINMENT LIMITED
STATEMENT OF FINANCIAL POSITION
as at 31 December 2020
Consolidated
Note
2020
$
2019
$
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
Total current assets
NON-CURRENT ASSETS
Property, plant and equipment
Right of use assets
Trade and other receivables
Intangible assets
Financial assets at fair value through other
comprehensive income
Total non-current assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Lease liabilities
Employee benefit provisions
Total current liabilities
NON-CURRENT LIABILITIES
Employee benefit provisions
Lease liabilities
Loans and borrowings
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserve
Accumulated losses
TOTAL EQUITY
7
8
9
10
11
12
8
13
14
15
16
17
17
16
18
19
19
20
7,259,495
536,765
255,585
243,474
8,295,319
8,783,682
18,133
5,000
1,816,907
5,105,943
132,548
166,723
341,929
5,747,143
10,423,463
66,032
-
1,842,542
4,909
4,730
10,628,631
12,336,767
18,923,950
18,083,910
2,958,574
18,133
1,413,205
4,389,912
188,524
-
34,155,393
34,343,917
3,021,045
47,899
1,553,949
4,622,893
139,245
18,133
33,911,898
34,069,276
38,733,829
38,692,169
(19,809,879)
(20,608,259)
4,167,952
6,276,150
(30,253,981)
4,167,952
6,678,349
(31,454,560)
(19,809,879)
(20,608,259)
The accompanying notes form part of these financial statements
Page 15
AQUIS ENTERTAINMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2020
Balance at 1 January 2019
Loss attributable to members of the company
Other Comprehensive income for the year
net of tax
Balance at 31 December 2019
Balance at 1 January 2020
Profit attributable to members of the
company
Other Comprehensive loss for the year net of
tax
Balance at 31 December 2020
Share
capital
Reserve
Accumulated
losses
$
$
$
Total
$
4,167,952
-
6,677,725
-
(27,497,367)
(3,957,193)
(16,651,690)
(3,957,193)
-
624
-
624
4,167,952
6,678,349
(31,454,560)
(20,608,259)
-
-
798,201
798,201
-
4,167,952
(402,199)
402,378
179
6,276,150
(30,253,981)
(19,809,879)
The accompanying notes form part of these financial statements
Page 16
AQUIS ENTERTAINMENT LIMITED
STATEMENT OF CASH FLOWS
for the year ended 31 December 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest received
Interest paid
Consolidated
2020
$
2019
$
20,149,049
(15,825,652)
14,933
(791)
27,048,071
(26,408,872)
38,281
(25)
Net cash provided by (used in) operating activities
21
4,337,539
677,455
CASH FLOWS FROM INVESTING ACTIVITIES
Plant and equipment
Proceeds from sale of assets
Dividend received
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
Repayment of lease liabilities
Repayment of borrowings
Net cash (used in) provided by financing activities
Net increase (decrease) in cash held
Cash at beginning of the period
Cash at end of the period
7
(165,969)
3,780
101
(162,088)
-
(21,899)
(2,000,000)
(2,021,899)
2,153,552
5,105,943
7,259,495
(247,728)
-
130
(247,598)
-
-
-
-
429,857
4,676,086
5,105,943
The accompanying notes form part of these financial statements
Page 17
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
1. Statement of significant accounting policies
The financial report covers the consolidated group of Aquis Entertainment Limited (“Aquis” or “Company”) and
its controlled entities (together referred to as the “Consolidated Entity” or “Group). Aquis is a for-profit company
limited by shares incorporated and domiciled in Australia. The Company’s shares are publicly traded on the
Australian Securities Exchange (ASX: AQS).
The principal accounting policies adopted in the preparation of the financial report are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the
Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply
with International Financial Reporting Standards as issued by the International Accounting Standards Board
('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable,
the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value
through other comprehensive income, investment properties, certain classes of property, plant and equipment
and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also
requires management to exercise judgements in the process of applying the consolidated entity's accounting
policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and
estimates are significant to the financial statements, are disclosed in note 2
Functional and presentation currency
The Company’s functional and presentation currency is Australian dollars.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the
consolidated entity only. Supplementary information about the parent entity is disclosed in note 27.
Summary of accounting policies
The following is a summary of the material accounting policies adopted by the Company in the preparation of
the financial statements.
(a) Principles of consolidation
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity
controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power to direct the activities of
the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated
entity. They are de-consolidated from the date that control ceases. A list of subsidiaries is contained at Note 26.
All controlled entities have a December year end.
All inter-company balances and transactions between entities in the consolidated entity, including any
unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have
been changed where necessary to ensure consistencies with those policies applied by the parent entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in
ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference
between the consideration transferred and the book value of the share of the non-controlling interest acquired is
recognised directly in equity attributable to the parent.
Page 18
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
1. Statement of significant accounting policies (continued)
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill,
liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences
recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair
value of any investment retained together with any gain or loss in profit.
(b) Revenue recognition
The consolidated entity recognises revenue as follows:
Gaming Revenue
Gaming Revenue is the net of gaming wins and losses, and is recognised upon the outcome of the game.
Sale of goods
Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the
goods, which is generally at the time of delivery.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Contract and contract-related liabilities
In providing goods and services to its customers, there may be a timing difference between cash receipts from
customers and recognition of revenues, resulting in a contract or contract-related liability.
The Group primarily has liabilities related to contracts with customers as follows:
Unredeemed casino chips, which represent the amounts owed to customers for chips in their
possession.
Loyalty program liabilities, which represent the deferral of revenue until loyalty points are redeemed.
These liabilities are generally expected to be recognised as revenues within one year of being purchased,
earned, or deposited and are recorded within current trade and other payables on the Statement of Financial
Position. Decreases in these balances generally represent the recognition of revenues and increases in the
balances represent additional chips held by customers and increases in customer loyalty program balances
made by customers.
(c) Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on
the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities
attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where
applicable.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No
deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled. Deferred tax is credited in the Statement of Profit or Loss and Other Comprehensive Income
except where it relates to items that may be credited directly to equity, in which case the deferred tax is
Page 19
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
adjusted directly against equity.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed each reporting date
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available
against which deductible temporary differences can be utilised. Previously unrecognised deferred tax assets are
recognised to the extent that it is probable that there are future taxable profits available to recover the asset.
The amount of benefits brought to account or which may be realised in the future is based on the assumption
that no adverse change will occur in income taxation legislation and the anticipation that the consolidated entity
will derive sufficient future assessable income to enable the benefit to be realised and comply with the
conditions of deductibility imposed by the law.
(d) Goods & services tax
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 Tax 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 the expense.
Goods & Services Tax (GST) receivable from, or payable to, the Australian Taxation Office has been accounted
for and included as part of receivables or payables in the Statement of Financial Position.
Cash flows are presented in the Statement of Cash Flows on a gross basis except for the GST component of
investing activities, which are disclosed as an operating cash flow.
(e) Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is current when: it is expected to be realised or intended to be sold or consumed in normal operating
cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the
reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to
settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is current when: it is expected to be settled in normal operating cycle; it is held primarily for the
purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional
right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are
classified as non-current.
(f) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-
term, highly liquid investments with original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value. For the statement of
cash flows presentation purposes, cash and cash equivalents also includes bank overdrafts, which are shown
within borrowings in current liabilities on the statement of financial position.
(g) Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest method, less any provision for impairment. Trade receivables are generally due for settlement
within 30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a
lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped
based on days overdue.
Other receivables are recognised at amortised cost, less any provision for impairment.
(h) Inventories
Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling
price in the ordinary course of business less any applicable selling expenses.
Page 20
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
1. Statement of significant accounting policies (continued)
(i) Property, plant and equipment
Land and buildings are stated based on historical cost less accumulated depreciation and impairment for
buildings. Historical cost includes expenditure that is directly attributable to the acquisition of the land and
building.
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Depreciation
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and
equipment (excluding land) over their expected useful lives as follows:
Buildings
Plant and equipment
10-40 years
3-20 years
The assets’ residual values and useful lives and depreciation methods are reviewed, and adjusted if
appropriate, at each reporting date.
Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of
the lease or the estimated useful life of the assets, whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic
benefit to the consolidated entity. Gains and losses on disposals are determined by comparing proceeds with
the carrying amount. These gains or losses are included in the income statement.
(j) Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification is
determined based on both the business model within which such assets are held and the contractual cash flow
characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred
and the consolidated entity has transferred substantially all the risks and rewards of ownership. When there is
no reasonable expectation of recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of
making a profit, or a derivative; or
(ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in profit
or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as
such upon initial recognition.
Page 21
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
1. Statement of significant accounting policies (continued)
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are
either measured at amortised cost or fair value through other comprehensive income. The measurement of the
loss allowance depends upon the consolidated entity's assessment at the end of each reporting period as to
whether the financial instrument's credit risk has increased significantly since initial recognition, based on
reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit
losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset
has become credit impaired or where it is determined that credit risk has increased significantly, the loss
allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss
recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls
over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or
loss.
(k) Intangible assets
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their
fair value at the date of the acquisition. Intangible assets acquired separately are initially recognised at cost.
Indefinite life intangible assets are not amortised and are subsequently measured at cost less any impairment.
Finite life intangible assets are subsequently measured at cost less amortisation and any impairment. The gains
or losses recognised in profit or loss arising from the de-recognition of intangible assets are measured as the
difference between net disposal proceeds and the carrying amount of the intangible asset. The method and
useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of
consumption or useful life are accounted for prospectively by changing the amortisation method or period.
(l) Impairment of non-financial assets
Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are
tested annually for impairment or more frequently if events or changes in circumstances indicate that they might
be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for
the amount by which the asset's carrying amount exceeds its recoverable amount
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-
use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate
specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent
cash flows are grouped together to form a cash-generating unit.
(m) Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a
result of a past event, it is probable the consolidated entity will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation. The amount recognised as a provision is the best
estimate of the consideration required to settle the present obligation at the reporting date, taking into account
the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are
discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the
passage of time is recognised as a finance cost.
Page 22
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
1. Statement of significant accounting policies (continued)
(n) Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to
be paid when the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting
date are measured at the present value of expected future payments to be made in respect of services provided
by employees up to the reporting date using the projected unit credit method. Consideration is given to
expected future wage and salary levels, experience of employee departures and periods of service. Expected
future payments are discounted using market yields at the reporting date on corporate bonds with terms to
maturity and currency that match, as closely as possible, the estimated future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are
incurred.
(o) Trade and other payables
Liabilities for trade creditors and other amounts are carried at cost which is the fair value of the consideration to
be paid in the future for goods and services received, whether or not billed to the Company
(p) Borrowings
Borrowings are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition,
borrowings are measured at amortised cost with any difference between the initial recognised amount and the
redemption value being recognised in the Statement of Profit or Loss and Other Comprehensive Income over
the period of the borrowing using the effective interest rate method.
(q) Contributed equity
Ordinary share capital is recognised at the fair value of the consideration received.
Any transaction costs arising on the issue of shares are recognised (net of tax) directly in equity as a reduction
of the share proceeds received.
(r) Earnings per share (EPS)
Basic earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the
Company, excluding any costs of servicing equity other than shares, by the weighted average number of shares
outstanding during the financial year, adjusted for any bonus elements in Shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential shares
and the weighted average number of shares assumed to have been issued for no consideration in relation to
dilutive potential shares.
Page 23
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
1. Statement of significant accounting policies (continued)
(s) New or amended accounting standards and interpretation adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting
period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
(t) COVID-19 government assistance
During the year, the consolidated group received a number of Covid-19 economic support measures from the
ACT and Federal Governments. The support received during the period was as follows:
ACT Government
•
•
•
Casino licence fee for 2020 waived in full $972,196 – funds used in the operations of the business
Casino tax for March 2020 waived in full $123,240 – funds used in the operations of the business
Liquor licence fee for the June quarter waived and refunded $3,489 returned funds used in the operations
of the business
•
Payroll tax for March to August waived in full $187,263 - funds used in the operations of the business
Federal Government
•
JobKeeper payments funding totalling $4,793,250 (paid up to fortnight ending 3 January 2021), funds used
as follows:
-
-
$1,812,004 passed through directly to employees, with no effect on the company’s financials
$2,981,246 received as reimbursements for wages paid netted against employee benefits expense
•
•
•
Cash flow boost $120,000 (included in other revenue)
Interest free deferral of payment for PAYG withholding tax (March to September) to October 2020
Interest free deferral of payment for March 2020 Business Activity Statement to September 2020
The Group is no longer eligible for JobKeeper effective from 4 January 2021.
Page 24
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
1. Statement of significant accounting policies (continued)
(u) Going concern
The financial statements have been prepared on the going concern basis, which contemplates continuity of
normal business activities and the realisation of assets and discharge of liabilities in the normal course of
business.
As disclosed in the financial statements, the consolidated entity produced a profit of $798,201 (2019:
$3,957,193 loss), had net cash inflows from operating activities of $4,337,539 (2019: inflows of $677,455) and
net liabilities of $19,808,879 (2019: $20,608,259) for the year ended 31 December 2020.
The Directors believe that there are reasonable grounds to believe that the consolidated entity will be able to
continue as a going concern, after consideration of the following factors:
•
•
•
•
The consolidated entity has unused financing facilities of $5.07 million at the balance date. This facility is
sufficient to meet the cash flow requirements for the consolidated group.
The 2021 forecast cash flow is positive.
Cash balances are in excess of $7 million at balance date and are forecast to increase.
The Company’s major shareholder (Aquis Capital H K Limited through Aquis Canberra Holdings Pty Ltd)
has provided the Directors with an undertaking to provide financial support to the consolidated entity
should it be required; a current approved facility is in place with the shareholder as detailed above for this
purpose.
Accordingly, the Directors believe that the going concern basis is the appropriate basis for the preparation of the
financial report. If for any reason the consolidated entity is unable to continue as a going concern, it would
impact on the consolidated entity’s ability to realise assets at their recognised values and to extinguish liabilities
in the normal course of business at the amounts stated in the consolidated financial statements.
The financial report does not include any adjustments relating to the amounts or classification of recorded
assets or liabilities that might be necessary if the consolidated entity does not continue as a going concern.
2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually evaluates its
judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses.
Management bases its judgements, estimates and assumptions on historical experience and on other various
factors, including expectations of future events management believes
to be reasonable under the
circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results.
The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below
Impairment of Intangibles
The consolidated entity assesses impairment of intangible assets at least on an annual basis. This requires an
estimation of the recoverable amount of the cash generating unit to which the intangible is allocated. The
assumptions and methodology used to assess the recoverable amount are set out in Note 13.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if the
consolidated entity considers it is probable that future taxable amounts will be available to utilise those
temporary differences and losses. Management judgement is required to determine the amount of deferred tax
assets that can be recognised based upon the likely timing and level of future taxable profits
Page 25
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
Employee benefits provision
As discussed in note 1, the liability for employee benefits expected to be wholly settled more than 12 months
from the reporting date are recognised and measured at the present value of the estimated future cash flows to
be made in respect of all employees at the reporting date. In determining the present value of the liability,
estimates of attrition rates and pay increases through promotion and inflation have been taken into account.
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation
charges for its property, plant and equipment and finite life intangible assets. The useful lives could change
significantly as a result of technical innovations or some other event. The depreciation and amortisation charge
will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-
strategic assets that have been abandoned or sold will be written off or written down.
3. Revenue and other income
Revenue
Revenue from services
Revenue from sale of goods
Total revenue
Other income
Interest
Other revenue
Total other income
Consolidated
2020
$
2019
$
17,292,814
1,394,870
18,687,684
14,933
230,565
245,498
22,139,726
2,293,356
24,433,082
38,281
329,990
368,271
Page 26
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
4. Expenses from continuing operations
(a) Other operating expenses
Cost of sales
Annual casino licence fee
Business development
Repairs & maintenance
Utilities
Insurance
Printing & stationery
Marketing, promotion and associated costs
Legal, accounting and consultants
Travel and associated costs
Gaming supplies
Rates and taxes
Computer supplies
Uniform replacement and cleaning
Other expenses
Total other operating expenses
(b) Finance charges
Interest – 3rd parties
Interest – related parties
Total finance charges
(c) Depreciation
Buildings
Plant and equipment
Right-of-use assets
Total depreciation
(d) Amortisation
Casino licence and fees
Consolidated
2020
$
2019
$
412,898
74,323
-
219,261
415,089
241,532
23,830
1,085,118
308,503
9,027
129,312
146,235
151,553
47,947
631,766
3,896,394
791
2,243,495
2,244,286
1,046,428
698,279
21,899
1,766,606
684,721
891,877
36,009
291,612
548,594
241,694
29,529
1,592,605
569,181
47,954
177,652
143,648
266,862
88,058
815,907
6,389,903
25
2,253,646
2,253,670
1,047,449
711,533
29,430
1,788,412
25,635
25,635
Page 27
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
5. Income tax
(a) The components of income tax expense comprise
Current tax
Deferred tax
(b) The prima facie tax on loss from ordinary activities before
income tax is reconciled to the income tax as follows:
Net profit/(loss)
Prima facie income tax on the profit / loss from
Ordinary activities at 26% (2019: 27.5%) 1
Tax effect of permanent differences:
Non-deductible amortisation
Non-deductible interest expense
Sundry items
De-recognition of DTA on accruals
Use of tax losses not previously recognised as a DTA
De-recognition of DTA / (DTL) on CY tax losses
De-recognition of DTA on arising from tax consolidation
De-recognition of DTA on prior year tax losses
Adjustment recognised for prior periods
Income tax attributable to entity
(c) Unused tax losses and temporary differences for which no
deferred tax asset has been recognised at 26%
Net deferred tax assets at beginning
Charged to income statement current year
Net deferred tax assets at end of the year
Consolidated
2020
$
-
-
-
2019
$
-
-
-
798,201
(3,957,193)
207,532
(1,088,228)
6,665
441,144
(13,620)
45,574
(687,295)
-
-
-
-
-
-
-
7,050
459,208
75,572
291,532
-
254,866
-
-
-
-
-
-
As at 31 December 2020, a net deferred tax asset of $8,013,243 has not been recognized.
6. Earnings per share
Basic and diluted earnings per share (cents per share)
0.43
(2.14)
Weighted average number of ordinary shares outstanding during
the period used in the calculation of basic and diluted EPS
185,141,050
185,141,050
No.
No.
Options are considered potential ordinary shares. For the years ended 31 December 2020 and 31 December
2019, their conversion to ordinary shares would have had the effect of reducing the loss per share (from
continuing operations). Accordingly, the options were not included in the determination of diluted earnings per
share for that period.
1 Re-assessment on the income tax rate applicable to 2019. No impact on the financial statement due to carried forward losses from
previous years.
Page 28
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
7. Cash and cash equivalents
Cash at bank and on hand
Consolidated
2020
$
2019
$
7,259,495
5,105,943
Pursuant to the Deed between the ACT Gambling and Racing Commission, the Company and the Australian
Capital Territory dated 23 December 2014, the Company is required to maintain at all times a minimum of $3
million in liquid assets that are not otherwise used in the day to day operations of the business unless with
the prior written consent of the Commission.
The funds were not used during the year.
8. Trade and other receivables
Current
Trade receivables
Other receivables
Total
Non-current
Other receivables
9. Inventories
Consumable stores - at cost
Goods for resale – at cost
Total
10. Other assets
Current
Prepaid casino licence fee
Prepayments and deferrals
Other
Non-current
Prepaid casino licence fee
34,900
501,865
536,765
56,814
75,734
132,548
5,000
-
170,379
85,206
255,585
-
176,737
66,737
243,474
91,873
74,850
166,723
74,323
204,569
63,037
341,929
-
-
In February 2015, the consolidated entity prepaid 5 years of annual casino licence fees to the ACT Gambling
and Racing Commission. The fees totalled $4,459,385 and are amortised on a straight line basis; the
amortisation of the prepayment was completed in early 2020. The 2020 licence fee due was remitted by the
ACT Government as part of the response to the Covid-19 pandemic. Future licence fees are payable annually
in advance in February.
Page 29
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
11. Property plant and equipment
Building and leasehold improvements
Building at cost
Accumulated depreciation
Accumulated impairment
Plant and equipment
Plant and equipment at cost
Accumulated depreciation
Accumulated impairment
Plant and equipment – work in progress
Balance
Movements in property plant and equipment:
Building and leasehold improvements
Opening written down value
Depreciation
Carrying value at 31 December
Plant and equipment
Opening written down value
Additions
Addition – transfer from right-of-use assets
Profit / (loss) on disposal of plant and equipment
Depreciation expense
Carrying value at 31 December
12. Non-current assets – right-of-use assets
Plant and equipment – right-of-use
Less: accumulated depreciation
Consolidated
2020
$
2019
$
28,196,319
(13,188,595)
(8,223,418)
28,196,319
(12,142,167)
(8,223,418)
6,784,306
7,830,734
5,591,234
(3,591,858)
-
-
5,377,946
(2,910,097)
(1,120)
126,000
1,999,376
2,592,729
8,783,682
10,423,463
7,830,734
8,878,184
(1,046,428)
(1,047,450)
6,784,306
7,830,734
2,529,729
139,969
26,000
1,957
(698,279)
1,999,376
3,125,411
182,213
-
(3,363)
(711,532)
2,592,729
54,399
(36,266)
18,133
95,462
(29,430)
66,032
The consolidated entity lease plant and equipment under agreements of between one to three years. There are
also office equipment under agreements either short-term or low-value, so have been expensed as incurred and
not capitalised as right-of-use assets.
Page 30
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
Consolidated
13. Intangible assets
Casino Licence and associated costs
At cost
Accumulated amortisation and impairment
Carrying value at 31 December
Movements in intangible assets
Opening written down value
Amortisation
Carrying value at 31 December
2020
$
19,000,000
(17,183,093)
1,816,907
1,842,542
(25,635)
1,816,907
2019
$
19,000,000
(17,157,458)
1,842,542
1,868,177
(25,635)
1,842,542
The Casino Canberra licence is tested annually for impairment. The remaining term on the licence is 70 years.
Casino Canberra is considered a cash-generating unit (CGU) for the purpose of impairment testing. The
recoverable value of the casino CGU was based on its fair value less costs to sell. The fair value less costs to
sell of the CGU was determined to be higher than its carrying value at 31 December 2020 of $9,794,265 (2019:
$11,280,127) and accordingly no impairment loss was recognised.
Fair value less costs to sell was determined by discounting the future cash flows generated from the continuing
use of the CGU for five years and a terminal growth rate thereafter and adjusting the result for the likely costs to
sell the CGU. The calculation of the fair value less costs of disposal was based on the following key
assumptions.
Cash flows are based primarily on a five-year forecast extrapolated using average annual growth rates of
approximately 2 – 2.5% (2019: 2 – 2.5%).
A post-tax discount rate of 13.5% (2019:13.5%) was applied in determining the recoverable amount of the unit.
The discount rate was determined by using the weighted average cost of capital applicable to the CGU.
Sensitivity
Judgements and estimates have been applied in respect of impairment testing of the CGU. Should these
judgements and estimates not occur the resulting carrying amount may decrease. The key sensitivities are as
follows:
Revenue would need to decrease by more than 23% (2019: 2%) from the forecast levels (with all other
assumptions remaining constant) before the carrying value of the CGU would need to be impaired,
Expenses would need to increase by more than 24% (2019: 10%) from the forecast levels (with all
other assumptions remaining constant) before the carrying value of the CGU would need to be
impaired,
The discount rate would be required to increase to approximately 60% (2019: 25%) (with all other
assumptions remaining constant) before the carrying value of the CGU would need to be impaired.
14. Financial assets at fair value through other comprehensive income
Listed equities – at fair value
4,909
4,730
The fair values of listed investments are determined by reference to published price quotations in an active
market.
Page 31
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
15. Trade and other payables
Current unsecured:
Trade payables
Sundry payables and accrued expenses
Total payables (unsecured)
Consolidated
2020
$
305,229
2,653,345
2,958,574
2019
$
345,306
2,693,872
3,039,178
Trade and other payables are non-interest bearing and have maturity dates of less than 90 days. The fair value of
the liabilities is determined in accordance with the accounting policies disclosed in Note 1.
16. Lease liabilities
Current liabilities
Non-current liabilities
17. Employee benefit provisions
Current
Annual Leave
Long Service Leave
Non-current
Long Service Leave
Total
18. Loans and borrowings
18,133
-
18,133
47,899
18,133
66,032
857,851
555,354
1,413,205
965,075
588,874
1,553,949
188,524
139,245
1,601,729
1,693,194
Interest bearing loans from related party (unsecured)
34,155,393
33,911,898
The fair value of the loan has been divided into its debt and equity component as follows:
Presented in the statement of financial position as:
Borrowings
Equity
34,155,393
6,275,347
40,430,740
33,911,898
6,677,725
40,589,623
Page 32
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
18. Loans and borrowings (continued)
Financing facilities:
At the Company’s Annual General Meeting on 31 May 2016, shareholders passed a resolution to enter
into the Amended Loan Conversion Deed between the Company and major shareholder Aquis Canberra
Holdings Pty Ltd. The Deed (and related amended loan agreements entered into by the Company)
consolidated all existing loans from multiple lenders into a single loan. As a result of entering into the
deed, all loan facilities on foot at 31 May 2016 are now classified as non-current in the Company’s
Statement of Financial Position.
Key terms of the financing facility are as follows:
Facility limit is for a capital value $36,450,000
The Loan Agreement matures on 25 August 2024 (Maturity Date);
Interest is payable on the balance of the new loan at an interest rate of the lower of: BSY + 2%
per annum; and the Reserve Bank of Australia's indicator lending rate for small business;
variable; residential secured and term rates.
Interest will accrue monthly and will be capitalised on the last day of each month.
Capitalised interest is in addition to the capital value of the facility (i.e. the accrued interest does
not form part of the balance of the facility limit).
Repayment/conversion: the outstanding amount under the loan agreement may be repaid in any
of the following ways:
at the sole election of Aquis Canberra Holdings under the Amended Loan Conversion Deed,
by conversion into Shares at a conversion price of $0.20 per Share, provided that the
Company is not required to issue Shares to the extent that conversion would result in either:
Aquis Canberra Holdings and its associates having voting power in the Company in excess
the issue of greater than 250,000,000 Shares; or
of 89.59%;
the Company prepays to Aquis Canberra Holdings all or any part of the amount outstanding
on the new loan in cash at any time up to the date that is 5 Business Days before the Maturity
Date.
The Loan represents a compound financial instrument comprising elements of debt (the contractual
obligation to pay cash to the lender) and equity (the lender’s option to convert the liability into fully paid
ordinary shares). Accordingly, the initial carrying amount of the loan has been allocated to its debt and
equity components by assigning to equity the residual amount after deducting the amount separately
determined for the carrying value of the liability from the fair value of the instrument as a whole. The
carrying amount of the liability has been determined by measuring the fair value of a similar liability that
does not have an associated equity component.
The facility limit is $36,450,000 in principal; interest is capitalised in addition to the facility limit.
Page 33
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
18. Loans and borrowings (continued)
The fair value of the Loan has been divided into its debt and equity components as follows:
Breakdown of the financing facilities:
Principal (limit $36,450,000)
Interest capitalised
Movement during the year:
Balance at the beginning of the year
Drawdowns
Repayments
Equity component of convertible debt
Interest
Balance at the end of the year
19. Contributed equity
Consolidated
2020
$
31,378,683
9,715,981
40,430,740
40,589,623
-
(2,000,000)
(402,378)
2,243,495
40,430,740
2019
$
33,378,683
7,210,940
40,589,623
38,335,9771
-
-
-
2,253,646
40,589,623
(a) Fully paid ordinary shares
4,167,952
4,167,952
The share capital of the Company consists only of fully paid ordinary shares, which do not have a par value. All
shareholders participate in dividends and the proceeds on winding up of the parent entity in proportion to the
number of shares held. At shareholders' meetings each ordinary share is entitled to one vote when a poll is
called, otherwise each shareholder has one vote on a show of hands.
Balance at the beginning and end of the reporting date
4,167,952
4,167,952
In accordance with the reverse acquisition procedure, the equity balance recognised in the consolidated
financial statements in 2015 was the equity balance of the legal subsidiary Aquis Canberra Pty Ltd immediately
before the business combination. The amount recognised as contributed equity in the consolidated financial
statements in 2015 was determined by adding the cost of the acquisition to the contributed equity of the legal
subsidiary ACPL.
Balance at the beginning and end of the reporting date
185,141,050
185,141,050
(b) Reserves
Consolidated
No.
No.
Opening balance
Equity component of convertible debt
Fair value of shares
Balance at 31 December
2020
$
6,678,349
(402,378)
179
6,276,150
2019
$
6,677,725
-
624
6,678,349
Page 34
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
20. Accumulated losses
Opening balance
Transfer to Reserve
Comprehensive profit /(loss) for the period
Balance at 31 December
21. Cash flow information
Reconciliation of cash flow from operations with Loss after
income tax:
Profit / (Loss) from ordinary activities after income tax
Non-cash flows from ordinary activities:
Depreciation and amortisation
Profit on disposal
Interest on loan
Casino licences
Dividends received
Employee provisions – current
Employee provisions – non-current
Changes in operating assets and liabilities:
(Increase)/Decrease in receivables
(Increase)/Decrease in inventory
Decrease / (Increase) in other assets
Decrease / (Increase) in deferred tax asset
(Decrease)/Increase in creditors and accruals
Cash flows from operations
22. Financial instruments
a) General objectives, policies and processes
Consolidated
2020
$
2019
$
(31,454,560)
(27,497,367)
402,378
798,201
-
(3,957,193)
(30,253,981)
(31,454,560)
798,201
(3,957,193)
1,792,242
(3,780)
2,243,495
74,323
(101)
(107,224)
15,759
(494,601)
(88,862)
24,132
-
83,955
4,337,539
1,814,047
-
2,253,646
891,877
(130)
(66,873)
(3,124)
71,155
6,023
13,205
-
(345,178)
677,455
The consolidated entity’s financial instruments consist mainly of deposits with banks, accounts receivable,
accounts payable and loans from related parties. The consolidated entity’s business exposes it to market risk
(interest rates), credit risk and liquidity risk.
The Board has overall responsibility for the determination of the Company’s risk management objectives and
policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and
operating processes that ensure the effective implementation of the objectives and policies to the Company’s
finance function. The Company’s risk management objectives are therefore designed to minimise the potential
impacts of these risks on the results of the Company where such impacts may be material. The overall objective
of the Board is to set polices that seek to reduce risk as far as possible without unduly affecting the Company’s
competitiveness and flexibility.
Page 35
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
22. Financial instruments (continued)
(b) Credit risk
The Company has exposure to credit risk on the receivables in the balance sheet. However, the Company has
no significant concentrations of credit risk. The Company has policies in place to ensure that sales of products
and services are made to customers with an appropriate credit history, and as such collateral is not requested.
Cash at bank is held with the ANZ Banking Group Limited.
The maximum exposure to credit risk at balance date as follows:
Consolidated
Cash at bank
Trade and other receivables
2020
$
6,094,748
541,765
2019
$
3,987,606
132,548
6,636,513
4,120,154
(c) Liquidity risk
The consolidated entity manages liquidity risk by monitoring forecast cash flows.
Maturity analysis - 2020
Carrying
amount
< 6 months
6-12
months
1-3 years
> 3 years
Financial liabilities
Trade creditors
$
$
305,229
305,229
Loans and borrowings
34,155,393
-
Other creditors and accruals
2,653,345
2,653,345
Total
37,113,967
2,958,574
$
-
-
-
-
$
-
-
-
-
$
-
34,155,393
-
34,155,393
Intercompany working capital loans have no fixed repayment date. Parties to the loans have agreed that
repayments will not be called to the detriment of any other group company and at the date of this report no
notices have been issued in relation to repayment of any working capital loans. Parties have agreed that
there will be no repayments called within the next 13 months.
Maturity analysis - 2019
Carrying
amount
$
< 6 months
$
6-12
months
$
1-3 years
> 3 years
$
$
Financial liabilities
Trade creditors
345,306
345,306
Loans and borrowings
33,911,898
-
Other creditors and accruals
2,693,872
2,693,872
Total
36,951,076
3,039,178
-
-
-
-
-
-
-
-
-
33,911,898
-
33,911,898
Page 36
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
22. Financial instruments (continued)
(d) Market risk
Market risk arises from the use of interest bearing, tradable and foreign currency financial instruments. It is the
risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest
rates (interest rate risk), foreign exchange rates (currency risk) or other market factors (other price risk).
(i) Interest rate risk
The Company’s exposure to market interest rates relates to both the Company’s long-term (interest bearing)
loan obligation as set out in note 18 and the company’s future cash flows from its cash holdings. The
Company’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods is
set out in the tables below:
Fixed / floating
interest rate
maturing
Within 1
year
1 to 5
years
Non-interest
bearing
Total
Weighted
average
effective
interest rate
At 31 December 2020
Financial assets
%
$
$
$
$
Cash & cash equivalents
0.05%
6,094,748
Trade & other receivable
Total financial assets
Financial liabilities
Trade creditors
-
6,094,748
-
-
-
-
-
1,164,747
7,259,495
541,765
541,765
1,706,512
7,801,260
305,229
305,229
Loans and borrowings
2.76%
- 34,155,393
-
34,155,393
Total financial liabilities
- 34,155,393
305,229
34,460,622
At 31 December 2019
Financial assets
Cash & cash equivalents
1.5%
3,987,606
Trade & other receivable
Total financial assets
Financial liabilities
Trade creditors
-
3,987,606
-
-
-
-
-
1,118,337
5,105,943
132,548
132,548
1,250,885
5,238,491
345,306
345,306
Loans and borrowings
5%
- 33,911,898
-
33,911,898
Total financial liabilities
- 33,911,898
345,306
34,257,204
Page 37
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
22. Financial instruments (continued)
ii) Net fair values
The carrying amount of financial assets and financial liabilities recorded in the financial statements represents
their respective net fair values, determined in accordance with the accounting policies disclosed in Note 1 to the
financial statements.
iii) Sensitivity analysis
The group has performed sensitivity analysis relating to its exposure to interest rate risk at balance date. The
sensitivity analysis demonstrates the effect on the current year results and equity which could result from a
change in these risks.
Interest rate sensitivity analysis
At 31 December 2020, the effect on profit and equity as a result of changes in the interest rate, with all other
variables remaining constant would be as follows:
Consolidated
2020
$
2019
$
(561,213)
683,108
(598,486)
678,238
(561,213)
683,108
(598,486)
678,238
Change in profit:
Increase in interest rate by 2%
Decrease in interest rate by 2%
Change in equity
Increase in interest rate by 2%
Decrease in interest rate by 2%
(ii) Other price risk
The Company is not subject to other price risk
23. Key management personnel disclosures
(a) Key management personnel
Directors
T Fung
A Chow
R Shields
A Gallaugher
Executives
A Gallaugher
Chairman (appointed 7 Aug 2016)
Non-Executive Director (appointed 7 Sept 2016)
Non-Executive Director (appointed 7 Aug 2016)
Executive Director (appointed 28 Jun 2018)
Financial Controller appointed 24 March 2017 to 26 February 2020, CEO (Acting)
appointed from 1 Jan 2019 and CEO appointed from 27 February 2020.
Page 38
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
23. Key management personnel disclosures (continued)
Transactions with key management personnel
Key management personnel remuneration includes the following: Consolidated
Short term employee benefits:
Post-employment benefits:
Other long-term benefits
Total remuneration
Further details are included in the Remuneration Report.
24. Related party transactions
(a) Controlling entities
2020
$
2019
$
493,889
27,002
12,303
533,194
698,215
45,050
-
743,265
The ultimate parent is TF Reef – Canberra Holdings Limited (incorporated in BVI). The ultimate Australian
parent entity is Aquis Canberra Holdings (Aus) Pty Ltd
(b) Key management personnel
Disclosures relating to KMP are included in Note 23 and the Remuneration report.
(c) Transaction with related parties
The Group received loans from related parties during the year. Details of the loans are set out at Note 18.
25. Contingent liabilities
Pursuant to the Deed between the ACT Gambling and Racing Commission, CCL and the Australian Capital
Territory dated 23 December 2014, CCL granted the Commission and the Territory:
First ranking mortgage over the casino land and
First ranking security interest over all other property.
CCL can replace the mortgage with a bank guarantee for $3 million should it raise debt finance in connection
with improvements or redevelopment of the business.
26. Investment in controlled entities
Interests in controlled entities are set out below. All entities are incorporated and domiciled in Australia.
Name
Principal Activity
Gaming and entertainment
Gaming and entertainment
Australia
100%
100%
Incorporated Ownership Interest
2019
100%
2020
100%
Australia
Aquis Canberra Pty Ltd
Casino Canberra Limited1
1 Shares held by ACPL
Page 39
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
27. Parent entity information
Statement of financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
2020
$
27,218,805
1,017
27,219,822
(179,146)
(34,155,393)
(34,334,539)
2019
$
29,689,273
4,092
29,693,365
(256,431)
(33,911,898)
(34,168,329)
(7,114,717)
(4,474,964)
4,727,776
6,403,060
(18,245,553)
4,727,776
6,805,438
(16,008,178)
(7,114,717)
(4,474,964)
Statement of profit or loss and other comprehensive income
Income
(Loss) for the year
20,008
(2,639,753)
216
(3,022,197)
Commitments for the parent entity are the same as those for the consolidated entity and are set out at Note 28.
The parent entity has not entered into a deed of cross guarantee nor are there any contingent liabilities at year
end.
28. Expenditure commitments
(a) Capital expenditure commitments
At 31 December 2020, the Company had no capital expenditure commitments (2019: nil)
(b) Commitment to Casino Licence Fee
Commitments for Casino Licence fees are payable as follows:
Within one year
2020
$
2019
$
980,563
891,877
Later than one year but not later than 5 years
3,922,251
3,567,508
Later than 5 years
64,717,139
59,755,759
Commitments not recognised in the financial statements
69,619,952
64,215,144
As part of the ACT Government’s response to the Covid-19 pandemic, the 2020 licence fee has been waived.
Page 40
AQUIS ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2020
29. Subsequent events
Casino Canberra was an eligible employer under the Federal Government’s JobKeeper payment scheme. From
4 January 2021, it is no longer eligible to receive JobKeeper payments under phase three of this payment
scheme.
Other than as disclosed in this report, there has not arisen in the interval between the end of the reporting period
and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of
the Directors, to significantly affect the operations of the entity, the results of those operations or the state of
affairs of the Company in future financial years.
30. Segment information
The consolidated entity has identified its operating segments based on the internal reports that are reviewed and
used by the Board of Directors (chief operating decision makers) in assessing performance and determining the
allocation of resources. The consolidated entity operates in a single operating segment: that of the gaming and
entertainment industry in Australia.
31. Auditor information
The following fees were paid or payable for services provided by the Group’s auditors:
Remuneration of auditors
Audit services
Other services
32. Company information
The registered office and principal place of business is as follows:
21 Binara Street
Canberra ACT 2601
2020
$
2019
$
135,000
162,080
11,000
-
33. Authorisation of financial statements
The consolidated financial statements for the year ended 31 December 2020 (including comparatives) were
approved and authorised for issue by the Board of Directors on 11 March 2021.
Page 41
AQUIS ENTERTAINMENT LIMITED
DIRECTORS’ DECLARATION
The Directors of the company declare that:
1.
the financial statements and notes are in accordance with the Corporations Act 2001 and:
a. comply with Accounting Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001; and
b.
give a true and fair view of the financial position as at 31 December 2020 and of the
performance for the year ended on that date of the company and consolidated group;
2.
the Chief Executive Officer and Financial Controller have each declared that:
a. the financial records of the company for the financial year have been properly maintained in
accordance with section 286 of the Corporations Act 2001;
b. the financial statements and notes for the financial year comply with the Accounting Standards;
and
c. the financial statements and notes for the financial year give a true and fair view;
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.
Note 1 confirms that the consolidated financial statements also comply with International Financial
Reporting Standards
3.
4.
Signed in accordance with a resolution of the Directors.
Allison Gallaugher
Director
Canberra
11 March 2021
Page 42
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Aquis Entertainment Limited for the year ended 31
December 2020, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
Canberra, Australia Capital Territory
Dated: 11 March 2021
RODNEY MILLER
Partner
Page 43
INDEPENDENT AUDITOR’S REPORT
To the Members of Aquis Entertainment Limited
Opinion
We have audited the financial report of Aquis Entertainment Limited (the “Company”) and its subsidiaries (the
“Group”), which comprises the consolidated statement of financial position as at 31 December 2020, the
consolidated statement of comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the Group’s financial position as at 31 December 2020 and of its
financial performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Page 44
Key Audit Matters (Continued)
Key Audit Matter
How our audit addressed this matter
Recognition of Revenue – Refer to Note 3 in the financial statements
Revenue for the year ended 31 December 2020 was
$18.9 million.
Our audit procedures in relation to the recognition of
revenue included:
Revenue is considered to be a Key Audit Matter
because, while it is not judgmental, it involves the
in
transfer of significant volumes of cash
circumstances where there is no immediate paper
trail.
There is potential for management override to
achieve revenue targets via manual journal entries
posted to revenue. Revenue could be inaccurately
stated as a result. Our procedures were designed to
corroborate our assessment that revenue should be
closely aligned to cash banked and identify manual
adjustments that are made to revenue for further
testing.
• Assessing whether the Group’s revenue
recognition policies were in compliance
with Australian Accounting Standards.
• Evaluating the operating effectiveness, of
management’s controls related to revenue
recognition.
• Using data extracted from the accounting
system, we tested the appropriateness of
journal entries impacting revenue.
• We
the
verified
recognition
and
measurement of revenue by tracing a
sample of transactions throughout the year
from the table performance reports to the
monthly summary reports and then back to
the cash desk, to verify the accuracy of
reported revenue.
Impairment of Intangible Assets – Refer to Note 13 in the financial statements
At 31 December 2020 the Group has intangible
assets with a carrying value of $1.82 million. This is
the Casino licence and its associated costs.
We focused on this area due to the size of the
intangible balance, and because the directors’
assessment of the ‘fair value less cost to sell’ of the
cash generating unit (“CGU”), Casino Canberra
(Casino) involves judgements about the future
underlying cash flows of the business and the
discount rates applied to them.
the year ended 31 December 2020
impairment
For
management have performed an
assessment over the intangible balance by:
•
expenses
calculating the fair value less cost to sell for
the Casino using a discounted cash flow
flows
model. This model used cash
(revenues,
capital
expenditure) for the Casino for 5 years, with
a terminal growth rate applied to the 5th year.
These cash flows were then discounted to
net present value using the Group’s weighted
average cost of capital (WACC); and
and
Our audit procedures in relation to management’s
impairment assessment included:
• Updating
our
of
management’s annual impairment testing
process.
understanding
the
• Assessing management’s determination
intangible asset should be
that
allocated to a single CGU, the Casino,
based on
the Group’s
business and the manner in which results
are monitored and reported.
the nature of
• We assessed the forecasts underlying the
impairment review and agreed to budgets
approved by the Board, reviewing these
against actual performance and historic
also
accuracy
performed sensitivity analysis on earnings
multiples and growth rates applied to cash
flows to determine the extent of headroom
for the Casino.
forecasting. We
of
• We agreed other key assumptions such as
discount rates and revenue growth to
supporting evidence and corroborated
these to industry averages/trends.
Page 45
Key Audit Matters (Continued)
Key Audit Matter
How our audit addressed this matter
Impairment of Intangible Assets – Refer to Note 13 in the financial statements (continued)
•
comparing the resulting fair value less cost to
sell of the Casino to the respective book
value.
• We compared the cash flow projections to
historic performance and observable
trends.
Management also performed a sensitivity analysis
over the calculations, by varying the assumptions
used (growth rates, terminal growth rate and
WACC) to assess the impact on the valuations.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 31 December 2020, but does not include the financial report
and the auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar2.pdf.
Page 46
This description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 7 to 11 of the directors' report for the year ended
31 December 2020.
In our opinion, the Remuneration Report of Aquis Entertainment Limited, for the year ended 31 December 2020,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on
the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM AUSTRALIA PARTNERS
Canberra, Australia Capital Territory
Dated: 11 March 2021
RODNEY MILLER
Partner
Page 47
AQUIS ENTERTAINMENT LIMITED
ACN 147 411 881
(Company)
CORPORATE GOVERNANCE STATEMENT
This Corporate Governance Statement is current as at 11 March 2021 and has been approved by the Board of Directors on that date.
This Corporate Governance Statement discloses the extent to which the Company follows the recommendations set by the ASX Corporate Governance Council
in its publication Corporate Governance Principles and Recommendations (Recommendations). The Recommendations are not mandatory; however, the
Recommendations that will not be followed have been identified and reasons provided for not following them along with what (if any) alternative governance
practices the Company intends to adopt in lieu of the recommendation.
The Company has adopted a Corporate Governance Plan which provides the written terms of reference for the Company’s corporate
governance duties.
The Company’s Corporate Governance Plan is available on the Company’s website at www.aquisentertainment.com
RECOMMENDATIONS (4th EDITION)
COMPLY
EXPLANATION
Principle 1: Lay solid foundations for management and oversight
Recommendation 1.1
A listed entity should have and disclose a board charter
setting out:
(a) the respective roles and responsibilities of its board and
Yes
management; and
(b) those matters expressly reserved to the board and those
delegated to management.
The Company has a Board Charter which sets out the respective roles
and responsibilities of the Board, the Chair and management, and
includes a description of those matters expressly reserved to the
Board and those delegated to management. A copy of the Charter
can be viewed on the Company’s website.
Page 48
RECOMMENDATIONS (4th EDITION)
COMPLY
EXPLANATION
Recommendation 1.2
A listed entity should:
(a) undertake appropriate checks before appointing a director
or senior executive or putting someone forward for election
as a director; and
(b) provide security holders with all material information in its
possession relevant to a decision on whether or not to elect
or re-elect a director.
Recommendation 1.3
A listed entity should have a written agreement with each
Director and senior executive setting out the terms of their
appointment.
Recommendation 1.4
The company secretary of a
listed entity should be
accountable directly to the Board, through the Chair, on all
matters to do with the proper functioning of the Board.
Recommendation 1.5
A listed entity should:
(a) have and disclose a diversity policy;
(b) through its board or a committee of the board set
measurable objectives for achieving gender diversity in the
composition of its board, senior executives and workforce
generally; and
(c) disclose as at the end of each reporting period:
Yes
The Company:
• undertakes appropriate checks including character references,
criminal history and insolvency checks before appointing or
putting forward to security holders a candidate for election, as a
Director; and
security holders are provided with all material
information
relevant to a decision on whether or not to elect or re-elect a
Director. The information is included in the Company’s Annual
Reports, Notices of Meeting and website.
•
The Company has written agreements with each Director and senior
executive setting out the terms of their appointment.
The Board Charter establishes that
is
accountable directly to the Board through the Chair on all matters to do
with the proper functioning of the Board.
the Company Secretary
Aquis Entertainment acknowledges the positive outcomes that can be
achieved through a diverse workforce and recognises and utilises the
diverse skills and talent from its directors, officers and employees. To this
end the Company has developed a diversity policy which can be viewed
on the Company’s website.
for
The Remuneration & Nomination Committee
reviewing and making recommendations to the Board on the
effectiveness of the Diversity Policy.
is responsible
Yes
Yes
Yes
Yes
Page 49
RECOMMENDATIONS (4th EDITION)
COMPLY
EXPLANATION
The following diversity targets have been set for 2021:
o 45% female and 55% male staff across the company as a
whole; and
o maintenance of the current split of 33% female and 67%
male Directors, Executives and Senior Management to
maintain stability across the Board and senior
management.
Yes
At 11 March 2021, the respective proportions of men and women on the
Board, in senior executive positions and across the whole organisation
were as follows:
Board (including the Executive Director)
Senior Executives (excl. Executive Directors)1
Management – Casino Canberra (excl. Exec
Directors and Senior Executives)
Staff
Total
Female Male Total
1
-
3
80
84
3
-
5
4
-
8
118198
126
210
40% 60%
1 For the purposes of this statement, Senior Executives are defined as
Key Management Personnel (excluding Directors).
(i)
the measurable objectives set for that period to
achieve gender diversity;
(ii) the entity’s progress
towards achieving
those
objectives; and
(iii) either:
(A)
the respective proportions of men and women
on the board, in senior executive positions and
across the whole workforce (including how the
entity has defined “senior executive” for these
purposes); or
if the entity is a “relevant employer” under the Workplace Gender
Equality Act, the entity’s most recent “Gender Equality
Indicators”, as defined in and published under that Act
Recommendation 1.6
A listed entity should:
(a) have and disclose a process for periodically evaluating the
performance of the Board, its committees and individual
Directors; and
Yes
The Board Charter establishes the requirement and process to
conduct an annual evaluation of the performance of the Board, its
committees and individual Directors. The Remuneration & Nomination
Committee is responsible for the conduct of the evaluation.
Page 50
RECOMMENDATIONS (4th EDITION)
COMPLY
EXPLANATION
(b) disclose, in relation to each reporting period, whether a
performance evaluation was undertaken in the reporting
period in accordance with that process.
Recommendation 1.7
A listed entity should:
(a) have and disclose a process for periodically evaluating the
performance of its senior executives at least once every
reporting period; and
No
Yes
A Board performance evaluation was not undertaken during the 2020
financial year as the Directors focused on navigating the business
through COVID-19 conditions.
The Board
is responsible for reviewing the performance of senior
management against strategies established by the Board. To this end the
Board establishes annual KPI’s against which the performance of its senior
executives are assessed. The KPI’s are set for the 2021 calendar year and are
reviewed in January annually.
(b) disclose, in relation to each reporting period, whether a
in the reporting
performance evaluation was undertaken
period in accordance with that process.
Yes
A performance evaluation of executives against KPI’s set for the 2020
financial year has been conducted.
Page 51
RECOMMENDATIONS (4th EDITION)
COMPLY
EXPLANATION
Principle 2: Structure the Board to add value
Recommendation 2.1
The Board of a listed entity should:
(a) have a nomination committee which:
(i)
has at least three members, a majority of whom are
independent Directors; and
Yes
The Remuneration and Nomination Committee has three members the
majority of whom are independent Directors. The Committee is chaired
by an independent Director.
(ii)
is chaired by an independent Director, and
The names of the Committee Members are as follows:
disclose:
(iii)
the charter of the committee;
(iv) the members of the committee; and
(v) as at the end of each reporting period, the number of
times the committee met throughout the period and the
individual attendances of
those
meetings; or
the members at
(b) if it does not have a nomination committee, disclose that fact
and the processes it employs to address board succession issues
and to ensure that the board has the appropriate balance of
skills, knowledge, experience, independence and diversity to
enable it to discharge its duties and responsibilities effectively.
• Mr Russell Shields (Chair)
• Mr Tony Fung
• Mr Alex Chow
A copy of the Committee Charter may be viewed on the Company’s
website.
The qualifications and experience of the members of the Committee
are set out on the Company’s website and in the Annual Reports.
The number of times the committee met throughout a period and the
individual attendances of the members at those meetings are disclosed in
the Annual Report.
Page 52
RECOMMENDATIONS (4th EDITION)
Recommendation 2.2
COMPLY
EXPLANATION
A listed entity should have and disclose a board skills matrix setting
out the mix of skills that the board currently has or is looking to
achieve in its membership.
Yes
The Remuneration and Nomination Committee has developed a Board
Skills Matrix to assist in identifying the experience, skills, expertise and
diversity required for the Board to discharge its mandate to maintain
the necessary mix of expertise. Key skills held by Board members include:
financing and administration, banking, finance, property
corporate
development, business strategy and business management.
The Board is of the view that at this stage of its development the current
directors possess an appropriate mix of skills, experience, expertise and
diversity to enable the Board to discharge its responsibilities and deliver
the company’s strategic priorities. To the extent that skills are not
directly represented on the Board, they are augmented through
management and external advisors.
Page 53
RECOMMENDATIONS (4th EDITION)
COMPLY
EXPLANATION
Recommendation 2.3
A listed entity should disclose:
(a) the names of the Directors considered by the Board to be
independent Directors;
(b) if a Director has an
interest, position, association or
relationship of the type described in Box 2.3 of the ASX
Corporate Governance Principles and Recommendation (3rd
Edition), but the Board is of the opinion that it does not
compromise the independence of the Director, the nature of
the interest, position, association or relationship in question
and an explanation of why the Board is of that opinion; and
Yes
The names of the Directors considered to be independent are as follows:
• Mr Alex Chow
• Mr Russell Shields
The names of the Directors who are not considered independent a r e :
• Mr Tony Fung
• Ms Allison Gallaugher
(c) the length of service of each Director
Ms Gallaugher was appointed on 28 June 2018.
Mr Chow was formally appointed on 7 September 2015.
All other Directors were appointed with effect from 7 August 2015.
Recommendation 2.4
A majority of the Board of a listed entity should be
independent Directors.
No
At the date of this report, the Board comprises fo ur members, two of
whom are
independent and t w o of whom are non-independent
Directors.
The Company considers this to be an appropriate balance given its
majority shareholder and the importance to the company at this time to
have the Chief Executive Officer who is an Executive Director, who is not
considered independent.
Page 54
RECOMMENDATIONS (4th EDITION)
Recommendation 2.5
listed entity should be an
The Chair of the Board of a
independent Director and, in particular, should not be the same
person as the CEO of the entity.
Recommendation 2.6
A listed entity should have a program for inducting new directors
and for periodically reviewing whether there is a need for existing
directors to undertake professional development to maintain the
skills and knowledge needed to perform their role as directors
effectively.
Principle 3: Instil a culture of acting lawfully, ethically and responsibly
Recommendation 3.1
A listed entity should articulate and disclose its values.
COMPLY
EXPLANATION
No
Yes
The Chair of the Board is Mr Tony Fung who is also the owner of the
majority shareholder and therefore is not independent. Mr Fung is a
highly experienced Director and Chairman. The Company considers that,
reflective of the majority shareholding, the Board will function more
effectively with Mr Fung as Chairman.
The Company has an
induction program for new Directors and
encourages ongoing professional development of directors and senior
management.
No
The Company is currently in the process of developing a Statement of
Values to articulate and disclose its values.
Page 55
RECOMMENDATIONS (4th EDITION)
COMPLY
EXPLANATION
Recommendation 3.2
A listed entity should:
(a) have and disclose a code of conduct for its directors, senior
executives and employees; and
Yes
The Company has a Code of Conduct for its Directors, senior
executives and employees.
(b) ensure that the board or a committee of the board is informed
of any material breaches of that code by a director or senior
executive; and
2) any other material breaches of that code that call into question
the culture of the organisation.
Recommendation 3.3
A listed entity should:
(a) have and disclose a whistleblower policy; and
(b) ensure that the board or a committee of the board is
informed of any material incidents reported under that policy.
A copy of the Code of Conduct may be viewed on the
Company’s website.
The Board has implemented appropriate reporting processes to ensure
that any material breaches of the Code of Conduct are reported to the
board.
Yes
The Company has a Whistleblower Policy in place and may be viewed
on the Company’s website.
The Board has implemented appropriate reporting processes to ensure
that any material incidents reported under the Whistleblower Policy are
communicated to the board to ensure that the board is fully informed.
Page 56
RECOMMENDATIONS (4th EDITION)
COMPLY
EXPLANATION
Recommendation 3.4
A listed entity should:
(a) have and disclose an anti-bribery and corruption policy; and
(b) ensure that the board or committee of the board is informed
of any material breaches of that policy.
Yes
The Company is currently in the process of developing an anti-bribery
and corruption policy.
Page 57
RECOMMENDATIONS (4th EDITION)
COMPLY
EXPLANATION
Principle 4: Safeguard the integrity of corporate reports
Recommendation 4.1
The Board of a listed entity should:
(a) have an audit committee which:
(i)
(ii)
has at least three members, all of whom are non-
executive Directors and a majority of whom are
independent Directors; and
is chaired by an independent Director, who is not the
Chair of the Board,
and disclose:
(iii)
(iv)
(v)
the charter of the committee;
the relevant qualifications and experience of the
members of the committee; and
in relation to each reporting period, the number of
times the committee met throughout the period
and the individual attendances of the members
at those meetings; or
(b) if it does not have an audit committee, disclose that fact and
the processes it employs that independently verify and
safeguard the integrity of its corporate
Yes
The Audit and Risk Management Committee has three members the
majority of whom are independent Directors. The Committee is chaired
by an independent Director.
The names of the Committee Members are as follows:
• Mr Alex Chow (Chair)
• Mr Tony Fung
• Mr Russell Shields
A copy of the Committee Charter may be viewed on the Company’s
website. The qualifications and experience of the members of the
Committee are set out on the Company’s website and in the Annual
Report. The number of times the committee met throughout a period
and the individual attendances of the members at those meetings are
disclosed in the Annual Report.
Page 58
RECOMMENDATIONS (4th EDITION)
Recommendation 4.2
The board of a listed entity should, before it approves the entity’s
financial statements for a financial period, receive from its CEO and
CFO a declaration that, in their opinion, the financial records of the
entity have been properly maintained and that the financial
statements comply with the appropriate accounting standards and
give a true and fair view of the financial position and performance
of the entity and that the opinion has been formed on the basis of
a sound system of risk management and internal control which is
operating effectively.
COMPLY
Yes
Recommendation 4.3
A listed entity should disclose its process to verify the integrity of
any periodic corporate report it releases to the market that is not
audited or reviewed by an external auditor.
Yes
EXPLANATION
The Audit and Risk Management Charter requires the CEO and CFO to
provide to the Board prior to the Company’s financial statements being
approved, a declaration that the financial records have been properly
maintained and
the
appropriate accounting standards and give a true and fair view of the
financial position and performance of the entity and that the opinion has
been formed on the basis of a sound system of risk management and
internal control which is operating effectively.
financial statements comply with
that
the
Verification of periodic corporate reports
For periodic corporate reports released to the market which are not required
to be audited or reviewed by the external auditor, AQUIS has an internal
verification and approval process to support the integrity of the information
that is being disclosed. The specific process for each periodic corporate report
will vary depending on the release but may generally involve:
i.
ii.
iii.
iv.
v.
As far as possible, separation of the responsibility for input and
reconciliation of data from those responsible for preparation of
periodic reports;
the individuals with responsibility for the information confirming to
the best of their knowledge and belief that the information is
considered to be accurate and not misleading;
the review and approval of the report or document by relevant
internal subject matter experts (and in some cases AQUIS’s external
advisers as appropriate);
the review by and confirmation from the individual responsible for
the periodic corporate report that it is appropriate for release; and
Periodic corporate reports released to the market may also,
depending upon the report, be required to be approved by the Board
under AQUIS Continuous Disclosure Policy.
Page 59
RECOMMENDATIONS (4th EDITION)
COMPLY
EXPLANATION
Principle 5: Make timely and balanced disclosure
Recommendation 5.1
A listed entity should have and disclose a written policy for
complying with its continuous disclosure obligations under listing
rule 3.1.
Recommendation 5.2
A listed entity should ensure that its board receives copies of all
material market announcements promptly after they have been
made.
Recommendation 5.3
A listed entity that gives a new and substantive investor or
analyst presentation should release a copy of the presentation
materials on the ASX Market Announcements Platform ahead
of the presentation.
Yes
Yes
Yes
The Company has a Disclosure Policy which sets out the process by which
the Company complies with its continuous disclosure obligations under
the Listing Rules.
A copy of the Policy may be viewed on the Company’s website.
The Company Secretary is responsible for ensuring that the Board receives
copies of all material market announcements promptly after they have
been made.
The Company has previously not given presentations, however, should a
presentation be given in future, the Company will, prior to giving a new
and substantive investor or analyst presentation, release a copy of the
presentation materials on the ASX Market Announcements Platform
ahead of the presentation, and any material Information will not be
released or discussed with the investors before it has been disclosed to
the ASX.
Principle 6: Respect the rights of security holders
Recommendation 6.1
A listed entity should provide information about itself and its
governance to investors via its website.
Yes
The Company’s Corporate Governance Statement, Charters and
Corporate Governance Policies are included on its website.
Page 60
Recommendation 6.2
listed entity should design and
A
relations
communication with investors.
program
facilitate
to
implement an
effective
RECOMMENDATIONS (4th EDITION)
Recommendation 6.3
investor
two-way
Yes
The Company has a Shareholder Communication policy which is aimed at
facilitating effective two-way communication with investors. A copy of
the Policy can be viewed on the Company’s website.
COMPLY
EXPLANATION
A listed entity should disclose the policies and processes it has
in place to facilitate and encourage participation at meetings
of security holders.
Yes
The Shareholder Communications Policy sets out the policies and
processes the Company’s has
in place to facilitate and encourage
participation at meetings of security holders.
Recommendation 6.4
A listed entity should ensure that all substantive resolutions at a
meeting of security holders are decided by a poll rather than by a
show of hands.
Recommendation 6.5
Yes
The Board has adopted a practice of requiring all voting on substantive
resolutions at shareholder meetings to be conducted by way of a poll.
A listed entity should give security holders the option to
receive communications from, and send communications to,
the entity and its security registry electronically.
Yes
The Shareholder Communications Policy establishes the Company’s
commitment to receive communications from, and send communications
to, the entity and its security registry electronically.
Page 61
RECOMMENDATIONS (4th EDITION)
Principle 7: Recognise and manage risk
Recommendation 7.1
The Board of a listed entity should:
COMPLY
EXPLANATION
(a) have a committee or committees to oversee risk, each of
which:
(i)
has at least three members, a majority of whom are
independent Directors; and
Yes
The Audit and Risk Management Committee has three members the
majority of whom are independent Directors. The Committee is chaired
by an independent Director. A copy of the Committee Charter may be
viewed on the Company website.
(ii)
is chaired by an independent Director, and
The names of the Committee Members are as follows:
disclose:
(iii)
(iv)
(v)
the charter of the committee;
the members of the committee; and
as at the end of each reporting period, the number
of times the committee met throughout the period
and the individual attendances of the members at
those meetings; or
(b) if it does not have a risk committee or committees that satisfy
(a) above, disclose that fact and the process it employs for
overseeing the entity’s risk management framework.
• Mr Alex Chow (Chair)
• Mr Tony Fung
• Mr Russell Shields
The qualifications and experience of the members of the Committee
are set out on the Company’s website and in the Annual Report. The
number of times the committee met throughout a period and the
individual attendances of the members at those meetings are disclosed in
the Annual Report.
Recommendation 7.2
The Board or a committee of the Board should:
Yes
(a) review the entity’s risk management framework at least
annually to satisfy itself that it continues to be sound and
that the entity is operating with due regard to the risk
appetite set by the board; and
(b) disclose in relation to each reporting period, whether
such a review has taken place.
The Audit and Risk Management Committee Charter tasks the
Committee with the responsibility for reviewing and monitoring the
Company’s risk management framework to provide assurance that
identified, consistently assessed and
major business risks are
appropriately addressed. The Charter requires the Committee to
undertake a review of the Company’s risk management framework
with management (at least once annually) to satisfy
Page 62
RECOMMENDATIONS (4th EDITION)
COMPLY
EXPLANATION
Recommendation 7.3
A listed entity should disclose:
No
(a) if it has an internal audit function, how the function is
structured and what role it performs; or
(b) if it does not have an internal audit function, that fact and
the processes
it employs for evaluating and continually
improving the effectiveness its governance, risk management
and internal control processes.
itself that Aquis Entertainment’s risk management framework continues
to be sound, to determine whether there have been any changes in the
material business risks the entity faces and to ensure that they remain
with the risk appetite set by the Board.
During the year Management conducted various risk reviews of aspects of
the operations in connection with COVID-19. An annual review of the
Company’s risk management framework and risk registers was also
performed .
The Company does not have an Internal Audit function. The Board is
of the view that the Company’s’ size and scale does not currently
support an independent internal audit function. The Board from time to
time may utilise external parties to undertake internal audit control
reviews.
The Audit and Risk Management Committee Charter sets out the
processes the Committee employs to oversee the Company’s risk
management framework. The Company’s operational subsidiary, Casino
Canberra Limited, also maintains a robust risk management framework
related to all operational matters as required under the relevant
casino
includes the maintenance of a risk register
identifying relevant operational risks and recording proposed solutions
and risk management procedures where appropriate.
legislation. This
Recommendation 7.4
A
listed entity should disclose whether it has any material
exposure to economic, environmental and social sustainability
risks and, if it does, how it manages or intends to manage those
risks.
Yes
The Company’s exposure to economic, environmental and social
sustainability risks and the way it manages or intends to manage mitigate
those risks is set out in the Annual Report.
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RECOMMENDATIONS (4th EDITION)
COMPLY
EXPLANATION
Principle 8: Remunerate fairly and responsibly
Recommendation 8.1
The Board of a listed entity should:
(a) have a remuneration committee which:
(i)
has at least three members, a majority of whom are
independent Directors; and
Yes
The Remuneration and Nomination Committee has three members
the majority of whom are independent Directors. The Committee is
chaired by an independent Director.
(ii)
is chaired by an independent Director,
The names of the Committee Members are as follows:
and disclose:
(iii)
(iv)
(v)
the charter of the committee;
the members of the committee; and
as at the end of each reporting period, the number
of times the committee met throughout the period
and the individual attendances of the members at
those meetings; or
(b) if it does not have a remuneration committee, disclose that
fact and the processes it employs for setting the level and
composition of remuneration for Directors and senior
executives and ensuring that such remuneration is
appropriate and not excessive.
Recommendation 8.2
A listed entity should separately disclose its policies and practices
regarding the remuneration of non-executive directors and the
remuneration of executive directors and other senior executives.
Yes
• Mr Russell Shields (Chair)
• Mr Tony Fung
• Mr Alex Chow
A copy of the Committee Charter may be viewed on the Company’s
website.
the
The qualifications and experience of
in the
Committee are set out on the Company’s website and
Annual Report. The number of times the committee met throughout a
period and the individual attendances of the members at those
meetings are disclosed in the Annual Report.
the members of
The Remuneration and Nomination Committee
is tasked with
developing policies and practices regarding the remuneration of non-
executive Directors and the remuneration of executive Directors and
other senior executives and ensure that the different roles and
responsibilities of non-executive Directors compared to executive
Directors and other senior executives are reflected in the level and
composition of their remuneration.
Page 64
RECOMMENDATIONS (4th EDITION)
COMPLY
EXPLANATION
Recommendation 8.3
A listed entity which has an equity-based remuneration
scheme should:
Yes
(a) have a policy on whether participants are permitted to enter
into transactions (whether through the use of derivatives or
otherwise) which limit the economic risk of participating in the
scheme; and
(b) disclose that policy or a summary of it.
These policies and practices are disclosed in the Company’s Annual
Report at page 7 and 8.
The Company has established an equity–based remuneration scheme
(Plan). The Plan rules specifically prohibit participants from entering into
transactions (whether through the use of derivatives or otherwise) which
limit the economic risk of participating in the Plan.
The Company’s Securities Trading Policy also prohibits participants in any
such scheme from entering into transactions (whether through the use of
derivatives or otherwise) which limit the economic risk of participating in
the scheme.
A copy of the Securities Trading Policy can be viewed on the
Company’s website.
Page 65
SHAREHOLDER INFORMATION AT 05 MARCH 2021
Shareholder Information required by the Australian Securities Exchange Limited (ASX) Listing Rules
and not disclosed elsewhere in the Report is set out below.
Number of security-holders
There were 924 holders of ordinary shares (quoted and unquoted) in the Company. This is the only
class of equity securities.
Twenty Largest Shareholders
Name
AQUIS CANBERRA HOLDINGS (AUS) PTY LTD
MR PAUL JOSEPH MANKA
GLOBAL EXPORTERS LIMITED
COMSEC NOMINEES PTY LIMITED
LANDSEC PTY LTD
TARALAKE PTY LTD
LANDSEC PTY LTD
MR HONGHAO SUN
MR JOHN HAMILTON
OLI PRIVATE INVESTMENT PTY LTD
MR GARY STANLEY SWIFT & MRS KAYLEEN LESLIE SWIFT
MR MARK TOMLINSON & MRS KRISTINA LEIGH TOMLINSON
MISS HYOJIN KWON
MR BENJAMIN FEDOTOV
COSBI QUARTER PTY LTD
HABITAT FINANCIAL PTY LTD
MR MARK TOMLINSON
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
MR MICHAEL GRAEME HENSLER
No. of Shares
%
163,871,874
1,325,079
1,200,000
831,744
797,999
790,329
646,800
500,000
442,000
333,881
250,000
240,000
215,438
178,913
88.512%
0.716%
0.648%
0.449%
0.431%
0.427%
0.349%
0.270%
0.239%
0.180%
0.135%
0.130%
0.116%
0.097%
163,883
0.089%
160,000
160,000
146,201
129,018
118,000
0.086%
0.086%
0.079%
0.070%
0.064%
Total Securities of Top 20 Holdings
172,501,159 93.173%
Distribution of Shareholders
Quoted Securities
Range
Total Holders
Shares
% Issued Capital
1-1000
1,001-5,000
5,001-10,000
10,001-100,000
100,001 and above
Totals
56
262
175
384
22
899
38,926
645,210
1,568,228
10,172,175
172,716,511
185,141,050
0.020
0.350
0.850
5.490
93.290
100.000
Page 66
Substantial Shareholders
The number of securities held by substantial shareholders and their associates are set out
below:
Name
AQUIS CANBERRA HOLDINGS (AUS) PTY LTD
Fully paid ordinary
shares
163,871,874
%
88.512%
Voting Rights
Ordinary Shares
Every holder of ordinary shares has the right to receive notices of, to attend and to vote at
general meetings of the Company. On a show of hands every shareholder present at a
meeting in person or by proxy, attorney or representative is entitled to one vote and upon a
poll each share is entitled to one vote.
Unmarketable parcels
There were 14 holders of less than a marketable parcel of shares based on the closing market price of
$0.0006 at the specified date.
Page 67
CORPORATE DIRECTORY
Company
Aquis Entertainment Limited
ABN 48 147 411 881
21 Binara Street
Canberra ACT 2601
www.aquisentertainment.com
Registered Office and Place of Business
21 Binara Street
Canberra ACT 2601
Telephone: +61 2 6257 7074
Facsimile: +61 2 6257 7079
Directors
Mr Tony Fung (Chairman)
Mr Alex Chow (Independent Non-executive Director)
Mr Russell Shields (Independent Non-executive Director)
Ms Allison Gallaugher (Chief Executive Officer & Executive Director)
Company Secretary
Ms Kim Michelle Bradley-Ware
Auditors
RSM Australia Partners
GPO Box 200
Canberra ACT 2601
Share Registry
Boardroom Pty Limited
GPO Box 3993
Sydney NSW 2001
Stock Exchange Listing
Australian Securities Exchange Limited
Home Exchange – Melbourne
ASX code: AQS
Page 68