independent auditor’s report to the members of the

RAPPORT ANNUEL & CHRONIQUE 20178

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE MAURITIUS TURF CLUBOpinionIn our opinion, the financial statements give a true and fair view of the financial position of THE MAU-RITIUS TURF CLUB (the “Club”) at 31 December 2017 and of its financial performance and cash flows for the year then ended in accordance with International Fi-nancial Reporting Standards (“IFRS”) and comply with the Registration of Associations Act 1978.

We have audited the financial statements of THE MAURITIUS TURF CLUB on pages 10 to 13, which com-prise the statement of financial position as at 31 De-cember 2017, and the statement of profit or loss and other comprehensive income, statement of changes in accumulated funds and reserves and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of signifi-cant accounting policies.

Basis for OpinionWe conducted our audit in accordance with Interna-tional Standards on Auditing (ISAs). Our responsibili-ties under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Club in accordance with the International Ethics Standards Board for Accountant’s Code of Ethics for Professional Accountants (IESBA Code), together with the ethical requirements that are relevant to our audit of the financial statements in Mauritius. We have ful-filled our other ethical responsibilities in accordance with these requirements and to the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other InformationThe Administrators are responsible for the other infor-mation. The other information comprises the Adminis-trators’ report and the Corporate Governance Report. The other information does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the financial state-ments, our responsibility is to read the other informa-tion and, in doing so, consider whether the other in-formation is materially inconsistent with the financial statements 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 in-formation, we are required to report that fact. Else, we have nothing to report in this regard.

Responsibilities of Administrators and Those Charged with Governance for the Financial StatementsThe Administrators are responsible for the prepara-tion and fair presentation of the financial statements in accordance with IFRSs and the requirements of the Registration of Associations Act 1978, and for such internal control as the Administrators determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Administra-tors are responsible for assessing the Club’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Administra-tors either intend to liquidate the Club or to cease op-erations, or have no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Club’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are 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 ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered ma-terial if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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RAPPORT ANNUEL & CHRONIQUE 2017 9

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE MAURITIUS TURF CLUB

RSM Prashant Calcutteea, FCCAChartered Accountants Licensed by FRCMoka, Mauritius

This is an extract of the Audited Financial Statements prepared under International Financial Reporting Standards.

A copy is available at the Secretariat or can be mailed upon request.

As part of an audit in accordance with ISAs, we exer-cise professional judgement and maintain profession-al scepticism throughout the audit. We also:

l Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. l Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the club’s internal control.

l Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Administrators.

l Conclude on the appropriateness of the Administrators’ use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the club’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related

disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the club to cease to continue as a going concern.

l Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Administrators regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on Other Legal and Regulatory RequirementsThe board of Administrators is responsible for prepar-ing the Corporate Governance Report. Our respon-sibility is to report on the extent of compliance with the Code of Corporate Governance as disclosed in the annual report and on whether the disclosure is consis-tent with the requirements of the Code.

In our opinion, the disclosure in the annual report is consistent with the requirements of the Code.

Date : 23 Feb 2018

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Président AdministrAtor

This is an extract of the Audited Financial Statements prepared under International Financial Reporting StandardsA copy is available at the Secretariat or can be mailed upon request.

the Club2017 2016 2015

rs Rs RsRe-stated

Assetsnon-current assetsProperty, plant and equipment 599,026,001 592,764,730 595,858,568

Investment in associate 22,557,820 21,247,878 21,661,967

Deferred tax asset 4,322,081 5,366,277 4,759,049 625,905,902 619,378,885 622,279,584

Current assetsInventories 613,599 713,879 988,104

Trade and other receivables 42,012,856 28,424,302 23,592,499

Cash and cash equivalents 6,227,882 1,291,452 8,390,057

Corporate tax receivables - - 185,611 48,854,337 30,429,633 33,156,271

totAl Assets 674,760,239 649,808,518 655,435,855

ACCumulAted Funds And reserVesAccumulated funds 30,908,926 23,594,499 26,159,596

Revaluation reserves 552,074,508 552,074,508 552,074,508 582,983,434 575,669,007 578,234,104

non-current liabilitiesInterest-bearing loans and borrowings 6,289,179 2,862,168 3,962,482

Retirement benefit obligations 2,206,000 37,251,000 35,232,000 8,495,179 40,113,168 39,194,482

Current liabilitiesInterest-bearing loans and borrowings 26,469,521 11,617,698 5,628,017

Retirement benefit obligations 29,526,072 - -

Trade and other payables 27,286,033 22,408,645 32,379,252 83,281,626 34,026,343 38,007,269

total liabilities 91,776,805 74,139,511 77,201,751

totAl eQuitY And liAbilities 674,760,239 649,808,518 655,435,855

Independent Auditors’ report on pages 8 and 9.

stAtement oF FinAnCiAl Position As At 31 deCember 2017

These financial statements have been approved by the Board of Administrators on 20 February 2017 and signed on its behalf by:

Jean-Noël FAYOLLE Kamal TAPOSEEA

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STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFor the year ended 31 December 2017

This is an extract of the Audited Financial Statements prepared under International Financial Reporting Standards.A copy is available at the Secretariat or can be mailed upon request.

THE CLUb2017 2016

Rs RsRe-stated

REVENUEBookmakers 141,407,467 129,974,481 Telebook and SMS pariaz 18,451,347 18,295,715 Tote 63,468,837 56,573,698 Australian Tote 240,939 -SAF tote 5,012,478 3,906,060 Lottery 1,180,885 1,039,670 Sales cards and programs 23,410,742 19,729,300 Sales of Racetime 9,152,984 8,631,753 Advertising and sponsorship 14,750,532 11,386,692 Rental from hawkers and restaurants 19,381,419 16,138,709 Rental lodges and offices 12,779,766 10,193,409 Subscriptions 6,497,561 6,925,485 Horses services 9,869,710 8,327,512 Other income 15,646,173 16,889,504

341,250,840 308,011,988 EXPENSESRaces Expenses - Direct 39,168,353 37,433,201 Races Expenses - Indirect 50,646,597 46,455,750 Prize and Sponsorship to stables 87,556,290 80,948,226 Expenses related to stables 48,419,445 46,621,065 Salaries, wages & pensions 57,318,765 51,783,188 Operating costs and Building maintenance 19,659,563 17,338,885 Motor Vehicles and Transport charges 11,374,896 11,058,967 Insurance 2,480,080 2,074,453 Contribution to pension plan (including share of defined contributions) 10,927,488 5,481,706Bad-debts/Provision for bad debts 2,920,782 957,256

330,472,259 300,152,697

Surplus before depreciation and finance charges 10,778,581 7,859,291

Depreciation 7,818,020 7,741,929 Finance charges 929,880 711,343

8,747,900 8,453,272

Surplus/(Deficit) after depreciation and finance charges 2,030,681 (593,981)

Exceptional items - (1,109,351)Share of profits / (losses) in associate 1,309,942 (414,089)Surplus / (Deficit) before taxation 3,340,623 (2,117,421)Taxation (1,044,196) 517,324Corporate Social Responsibility Expense - - Surplus/ (Deficit) for the year 2,296,427 (1,600,097)

Other comprehensive income/ (loss) 5,018,000 (965,000)Total Comprehensive income/ (loss) for the year, net of taxation 7,314,427 (2,565,097)


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STATEMENTS OF CHANGES IN ACCUMULATED FUNDS AND RESERVES

For the year ended 31 December 2017

Surplus Revaluation Total

reserves

Rs Rs Rs

At 1 Jan 2016, as previously stated 49,120,695 552,074,508 601,195,203

Prior year adjusments (22,961,099) - (22,961,099)

At 1 Jan 2016, as restated 26,159,596 552,074,508 578,234,104

Total comprehensive incomefor the year (Re-stated)

(2,565,097) - (2,565,097)

At 31 Dec 2016 23,594,499 552,074,508 575,669,007

At 1 Jan 2017 23,594,499 552,074,508 575,669,007

Total comprehensive income for the year 7,314,427 - 7,314,427

At 31 Dec 2017 30,908,926 552,074,508 582,983,434



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STATEMENTS OF CASH FLOWS For the year ended 31 December 2016

THE CLUB 2017 2016

Rs Rs Re-stated

Cash generated from operationsSurplus/ (Deficit)before taxation 3,340,623 (2,117,421)

Adjustments for:- Depreciation of property, plant and equipment 7,818,020 7,741,929 - Profit on disposal of property, plant and equipment - (218,261)- Finance costs 929,880 711,343 - Share of profit from associates (1,309,942) 414,089 - Movement in Retirement Benefit Obligations (278,868) 1,186,156

Movements in working capital:- Inventories 100,280 274,225 - Trade and other receivables (13,588,554) (4,831,803)- Trade and other payables 4,877,388 (9,970,607)

Cash generated from / (absorbed in) operations 1,888,827 (6,810,350)Income tax paid (222,060) (36,449)

Net cash flow from / (used in) operating activities 1,666,767 (6,846,799)

Investing activitiesProceeds from sale of property, plant and equipment - 218,261 Purchase of property, plant and equipment (14,079,291) (4,648,091)

Net cash flow used in investing activities (14,079,291) (4,429,830)

Financing activitiesFinance lease received 8,219,229 - Payment of finance lease liabilities (2,280,900) (1,262,611)Interest paid (929,880) (711,343)

Net cash flow from / (used in) financing activities 5,008,449 (1,973,954)

Net decrease in cash and cash equivalents (7,404,075) (13,250,583)Cash and cash equivalents at 1 Jan (8,467,135) 4,783,448

Cash and cash equivalents at 31 Dec (15,871,210) (8,467,135)



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Statistiques de la saison 2017 2017 2016 2015 2014 2013Courses et JournéesNombre de journées 37 37 35 43 41Nombre de courses par journée 8 8 8 8 et 9 8 et 9Nombre de courses disputées 295 285 280 363 336 Nombre de partants 2,478 2,263 2,377 3160 2833 Moyenne de partants par journée 66.9 61.2 67.9 73.4 69.1 Moyenne de partants par course 8.4 7.9 8.5 8.7 8.4 Moyenne de prix par journée (Rs m) 2,372 2,189 2,052 2,249 2,106 Moyenne de prix par course 297,498 284,235 256,482 266,487 256,997Total de prix pour la saison (Rs m) 87.7 81.0 71.8 96.7 86.3 Nombre de courses avec 7 partants et moins 72 114 82 65 83 Nombre de courses avec 8 et 9 partants 144 118 101 170 145 Nombre de courses avec 10 et 11 partants 79 53 97 128 108

Ecuries et Chevaux Nombre d’écuries 14 12 12 16 12 Total des effectifs 427 400 386 463 432 Moyenne des effectifs par écurie 30.5 33 32 29 36 Nombre de courses par cheval 5.8 5.7 6.2 6.8 6.6 Chevaux ayant remporté 1 course 112 87 93 122 114 Chevaux ayant remporté 2 courses 48 44 44 49 53Chevaux ayant remporté 3 courses 19 22 21 27 18 Chevaux ayant remporté 4 courses et plus 7 10 8 14 14 Chevaux non-victorieux mais placés 154 166 143 145 122

Nouvelles unités Nouvelles unités importées pour la saison 199 171 55 171 152Nouvelles unités ayant débuté 188 157 52 152 141Nouvelles unités ayant gagné 85 62 25 64 68 Distances Nombre de courses de 950m & 1000m 14 21 19 48 35Nombre de courses de 1365m à 1400m 137 135 116 125 120Nombre de courses de 1500m à 1650m 117 104 123 139 141Nombre de courses de 1800m et plus 27 25 22 51 40 Moyenne de Partants Moyenne de partants sur 950m & 1000m 7.1 7.5 8.4 8.3 7.7Moyenne de partants sur 1365m / 1400m 8.6 8.0 8.6 8.8 8.8 Moyenne de partants sur 1500m 8.5 7.9 8.4 9.2 8.8 Moyenne de partants sur 1600m / 1650m 8.3 8.0 8.3 8.5 8.7 Moyenne de partants sur 1800m et plus 8.1 7.7 8.0 8.2 7.8 Jockeys & Apprentis Nombre de jockeys étrangers en action 16 16 12 21 18 Nombre de jockeys & apprentis mauriciens 34 29 30 30 28 Nombre d’apprentis ayant débuté en courses 1 2 6 1 3Nombre de montes obtenues par les Mauriciens 1,439 1,377 1,531 1344 1108 Nombre de victoires remportées par les Mauriciens 148 139 155 111 98

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Statistiques de la saison 2017 2017 2016 2015 2014 2013

Assistance Moyenne par journée - Stand 2,994 2,820 2,874 2,085 2,422 Moyenne par journée - Montagne 51 55 - - - Moyenne par journée - Members guests 62 58 51 38 53 Moyenne par journée - Cartes barrées 98 97 99 84 80

Membres Nouveaux membres (Fondateurs et Associés) 18 61 61 56 25 Membres fondateurs ordinaires 437 483 437 443 453 Membres fondateurs à l’étranger 64 76 63 62 74 Membres fondateurs à vie 169 169 160 163 163 Membres fondateurs non-actifs 53 81 57 64 77 Membres associés 222 267 197 170 149 Membres temporaires - 1 - 1 - Membres honoraires 5 9 9 9 9 Employés Nombre d’employés (Palefreniers inclus) 324 312 306 339 333 Nombre de palefreniers 151 144 147 179 183 Nombre d’employés (à temps partiel) 13 18 29 35 52 Nombre d’employés (Race days) 204 190 226 272 293

Statistiques sur le jeu Nombre de bookmakers - On Course 33 32 28 35 37 Nombre de bookmakers - Off Course 10 10 11 11 11 Chiffre d’affaires des bookmakers - (Rs m) 3,642.5 3,177.9 2,956.7 3,271.5 3,321.5 Chiffre d’affaires des opérateurs de Telebook & SMS Pariaz (Rs m) 492.7 405.9 459.9 710.4 768.1 Chiffre d’affaires des opérateurs de TOTE (Rs m) 1,356.0 1,210.0 1,187 1,398 1,391.9Chiffre d’affaires de PMU (Rs m) 15.0 - - 32 20.2Chiffre d’affaires de Phumelela & Gold Circle (Rs m) 143.2 131.8 143.0 192.5 209.8 Chiffre d’affaires des opérateurs de loteries (Rs m) 54.4 46.1 40.4 39.3 79.5 Total provenant du jeu 5,746.8 5,013.7 4,787.0 5,689.7 5,791.0

Analyse des types de paris sur le TOTE Win 847.2 739.5 726.5 855.9 862.5 Place 29.7 28.9 27.9 34.6 38.3 Swinger 13.4 11.9 11.2 12.8 11.5 Exacta 7.3 6.7 5.5 6.4 6.2 Double 4.0 2.8 2.9 2.8 3.1 Trifecta 16.9 15.4 16.2 20.6 20.1 Quartet 69.3 60.2 62.7 79.2 74.1 Pick 6 91.2 90.3 81.3 96.6 98.2 Place accumulator 127.3 122.8 122.6 147.9 143.1 All for All 48.4 49.4 45.7 45.9 44.3 Pick 4/Jackpot 26.0 21.9 24.1 29.3 26.2 Pick 5 - - - - - Pick 7 - - - - - Pick 8 75.5 59.7 60.2 63.2 64.3 TOTAL 1,356.2 1,209.5 1,186.8 1,395.2 1,391.9

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independent auditor’s report to the members of the

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