Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697805798825.pdf (Ireland)
NAVAN RACES LIMITED REPORTS AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 Registered Number 8943 NAVAN RACES LIMITED REPORTS AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 Contents Directors and Other Information Directors' Report Report of the Comptroller & Auditor General Statement of Income and Expenditure and Retained Revenue Reserves Statement of Financial Position Page 2 3 - 5 6 - 8 9 10 Notes to the Financial Statements 11 - 25 1 Directors Secretary Deputy Secretary Registered Office Auditors Solicitors Bankers NAVAN RACES LIMITED DIRECTORS AND OTHER INFORMATION Mr. N. Hartery (Chairperson) Mr. P. Dermody Ms. S. Eade Mr. R. Horan Mr. B. Kavanagh Mr. J. Osborne Ms. C. Rudd Appointed 21/10/2021 Appointed 21/10/2021 Resigned 31/01/2022 Resigned 24/09/2021 Appointed 31/01/2022 Ms. C. Rudd Mr. R. Horan Ms. C. Rudd Ms. S. Eade Appointed 31/01/2022 Resigned 31/01/2022 Appointed 21/09/2021 & Resigned 31/01/2022 Horse Racing Ireland Ballymany The Curragh Co. Kildare Comptroller & Auditor General 3A Mayor Street Upper Dublin 1 Byrne Wallace 88 Harcourt Street Dublin 2 William Fry 2 Grand Canal Square Dublin 2 Bank of Ireland 2 College Green Dublin 2 KBC Bank Ireland plc 2 College Green Dublin 2 2 NAVAN RACES LIMITED DIRECTORS' REPORT The directors present their annual report and the audited financial statements for the financial year ended 31 December 2021.
Principal activities and business review The principal activities continue to be the holding of race meetings and ancillary activities.

Navan Races Limited is a subsidiary of HRI Racecourses Limited which is a wholly owned subsidiary of Horse Racing Ireland.
Results for the financial year Profit on ordinary activities before taxation Tax on profit on ordinary activities Profit for the financial year 2021 € 426,090 2020 € 275,313 (75,048) (54,742) 351,042 220,571 In the opinion of the directors, the state of affairs of the company is satisfactory.

Directors and interests The directors who held office at 31 December 2021 are listed on page 2.
The directors and secretary at 31 December 2021 had no beneficial interests in the share capital of the company or its fellow subsidiaries.

The directors received no fees or expenses in the financial year (2020: Nil).

Please see Horse Racing Ireland for further details.
Statement on relevant audit information The directors believe that they have taken all steps necessary to make themselves aware of any relevant audit information and have established that the statutory auditors are aware of that information.

In so far as they are aware, there is no relevant audit information of which the auditors are unaware.
Accounting records The measures taken by the directors to ensure compliance with the requirements of Section 281 to 285 Companies Act 2014, regarding adequate accounting records are the implementation of necessary policies and procedures for recording transactions, the employment of competent accounting personnel with appropriate expertise and the provision of adequate resources to the financial function.
The accounting records of the company are maintained at the company's office at Ballymany, The Curragh, Co. Kildare.

3 NAVAN RACES LIMITED DIRECTORS' REPORT (CONTINUED) Legal status In accordance with Section 55 of the Companies Act 2014, the Company automatically became a Private Company Limited by Shares (LTD) on 1 December 2016.

Events since the financial year end The impact of COVID-19 is reducing on Navan Races Limited in 2022 with the reduction and removal of restrictions.
Principal risks and uncertainties There are certain risks and uncertainties which may have an effect on the company's performance.

This includes where the racecourse is unable to hold a race meeting due to the weather conditions it will endeavour to reschedule the race meeting to a later date.

The company has considered the risks and is in a position to respond quickly to changes in economic conditions to ensure its business objectives are achieved.
Auditors In accordance with Section 383 (2) of the Companies Act 2014 and section 13 (2) of the Horse and Greyhound Racing Act 2001 the Comptroller and Auditor General will continue as auditor of the company.

Directors' responsibilities statement Irish company law requires the directors to prepare financial statements for each financial year.
Under the law, the directors have elected to prepare the financial statements in accordance with the Companies Act 2014 and generally accepted accounting practice including FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" issued by the Financial Reporting Council.
Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the assets, liabilities and financial position of the company as at the financial year end date and of the profit or loss of the company for the financial year and otherwise comply with the Companies Act 2014.
4 NAVAN RACES LIMITED DIRECTORS' REPORT (CONTINUED) Directors' responsibilities statement (continued) In preparing these financial statements the directors are required to: select suitable accounting policies and then apply them consistently; - - make judgements and estimates that are reasonable and prudent; - - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business; and state whether the financial statements have been prepared in accordance with applicable accounting standards, identify those standards, and note the effect and the reasons for any material departure from those standards.
The directors are responsible for ensuring that the company keeps adequate accounting records which correctly explain and record the transactions of the company, enable at any time the assets, liabilities, financial position and profit or loss of the company to be determined with reasonable accuracy, enable them to ensure that the financial statements and directors' report comply with the Companies Act 2014 and enable the financial statements to be audited.
They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Code of Practice for the Governance of State Bodies (2016) The Code of Practice for the Governance of State Bodies (2016) requires additional disclosures in relation to certain categories of expenditure.
These requirements have been addressed in the Governance Statements and Statement of internal control within the Group Financial Statements of Horse Racing Ireland.

The company was compliant with the Code of Practice for the Governance of State Bodies in 2021.
Signed on behalf of the Board Nicholas Hartery Director Suzanne Eade Director 19/09/2022 Date 5 NAVAN RACES LIMITED STATEMENT OF INCOME AND EXPENDITURE AND RETAINED REVENUE RESERVES FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 Income from racing activities Turnover Operating expenses Administrative expenses Other operating income Operating profit Profit on ordinary activities before interest Interest receivable Interest payable Exceptional item Profit on ordinary activities before taxation Notes 2021 € 2020 € 2 4 2,140,799 2,140,799 1,563,829 1,563,829 (1,496,511) (157,230) 120,430 607,488 (1,230,800) (157,983) 117,914 292,960 607,488 292,960 - (14,612) (166,786) 426,090 - (17,647) - 275,313 Tax on profit on ordinary activities 12 (75,048) (54,742) Profit for the financial year 351,042 220,571 Retained deficit at the beginning of the financial year (2,647,677) (2,868,248) Retained deficit at end of the financial year (2,296,635) (2,647,677) Notes 1 to 29 form part of these financial statements.
The company had no recognised gains or losses in the financial year or the preceding financial year other than those dealt with in the Statement of Income and Expenditure and Retained Revenue Reserves.

The result on ordinary activities arises solely from continuing activities.
The financial statements were approved by the Board of Directors on 19/09/2022 and signed on its behalf by: Nicholas Hartery Director Suzanne Eade Director Date 9 19/09/2022 NAVAN RACES LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 Fixed assets Tangible assets Current assets Debtors Cash at bank and in hand Notes 2021 € 2020 € 13 6,940,602 7,180,375 14 690,124 835,973 1,526,097 394,679 1,097,629 1,492,308 Creditors: (Amounts falling due within one year) 15 (6,273,330) (6,711,642) Net current liabilities (4,747,233) (5,219,334) Total assets less current liabilities 2,193,369 1,961,041 Creditors: (Amounts falling due after more than one year) Provision for liabilities Deferred capital grants Net liabilities Capital and reserves Called up share capital presented as equity Share premium account Retained profits - (deficit) Shareholders' funds - (deficit) Notes 1 to 29 form part of these financial statements.
16 19 20 21 22 (43) (43) (33,678) (34,862) (2,467,971) (2,585,501) (308,323) (659,365) 15,237 1,973,075 (2,296,635) 15,237 1,973,075 (2,647,677) (308,323) (659,365) The financial statements were approved by the Board of Directors on 19/09/2022 and signed on its behalf by: Nicholas Hartery Director Suzanne Eade Director 19/09/2022 Date 10 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 1.
Accounting policies The following accounting policies are applied consistently in dealing with items which are considered material in relation to the company's financial statements.
General Information and Basis of Accounting Statement of compliance The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value in accordance with the Companies Act 2014 and generally accepted accounting practice including Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council.

The unit of currency in which the financial statements are presented is euro.
Navan Races Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements.

Navan Races Limited is consolidated in the financial statements of its ultimate parent, Horse Racing Ireland, which may be obtained at Horse Racing Ireland, Ballymany, The Curragh, Co. Kildare.
Exemptions have been taken in these separate company financial statements in relation to financial instruments, presentation of a cash flow statement and remuneration of key management personnel.

Income Turnover which is recognised on an accruals basis represents income received during the period from the provision of racing as well as other ancillary activities.
Interest income is recognised when it is probable that the economic benefits associated with the transaction will flow to the company and the amount of the interest income can be measured reliably.

This is calculated using the effective interest rate method.

Deferred capital grants Grants are recognised using the accruals model when there is reasonable assurance that the grant will be received and all attaching conditions will be complied with.
Grants towards capital expenditure are credited to deferred income and are released to the Statement of Income and Expenditure and Retained Revenue Reserves over the expected useful life of the related assets, by equal annual instalments.

Grants towards revenue expenditure are released to the Statement of Income and Expenditure and Retained Revenue Reserves as the related expenditure is incurred.
Deferred income Deferred membership and hospitality suites Monies received for life and other membership are being amortised as follows: 11 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 1.

Accounting policies (continued) Memberships Hospitality suites Admissions Over period of concession Over period of concession Over period of concession Other deferred income amounts are amortised over the period of concession.
Retirement benefit Defined contribution scheme Payments to the defined contribution scheme are charged to the Statement of Income and Expenditure and Retained Revenue Reserves in the period to which they relate.

Tangible fixed assets All tangible fixed assets are initially recorded at historic cost and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset systematically over its estimated useful life, on the straight line basis, at the following annual rates: Freehold land Racecourse buildings Plant and equipment Computers Fixtures and fittings Motor vehicles Track enhancement Nil 2% - 5% straight line 3.33% - 33.33% straight line 33.33% straight line 10% - 20% straight line 20% - 33.33% straight line 2% - 10% straight line Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.
Depreciation is not provided on the golf course land as, in the opinion of the directors, there is unlikely to be any diminution in the value of this asset over its expected useful life due to the maintenance programme in place.

The carrying values of tangible fixed assets are reviewed for impairment in accounting periods if events or changes in circumstances indicate the carrying value may not be recoverable.
12 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 1.

Accounting policies (continued) Taxation and deferred tax The yearly charge for taxation is based on the profit for the financial period and is calculated with reference to the tax rates applying at the Statement of Financial Position date.
Deferred tax is calculated on the differences between the company's taxable profits and the results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

Full provision for deferred tax assets and liabilities is made at tax rates that are expected to apply on reversal of the timing difference.
Deferred tax relating to property, plant and equipment measured using the revaluation model and investment property is measured using the tax rates and allowances that apply to sale of the asset.

A net deferred asset is regarded as recoverable and recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Exceptional items In order to highlight significant items within the company results for the period, the company include significant items as exceptional items within the Statement of Income and Expenditure and Retained Revenue Reserves.

Such items may include: impairment of assets, litigation settlements and profit or loss on disposal of investments.
Judgement is used by management in assessing the particular items, which by virtue of their scale and nature, should be disclosed in the Statement of Income and Expenditure and Retained Revenue Reserves and notes as exceptional items.

Operating leases Rental expenditure under operating leases is recognised in the Statement of Income and Expenditure and Retained Revenue Reserves over the life of the lease.

Expenditure is recognised on a straight line basis over the lease period.
Financial instruments Cash and cash equivalents Cash consists of cash on hand and demand deposits.

Cash equivalents consist of short term highly liquid investments that are readily convertible to known amounts of cash that are subject to an insignificant risk of change in value.

Other financial assets Other financial assets including trade and other debtors are initially measured at transaction price and subsequently where necessary, less of any provision for impairment.
13 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 1.

Accounting policies (continued) Other financial liabilities Other financial liabilities comprise of trade and other payables are measured at transaction price.

Amounts owed to parent are shown at original cost.

Ordinary Share Capital The ordinary share capital of the company is presented as equity.
Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the period.

However, the nature of estimation means that actual outcomes could differ from those estimates.
The following judgements have had the most significant effect on amounts recognised in the financial statements.

Going concern The directors have prepared budgets and cash flows for the next financial year which demonstrate that there is no material uncertainty regarding the company's ability to meet its liabilities as they fall due, and to continue as a going concern.
On this basis the directors consider it appropriate to prepare the financial statements on a going concern basis notwithstanding the fact that the Statement of Financial Position on page 10 discloses a shareholders' deficit of €308,323 (2020: €659,365).

The directors have formed this opinion on the basis that Horse Racing Ireland has undertaken to financially support the company for the next twelve months.
The financial statements do not include any adjustments that would result from a withdrawal of Horse Racing Ireland's undertaking.

Accordingly, these financial statements do not include any adjustments to the carrying amounts and classification of assets and liabilities that may arise if the company was unable to continue as a going concern.

The directors have reflected on the impact of COVID-19 in 2022 and based on current projections are satisfied that Navan Races Limited remains a going concern.
Useful lives of tangible fixed assets The annual depreciation charge depends primarily on the estimated lives of each type of asset.

The directors regularly review these useful lives and change them if necessary to reflect current conditions.

In determining these useful lives management consider technological change, patterns of consumption, physical condition and expected economic utilisation of the assets.
Changes in the useful lives can have a significant impact on the depreciation charge for the financial year.

The net book value of tangible fixed assets subject to depreciation was €6,914,554 (2020: €7,180,023).

14 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 2.

Income Income from racing activities 2,140,799 1,563,829 2021 € 2020 € 3.
Staff numbers and costs The average number of persons employed by the company during the financial year, analysed by category, was as follows: Full time staff Part time and casual staff The aggregate payroll costs of these persons were as follows: Wages and salaries Covid Subsidy Received (TWSS) Covid Subsidy Received (EWSS) Social welfare costs Other retirement benefit costs Restructuring costs Number of employees 2020 2021 7 17 24 2021 € 544,461 - (73,812) 50,785 53,549 166,786 741,769 8 4 12 2020 € 470,346 (39,813) (9,396) 30,633 51,208 - 502,978 Included within the figure for wages & salaries are amounts relating to overtime €16,128 (2020: €9,222) and allowances of €7,058 (2020: nil).
Other retirement benefit costs include employer's contribution to scheme costs and the cost of death in service benefit.

No breakdown of total employee remuneration over €60,000 in increments of €10,000, was included in Navan Races Limited as required under circular 13/2014 by the Department of Public Expenditure and Reform (DEPR).

This departure from the Code has been agreed with its parent, Horse Racing Ireland and the Department of Agriculture, Food and the Marine.
15 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 4.

Operating and Administration expenses Operating expenses Labour Marketing Maintenance and course upkeep Depreciation Other operating expenses Administration expenses Rates and insurance Other administration expenses 5.

Other operating income Capital development grant amortisation Capital grant amortisation Revenue grants received from Horse Racing Ireland Profit on disposal of assets 6.
Interest receivable Bank interest receivable 7.
Interest payable On borrowings from parent Other loans and arising from bank interest on bank deposits 2021 € 2020 € 574,983 78,798 140,399 330,363 371,968 1,496,511 502,978 9,810 103,723 325,550 288,739 1,230,800 48,010 109,220 157,230 2021 € 92,704 24,826 - 2,900 120,430 2021 € - 2021 € 6,388 8,224 14,612 46,727 111,256 157,983 2020 € 92,704 25,210 - - 117,914 2020 € - 2020 € 13,010 4,637 17,647 16 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 8.
Exceptional item Restructuring costs 9.

Statutory and other information Operating profit is stated after charging: Depreciation Auditors' remuneration Operating lease rentals and after crediting: Profit on disposal of asset Capital grant amortisation 10.

Directors remuneration 2021 € 166,786 2021 € 330,363 5,300 1,678 2020 € - 2020 € 325,550 5,600 5,039 2,900 117,530 - 117,914 There was no directors' remuneration or directors' expenses in the financial year or the preceding financial year.

11.
11.

Retirement benefit information Defined contribution retirement benefit scheme Contribution to defined contribution retirement benefit scheme 2021 € 2020 € 29,460 28,818 The company operates a defined contribution scheme for certain employees.

The assets of the scheme are vested in independent trustees for the sole benefit of these employees.

There are no amounts due to or from the scheme as at the financial year end.

The company offers a PRSA to all other employees.


17 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 12.
Taxation (A) Analysis of charge in the financial year Current tax: Corporation tax Deferred Tax Tax on profit on ordinary activities 2021 € 2020 € 76,232 34,196 (1,184) 75,048 20,546 54,742 (B) Reconciliation between tax expense included in profit and loss on ordinary activities before tax multiplied by the applicable tax rate: The tax assessed for the period is different to the standard rate of corporation tax in Ireland (12.5 per cent).
The differences are explained below: 2021 € 2020 € Profit on ordinary activities before taxation 426,090 275,313 Profit on ordinary activities before taxation multiplied by standard rate of corporation tax in Ireland of 12.5% (2020 - 12.5%) 53,261 34,414 Effect of: Non deductible expenses Non allowable income Depreciation in excess of capital allowances Income taxable at higher rate Losses utilised on current period basis - Case I Corporation tax 960 (15,054) 33,965 3,100 - 737 (14,739) 31,753 2,678 (20,647) 76,232 34,196 18 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 13.
Tangible fixed assets Cost Land & Buildings € Plant, Office Machinery, Equipment, & Motor Fixtures Vehicles & Fittings € € Total € At 1 January 2021 11,050,585 1,607,034 1,495,386 14,153,005 Additions Disposals 25,696 - 39,688 (15,098) 25,206 - 90,590 (15,098) At 31 December 2021 11,076,281 1,631,624 1,520,592 14,228,497 Depreciation At 1 January 2021 Charge for financial year Disposals 4,403,973 1,156,874 1,411,783 6,972,630 222,108 - 85,024 (15,098) 23,231 - 330,363 (15,098) At 31 December 2021 4,626,081 1,226,800 1,435,014 7,287,895 Net book value At 31 December 2021 6,450,200 404,824 85,578 6,940,602 At 31 December 2020 6,646,612 450,160 83,603 7,180,375 19 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 13.
Tangible fixed assets (continued) In respect of prior financial year: Cost Land & Buildings € Plant, Office Machinery, Equipment, & Motor Fixtures Vehicles & Fittings € € Total € At 1 January 2020 11,022,653 1,568,877 1,477,407 14,068,937 Additions Disposals 27,932 - 38,157 - 17,979 - 84,068 - At 31 December 2020 11,050,585 1,607,034 1,495,386 14,153,005 Depreciation At 1 January 2020 4,182,803 1,072,008 1,392,269 6,647,080 Charge for financial year Disposals 221,170 - 84,866 - 19,514 - 325,550 - At 31 December 2020 4,403,973 1,156,874 1,411,783 6,972,630 Net book value At 31 December 2020 At 31 December 2019 6,646,612 450,160 83,603 7,180,375 6,839,850 496,869 85,138 7,421,857 20 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 14.
Debtors: (Amounts falling due within one year) Trade debtors Accrued income and prepayments VAT recoverable Amounts owed from parent and group companies 15.

Creditors: (Amounts falling due within one year) Trade creditors Amounts owed to parent and group companies Taxation and social welfare Accruals Other creditors Deferred income (Note 18) All amounts included above are unsecured.

Taxation and social welfare is split out as follows: Corporation tax Other taxes 16.
Creditors: (Amounts falling due after more than one year) Called up share capital presented as liability - preference shares All amounts included above are unsecured.
Preference share capital presented as liability Authorised 1,000 Redeemable preference shares of €0.063487 each Allotted, called up and fully paid 674 Redeemable preference shares of €0.063487 each 2021 € 420,654 239,771 16,312 13,387 690,124 2021 € 23,302 5,723,845 44,090 199,233 - 282,860 6,273,330 42,035 2,055 44,090 2021 € 43 63 43 During the current financial year and previous financial year, the company allotted no redeemable preference shares.
2020 € 72,756 154,951 6,666 160,306 394,679 2020 € 26,430 6,338,716 30,908 53,894 1,015 260,679 6,711,642 6,711,642 29,590 1,318 30,908 2020 € 43 63 43 21 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 17.
Details of borrowings Repayable by instalments Amounts owed to parent Within 1 Between 1 Between 2 year & 2 years & 5 years € € € After 5 years € Total € 250,000 250,000 250,000 250,000 750,000 750,000 4,261,135 4,261,135 5,511,135 5,511,135 In respect of prior financial year: 200,000 200,000 600,000 4,761,135 5,761,135 Interest is charged at a 3 month Euribor rate plus margin.
The loan agreement states that the loan is repayable on demand and therefore the full amount due is classified as amounts falling due within one year.

These amounts are unsecured.

18.

Deferred income Amounts falling due within one year: Annual badges and subscriptions Media deferred income Miscellaneous deferred income 19.
Provision for liabilities Deferred taxation At 1 January Released to Statement of Income and Expenditure and Retained Revenue Reserves At end of period Components of deferred taxation Retirement benefit obligation Losses carried forward Accelerated capital allowances 2021 € 15,975 248,768 18,117 282,860 2021 € 34,862 (1,184) 33,678 4 - 33,674 33,678 2020 € 20,712 233,220 6,747 260,679 2020 € 14,316 20,546 34,862 (11) - 34,873 34,862 The deferred tax liability arises where fixed assets are depreciated over a longer period than that over which capital allowances are recognised.
The retirement benefit deferred tax asset relates to the company's defined contribution scheme and can arise when the contributions have been accrued in the financial statements but not yet paid over to the scheme.

22 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 20.
Deferred capital grant At 1 January Received during the financial year Released to Statement of Income and Expenditure and Retained Revenue Reserves Adjustment to grants accrued At 31 December 2021 € 2,585,501 - (117,530) - 2,467,971 2020 € 2,703,415 34,024 (117,914) (34,024) 2,585,501 Deferred capital grants are disclosed separately from other liabilities as it is believed that this treatment is more appropriate to the circumstances of a State body.
The adjustment relates to the reversal of grant accruals.

During the year, Horse Racing Ireland (HRI) under the remit of the Department of Agriculture, Food and the Marine, provided Navan Races Limited with a grant of nil under HRI's Capital Development Schemes 2015 - 2019.

The grant was provided based on vouched expenditure in order to fund projects which had been pre-approved by HRI for the purpose of the development of facilities at Navan racecourse.
The grant is repayable to HRI if racing ceases at Navan racecourse within a period of 10 years from the date of payment of the grant.

Navan Races Limited is adhering to any conditions imposed by HRI attached to the approval of the grant aid for the approved projects and are in compliance with tax clearance requirements.

21.
21.

Called up share capital presented as equity Authorised 12,000 Ordinary shares of €1.269738 each Allotted, called up and fully paid 12,000 Ordinary shares of €1.269738 each Ordinary Shares The ordinary shares have no right to fixed income.

22.

Share premium 2021 € 2020 € 15,237 15,237 15,237 15,237 2021 € 2020 € On redeemable preference shares 1,973,075 1,973,075 23 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 23.
Capital commitments Future capital committed but not provided for in these financial statements were as follows: Contracted 24.

Contingent liability 2021 € 20,432 2020 € - Under an agreement between the company and Horse Racing Ireland, capital grants amounting in total at 31 December 2021 to €100,000 (2020: €100,000) have been received.

If racing ceases to take place at Navan Racecourse, the company may be liable to make repayments to Horse Racing Ireland.

25.
25.

Restriction on future distributions An amount due to Horse Racing Ireland of €545,987 was written off in previous financial years subject to the condition that in the event of any future distribution of profits from the company the amount so written off would have to be repaid in full prior to any such distribution.

26.
26.

Operating leases Operating leases - lessee Total future minimum lease payments under non-cancellable operating leases are as follows: Due: Within one year: Within two to five years: After five years: 2021 € - - - - 27.

Holding company and related party transactions The company is a subsidiary of HRI Racecourses Limited and its ultimate parent is Horse Racing Ireland.

Both companies are incorporated in the Republic of Ireland.
Copies of the financial statements of Horse Racing Ireland are available from Horse Racing Ireland, Ballymany, The Curragh, Co. Kildare.

2020 € 1,672 - - 1,672 24 NAVAN RACES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 27.
Holding company and related party transactions (continued) In accordance with the exemption afforded by paragraph 33.1A from the provisions of FRS 102, 'related party transactions', there is no disclosure in these financial statements of transactions with wholly owned subsidiaries.
Horse Racing Ireland, The Leopardstown Club Limited, Fairyhouse Club Limited, The Tipperary Race Company Plc, Tote Ireland Limited, Irish Thoroughbred Marketing Limited, HRI Racecourses Limited and Cork Racecourse Limited are all considered related parties because they are part of a group in which Navan Races Limited is not a wholly owned subsidiary undertaking.
In accordance with the exemption afforded by FRS 102 paragraph 1.12, there is no disclosure in these financial statements of key management personnel compensation.

Transactions in the financial year between the company and its related parties included payroll and cost recharges of €794,375 (2020: €558,040), bookmakers income of €12,214 (2020: €6,570) sponsorship collected of €49,500 (2020: €27,600) and interest charged of €6,388 (2020: €13,010).
During the financial year, Navan Races Limited repaid intercompany amounts of €650,000 (2020: €200,000) andreceived repayments on intercompany amounts of €160,000 (2020: nil) The company received grants totalling nil (2020: €34,024) from related parties.

At the end of the financial year, the amounts due from/(to) related parties are as follows: Related party name The Leopardstown Club Limited Fairyhouse Club Limited Tipperary Race Company plc Horse Racing Ireland Tote Ireland Limited 28.
Comparative amount 2021 € (86,055) (4,332) - (5,621,244) 1,173 2020 € (427,000) (4,912) 160,000 (5,906,804) 306 Certain comparative figures have been regrouped and restated on the same basis as those for the current year.

29.

Approval of financial statements The Board of Directors approved these financial statements for issue on 19/09/2022.

25