b"The Company has assessed all the above and concluded: there is long history of operational profitability; agility shown with staff working from home and conducting virtual meetings;minimal impact to community funding and services; positive operating cashflows continue to generate despite the impacts of COVID-19; anda strong capital reserve exists, providing financial resources to meet its debts as and when they fall due and payable.Based on the above assessment by management, Directors have concluded the Company is a going concern. Working Capital At balance date the statement of financial position discloses prima facie a deficiency in working capital, being excess of current liabilities over current assets of $351.860 million (2021: deficiency of $280.749 million).The working capital deficiency partially arises because of the requirement under Australian Accounting Standards to classify Resident Liabilities totalling $294.149 million (2021: $261.075 million) as a current liability, whereas the assets to which they relate, Property, Plant & Equipment and Investment Properties are required to be classified as non-current assets. Included in Resident Liabilities are Ingoing Contributions totalling $81.960 million (2021: $61.533 million). When a retirement village resident relinquishes the unit/apartment they occupied the entity is not required to pay the resident's exit entitlement (the ingoing contribution less the exit fee) until the unit/apartment has been sold to a new resident and the new ingoing contribution is received. From November 2017, new legislation dictates that where a unit has not sold within 18 months of the resident's departure, the Company is required to buy back the unit from the outgoing resident (at market price). The major portion of Resident Liabilities is accommodation bonds and refundable accommodation deposits of $212.189 million (2021: $199.541 million). The timing of the obligation of accommodation bonds and refundable accommodation deposits will not practically all fall due within the next twelve months. Accommodation bonds become payable upon the departure of aged care residents. It is unlikely that all residents will depart in the next twelve months thereby requiring a pay out of the full amount of the liability. Historically, the turnover of the aged care residents has been approximately 20%-30%.Furthermore, the entity has $154.889 million (2021: $124.026 million) worth of other financial assets recognised as a non-current asset, as they are not expected to be sold within the next 12 months. Whilst they are not expected to be sold within the next 12 months and are ultimately held for long-term appreciation, if required the entity can call upon these investments to fund repayments of Accommodation Bond and Entry Contribution liabilities. After considering all available current information, the Directors have concluded that there are reasonable grounds to believe that the entity will be able to pay its debts as and when they fall due and payable and preparation of the financial statements on a going concern basis is appropriate.Income Tax No provision for income tax has been raised as the Company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.Page | 21"