Trust Directory as at 31 March 1994 Trust Particulars The Trust Bank Waikato Community Trust was incorporated as a charitable trust in accordance with the provisions of the Trustee Banks Restructuring Act 1988. The purpose of the community trust is to provide charitable, cultural, philanthropic and recreational benefits to the community. Trustees Edith Hazel Barnes, David Bay, David Joseph Braithwaite (Chairman), Malcolm MacPherson Brooker, Ian Robert Gear, James Alistair Grace, Lynne Evelyn Holder, Marlene M. Lamb, Monica Marjorie Leggat, Robert Te Kotahi Mahuta, Frederick John Hunt Parker and Roger Newton Stanich. Secretary Geoffrey Frank Balme. Bankers Trust Bank Waikato Limited. Auditors Deloitte Touche Tohmatsu, Hamilton. Trustees' Report for the Year Ended 31 March 1994 Income Dividends of $2,061,631 (1993: $1,339,767) were received by the Trust Bank Waikato Community Trust from Trust Bank New Zealand Limited during the 1994 year. Other income amounted to $188,468 (1993: $139,971) being income from other investments held by the trust. Grants Grants for the 1994 year totalled $900,830 (1993: $734,265). This represents a 22.7 percent increase over the previous year. These grants were made to 2100 recipients. Trust Funds A net surplus of $16,017,615 (1993: $664,089) was transferred to trust funds, along with an adjustment to recognise the market value of the shares held in Trust Bank New Zealand Limited. This gave an accumulated balance of $133,271,370 (1993: $23,546,884) at the end of the year. Previously the shares in Trust Bank New Zealand Limited were recorded at cost due to the difficulty of determining the market value. General In March 1994 the trust sold 15 percent of the shares it held in Trust Bank New Zealand Limited. The sale was in conjunction with a public float and resulted in the trust receiving sale proceeds of $17,798,028. The trust remains in a sound position to continue to provide charitable, cultural, philanthropic and recreational benefits within its area of operation. Income and Expenditure Account for the Year 31 March 1994 $ This Year$ Last Year$ Income Dividends received 2,105,426 1,350,299 Interest received 139,873 129,439 Brokerage refunded 4,800 Total income received 2,250,099 1,479,738 Expenses Accountancy/secretarial fees29,497 17,275 Audit fee844 844 Legal fees 6,073 Grant stationery, advertising1,397 2,877 Membership fees116 56 Other expenses4 6 Publications2,555 1,572 Travelling expenses2,510 2,128 Trustees' fees24,536 20,985 Total expenses 61,459 51,816 Net income before grants 2,188,640 1,427,922 Less grants 900,830 734,265 Net income after grants (Note 4) 1,287,810 693,657 Increase/(decrease) in market value of investments 129,270 (29,568) Realised gain on sale of Trust Bank New Zealand Limited shares 14,600,535 Net surplus 16,017,615 664,089 Retained income brought forward 2,230,262 1,566,173 Retained income carried forward $18,247,877 $2,230,262 Balance Sheet as at 31 March 1994 $ This Year$ Last Year$ Current liabilities Sundry creditors30,984 21,457 Total current liabilities 30,984 21,457 Trust funds Capital fund (Note 5)21,316,622 21,316,622 Retained income18,247,877 2,230,262 Shares in Trust Bank New Zealand Limited revaluation reserve93,706,871 Total trust funds 133,271,370 23,546,884 $133,302,354 $23,568,341 Current assets Trust Bank Waikato current account8,520 4,914 National Disaster Relief Fund16,159 16,636 Resident withholding tax 66 Total current assets 24,679 21,616 Investments (Note 2) Fixed interest investments1,061,500 731,892 Equity securities113,094,288 21,894,830 Term deposits Trust Bank Waikato Limited19,098,043 911,882 Accrued interest on term deposits23,844 8,121 Total investments 133,277,675 23,546,725 $133,302,354 $23,568,341 Signed on behalf of the board of trustees: D. J. BRAITHWAITE, Chairperson. J. A. GRACE, Trustee. Dated this 2nd day of May 1994. Statement of Cash Flows for the Year Ended 31 March 1994 $ This Year$ Last Year$ Cash flows from operating activites Cash was provided from: Dividends2,065,233 1,339,767 Interest124,546 109,698 2,189,779 1,449,465 Cash was disbursed to: Grants889,250 724,265 Payments to suppliers and trustees61,932 40,358 951,182 764,623 Net cash flows from operating activities (Note 4) 1,238,597 684,842 Cash flows from investing activites Cash was provided from: Brokerage refunded4,800 Sales of investments17,798,028 593,655 17,802,828 593,655 Cash was applied to: Purchase of investments 19,037,819 1,314,376 Net cash flows from investing activities (1,234,991) (720,721) Net increase (decrease) in cash held 3,606 (35,879) Cash at 31 March 1993 4,914 40,793 Cash at 31 March 1994 $8,520 $4,914 Notes to the Financial Statements for the Year Ended 31 March 1994 1. Statement of Accounting Policies General Accounting Policies The general accounting policies adopted in the preparation of these financial statements are: (a) The measurement base adopted is the historical cost basis with the exception of investments which are recorded at market value. (b) Reliance has been placed on the fact that the entity is a going concern. (c) The matching of revenues earned and expenses incurred using accrual accounting except that dividend income is accounted for on a receipts basis. Particular Accounting Policies The following are the particular accounting policies which have a material effect on the measurement of results and financial position: (a) Grants Grants made are included in the income and expenditure account when approved by the trustees. (b) Taxation For taxation purposes the trust is deemed to be a charitable organisation. Its income is not subject to taxation. (c) Goods and Services Tax The trust is not registered for goods and services tax purposes. Accordingly these financial statements are stated on a G.S.T. inclusive basis. (d) Investments Investments are stated at market value. Adjustments to market value of investments are included in the income and expenditure account, with the exception of Trust Bank New Zealand shares, which are included in the share revaluation reserve. Dividend income is included in the income and expenditure account when it is received. Changes in Accounting Policies As a result of the recent Trust Bank New Zealand Limited share issue, the trust has been able to accurately determine the market value of its shares in Trust Bank New Zealand Limited for the first time. Previously the shares were recorded at cost. The effect of this change is shown in the share revaluation reserve. There have been no other material changes in accounting policies since the previous annual financial statements. All other policies have been applied on a basis consistent with those used in the previous years annual financial statements. 2. Investments Fixed Term Investments Face Value Rate Maturity Date Market Value This Year$ Market Value Last Year$ Hamilton City Council$100,000 7.5% 15/10/99 103,884 100,680 New Zealand Government Stock$500,000 8.0% 15/04/04 560,340 531,212 New Zealand Government Stock$52,000 8.0% 15/04/04 58,276 New Zealand Government Stock$240,000 6.5% 15/02/00 239,000 Rural Bank Limited$100,000 7.7% 18/12/95 100,000 100,000 1,061,500 731,892 Equity Securities Number of Shares/Units Market Value This Year$ Market Value Last Year$ Trust Bank New Zealand48 620 000.00 111,826,000 21,316,622 Australian Foundation Investment Co Limited19 600.00 51,352 Australian United Investment Co Limited20 500.00 54,735 BT Equity Imputation Fund10 327.18 40,444 BT International Fund83 745.55 311,408 125,974 BT Pacific Basin Fund53 170.70 367,654 203,769 Jardine Fleming Pacific Growth Trust34 552.20 125,172 Joseph Banks New Zealand Equity Trust81 629.04 130,819 92,820 Prudential New Zealand Emerging Companies88 987.00 186,704 155,645 113,094,288 21,894,830 Term Deposits Rate Maturity Date This Year$ Last Year$ Trust Bank Waikato LimitedVariable at call 45,577 Trust Bank Waikato Limited6.10% 29/04/94 17,798,028 Trust Bank Waikato Limited5.75% 07/06/94 304,438 Trust Bank Waikato Limited6.00% 07/06/94 300,000 Trust Bank Waikato Limited5.35% 01/11/94 650,000 19,098,043 911,882 $133,253,831 $23,538,604 Trust Bank New Zealand Limited On 1 February 1994 as part of capital reconstruction, a one-for-one bonus issue took place and a two-for-one share split. This increased the number of shares held by the Trust Bank Waikato Community Trust from 14 300 000 to 57 200 000. In March 1994 as part of a Trust Bank Waikato Limited share issue, the trust sold 8 580 000 (15 percent) of the shares held in Trust Bank New Zealand Limited for $2.10 each. The share issue resulted in the Trust Bank Community Trusts selling 11.1 percent of their Trust Bank New Zealand Limited shares and new shares being issued to enable 21.6 percent public ownership of Trust Bank New Zealand Limited. The proceeds of $17,798,028 received by the trust have been invested for future use to meet the purposes of the trust. The trust's investment in Trust Bank New Zealand Limited is valued at market value ($2.30) at 31 March 1994. This value is subject to normal market fluctuations of the share price. 3. Financial Instruments All financial instruments are disclosed at fair value. No undisclosed credit risk exists. No undisclosed financial instruments exist. 4. Cash Flow Reconciliation $ 1994$ 1993$ Net income after grants 1,287,810 693,657 Add/(Deduct) non-cash items Income reinvested(38,217) (27,903) Brokerage refunded(4,800) (43,017) (27,903) 1,244,793 665,754 Add/(Deduct) movements in working capital Increase in sundry creditors9,527 21,457 Increase in accrued interest(15,723) (2,369) (6,196) 19,088 Net cash flows from operating activities $1,238,597 $684,842 5. Incorporation The Trust Bank Waikato Community Trust was incorporated on 5 August 1988. The value of the Trust Bank New Zealand Limited shares transferred to the Trust Bank Waikato Community Trust is shown in the capital fund in the trust funds section of the balance sheet. Auditors' Report to the Readers of the Financial Statements of Trust Bank Waikato Community Trust We have audited the attached financial statements in accordance with accepted auditing standards, and have carried out such procedures as we considered necessary. In our opinion the financial statements give, using the historical cost method, modified by the revaluation of certain assets, a true and fair view of the financial position of the trust as at 31 March 1994 and the results of its activities and cash flows for the year ended on that date. DELOITTE TOUCHE TOHMATSU, Chartered Accountants. Hamilton. Dated this 20th day of May 1994. Note: The Minister of Finance has directed that the Trust Bank Waikato Community Trust need not publish the full list of its grants in the New Zealand Gazette. A full list of grants is available upon request from the Secretary, Trust Bank Waikato Community Trust, P.O. Box 191, Hamilton.