Trust Directory as at 31 March 1995 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 people in the area served by Trust Bank Waikato Limited. Trustees Edith Hazel Barnes, David Bay, David Joseph Braithwaite (Chairman), Malcolm MacPherson Brooker, Ian Robert Gear, James Alistair Grace, Lynne Evelyn Holder, Marlene Maude Lamb, Monica Marjorie Leggat, Robert Te Kotahi Mahuta, Frederick John Hunt Parker, Roger Newton Stanich, Anthony Gordon Steel and Lorraine Margaret Storey. Secretary Geoffrey Frank Balme and Beattie Rickman. Investment Advisors: Saxe-Coberg Limited. Bankers Trust Bank Waikato Limited. Auditors Deloitte Touche Tohmatsu, Hamilton. Trustees' Report for the Year Ended 31 March 1995 Income Dividends of $3,231,800 (1994: $2,105,426) were received by the Trust Bank Waikato Community Trust from Trust Bank New Zealand Limited during the 1995 year. Other income amounted to $1,306,047 (1994: $144,673) being income from other investments held by the trust. Other investments include $17,798,028 in sale proceeds resulting from the sale in 1994 of 15 percent of the shares held in Trust Bank New Zealand Limited. Donations Donations for the 1995 year totalled $1,181,025 (1994: $900,830). This represents a 23.7 percent increase over the previous year. These donations were made to 2212 recipients. Trust Funds The net surplus of $2,181,915 (1994: $16,017,615) 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 $115,519,085 (1994: $133,271,370) at the end of the year. General The trust remains in a sound position to continue to provide charitable, cultural, philanthropic and recreational benefits within its area of operation. Auditors' Report to the Readers of the Financial Report of Trust Bank Waikato Community Trust We have audited the financial report. The financial report provides information about the past financial performance and financial position of the Trust Bank Waikato Community Trust as at 31 March 1995. This information is stated in accordance with the accounting policies set out. Board of Trustees' Responsibilities The board of trustees are responsible for the preparation of a financial report which gives a true and fair view of the financial position of the trust as at 31 March 1995 and of the results of their operations and cash flows for the year ended 31 March 1995. Auditors' Responsibilities It is our responsibility to express an independent opinion on the financial report presented by the board of trustees and report our opinion to you. Basis of Opinion An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial report. It also includes assessing: the significant estimates and judgments made by the board of trustees in the preparation of the financial report, and whether the accounting policies are appropriate to the trust's circumstances, consistently applied and adequately disclosed. We conducted our audit in accordance with generally accepted auditing standards in New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with evidence to give reasonable assurance that the financial report is free from material misstatements, whether cause by fraud or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial report. Other than in our capacity as auditors we have no relationship with or interests in the Trust Bank Waikkato Community Trust. Unqualified Opinion We have obtained all the information that we have required. In our opinion the financial report fairly reflects the financial position of the Trust Bank Waikato Community Trust as at 31 March 1995 and the results of their operations and cash flows for the year ended on that date. Our audit was completed on 12 May 1995 and our unqualified opinion is expressed as at that date. DELOITTE TOUCHE TOHMATSU, Chartered Accountants. Hamilton. Income and Expenditure Account for the Year 31 March 1995 $ This Year$ Last Year$ Income Dividends received from Trust Bank New Zealand Limited 3,231,800 2,105,426 Other investment income 1,306,047 144,673 Total income received 4,537,847 2,250,099 Expenses Accountancy/secretarial fees48,272 29,497 Audit fee2,250 844 Community Trusts Investments Limited share of costs18,894 Conference expenses756 Donation stationery, advertising4,272 1,397 Investment advisory fees89,897 Legal expenses747 Membership fees56 116 Other expenses614 4 Publications4,075 2,555 Travelling expenses3,576 2,510 Trustees' fees37,050 24,536 Total expenses 210,459 61,459 Net income before donations 4,327,388 2,188,640 Less donations 1,181,025 900,830 Net income after donations 3,146,363 1,287,810 Increase/(decrease) in market value of other investments (964,448) 129,270 Realised gain on sale of Trust Bank New Zealand Limited shares 14,600,535 Net surplus 2,181,915 16,017,615 Retained income brought forward 18,247,877 2,230,262 Retained income carried forward $20,429,792 $18,247,877 These financial statements must be read in conjunction with the notes. Balance Sheet as at 31 March 1995 $ This Year$ Last Year$ Current liabilities Accounts payable13,991 10,984 Donations payable69,450 20,000 Total current liabilities 83,441 30,984 Trust funds Capital fund21,316,622 21,316,622 Retained income20,429,792 18,247,877 Shares in Trust Bank New Zealand Limited revaluation reserve73,772,671 93,706,871 Total trust funds 115,519,085 133,271,370 $115,602,527 $133,302,354 Current assets Trust Bank Waikato current account518 8,520 National Disaster Relief Fund 16,159 Total current assets 518 24,679 Investment in Waikato Community Trust Charities Limited 2 ordinary shares at $1 each2 Advance account1,302 1,302 Investments Cash deposits11,487,660 19,121,887 Shares in Trust Bank New Zealand Limited91,891,800 111,826,000 New Zealand Government stock1,023,356 857,616 Other fixed interest investments3,157,131 203,884 International core equities5,254,164 775,462 Global investment themes Small companies176,226 General emerging markets619,458 Specific emerging markets845,161 492,826 Hedge funds1,134,696 Forward exchange contracts11,053 Total investments 115,600,705 133,277,675 $115,602,527 $133,302,354 Signed on behalf of the board of trustees: D. J. BRAITHWAITE, Chairperson. J. A. GRACE, Trustee. Dated this 22nd day of May 1995. These financial statements must be read in conjunction with the notes. Statement of Cash Flows for the Year Ended 31 March 1995 This Year$ Last Year$ Cash flows from operating activities Cash was provided from: Dividends3,231,800 2,065,233 Other investment income1,306,047 124,546 4,537,847 2,189,779 Cash was disbursed to: Donations1,131,575 889,250 Payments to suppliers and trustees207,451 61,932 1,339,026 951,182 Net cash flows from operating activities (Note 5) 3,198,821 1,238,597 Cash flows from investing activities Cash was provided from: Brokerage refunded 4,800 4,800 Cash was applied to: Net increase in investments(3,206,823) (1,239,791) Net cash flows from investing activities(3,206,823) (1,234,991) Net increase (decrease) in cash held(8,002) 3,606 Cash at 31 March 19948,520 4,914 Cash at 31 March 1995$518 $8,520 These financial statements must be read in conjunction with the notes. Notes to the Financial Statements for the Year Ended 31 March 1995 1. Statement of Accounting Policies The financial statements presented here are for the reporting entity Trust Bank Waikato Community Trust Incorporated. The financial statements have been prepared in accordance with the requirements of the New Zealand Society of Accountants. The financial statements have been prepared on the basis of historical cost with the exception of certain items for which specific accounting policies are identified. (a) Donations Donations made are included in the income and expenditure account when approved by the trustees. (b) Taxation For taxation purposes the trust is deemed to be a charitable organisation. Its income is not subject to taxation. (c) Goods and Services Tax The trust is not registered for goods and services tax purposes. Accordingly, these financial statements are stated on a G.S.T. inclusive basis. (d) Investments Investments are stated at market value. Adjustments to market value of investments are included in the income and expenditure account, with the exception of Trust Bank New Zealand shares, which are included in the share revaluation reserve. Dividend income is included in the income and expenditure account when it is received. 2. Incorporation The Trust Bank Waikato Community Trust was incorporated on 5 August 1988. The value of the Trust Bank New Zealand Limited shares transferred to the Trust Bank Waikato Community Trust is shown in the capital fund in the trust funds section of the balance sheet. 3. Waikato Community Trust Charities Limited This is a wholly-owned charitable company established by the trust and may not be used to carry out some of the trust's future activities. The company has not traded and accordingly no consolidation is required. 4. Shares in Trust Bank Waikato New Zealand Limited Revaluation Reserve 1995$ 1994$ Balance at 1 April 199493,706,871 Increase (decrease) in market value(19,934,200) 93,706,871 Balance at 31 March 1995$73,772,671 $93,706,871 5. Financial Instruments The trust uses the services of an investment advisor to pursue an investment policy considered appropriate for the trust. The current policy is to achieve a long-term asset allocation of: Cash15 percent Bonds15 percent Equities70 percent The trust's investments are denominated in the following currencies: 1995$ 1994$ New Zealand dollars109,864,229 132,326,910 Australian dollar equivalents1,534,785 950,765 United States dollar equivalents2,095,855 Great Britain pound equivalents2,105,836 $115,600,705 $133,277,675 All financial instruments are disclosed at fair value. No undisclosed credit risk exists. At 31 march 1995 the trust had entered in forward exchange contracts to purchase the equivalent of NZ$2,027,000 in foreign exchange currency during 1995. 6. Cash Flow Reconciliation 1995$ 1994$ Net income after donations3,146,363 1,287,810 Add/(deduct) non-cash items Income reinvested (38,217) Brokerage refunded (4,800) (43,017) 3,146,363 1,244,793 Add/(deduct) movements in working capital Increase in accounts payable3,008 9,527 Increase in accrued interest (15,723) Increase in donations payable49,450 52,458 (6,196) Net cash flows from operating activities$3,198,821 $1,238,597 7. Trust Bank New Zealand Limited The trust's investment in Trust Bank New Zealand Limited is valued at market value $1.89 at 31 March 1995 (1994 $2.30). This value is subject to normal market fluctuations of the share price. 8. Changes in Accounting Policies There have been no changes in accounting policies since the previous annual financial statements. All policies have been applied on a basis consistent with those used in the previous years annual financial statements. 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.