1 NOVEMBER
THE NEW ZEALAND GAZETTE
2291

50,000 Transfer to General Reserve .. .. 100,000
75,310 Balance carried forward .. .. 95,275

$125,310 $195,275
======== ============================= ========
1972 1973
$ $

Income from—
New Zealand Government stock and
local authority securities .. .. 908,487
Other investments .. .. 462,715
Other sources .. .. 14,648

1,199,602 1,385,850
======== ============================= ========

Balance brought forward from previous
year .. .. 75,310
Net profit for the year as above .. .. 119,965

$125,310 $195,275
======== ============================= ========

NOTES TO THE ACCOUNTS

1. Book values of New Zealand Government and local authority
   securities which were purchased at a discount or a premium, are
   being amortised annually so as to attain their redemption values by
   maturity date.

2. The New Zealand Government and local authority securities
   are all redeemable at par at fixed dates. Whilst in the ordinary
   course of business, some realisation of the bank’s investment in
   these securities may prove advantageous at prices less than book
   values shown, it is the opinion of the directors that existing reserves
   would be more than adequate to cover any contingency that may
   arise.

3. Commencing with the year ended 30 June 1973 the difference
   between the book value and proceeds on realisation of New Zealand Government and local authority securities is taken to Profit
   and Loss Account in equal annual instalments over a period of 5
   years commencing with the year in which they arise.

4. Investments—1973
   Book Value Nominal Value Market Value
   $22,501,387 $22,510,648 $22,276,445

On behalf of the Board:

T. L. WEBB, Director.

AUDITORS’ REPORT TO THE MEMBERS OF THE
COMMERCIAL BANK SAVINGS BANK (N.Z.) LIMITED

In our opinion the accompanying balance sheet and profit and
loss account give a true and fair view of the state of affairs of
the Commercial Bank Savings Bank (N.Z.) Limited, at 30 June
1973, and of its results for the year ended on that date.

We have obtained all the information and explanations we have
required. In our opinion the company has kept proper books and
the balance sheet and profit and loss account give, in the prescribed
manner, the information required by the Companies Act 1955.

G. L. ALLARD
B. W. McDONALD
Wellington, 16 August 1973.

2136

BANK OF NEW ZEALAND SAVINGS BANK LTD.
Deposits Guaranteed by Bank of New Zealand
BALANCE SHEET AS AT 31 MARCH 1973

1972 Liabilities 1973
($000) ($000) ($000)
Depositors’ balances, including
interest credited—
72,360 Ordinary accounts .. .. 93,660
1,020 Thrift accounts .. .. 1,136
423 Home lay-by accounts .. .. 402
49,752 Investment accounts .. .. 42,785

    137,983

128 Provision for 1972 taxation .. .. 3
Provision for 1973 taxation
713 Provision for future taxation on
profits accrued .. .. 838
1,893 Other liabilities, including interest
accrued .. .. .. 1,423 2,264

Shareholders’ Funds—
Authorised and issued capital—
1,000,000 ordinary shares of $2
each .. .. .. 2,000

2,000 2,000
======== ============================= ========

1,000 Paid-up capital—$1 per share .. 1,000
1,470 Reserves .. .. .. 1,945

    2,945

$128,759 $143,192
======== ============================= ========

1972 Assets 1973
($000) ($000)
4,663 Deposits at Bank of New Zealand .. 4,103
Investments—
New Zealand Government stock—
49,725 3¾ percent special .. .. 57,700
51,148 Other .. .. 46,010
3,883 Local authority securities— .. 11,058

    114,768

17,982 Mortgages and other loans .. 21,728
Australian Government securities 301
Other investments .. .. 800
1,358 Income accrued on investments 1,492

    139,089

The redemption value of the New Zealand Government stock and local
authority securities appearing in the balance sheet is $115,368,000 and the
market value $114,188,000.

The book values of securities purchased at a discount or at a premium
are adjusted annually so as to attain their redemption values by maturity
date.

$128,759 $143,192
======== ============================= ========

PROFIT AND LOSS STATEMENT
FOR THE YEAR ENDED 31 MARCH 1973

1972 1973
($000) ($000) ($000)
Trading income—
5,083 Income from New Zealand Government
Stock and local authority securities .. 5,089
1,426 Income from other investments .. .. 1,699
8 Other income .. .. .. 26

6,517 6,814

Less operating expenses—
4,318 Interest to depositors .. .. 4,310
1,152 Management and operating expenses
(includes payroll tax $15,520) .. 1,358

    5,668

1,047 Net profit before taxation .. .. 1,146
476 Less provision for taxation .. .. 516

571 Net profit after taxation .. .. 630
75 Adjustment to provision for future taxation 5

$646 $625
======== ============================= ========

This income was distributed as follows—
150 Dividend paid .. .. .. 150
496 Transfer to reserve .. .. .. 475

$646 $625
======== ============================= ========

On behalf of the Board:

J. F. EARNISHAW, General Manager.
D. O. WHYTE, Director.
G. A. CHAPMAN, Director.

AUDITORS’ REPORT TO MEMBERS OF BANK OF NEW ZEALAND
SAVINGS BANK LIMITED

We have obtained all the information and explanations that we
have required. In our opinion proper books of account have been
kept by the company so far as appears from our examination of
those books. In our opinion, according to the best of our information and the explanations given to us and as shown by the said
books, the balance sheet and the profit and loss statement are
properly drawn up so as to give respectively a true and fair view
of the state of the company’s affairs as at 31 March 1973, and of the
results of its business for the year ended on that date.

According to such information and explanations, the accounts,
the balance sheet, and the profit and loss statement, give the information required by the Companies Act 1955, in the manner so
required.

HUNT, DUTHIE, AND CO.,
Chartered Accountants, Auditors.

Wellington, 17 May 1973.

2087