58 THE NEW ZEALAND GAZETTE No. 1

THE COMMERCIAL BANK SAVINGS BANK (N.Z.) LIMITED
BALANCE SHEET AS AT 30 JUNE 1977
(Expressed in New Zealand Currency)

Authorised capital—
250,000 ordinary shares
of $2 each .. 500,000 500,000

Issued and fully paid-up capital—
250,000 ordinary shares
of $2 each .. 500,000 500,000

Revenue Reserves—
General reserve .. 750,000 650,000
Profit and loss account .. 543,685 410,723
1,293,685 1,060,723

Total shareholders funds 1,793,685 1,560,723

Current liabilities and provisions—
Depositors’ balances—
Ordinary accounts .. 27,555,580 26,266,635
Thrift accounts .. 332,155 335,864
Home lay-by accounts .. 117,702 115,844
Investment accounts .. 12,015,727 10,241,490
40,021,164 36,959,833

Other liabilities including
accrued interest and home
lay-by subsidies.. .. 564,343 475,843
Provision for taxation .. 84,391 129,152
42,463,583 39,125,551

Deposits guaranteed by the
Commercial Bank of Australia Ltd. ..

On behalf of the board : T. L. WEBB, Chairman.

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

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.) Ltd., at 30 June 1977, 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 required by the Companies Act 1955.

15 July 1977, Wellington, New Zealand. B. W. McDONALD, C. STEWART, Chartered Accountants.

THE COMMERCIAL BANK SAVINGS BANK (N.Z.) LIMITED
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 1977
(Expressed in New Zealand Currency)

                        1977        1976        1977        1976
                        $NZ         $NZ         $NZ         $NZ

Interest to depositors .. 1,464,054 1,152,967

Management and operating expenses .. 482,000 422,000
Provision for taxation .. 192,242 213,847
Net profit for the year .. 232,962 262,051
$2,371,258 $2,050,865

Transfer to general reserve .. 100,000 100,000
Balance carried forward .. 543,685 410,723
$643,685 $510,723

Income from—
New Zealand Government stock and
local authority securities .. 1,155,033 1,085,976
Other investments .. 1,215,700 963,676
Other sources .. 525 1,213
$2,371,258 $2,050,865

Balance brought forward from previous
year .. 410,723 248,672
Net profit for the year as above .. 232,962 262,051
$643,685 $510,723

NOTES TO THE ACCOUNTS
Statement of Accounting Policies

1. (a) Amortisation of public Securities: Book values of New Zealand Government and local authority securities which are purchased at a discount or a premium, are being amortised annually so as to attain their redemption values by maturity date.
   (b) Profits and losses on realisation of public Securities: 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.

2. Investments: 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 take place, at prices below book values, it is the opinion of the directors that existing reserves are sufficient to cover any losses that are likely to arise on sales undertaken in the normal course of business.

As at 30 June 1977.
Book Value: $26,411,936.
Market Value: $24,895,725.

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