344
THE NEW ZEALAND GAZETTE
No. 10

Current liabilities and provisions—
Depositors’ balances:
Ordinary accounts .. .. .. 86,522,954 75,893,658
Home lay-by accounts .. .. 431,591 397,307
6 month investment accounts .. 3,710,704 2,420,358
1 year investment accounts .. 13,445,325 11,108,553
2 year investment accounts .. 5,260,081 4,873,156
3 year investment accounts .. 16,866,391 9,480,817
126,237,046 104,173,949
Provision for Taxation—
Current .. .. .. .. .. 470,014 70,978
Deferred (note 1b) .. .. 758,309 818,663
1,228,323 889,641
Provision for dividend .. .. 120,000 120,000
Other liabilities including interest
accrued .. .. .. .. 2,022,586 1,581,929
2,142,586 2,581,270
$132,937,714 $109,520,227

Deposits at the National Bank of
New Zealand Ltd. .. .. .. 13,340,818 7,322,665
Investments (note 1c):
N.Z. Government stock .. .. 24,632,636 16,663,258
3½% N.Z. Government special
stock, at cost .. .. .. 42,700,000 43,050,000
7% N.Z. Government special
stock, at cost .. .. .. — 1,800,000
Local authorities securities, at
cost .. .. .. .. .. 3,230,158 2,834,019
70,562,792 64,347,277
Mortgages and other loans at cost .. 47,833,650 36,770,676
Income accrued .. .. .. 1,200,452 1,079,609
$132,937,714 $109,520,277

On behalf of the Board:
S. T. RUSSELL, Chairman.
M. D. SEARANCKE, Secretary.

PROFIT AND LOSS ACCOUNT FOR YEAR ENDING 31 OCTOBER 1978

                            1978       1977
                            $NZ        $NZ

Interest to depositors .. .. .. 4,530,866 3,700,597
Management and operating expenses 2,690,623 2,260,060
Directors fees .. .. .. .. .. — —
Total expenses .. .. .. .. 7,221,489 5,960,657
Provision for taxation .. .. .. 560,496 302,608
Net profit after taxation .. .. 685,051 369,855
$8,467,036 $6,633,120

Income from Investments—
New Zealand Government stock and local authority
securities .. .. .. .. 3,163,382 2,952,693
Other investments .. .. .. 5,250,457 3,632,371
8,413,839 6,585,064
Other income .. .. .. .. 53,197 48,056
$8,467,036 $6,633,120

PROFIT AND LOSS APPROPRIATION ACCOUNT

Transfer to New Zealand Government stock .. 156,386 156,700
Revaluation reserve Less tax adjustment .. (70,373) 70,515
86,013 86,185
Transfer to general reserve .. .. .. 400,000 200,000
Provision for dividend .. .. .. 120,000 120,000
Balance carried forward .. .. 229,438 123,964
$835,451 $530,149

Balance as previously reported .. 123,964 —
Less prior period adjustment (note 1c) .. (7,095) (131,059)
Net profit for period .. .. .. 685,051 369,855
Transfer from New Zealand Government
stock .. .. .. .. .. — —
Revaluation reserve on account of stock
matured or sold during period .. 286,354 20,529
Less tax adjustment .. .. .. (128,859) 9,238
157,495 11,291
$835,451 $530,149

NOTES TO THE ACCOUNTS

1. Statement of Accounting Policies
   (a) General—The general accounting principles recognised as appropriate for
   the measurement and reporting of results and financial position under
   the historical cost method have been followed.
   The following specified accounting policies have been consistently
   applied with the exception of the change of accounting policy relating
   to the realised gains and losses on New Zealand Government Stock as
   described in note 1c.
   (b) Tax Allocation—The charge for taxation in the profit and loss account is
   the amount of the estimated tax liability at current company taxation
   rates in respect of the net profit reported for the year. Timing differences
   arising from income receivable which has been accrued but not received
   in the current period and unrealised appreciation on investments (see
   note 3) are accounted for in the deferred taxation account.
   (c) New Zealand Government and Local Authority Securities—These 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.
   The book values of securities purchased at a discount or a premium are
   adjusted through New Zealand Government stock revaluation reserve
   so as to obtain their redemption values by maturity dates (see note 3
   below).
   The difference between book values and proceeds on realisation of
   New Zealand Government stock is taken to profit and loss account in
   the year incurred. Previously these were taken to the Profit and Loss
   Account in equal annual instalments over a period of 5 years com-
   mencing with the year in which it arises.
   The effect of this change in accounting policy is described in note 3.

2. As at 31 October 1978 the redemption value of New Zealand Government
   and local authority securities was $71,022,437, book value was
   $70,562,794, and market value (exclusive of accrued interest) was
   $68,907,797.

3. New Zealand Government Stock Revaluation Reserves—Arising from
   adjustment of book value of securities purchased at a discount or a
   premium and still held.

                            $       $

   Balance (including taxation payable thereon) 31
   October 1977 .. .. .. .. .. 739,642 —
   Add net appreciation for year .. .. 156,386 —
   Less appreciation on maturities and sales .. 286,354 —129,968
   609,674 335,321
   Less deferred tax liability .. .. 274,353 —
   Realised losses yet to be taken to Profit and Loss Account—
   Balance at 31 October 1977 of net losses for the years
   ended that date .. .. .. .. 131,059 —
   Less effect of change in accounting policy—
   Transferred to Profit and Loss ·Appropriation
   Account .. .. .. .. .. 131,059 —
   Per Balance Sheet .. .. .. .. — $335,321

AUDITORS’ REPORT TO THE MEMBERS OF NATIONAL BANK OF
NEW ZEALAND SAVINGS BANK LTD.

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 account, together with the
notes thereto, 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
October 1978 and 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 account give the infor-
mation required by the Companies Act 1955 in the manner so
required.

HUTCHISON HULL & CO., Chartered Accountants.
1 December 1978.
Wellington, New Zealand.

5443

CONTENTS

ADVERTISEMENTS .. .. .. .. .. .. .. .. .. .. 330
APPOINTMENTS .. .. .. .. .. .. .. .. .. .. 300
BANKRUPTCY NOTICES .. .. .. .. .. .. .. .. 327
LAND TRANSFER ACT: NOTICES .. .. .. .. .. 328
MISCELLANEOUS—
Broadcasting Act: Notices .. .. .. .. .. 310
Commerce Act: Notices .. .. .. .. .. .. 309, 327
Corrigenda .. .. .. .. .. .. .. .. .. .. 297
Customs Tariff: Notices .. .. .. .. .. .. 321
Electricity Act: Notices .. .. .. .. .. .. 308
Heavy Motor Vehicle Regulations: Notice .. 318
Local Authorities Loans Act: Notices .. .. 307, 315
Land Act: Notices .. .. .. .. .. .. .. .. 318
Maori Affairs Act: Notices .. .. .. .. .. 317
Marriage Act: Notices .. .. .. .. .. .. 300
Milk Act: Notice .. .. .. .. .. .. .. .. 320
Post Office Act: Notice .. .. .. .. .. .. 307
Public Works Act: Notices .. .. .. .. .. 301
Regulations Act: Notice .. .. .. .. .. .. 321
Reserve Bank: Exchange Rates .. .. .. .. 319
Reserve Bank: Statement .. .. .. .. .. .. 325
Social Security Act: Notice .. .. .. .. .. 307
Transport Act: Notice .. .. .. .. .. .. 307
PROCLAMATIONS, ORDERS IN COUNCIL, AND WARRANTS .. 297

Price 90c
BY AUTHORITY: E. C. KEATING, GOVERNMENT PRINTER, WELLINGTON, NEW ZEALAND—1979