16 JULY
THE NEW ZEALAND GAZETTE
2021

SOUTHLAND SAVINGS BANK

Current assets—
Cash on hand and at bank .. .. .. 2,270,865
Fixed deposits .. .. .. .. 14,224,000
Interest accrued on investments .. .. 1,509,201
Remittances in transit .. .. .. .. —
Sundry debtors .. .. .. .. 8,220
Taxation refund due .. .. .. .. 62,338

$ 18,074,624

Investments—
New Zealand Government stock .. .. 41,258,180
Local authority securities .. .. .. 7,473,078
Mortgages .. .. .. .. 47,303,875
Term loans .. .. .. .. 855,543
Personal loans .. .. .. .. 1,812,149
Other investments .. .. .. .. 459,273

Total ordinary investments .. .. .. 99,162,098

National savings securities—
New Zealand Government stock .. .. 4,548
Cash on hand and at bank .. .. .. —

Total National Savings Securities .. .. 4,548

Fixed assets:
| | Cost Price | Depreciation To Date | Book Value |
| :--- | :--- | :--- | :--- |
| Land and Buildings | 4,116,856 | 323,128 | 3,793,728 |
| Vehicles | — | — | — |
| Equipment Furniture etc. | 1,181,075 | 636,587 | 544,488 |

Total fixed assets .. .. .. 4,338,216

$121,579,486

PROFIT AND LOSS ACCOUNT FOR YEAR ENDED 31 MARCH 1981

Interest to depositors—
On open accounts .. .. .. .. 1,901,252
Closed accounts, matured investments accounts, term deposits and redeemed housing bonds .. .. 2,176,150
Accrued on investment accounts, term deposits and housing bonds .. .. .. .. 1,935,816
Home layby accounts—suspensory free deposits .. —

(Sub-Total) .. .. .. .. 6,013,218
Administration expenses .. .. .. .. 3,486,349
Trustees honoraria .. .. .. .. 20,000
Depreciation .. .. .. .. 117,225
Deferred maintenance .. .. .. .. 200,000
Provision for taxation .. .. .. .. 742,916
Net profit—carried down .. .. .. .. 726,422

$11,306,130

Interest on investments—
From New Zealand Government stock .. .. 3,231,084
From New Zealand Government treasury bills .. .. —
From local authority stock .. .. .. 622,576
From mortgages .. .. .. .. 5,214,997
From other sources .. .. .. .. 1,856,653

(Sub-Total) .. .. .. .. 10,925,310
Income from other sources .. .. .. 362,243
Net profit on sale of New Zealand Government and local authority securities .. .. .. 18,577

$11,306,130

APPROPRIATION ACCOUNT

Provision for donations .. .. .. .. 85,000
Under provision for donations—31/3/80 .. .. 10,000
Transfer to reserve .. .. .. .. 631,422

$726,422

Net profit brought down .. .. .. .. 726,422

$726,422

W. R. ARCHER, President.
V. J. PETRIE, General Manager.

The Auditors' Report to the Trustees of the Southland Savings Bank and the Notes to the Accounts, which are attached, form part of and are to be read in conjunction with these financial statements.

Invercargill, 6th May 1981.

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH, 1981

1. Statement of Accounting Policies—The general accounting principles recommended by the New Zealand Society of Accountants for the measurement and reporting of results based on historic costs have been adopted in the preparation of these financial statements.

The particular accounting policies which the bank considers appropriate for the measurement and reporting of profit and financial position are detailed below:

NEW ZEALAND GOVERNMENT STOCK
It is the normal policy of the Bank to hold Government Stock until maturity. On this basis, from 1 April 1980, the stock has been shown at face value less the unamortised discount on stock purchased at other than face value.

Prior to 1 April, 1980, Government stock was recorded at face value and the difference between the cost and face value transferred direct to the reserve fund.

In some cases, low yielding Government stock has been sold for tax purposes in sale and purchase arrangements and the stock purchased is shown at the cost of the original holding.

TAXATION
Provision for taxation charged against profits is the estimated expense relating to the results for the year.

Provision for deferred taxation relates to timing differences on accrued interest income, depreciation and profits and losses on the sale and purchase of New Zealand Government Stock.

DEPRECIATION
Depreciation has been calculated by applying Inland Revenue department rates, except for data processing equipment, which has been depreciated on a straightline basis. First year depreciation has been included where applicable.

The difference between the adopted policy and the straightline basis is not considered to be material.

The principal annual rates used are:
Buildings .. .. .. 1–2% on cost
Furniture, fittings and equipment .. 10–20% on diminishing value
Data processing equipment .. .. Straightline over seven years

2. Government stock—New Zealand Government stock at 31 March, 1981:

Face value .. .. .. .. 41,296,722
Cost price .. .. .. .. 41,169,903
Estimated market value .. .. .. 33,873,580

It is the bank's policy to hold these investments until maturity date.

3. Deferred maintenance—A provision of $200,000 has been made in the profit and loss account for the upgrading of the Don Street frontage of the Head Office Building. A firm commitment had not been made at 31 March, 1981. This amount is not allowable as a deduction for taxation until the expenditure has been incurred.

4. Deferred taxation—Deferred taxation arises because of timing differences in respect of the increase in interest accrued $233,038, the sale of Government stock $183,429, and depreciation $1,559.

5. Commitments at 31 March, 1981—
(a) Property, buildings and equipment .. .. $315,000
(b) Mortgages, term loans and personal loans approved but not advanced .. .. $2,543,673

6. Reserve fund—
| | 1981 $ | 1980 $ |
| :--- | :--- | :--- |
| Balance 1 April | 5,562,710 | 5,118,417 |
| add | | |
| Gain on sale of Winton property | 389 | — |
| Gain on sale of Queenstown property | — | 83,343 |
| Gain on sale of Tapanui property | — | 25,100 |
| Gain on sale of S.C.P. Ltd. shares | 1,600 | — |
| Net profit for year | 631,421 | 659,809 |
| | $6,196,120 | $5,886,669 |
| Less | | |
| Investment fluctuation account Transfer | — | 49,002 |
| Provision for deferred taxation Transfer | — | 274,957 |
| Balance 31 March | $6,196,120 | $5,562,710 |