11 MARCH THE NEW ZEALAND GAZETTE 759

NATIONAL BANK OF NEW ZEALAND
SAVINGS BANK LTD.
FINANCIAL ACCOUNTS
YEAR ENDED 31 OCTOBER 1981

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

In our opinion the accompanying balance sheet, profit and loss
account, profit and loss appropriation account together with
notes thereon give a true and fair view of the state of affairs of the
company on 31 October 1981 and of the 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 accounts of the company give in the prescribed manner the
information required by the Companies Act 1955.

PRICE WATERHOUSE and CO., Chartered Accountants.
Wellington, New Zealand, 19 November 1981.

BALANCE SHEET AS AT 31 OCTOBER 1981

Shareholders’ funds—

Authorised and issued capital
ordinary shares of $2 each 1981 1980
$NZ $NZ
Paid up capital 1,000,000 ordinary
shares of $2 each paid up to
40 cents 400,000 400,000
General reserve 3,915,000 3,365,000
New Zealand Government stock
revaluation reserve (note 3) 425,069 358,361
Profit and loss appropriation account 265,333 332,681
——————— ———————
5,005,402 4,456,042

Current liabilities and provisions—

Depositors’ balances:
Ordinary accounts 88,416,751 86,320,085
Home lay-by accounts 489,023 253,360
6 month investment accounts 104,521 125,367
9 month investment accounts 12,701,436 6,884,293
1 year investment accounts 91,217,968 64,562,229
2 year investment accounts 2,525,599 4,703,730
3 year investment accounts 8,480,830 14,202,639
——————— ———————
203,936,128 177,051,703

Provision for taxation—
Current 374,787 103,421
Deferred (Note 1b) 1,733,848 1,500,237
——————— ———————
2,108,635 1,603,658

Provision for dividend 750,000 750,000
Other liabilities (including interest
accrued) 5,208,444 3,511,568
——————— ———————
5,958,444 4,261,568
——————— ———————
$217,008,609 $187,372,971

The notes annexed form part of these accounts.

Deposits at the National Bank of
New Zealand Ltd. 8,552,038 5,370,549
Investments (Note 1c)
New Zealand Government stock 81,426,910 66,740,115
3½ percent New Zealand Govern-
ment special stock, at cost 26,730,000 27,200,000
Local authorities securities, at
cost 4,397,472 3,969,691
——————— ———————
112,554,382 97,909,806
Mortgages and other loans 91,304,459 80,154,953
Income accrued 4,597,730 3,937,663
——————— ———————
$217,008,609 $187,372,971

On behalf of the Board:

S. T. RUSSELL, Chairman.
M. D. SEARANCKE, Secretary.

PROFIT AND LOSS ACCOUNT FOR YEAR ENDED 31 OCTOBER 1981

                    1981        1980
                    $NZ         $NZ

Expenditure—
Interest to depositors 14,283,230 11,395,347
Management and operating ex-
penses 4,860,486 3,935,069
Audit fee 5,000 4,400
Total expenses 19,148,716 15,334,816
Provision for taxation—
Current 829,502 757,263
Deferred 233,611 388,980
——————— ———————
1,063,113 1,146,243
Net profit after taxation 1,299,360 1,400,964
——————— ———————
$21,511,189 $17,882,023

                    1981        1980
                    $NZ         $NZ

Income—
Investments—
New Zealand Government stock
and local authority securities 9,358,410 8,402,647
Other investments 11,970,421 9,334,604
——————— ———————
21,328,831 17,737,251
Other income 182,358 144,772
——————— ———————
$21,511,189 $17,882,023

PROFIT AND LOSS APPROPRIATION ACCOUNT

Transfer to New Zealand—
Government stock 126,673 97,067
Revaluation reserve 57,003 43,680
Less tax adjustment
——————— ———————
69,670 53,387

Transfer to general—
Reserve 550,000 600,000
Provision for dividend 750,000 750,000
Balance carried forward 265,333 332,681
——————— ———————
$1,635,003 $1,736,068

The notes annexed form part of these accounts.

Balance brought forward $NZ $NZ
Net profit for period 332,681 335,104
Transfer from New Zealand
Government stock 1,299,360 1,400,964
Revaluation reserve on account
of stock matured or sold
during period 5,385
Less tax adjustment 2,423
——————— ———————
2,962
——————— ———————
$1,635,003 $1,736,068

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 specific accounting policies have been
consistently applied.

(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 invest-
ments (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