2452 NEW ZEALAND GAZETTE No. 85

7. Fixed Assets

| | 1995 Cost | Accumulative | Book Value |
|-------------------------|-------------| Depreciation |-------------|
| | $000 | $000 | $000 |
| Office equipment and | | | |
| furniture ... | 6 | — | 6 |

8. Financial Instruments

The financial instruments are subject to an interest rate risk.

There is no credit risk relating to the fund managers or the custodian. Because of the diversification of investments there are no significant concentrations of credit risk within the investment portfolios.

Foreign currency hedges are taken out by the fund managers to minimise the exposure to foreign exchange fluctuations.

No comparison is provided between the carrying value and estimated fair value of financial instruments, due to the carrying value reflecting market price.

| Overseas— | | |
| Bonds and deposits ... | 9,922 | — |
| Equities ... | 12,350 | — |
| | 22,272 | — |

| Total— | | |
| Bonds and deposits ... | 50,530 | — |
| Equities ... | 63,544 | — |
| | $114,074| — |

9. Contingent Liabilities

There are no contingent liabilities at 31 March 1995 (1994 $nil).

Auditor Report

We have audited the consolidated financial statements. The consolidated financial statements provide information about the past consolidated financial performance of the trust and its consolidated financial position as at 31 March 1995. This information is stated in accordance with the accounting policies set out.

Trustees Responsibilities

The trustees are responsible for the preparation of consolidated financial statements which give a true and fair view of the consolidated financial position of the trust as at 31 March 1995 and of the consolidated results of operations and cash flows for the year ended 31 March 1995.

Auditors' Responsibilities

It is our responsibility to express an independent opinion on the consolidated financial statements presented by the trustees and report our opinion to you.

Basis of Opinion

An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the consolidated financial statements. It also includes assessing:

• the significant estimates and judgments made by the trustees in the preparation of the consolidated financial statements, and

• whether the accounting policies are appropriate to the trust's circumstances, consistently applied and adequately disclosed.

We conducted our audit in accordance with generally accepted auditing standards in New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the consolidated financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the consolidated financial statements.

Our firm carries out other assignments for the trust in the area of special consultancy projects. The firm has no other interests in the trust.

Unqualified Opinion

We have obtained all the information and explanations we have required.

In our opinion the consolidated financial statements:

• comply with generally accepted accounting practice.

• give a true and fair view of the consolidated financial position of the trust as at 31 March 1995 and the consolidated results of its operations and cash flows for the year ended on that date.

Our audit was completed on 8 June 1995 and our unqualified opinion is expressed as at that date.