11 JULY NEW ZEALAND GAZETTE 1771

| 1995 Cost Price $ | 1995 Depreciation to Date $ | 1995 Book Value $ | | 1996 Cost Price $ | 1996 Depreciation to Date $ | 1996 Book Value $ |
|-----------------------|---------------------------|-------------------| |-----------------------|-------------------------------|-------------------|
| 2,671 | 267 | 2,404 | Computer equipment ... | 30 | 2,671 | 1,068 | 1,603 |
| 1,496 | 120 | 1,376 | Printer ... | 24 | 1,495 | 479 | 1,016 |
| $4,167 | $387 | $3,780 | | $4,166 | $1,547 | $2,619 |

Changes in Accounting Policies

There have been no material changes in accounting policies since the previous annual financial statements. All policies have been applied on a basis consistent with those used in the previous years annual financial statements.

2. Revaluation Reserve

| 1995 $ | | 1996 $ |
|-----------------------------| |-----------------|
| 19,894,342 | Opening balance | 17,531,842 |
| (2,362,500) | Movements in the year | 6,525,000 |
| $17,531,842 | Closing balance | $24,056,842 |

3. Investments

3.1 The trust’s investment in Trust Bank New Zealand Limited is valued at $2.47 per share as at 31 March 1996, this being the market price of the shares.

The shares as at 31 March 1996 in Trust Bank New Zealand Limited comprised 11,250,000 ordinary shares of 50 cents each fully paid.

| 1995 $ | | 1996 $ |
|-----------------------------| |-----------------|
| $23,625,000 | Shares at market value as at 31 March 1995 | (2,362,500) |
| | Revaluation reserve ... | 6,525,000 |
| $21,262,500 | Shares at market value as at 31 March 1996 | $27,787,500 |

3.2 Other investments held by Tower Corporation Holdings Limited comprise—

| | |
|----------------------| |-----------------------|
| 3,702,554 | Money market deposits | 5,033,132 |
| 4,457,194 | Discounted securities | 1,491,854 |
| 8,159,748 | NZD fixed interest bonds | 2,376,771 |
| $29,422,248 | | $36,689,257 |

4. Taxation

For taxation purposes the trust is deemed to be a charitable organisation and on this basis its income is not subject to taxation. The charitable status is under review which may affect the future tax status of the trust.

5. Goods and Services Tax

The trust is not registered for goods and services tax purposes. Accordingly these financial statements are stated on a G.S.T. inclusive basis.

6. Reconciliation of Net Profit with Cash Inflow from Operating Activities

| 1995 $ | | 1996 $ |
|-----------------------------| |-----------------|
| 732,350 | Net profit | 888,131 |
| 387 | Add (deduct) non cash items | 1,160 |
| | Depreciation ... | |
| 10,155 | Add (less) movement in current assets/liabilities | |
| (8,535) | Increase/decrease in creditors | (6,875) |
| (2,278) | Increase/decrease interest receivable | (186) |
| | Increase/decrease in debtors | 940 |
| 734,326 | | |
| (157,471) | Less items classified as investing activities | |
| 913 | Income—Tower ... | (742,008) |
| | Tower accrued interest | |
| $592,591 | Net cash flows from operating activities | $141,162 |

7. Off Balance Sheet Item

Additional grants totalling $80,000 have been approved but not uplifted as at 31 March 1996. These are $15,000 for the Karori Reservoir Wildlife Sanctuary Trust; $15,000 for the Future Focus Trust (now known as the International Festival for the Future); and $50,000 for the Kapiti Community Centre Establishment Trust. A commitment of $3 million has been made to the Wellington Regional Stadium Trust subject to the commitment of that trust to construct.