3440
NEW ZEALAND GAZETTE, No. 138
28 OCTOBER 2004

Mercury Television (2002) Limited

A regional television station and related entertainment business.

Ownership interest in Invest South Limited is 50% at 31 March 2003 and 100% at 31 March 2004. The Community Trust purchased the additional 50% shareholding in Invest South Limited on 1 April 2003. As such, the Invest South Limited group was consolidated into The Community Trust of Southland group financial statements along with its associate investments and subsidiaries.

20. Capital Commitments and Contingencies

Commitments of $3,623,320 exist for grants which will be distributed from either capital or future income sources in future years. These grants have not been recorded in either the statements of financial performance or financial position. Specific commitments are as follows:

The years in which these commitments fall due are as follows:

Commitments of up to $646,850 exist for loans which trustees have approved, but which had not been drawn down as at balance date. The approved loans are as follows:

| Borland Lodge | 293,850 | 293,850 |
| Northern Southland Medical Trust | – | 50,000 |
| Wyndham & Districts Community Rest Home | 100,000 | 80,000 |
| Southland Heritage Building Preservation Trust | 50,000 | 50,000 |
| Queenstown Childcare Centre | 24,000 | – |
| Troopers Memorial Corner Charitable Trust | 179,000 | – |
| 646,850 | 473,850 |

A commitment has been made to invest up to $2,000,000 in the AMP Property Opportunity Fund. As at 31 March 2004, $503,806 of this committed amount had been paid.

At 31 March 2004, Invest South Limited had a commitment to pay the uncalled share capital of the 100% owned company, Invest South Asset Management Limited.

21. Segmental Information

The trust’s specified area includes all of the areas of Invercargill City Council, Southland District Council and Gore District Council, the Heriot and Tapanui areas of Clutha District Council, and the Wakatipu Basin area of Queenstown Lakes District Council. The trust’s principal activities are to invest the trust capital, both within the specified area and outside of the region, and to distribute grants for charitable, cultural, philanthropic, recreational and other purposes being purposes beneficial to the community principally within the trust’s specified area.

22. Financial Instruments

General

The group states its investments in managed funds at estimated market value. The trustees consider that the fair value of the financial assets is identical to the value in the statement of financial position.

Concentration of Credit Risk

The group, from time to time, has significant funds in trading bank deposits. The group limits risk by spreading the deposits over several trading banks. The group has not required collateral or other security to support its financial statements. The group further limits risk through its policy of placing investment funds with five separate fund managers, with each fund manager having an investment mandate which requires that they diversify their investments on the group’s behalf. The group has sought and obtained the advice of professional financial advisers prior to making its investment allocation and placement decisions.

Interest Rate Risk

The bank deposits are sensitive to changes in interest rates, as are a proportion of the funds managed by the fund managers, and the loans to Topoclimate South Charitable Trust and Nga Hau E Wha Society.

23. Related Parties

There were no related party transactions during the year.