26 JULY 2007

NEW ZEALAND GAZETTE, No. 84

2211

9. Financial Instruments

Financial instruments that potentially have credit risk are cash, accrued interest and accrued charges.
The maximum credit risk exposure at balance date is the carrying value of the bank, accrued interest and accrued charges. This is also the fair value.

10. Publishing Requirements

A comprehensive list itemising all recipients was published in the Taranaki Daily News on the following dates:

1st Quarter 24 July 2006
2nd Quarter 19 October 2006
3rd Quarter 7 February 2007
4th Quarter 15 May 2007

A copy of the list of grants is available to anyone upon request (PO Box 667, New Plymouth).

11. Segment Information

The trust operates predominantly in one industry – investment. All operations are carried out within New Zealand.

Taxation Reconciliation for the Year Ended 31 March 2007

Add back:
| Gross dividend accrued last year | 7,425,373 | 6,738,806 |
| Interest accrued last year | 62,875 | 50,313 |
| Imputation credits | 3,841,791 | 3,447,761 |

Less:
| Gross dividends not yet received | 8,350,746 | 7,425,373 |
| Interest not yet received | 14,951 | 62,875 |
| Non-profit body exemption | 1,000 | 1,000 |
| Loss carried forward | 543,741 | 531,190 |
| Taxable surplus | 10,178,550 | 9,217,454 |

| Taxation @ 33% | 3,358,922 | 3,041,759 |

Less:
| Imputation credits | 3,536,418 |
| | (177,496) | (179,435) |

Plus:
| Imputation credits converted to loss | 177,496 | 179,435 |
| Tax payable as per statement of financial position | --- | --- |

Auditors' Report

To the Trustees of the TSB Community Trust

We have audited the financial statements. The financial statements provide information about the past financial performance of TSB Community Trust and its financial position as at 31 March 2007. This information is stated in accordance with the accounting policies set out.

Trustees' Responsibilities

The trustees are responsible for the preparation, in accordance with New Zealand law and generally accepted accounting practice, of financial statements which fairly reflect the financial position of TSB Community Trust as at 31 March 2007 and the results of its operations and cash flows for the year ended on that date.

Auditors' Responsibilities

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

Basis of Opinion

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

• the significant estimates and judgements made by the trustees in the preparation of the financial statements; and
• whether the accounting policies are appropriate to TSB Community Trust's circumstances, consistently applied and adequately disclosed.

We conducted our audit in accordance with New Zealand auditing standards. 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 obtain reasonable assurance that the 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 financial statements.

Other than in our capacity as auditor, we have no relationship with, or interests in TSB Community Trust.