✨ Community Trust Financial Statements
4 JULY 2011 NEW ZEALAND GAZETTE, No. 91 2579
EASTERN AND CENTRAL COMMUNITY TRUST INC
| AAA to AA | A+ to A- | BBB to BB | Unrated | 2011 | 2010 | |
|---|---|---|---|---|---|---|
| $ | $ | |||||
| Corporate Bonds | ||||||
| Cash | 11.0% | 27.1% | 35.7% | 8.7% | 43,002,219 | 44,983,702 |
| 17.5% | 8,887,550 | 7,599,675 | ||||
| Total | 51,889,769 | 50,308,893 |
Forward Foreign Exchange Contracts
The Trust manages its foreign exchange risk by using forward exchange contracts to cover varying amounts of its foreign currency exposure. Such forward exchange contracts have the economic effect of converting foreign currency denominated balances into NZ dollars. These forward exchange contracts are not treated as hedges for accounting purposes. All contracts are with the Bank of New Zealand which has a Standard and Poor’s Rating of AA.
The following table details the three-month forward foreign currency contracts outstanding as at 31st March 2011:
| Currencies | Buy Amount NZ$ | Deal Rate 9 February 2011 | Valuation Rate 31 March 2011 | Gain/(Loss) NZ$ |
|---|---|---|---|---|
| Australian Dollars | 25,030,000 | 0.7676 | 0.7368 | (1,044,490) |
| Euros | 4,500,000 | 0.5665 | 0.5362 | (253,461) |
| British Pounds | 2,210,000 | 0.4803 | 0.4708 | (44,451) |
| Japanese Yen | 3,220,000 | 63.389 | 62.690 | (35,810) |
| US Dollars | 12,040,000 | 0.7707 | 0.7571 | (214,689) |
| TOTAL | 47,000,000 | (1,592,901) |
The following table details the three-month forward foreign currency contracts outstanding as at 31st March 2010:
| Currencies | Buy Amount NZ$ | Deal Rate 9 February 2010 | Valuation Rate 31 March 2010 | Gain/(Loss) NZ$ |
|---|---|---|---|---|
| Australian Dollars | 23,200,000 | 0.7947 | 0.7767 | (536,269) |
| Euros | 8,300,000 | 0.4975 | 0.5285 | 486,312 |
| British Pounds | 2,000,000 | 0.4359 | 0.4701 | 144,807 |
| Japanese Yen | 3,100,000 | 60.515 | 66.080 | 260,309 |
| US Dollars | 10,800,000 | 0.6783 | 0.7082 | 454,103 |
| TOTAL | 47,400,000 | 809,262 |
Liquidity Risk
Liquidity risk is the risk that the Trust will encounter difficulties in meeting the obligations associated with its financial liabilities. This risk is managed through the Trust’s investment in a diversified portfolio of financial assets.
The Trust’s investment portfolio during the year under review consisted of only listed securities which under normal market conditions are readily convertible to cash. In addition the Trust maintains sufficient cash and cash equivalents to meet normal operating requirements, as well as the timing of the commitments below.
The Trust’s financial liabilities comprise trade and other payables, and committed but unpaid donations.
At balance date all trade and other payables were current, and are normally settled on the 20th of the month following invoice date.
Committed but unpaid donations are held as current liabilities pending the satisfaction of conditions under which the donations were made. At balance date committed but unpaid donations totalled $1,318,130 ($1,904,930 – 2010).
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NZ Gazette 2011, No 91
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Eastern and Central Community Trust Financial Statements
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