✨ Financial Report Analysis
2034 NEW ZEALAND GAZETTE, No. 72 27 JUNE 2012
EASTERN AND CENTRAL COMMUNITY TRUST INC
The following NZD exchange rates applied during the year:
| Currencies | Average monthly Mid-Rate for 2011/12 | Average monthly Mid-Rate for 2010/11 |
|---|---|---|
| Australian Dollar | 0.7720 | 0.7772 |
| US Dollar | 0.8068 | 0.7332 |
Sensitivity Analysis for Currency:
A 10 per cent movement of the NZD against the following currencies at 31 March would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. This analysis is performed on the same basis for 2011.
Effect in NZD:
| Effect of Movements in NZD | Profit or (Loss)
| 31 March 2012 | Profit or (Loss)
| 31 March 2011 |
|----------------------------|------------------| ------------------|
| 10% fall in NZD/AUD | $1,930,726 | $1,524,979 |
| 10% rise in NZD/AUD | (1,579,635) | (1,247,710) |
| 10% fall in NZD/USD | 6,961,737 | 7,258,230 |
| 10% rise in NZD/USD | (5,695,967) | (5,938,551) |
b) Interest Rate Risk
The Trust’s investments in fixed rate securities are subject to interest rate risk. The Trust’s SIPO requires a fixed rate security to have a minimum of a BBB+ rating or equivalent grade. The maximum exposure to each fixed rate security is controlled by the credit rating so that the higher the credit rating, the higher the allowable exposure. Short term deposits are invested for periods up to 365 days taking into account current interest rates.
The Trust’s cheque and call accounts are interest bearing. Any movement in interest rates on these accounts is minimal and not considered to be material.
At the reporting date the interest rate profile of the Trust’s interest bearing financial instruments was:
| Carrying Amount 2012 | Carrying Amount 2011 | |
|---|---|---|
| Fixed Rate Instruments | $56,909,115 | $62,146,262 |
| Variable Rate Instruments | $4,736,397 | $9,758,151 |
| Total | $61,645,512 | $71,904,413 |
Sensitivity Analysis for Fixed Rate Instruments:
A change of 100 basis points (1%) in interest rates for the entire period reported would have increased or (decreased) profit or loss by the amounts shown. The analysis is performed on the same basis for 2011.
| Fixed Rate Instruments | Cash Flow Sensitivity 31 March 2012 | Cash Flow Sensitivity 31 March 2011 |
|---|---|---|
| 100 basis points increase | $583,257 | $641,524 |
| 100 basis points decrease | ($583,257) | ($641,524) |
Sensitivity Analysis for Variable Rate Instruments:
A change of 100 basis points (1%) in interest rates for the entire period reported would have increased (decreased) profit or loss by the amounts shown below. The analysis is performed on the same basis for 2011.
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NZ Gazette 2012, No 72
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Eastern and Central Community Trust Investment Portfolio
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