Te Runanga o Ngati Ruanui Trust Annual Report 2014

Te Rūnanga o Ngāti Ruanui

Trust Annual

Report 2014

Contents

Ngāti Ruanui Holdings Corporation Limited

26 Chairpersons Report

28 Ngāti Ruanui Stratford Mountain House

29 Company Directory

30 Directors’ Report

32 Statement of Financial Position

33 Statement of Movements in Equity

34 Statement of Financial Performance

35 Notes to the Financial Statements

38 Auditors’ Report

Ngāti Ruanui Fishing Limited









Ngāti Ruanui Tahua Limited







Te Rūnanga o Ngāti Ruanui Trust

07 Tumu Whakaae Report

08 Te Rā O Ruaputahanga - Ngāti Ruanui Festival 10 Statement of Financial Position


11 Statement of Movements of Equity 12 Notes to the Financial Statements


Cover: Spectators at Ngāti Ruanui festival, enjoy the days events.

Contents: Kaumatua George Broughton introducing Nohotia Maruera (left) and Ranginui Baller (right) to indoor bowls.

4

Introduction

Ko te ahi o Tahurangi mō te pukeāoKa tū tonu te pukeāo

Ka whakahinga te pukeāoi ngā awatea i nga ahiahi

Tahurangi is like an alpine cloudthat descends the peak and remains

suspendedIt then falls during the day and in the

evening

5


ANNUAL REPORTFor the year ended 31st March 2014

Contents07 Tumu Whakaae Report

08 Te Rā O Ruaputahanga - Ngāti Ruanui Festival 10 Statement of Financial Position


11 Statement of Movements of Equity 12 Notes to the Financial Statements


7

Te Rūnanga o Ngāti Ruanui TrustANNUAL REPORTFor the year ended 31st March 2014

HE MAIOHA ACKNOWLEDGEMENT

Kia herea ngā tōmairangi ki te whenua

E te wāhi ngaro tukua mai rā ō tauwhirotanga ki runga I te marea o Ruanui

E whakawhetai atu nei hoki mōu e manaaki mai ana I a mātau katoa

Ko te mapu a mōteatea mō koutou e te iwi nui tonu kua ngaro e kore e mutu

Tāoki mai rā I ngā one whakanewha o tawhiti nui, o tawhiti roa, o te tai-hauauru e rarau mai ana

Ko te tai o Wai-whakaoti atu ki a rātau

Ko te tai o Wai-whakaora ki a tātau

Mauri Ora!

E ngā maunga tūparengahua, e ngā wai whēteketeke o nga kāwai nui, o ngā kāwai roa, tēnā rā koutou katoa.

Nei anō ia Te Purongo e puta nei ki te ao o te tūmatanui, ki te ao o te tūnekeneke kia noho mai rā ngā whakariterite me ngā whakahaere a Te Rūnanga o Ngāti Ruanui. Mā konā e whai hua ai te katoa, ā, ko tātau rā hoki. Nō konei a mihi ka rere, tēnā koutou katoa.

HE WHAKAMAHARATANGA REMEBERANCE

E aku nui, e aku rahi e te iwi nui tonu tēnei ka tangi mō koutou kua ngaro kite Hono-i-wairua.

Mahue mai ko mātau te hunga ora ki muri nei auē ahi ai, mōteatea atu ai, mapu atu ai.

Nō reira moe mai rā kei aku rau kahurangi kei aku kuru tongarerewa.

Waiho mai ko mātau hei pīkau ī ā koutou ōhākī hei oranga mō ngā whakatupuranga.

E moe, okioki atu.

To the multitudes that have departed this world, we mourn for you as you now take your place where the spirits gather.

In the world of the living – those of us who have been left behind – we wail in sorrow, we weep as we think of you; we have a sigh of grief.

But, sleep my cherished ones, my treasured ones.

Leave for us your works that we may continue to fulfill your aspirations to help our future generations.

Forever be at rest.

It is a pleasure to introduce the 2014 annual report for Te Rūnanga O Ngāti Ruanui Trust. We continue to advance our political imperatives, our cultural priorities, and our financial responsibilities.

I pay tribute to our uri, marae and hapū representatives whose combined efforts helped achieve these positive results.

I acknowledge also the Te Rūnanga O Ngāti Ruanui office staff for their dedication and loyalty regarding all kaupapa shared within our iwi.

You will note from the report that our Directors, Ngāti Ruanui Holdings Ltd, has made a profit of $2.7milllion; this is pleasing and confirms that we continue to have the right strategy and team in place.

The creation of Taranaki Capital Partners Limited has allowed us to maximise economies of scale in investment markets while becoming more active in the primary sector.

Achieving our cultural aspirations by purchasing the Mountain House continues to be a key focus. This award winning operation continues to help us to realise a Ngāti Ruanui tourism asset.

The strengthening of Ngāti Ruanui continues. You will note this year we have achieved the uri aspirations determined by the original settlement ratification by consolidating Ngāti Ruanui Tahua as a subsidiary. A full re-structure and appointment of directors has ensured a sustainable approach to deliver health and education services to our people into the future. Kotahitanga is critical for the advancing of our whanau, hapū and Iwi.

Education, sports and cultural grants continue to be promoted, with 83 recipients paid grants this year.

Ngāti Ruanui’s 3rd Festival attracted more uri. The Rūnanga held its second and successful hikoi to Australia to ensure the iwi stays connected to our uri. “Taurahere ki Ruanui… Hei poipoia e te Ao”.

Haimona Maruera Jnr Tumu Whakaae / Chairperson

TUMU WHAKAAE REPORT

Left: Ngāti Tupito performing their choral

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The success of Te Rā O Ruaputahanga – Ngāti Ruanui Festival continues to grow following the inaugural festival in 2010. Both the 2012 and 2014 festivals have built upon our families reconnecting and celebrating Ngāti Ruanui. The Festival also provided an opportunity for members who lived overseas or outside of the region to find out what has been happening within the rohe.

80 per cent of those attending were coming from Australia or from outside South Taranaki

The festival, centred around kapa haka and games, have provided fun and entertainment for everyone. The Ngāti Ruanui Festival puts real meaning into our strategic objective ‘Strengthening Ngāti Ruanuitanga’.

Between 1500 to 2000 people attended the 2014 event held on 25-26 October at the TSB Hub in Hawera. The competitive sporting events included the Sports Parade, Netball, Touch Rugby, Volleyball and Table Tennis and non-competitive events included bouncy castles, mini-triathlon, cards, indoor bowls and board games (for non-competitive Tamariki and Pahake).

Of the hapū who entered Ngā Ariki came third and Ngāti Ringi and Ngāti Tupito came out on top, sharing first place in the overall aggregate.

The festival was summed up by one participant in the following way:

“How do you summarise such a great weekend…. a time to reflect on the

many whom we’ve lost over the last 2 years, celebrate our population boom and treasure the gift of whanaungatanga. Whether you came 1st, 2nd, last, observed or just popped in for a chat. We were all fortunate to be a part of an awesome weekend. A big shout out must go to all the behind the scene people who ensured the whole event was a success. Your time, effort, and dedication to the weekend did not go unnoticed and is appreciated. No names lest we forget someone but we certainly look forward to 2016…”

Te Rā O Ruaputahanga - Ngāti Ruanui Festival

Foreground: Haimona Maruera Jnr. leading the haka.

Background: Roger Maruera, Huia Davis and Robert Rio.

9


Financial Report For the Year Ended 31st March 2014 ThefinancialstatementswereauthorisedbytheTrusteesonthebelowdate.

_______________________ _______________________ _______________________ Trustee Trustee Date

Te Rūnanga o Ngāti Ruanui TrustFinancial ReportFor the year ended 31st March 2014

21/9/14

10

Te Rūnanga o Ngāti Ruanui TrustStatement of Financial PositionAs at 31st March 2014

NoteGroup 2014

$

Parent 2014

$

Group 2013

$

Parent 2013

$

Current AssetsPetty Cash 450 50 450 50 ASB Bank 366,238 69,670 135,885 23,497 ASB Bank Investment 157,470 1,986 840,971 1,935 AccountsReceivable 352,229 104,920 62,653 39,870 Investment Portfolio 21,666,542 - 19,174,917 - Inventory 21,877 - 16,362 - GSTReceivable - 811 - 5,610 Ngāti Ruanui Fishing Ltd 10 - 3,106 - 142,014

Ngāti Ruanui Holdings Corporation Ltd 10 - 1,031,252 - 820,906 Prepayment - - 33,373 - Prepayment Ketemarae Marae 10 15,000 15,000 25,000 25,000 Prepayment Pairiroa Marae 10 17,665 17,665 27,665 27,665 Prepayment Taiporohenui Marae 10 20,000 20,000 30,000 30,000 Prepayment Wharepuni Marae 10 5,000 5,000 15,000 15,000

22,622,471 1,269,460 20,362,276 1,131,547Non Current AssetsInvestment Portfolio 5 26,121,284 1,409 26,226,737 2,148 Fish Quota holdings 5 2,605,958 - 2,387,676 - Investment in Aotearoa Fisheries Ltd 5 1,248,368 - 1,578,368 - Investment in Deep Water Ltd 5 1 - 1 - Investment in ICP Koura Collective 5 107,125 - 107,125 - Investment in Ngāti Ruanui Fishing Ltd 13 - 1 - 1

Investment in Ngāti Ruanui Holdings Corporation Ltd 13 - 41,200,000 - 41,200,000 30,082,736 41,201,410 30,299,907 41,202,149

Property, Plant & Equipment - Non currentLandandbuildings 4 2,630,108 1,081,743 2,617,183 1,066,802 Plant and Equipment 4 270,675 20,729 274,690 19,122 Motor vehicles 4 4,496 2,269 5,810 5,810 OfficeEquipment 4 188,452 24,149 163,886 10,532

3,093,731 1,128,890 3,061,569 1,102,266

Total Assets 55,798,938 43,599,760 53,723,752 43,435,962

AccountsPayable 148,364 41,013 96,606 30,026 Accrued Charges 554,026 159,512 326,112 158,174 PayabletoNgāti Ruanui Tahua Trust 15 156,849 - - - GSTPayable 19,176 - 32,907 -

878,415 200,525 455,625 188,200Total Liabilities 878,415 200,525 455,625 188,200

Net Assets 54,920,523 43,399,235 53,268,127 43,247,762

Retained Earnings 54,920,523 43,399,235 53,268,127 43,247,762 Total Trust Capital 54,920,523 43,399,235 53,268,127 43,247,762

The Trustees of the Te Rūnanga O Ngāti Ruanui Trust authorised thesefinancialstatementsforissueonthebelowdate.

_______________________ _______________________ _______________________ Trustee Trustee Date

ThisStatementistobereadinconjunctionwiththeStatementofAccountingPoliciesandNotestotheFinancialStatements.

21/9/14

11

Te Rūnanga o Ngāti Ruanui TrustStatement of Financial PerformanceFor the year ended 31st March 2014

Note Group 2014

$

Parent 2014

$

Group 2013

$

Parent 2013

$

Income 3 5,164,737 1,545,093 5,190,751 1,568,901

Expenditure 6 2,994,661 1,205,940 2,712,989 1,051,488 Net surplus from trading 2,170,076 339,153 2,477,762 517,413

Less: AFL shareholding impairment 5 330,000 - - - Less: Grants to Marae 10 100,000 100,000 200,000 200,000 Less: Grants to Kaumatua / Kaunihera - - 2,381 2,381 Less: Grants to Sports Codes 900 900 1,300 1,300 Less: Tertiary Student Scholarships 22,499 22,499 32,161 32,161 Less: Grants Cultural 4,054 4,054 4,800 4,800 Less:ProjectsConsultationHui 60,227 60,227 40,219 40,219Less:ProjectsFestival - - 29,656 29,656 Less:Projects - - 2,454 2,454 Net surplus 1,652,396 151,473 2,164,791 204,442

Statement of Movements in EquityFor the year ended 31st March 2014

Note Group 2014

$

Parent 2014

$

Group 2013

$

Parent 2013

$

OpeningEquitybalance 53,268,127 43,247,762 51,103,336 43,043,320 Net surplus 1,652,396 151,473 2,164,791 204,442

ClosingEquitybalance 54,920,523 43,399,235 53,268,127 43,247,762


12

Te Rūnanga o Ngāti Ruanui TrustNotes to the Financial StatementsFor the year ended 31st March 2014

1 Statement of Accounting Policies

Reporting Entity ThefinancialstatementspresentedhereareforTeRūnanga O NgātiRuanuiTrust(the“Trust”)andits100%ownedsubsidiarycompanies, Ngāti Ruanui Fishing Limited, NgātiRuanuiHoldingsCorporationLimitedandits100%ownedsubsidiary,Ngāti Ruanui Holdings Operating Company Limited and NgātiRuanuiTahuaLimited(together“theGroup”).Theycovertheperiod1April2013to31March2014.DuringtheyearTRoNRTcreatedawhollyownedsubsidiarycompanyNgāti Ruanui Tahua Limited to take over the operational activities and assets of NgātiRuanuiTahuaTrust.Thenewcompanytradedforonemonth(March)duringtheyearunderreview.TheGrouphaschosennottoadopttheNewZealandEquivalentstoInternationalFinancialReportingStandards(“NZIFRS”).ThedecisionnottoadoptisconsistentwiththeexemptionprovidedbyAccountingStandardsReviewBoard(“ASRB”)Release9,issuedinSeptember2007.ASRBRelease9providesachoicetocertainqualifyingentitiestoeitheradoptNZIFRSortocontinuetoapplyNewZealandFinancialReportingStandards(“NZFRS”).TheTrustisaqualifyingentityonthebasisthatitisnotanissuer,arenotrequiredtofilefinancialstatementswiththeRegistrarofCompaniesundersection19oftheFinancialReportingAct1993andarenotconsideredlarge(lessthan$20mrevenueandlessthan50full-timeemployeeequivalents).

Differential reportingTheGroupisaqualifyingentitywithintheFrameworkofDifferentialReporting.TheGroupqualifiesonthebasisthatitisnotpubliclyaccountableanditisnotlarge.TheGrouphastakenadvantageofalldifferentialreportingconcessionsavailableexceptforFRS19-AccountingforGoodsandServicesTax,withwhichtheyhavecompliedfully.ThefinancialstatementshavebeenpreparedinaccordancewiththeTrustDeedandNewZealandgenerallyacceptedaccountingpractice.

Measurement BaseTheaccountingprinciplesrecognisedasappropriateforthemeasurementandreportingofearningsandfinancialpositiononahistoricalbasisasmodifiedbytherevaluationofcertainassetsasidentifiedinspecificaccountingpoliciesbelow.

Specific Accounting PoliciesThefollowingspecificaccountingpolicieswhichmateriallyeffectthemeasurementoffinancialperformanceandfinancialpositionhavebeenapplied:RevenueRevenuecomprisesthefairvaluefortheconsiderationreceivedorreceivableforthesaleofgoodsandservices,interest,dividendsandmarketvaluemovementsininvestmentsheld.Revenueisrecognisedasfollows:

(i) Interest income from investments Interestincomeisrecognisedusingtheeffectiveinterestmethod. (ii) Dividend income Dividendincomeisrecognisedwhentherighttoreceivepaymentisestablished. (iii) Revaluation income on investments Changesinthefairvalueofinvestmentsarerecognisedintheperiodinwhichtheyarise. (iv) Trading income Tradingincomecompriseofrestaurantandbarsalesandaccommodationrevenue.Restaurantandbarsalesare

recognisedwhenthesaleoccursandtheproductisdeliveredtoacustomer.Therecordedrevenuecomprisesthe amountsreceivedandreceivableforgoodssuppliedtocustomers.Accommodationrevenueisrecognisedinthe accountingperiodinwhichtheaccommodationwasoccupied. (v) Annual Catch Entitlement Annualcatchentitlementincomeisrecognisedwhentherighttoreceivepaymentisestablished. (vi) Grants Grantsreceivedarerecognisedwhentherequirementsunderthegrantagreementhavebeenmet. (vii) Rental income Rentalincomeisrecognisedintheperiodwhenthethepremisesleasedtothirdpartywasoccupied. (viii)Servicesincomeisrecognisedatthetimetheserviceisprovided.

Accounts payable and accrued chargesTheseamountsrepresentliabilitiesforgoodsandservicesprovidedtotheGrouppriortotheendoffinancialyearwhichareunpaid.Theamountsareunsecuredandareusuallypaidon20thofthemonthfollowingrecognition.

Accounts ReceivableAccountsReceivablearestatedattheirestimatedrealisablevalue.Debtsconsidereduncollectiblearewrittenoff.ThereisnoprovisionforDoubtfulDebts

PrepaymentsPrepaymentsarerecordedatamountspaidandrepresentspaymentsmadebeforeduedate.

InventoryInventoryisstatedatcostthisbeingdeterminedonafirstinfirstoutbasis.

13


Property, Plant and EquipmentProperty,PlantandEquipmentarestatedatcostlessaccumulateddepreciation.Depreciationhasbeencalculatedusingthefollowingrates:OfficeEquipment 18.0%-80.4%DVFurniture&Fittings 11.0%-48.0%DVBuildingandSettlementProperties 0.0%-39.6%DV

Operating LeasesLeasesinwhichasignificantportionoftherisksandrewardsofownershipareretainedbythelessorareclassifiedasoperatingleases.Payments made under operating leases (net of any incentives received from the lessor) are charged to the Income Statement over theperiodofthelease.

ConsolidationTheconsolidatedfinancialstatementshavebeenpreparedusingthepurchasemethodofconsolidationandincludethefinancialstatementsoftheparentandsubsidiarycompanies.

Financial InstrumentsFinancialInstrumentsprimarilycomprisecashatbank,debtors,creditors,andinvestments.AllFinancialInstrumentsarerecognisedintheFinancialStatementsatfairvalue.

InvestmentsFishquotasharesreceivedbywayofsettlementarerecognisedattheirfairvalueatthedateofsettlement.Fishquotapurchasedarerecognisedatcost.AdditionalallocationoffishquotasharesarerecognisedatfairvalueatdateofallocationandarerecognisedasincomeintheStatementofFinancialPerformance.Fishquotashareshaveanindefinitelifearethereforenotamortised.Theyaretestedannuallyforimpairmentandarecarriedatcostorfairvalueatdateofsettlementorallocationlessaccumulatedimpairment.

Investmentsinsharesarecarriedatfairvalueunlesstheyarenotquotedinanactivemarketortheirfairvaluecannotbereliablymeasured.Thefairvalueofsuchinvestmentsisreliablymeasurablewherethevariabilityintherangeforfairvalueestimatesisnotsignificantorprobabilitiesofthevariousestimateswithintherangeoffairvaluescanbereasonablyassessedandusedinestimatingfairvalue.GainsandlossesoninvestmentsarerecognisedintheStatementofFinancialPerformance.Investmentswhicharenotexpectedtoberealisedwithinthenexttwelvemonthsafterreportingdateareclassifiedasnon-currentinthestatementoffinancialposition.

Changes in Accounting Policies Therehavebeennochangesinaccountingpoliciesduringtheyear.Allpolicieshavebeenappliedonabasisconsistentwiththoseusedinpreviousyears.

Changes to financial reporting requirementsAnewAccountingStandardsFramework(incorporatingaTierstructureandaseparatesuiteofaccountingstandardsforPBEs)hasbeenissuedbytheExternalReportingBoard(XRB).ThegroupwillqualifyunderTier2andiseligibletoreportinaccordancewithNZIFRSPBEDifferentialReportingRegime(NZIFRSPBEDiffRep)onthebasisthatitisnotpubliclyaccountableandtheGroupisnotlargeasdefinedinXRBA1.

ThereisnoimpactonthecurrentorprioryearfinancialstatementsoftransitioningtothenewAccountingStandardsFramework.UnderthenewAccountingStandardsFramework,theGroupwillhavetotransitiontothenewNot-for-ProfitPublicBenefitEntities(NFPPBE)StandardsthatwillbebasedonInternationalPublicSectorAccountingStandards(IPSAS).TheeffectivedateforthenewNFPPBEStandardsisforreportingperiodsbeginningonorafter1April2015.ThereforetheGroupwillhavetoprepareitsfinancialstatementsinaccordancewiththenewNFPPBEStandardsforthefirsttimefortheannualperiodending31March2016.

1. Statement of Accounting Policies (Continued)

TaxationTheTrusthascharitablestatusfrom20thMarch2005,asconfirmedbytheInlandRevenueDepartmentandisregisteredwiththeCharitiesCommission.Allincomeisthereforeexemptfromincometax.Taxreceivablebalancesarerecognisedwhenthereisresidentwithholdingtaxduetoberefunded.

Goods and Services TaxThefinancialstatementshavebeenpreparedonaGSTexclusivebasisexceptforAccountsReceivableandAccountsPayablewhichareshowninclusiveofGoodsandServicesTax.

14


2. Principal Activities

Te Rūnanga o NgātiRuanuiTrustisestablishedthroughtheHapū Representatives, to:

(a)betherepositoryofthecollectivetinorangatiratangaofNgāti Ruanui;(b) betherepresentativeofthecollectiveinterestofNgāti Ruanui and the legal representative of Ngāti Ruanui in relation to the collective interest;(c) receiveassetstransferredorsettledbythecrown (i) pursuant to the Deed of Settlement; and (ii) followingsettlementofanyotherclaimsbyNgātiRuanuirelatingtothebreachbytheCrownofanyobligationstoNgāti Ruanui under the Treaty of Waitangi;(d) hold the assets of Te RūnangaandadministerthoseassetsandtheliabilitiesofTeRūnanga as kaitiaki of Ngāti Ruanui; and(e) constitutethebodythroughwhichNgātiRuanuiwillconfirmthetribalstructurewhichproperlyrepresentsitstino

rangatiratanga; and (f) willthroughitselfandsuchotherpersonsasitconsidersappropriate,manageitsaffairs,businessactivities,assetsand

liabilities;and(g) maydistributebenefitsdirectlyorindirectlytotheregisteredbeneficiariesuponanybasiswhichTeRūnangamaydecide.

NgātiRuanuiFishingLimited’sprincipalactivityisthemanagementoffishingquotafortheNgātiRuanuigroup.NgātiRuanuiHoldingsCorporationLimited’sprincipalactivityistoholdinvestmentsonbehalfofTeRūnanga o NgātiRuanui.Ngāti Ruanui Holdings Operating Company Limited’s principal activity is to operate the Ngāti Ruanui Stratford Mountain House on behalfofTeRūnanga o NgātiRuanui.NgātiRuanuiTahuaLimited’smainactivityistooperatethehealthandeducationactivitiesonbehalfofTeRūnanga of Ngāti Ruanui.Thebalancedateofallsubsidiariesis31MarchandallsubsidiariesareincorporatedinNewZealand. 3. Income

NoteGroup 2014

$

Parent 2014

$

Group 2013

$

Parent 2013

$Annual Catch Entitlement 249,745 - 185,970 - ICP Koura Collective Investment income 172,407 - - - Fish Settlement Funds 72 72 47,009 47,009 Dividends Received 648,865 1,225,000 426,994 1,200,000 Management Fees Received 82,500 113,000 15,000 33,000 Trading Sales 863,916 - 929,641 - Income from health, education and social services 215,786 - - - Interest Received 2,841 52 3,498 42 Rent Received 54,813 54,813 59,095 59,095 Grants and Sundry Income 174,406 143,921 229,755 229,755 Gain / (loss) on asset disposal 8,235 8,235 (4,690 - Investment Interest Received 898,035 - 1,204,497 - InvestmentFXgain/(loss) (25,213 - 7,531 - InvestmentRevaluationFixedInterest(losses) (135,448 - (217,680 - Investment Revaluation Australasian equities gain 1,171,524 - 1,543,998 - Investment Revaluation International equities gain 782,253 - 760,133 - Total Income 5,164,737 1,545,093 5,190,751 1,568,901

))

)

)

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5. Investments

On1April2006,theGroupreceivedsettlementproceedsinaccordancewiththeMāoriFisheriesAct2004.

Group 2014

$

Parent 2014

$

Group 2013

$

Parent 2013

$Aotearoa Fisheries LimitedOpening value 1,578,368 - 1,578,368 - Impairment of share value (330,000 - - - Closing value 1,248,368 - 1,578,368 -

ThevalueoftheAotearoaFisheriesLimited(AFL)sharesuponreceiptwererecordedat$1,theyweresubsequentlyrevaluedtofairvalue.Thesharescompriseof1,672incomesharesinAFL.Theseincomeshareshavenovotingrightsattachedandcanbetradedamongstiwi.Section 77 of the MāoriFisheriesAct2004stipulatesthatAFLarerequiredtopayadividendofnotlessthan40%ofnetprofitaftertaxasfrom30September2004.SuchpaymentisexpectedinDecembereachyear,howevernodividendwasreceivedthisyearasAFLmadeatradinglossafterrecognisingawritedownonitsinvestmentinSealord.TheAFLsharesarenotactivelytradedandarevaluedusingmarketacceptedvaluationtechniques.Thevalueoftheshareshasbeendeterminedusingadiscountedcashflowmodelusingmarketdataandexpectedcashinflowsfromtheinvestment.Animpairmentlossof$330,000wasrecognisedduringtheyear(2013:nil)toaccountforthedifferencebetweenthecarryingvalueoftheinvestmentandtheestimatedrealisablevalueresultingfromthediscountedcashflow.

Deep Water Group LimitedThevalueoftheDeepWaterGroupLimitedsharesarerecordedat$1(2013:$1)thisbeinganotforprofitorganisation.

Fish Quota Holdings are represented by:Opening value 2,387,676 - 2,032,618 - Additional Quota shares 209,289 - 367,609 - Impairment of Quota (280,626 - (81,977 - Reversal of previous impairment of Quota 289,619 - 69,426 - Closing value 2,605,958 - 2,387,676 -

Te Rūnanga o Ngāti Ruanui TrustNotes to the Financial StatementsFor the year ended 31st March 20144. Property, Plant and Equipment

Note Group 2014

$

Parent 2014

$

Group 2013

$

Parent 2013

$Land & BuildingsAt cost 2,971,179 1,359,397 2,971,179 1,359,397 Plus Purchases 43,765 43,765 - - Less Accum Depreciation (384,836 (321,419 (353,996 (292,595

2,630,108 1,081,743 2,617,183 1,066,802 Plant & EquipmentAt cost 616,394 230,591 619,476 229,131 Plus Purchases 40,987 8,208 4,233 1,460 Less Disposals - - (7,315 - Less Accum Depreciation (386,706 (218,070 (341,704 (211,469

270,675 20,729 274,690 19,122 Furntiture & FittingsAt cost 316,214 37,650 314,943 37,225 Plus Purchases 58,165 16,681 1,271 425 Less Accum Depreciation (185,927 (30,182 (152,328 (27,118

188,452 24,149 163,886 10,532 MotorVehiclesAt cost 54,662 54,662 54,662 54,662 Plus Purchases 2,263 - - - Less Disposal (28,889 (28,889 - - Less Accum Depreciation (23,540 (23,504 (48,852 (48,852

4,496 2,269 5,810 5,810 Total Property, Plant & Equipment 3,093,731 1,128,890 3,061,569 1,102,266

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5. Investments (Continued)

ThefishquotaassetswereindependentlyvaluedbyDonalBoylefromQuotaManagementSystemsLimitedat31March2014:$2,954,622(2013:$2,758,859)todeterminethefairvalueoffishquotawithreferencetomarketevidenceofcurrentmarketprices.DonalBoyleisanindependentvaluernotrelatedtotheCompany.Hehas32yearsexperienceinthefishingindustryand19yearsvaluingfishquota.Thecarryingvalueisadjustedsuchthatclosingvalueequalsoriginalcostofindividualquotalessimpairment.Anyrecoveryofvalueofquotaisrecognisedasanimpairmentreversaltotheextentoforiginalquotacost.Anyupliftbeyondoriginalcostisnotrecognised.

ICP Koura Collective investment movements during year:Opening Balance 107,125 - 575,221 - Purchase CRA4 ACE - - (16,494 - Purchase CRA3 quota shares - - (175,175 - Purchase CRA4 quota shares - - (192,434 - GSTpayable - - (52,653 - WorkingCapitalcontributionrepaid - - (31,340 - InvestmentinICPland,buildingsetc 107,125 - 107,125 -

“In2011,theCompanyjoinedthenewlyformedIwiCollectivePartnership(ICP)alongwithotherIwitomanagetheCompany’scrayfishquotaonitsbehalf.Thisarrangementhasthebenefitsofeconomiesofscale,groupingsmallquotaallocationsintoviableparcelsandalargerknowledgebasetomanagetheasset.AninitialcontributionwasmadebytheCompanyrepresenting8.33%interestintheICP.

In 2012, the ICP has entered into a co-investment agreement, alongside Ngāti Mutunga and Parininihi Ki Waitotara, to invest in twocrayfishquotasownedbyPortNicholsonFisheries(PNF)andPNF’sexistingcrayfishplantfacility.Accordingly,aportionoftheamountcontributedwasusedtopurchasethecrayfishquota.TheremainingamountrepresentstheCompany’sproportionateshareinthecrayfishplantfacility.

TheICPhassetupthefollowingentitiestoholdtheinvestmentsintheICP:-ICPKouraOperationsLimitedPartnership-tomanagethesalesofAnnualCathEntitlementforthecrayfishquotaonbehalfofthecontributingpartners;and-ICPKouraFacilitiesLimitedPartnerhip-toholdICP’sinvestmentinPortNicholsonFacilitiesLP,whichcatches,processesandsellsAnnualCatchEntitlementforcrayfishquota.”

Investment PortfolioThesefundsareinvestedviaNewZealandAssetManagementandApteryxwealthplatformfollowinginvestmentadvicegiventotheGroupbyvariousinvestmentadvisors.ThefundsarecurrentlyinvestedintheMoneyMarket,FixedTermInvestments,NewZealand,AustralianandInternationalEquityMarkets.Theinvestmentsarestatedatmarketvalueatas31Marcheachyear.

Money Market - cash 10,758,796 1,409 16,249,959 2,148 FixedInterest 14,228,974 - 9,448,017 - NZ&AustralianEquities 17,506,991 - 14,796,015 - International Equities 5,293,065 - 4,907,663 -

47,787,826 1,409 45,401,654 2,148

)))))

17


6. ExpenditureGroup 2014

$

Parent 2014

$

Group 2013

$

Parent 2013

$Rūnanga Running ExpensesAdvertising 46,791 1,035 49,368 5,294 AGM & Annual Report costs 11,971 8,721 6,481 4,481 IwiChairMeetingexpenses 2,681 2,681 8,241 8,241 Electionexpenses - - 15,728 15,728 Koha 12,300 12,300 16,410 16,410 Pataka Whata Admin Fee - - 5,141 5,141 Meeting Catering 11,013 9,336 6,954 6,955 Publications - - 3,889 3,889 Strategic Planning 3,249 3,249 13,234 13,234 Travel 58,066 58,066 43,163 43,164 TrusteeFeesandexpenses 121,750 121,750 139,550 139,550

267,821 217,138 308,159 262,087 Professional and Employee ExpensesLegal Fees 32,401 19,376 12,460 12,460 Professional Fees 162,449 4,153 146,000 4,034 Quota impairment/(reversal) (8,993 - 12,551 - StaffExpenses 41,519 23,289 4,291 2,602 Wages & Salaries 1,503,377 665,176 1,240,920 525,395

1,730,753 711,994 1,416,222 544,491 Vehicle Expenses 26,904 4,456 31,043 11,583 Trading Purchases 261,988 - 291,102 - Directors Expenses 131,715 - 118,096 - Repairs and MaintenanceBuildings, Property and Plant 66,585 48,936 51,143 36,740 Cleaning & Laundry 51,437 6,713 46,459 4,063 ComputerConsumables 12,622 8,722 3,907 3,907 Photocopierexpenses 17,405 8,407 12,192 5,204 Security 3,061 2,049 796 536 WebsiteMaintenance 3,384 3,064 3,382 2,829

154,494 77,891 117,879 53,279 Administration ExpensesAdministration&SundryExpenses 2,622 1,532 1,865 312 Audit Fees 46,534 29,034 46,634 31,134 Credit Card & Bank Fees 10,699 1,229 9,286 1,141 Light,Power&Heating 70,737 10,780 68,747 8,569 Postage, Freight & Courier 5,446 5,286 1,117 778 Stationery 9,625 6,378 4,977 2,024 Subscriptions 11,987 8,314 7,204 6,214 Telephone & Tolls 26,744 19,578 18,137 13,627

184,394 82,131 157,967 63,799 Standing ChargesInsurance 57,822 36,282 59,998 36,160 Rent 28,028 - 20,455 - Rates 39,990 36,282 39,654 35,965

125,840 72,564 120,107 72,125 DepreciationLand & Buildings 30,839 28,824 53,650 30,041 Furniture & Fittings 32,916 3,064 40,202 1,969 Plant & Equipment 45,682 6,602 55,293 8,845 MotorVehicles 1,315 1,276 3,269 3,269

110,752 39,766 152,414 44,124 Total Expenses 2,994,661 1,205,940 2,712,989 1,051,488

)

18


7. Taxation

Onthe20thMarch2005theTrustbecameacharitableentityforincomeTaxpurposes.

8. Lease Commitments

(a) Capital commitments-Thereisnocapitalcommitmentatbalancedate,(2013:nil).(b) Lease commitments -TheGroupleasesmotorvehicles,pointofsaleequipmentandphotocopiersonfixedmonthly

payments.TheGrouphascommitmentsforminimumleasepaymentsinrelationtonon-cancellableoperatingleases,thesearepayableasfollows:

Group 2014

$

Parent 2014

$

Group 2013

$

Parent 2013

$Within one year 53,440 - 15,394 - Laterthanoneyearbutnotlaterthanfiveyears 25,375 - - - Laterthanfiveyears - - - - Total 78,815 - 15,394 -

Inadditiontotheabove,theGroupleases:(a) thelandonwhichtheMountainHouseisbuiltfromtheDepartmentofConservationfor33yearsupto23June2028.Rent

payableforthelanduseis2.5%ofthegrossannualturnoverofthebusinessconductedontheland.(b) premisesat41HunterStreet,Hawerawhichhastworightsofrenewaleffectiveon16September2018and16September

2023.Annualrentissetat$95,000perannum.Rentreviewsareontheleaserenewaldates.

9. Events After Balance Date

Therearenoeventssubsequentto31March2014thatrequiredisclosureoradjustmentinthesefinancialstatements(2013:nil).

10. Related Parties

Duringtheyear,theTrustmadenetpaymentsonbehalfofitssubsidiariesNgāti Ruanui Fishing Limited, Ngāti Ruanui Holdings Corporation Limited, Ngāti Ruanui Holdings Operating Company Limited and Ngāti Ruanui Tahua Limited relating to normal operatingexpensesincurredinthenormalcourseofitsrespectiveoperations.TheTrustalsochargedtoeachofitssubsidiariesmanagementfeesof$6,000annuallyforadministrationandaccountingservices.Asaresultofthesetransactions,theTrustisowed/(owes)relatedpartiesamountsasdetailedbelow:

Ngāti Ruanui Fishing LimitedOpening Balance - 142,014 - 77,732 Totalpaymentsmadeonbehalf - (164,908 - 38,282 Dividend Received - 20,000 - 20,000 Management fee - 6,000 - 6,000 Closing Balance - 3,106 - 142,014 Ngāti Ruanui Holdings Corporation LimitedOpening Balance - 820,906 - 288,306 Total(repayments)/paymentsmadeonbehalf - (945,654 - (623,400Dividend Received - 1,150,000 - 1,150,000 Management fee - 6,000 - 6,000 Closing Balance - 1,031,252 - 820,906 Ngāti Ruanui Tahua LimitedTotalpaymentsmadeonbehalf - 12,856 - - Total (repayments) received - (6,879 - - Closing Balance - 5,977 - -

ThereceivablefromNgāti Ruanui Fishing Limited and Ngāti Ruanui Holdings Corporation Limited are interest-free anddueondemand.

DebbiePacker(Kaiarataki)isa50%shareholderin‘AddedValueIncLimited’.Duringtheyearthisbuildingfirmprovidedbuildingprojectmanagementservicesandbuildingmaterialstotalling$37,118(2013:$5,232).Te Rūnanga o Ngāti Ruanui consists of 16 hapūand9marae.TheTrustmakesaperannumgranttoeachMarae,anumberofMaraehavebeengrantedadvancepaymentofthisgranttomeetthecostofcapitalworks.Thebalanceshownistheprepaidamountoutstandingatbalancedate.

)

)

)

)

19


11. Capital Commitments

Therearecapitalcommitmentsatbalancedateof$2,286,676(2013:$2,738,100).ThisrelatestoanagreementbyNgāti Ruanui HoldingsCorporationLimitedtocommitcapitalintothefollowinginvestmentfunds.Itisunlikelythatthecommittedfundswillbecalledintotal.ThecommittmenttoTaurusResourcesFundNo.2is$US500,000.

Commitment

$

Called at Balance

$

2014 Commitment outstanding

$

2013 Commitment outstanding

$DirectCapitalIVLimitedPartnership 4,200,000 2,152,059 2,047,941 2,388,464 TaurusResourcesFundNo.2 577,634 338,899 238,735 349,636

4,777,634 2,490,958 2,286,676 2,738,100

(TaurusResources$USconversionrateused0.8656)

12. Contingent Liabilities

Therearenocontingentliabilitiesatbalancedate(2013:nil).

13. Investments in subsidiaries

TheTrust’sinvestmentinsubsidiariescomprisessharesatcost.Subsidiariesatbalancedatecomprise:

Name of entity Principal activities 2014 2013Ngāti Ruanui Tahua Limited (NRTL) Health and Education 100% 0%

Ngāti Ruanui Fishing Limited (NRFL) Management of Fishing Quota 100% 100%

Ngāti Ruanui Holdings Corporation Limited (NRHCL) Investment 100% 100%NRHCLinvestmentinsubsidiariesatBalanceDatecomprise:Ngāti Ruanui Holdings Operating Company Limited Trading 100% 100%

Allsubsidiarieshaveabalancedateof31MarchandareincorporatedinNewZealand.

14. Financial Instruments

TheGroupissubjecttoanumberoffinancialriskswhichariseasaresultofitsinvestmentactivities.Tomanageandlimittheeffectsofthosefinancialrisks,theTrusteeshaveapprovedpolicyguidelinesandauthorisedtheuseofvariousfinancialinstruments.Thepoliciesapproved,andfinancialinstrumentsbeingutilisedatbalancedate,areoutlinedbelow.

Currency riskPolicies InvestmentsheldarecurrentlyinvestedinMoneyMarket,FixedTermInvestments,PrivateEquity,NewZealand,AustralianandInternationalEquityMarkets.AsaresultoftheseinvestmentstheGroupisexposedtofluctuationsinforeigncurrencyexchangerates.ItisGrouppolicynottohedgetheseexposures.

Theseinvestmentsaredenominatedinthefollowingcurrenciesat31March:

Group 2014

$

Parent 2014

$

Group 2013

$

Parent 2013

$NewZealanddollar 35,009,608 1,409 32,062,367 2,148 Australian dollar 6,995,206 - 8,384,566 - United States of America dollar 3,956,712 - 3,410,944 - Euro 1,697,477 - 1,397,662 - Great Britain pounds 481 - 453 - Canadian Dollar 5,619 - 14,716 - SwedishKrona 122,723 - 130,946 - Total investments 47,787,826 1,409 45,401,654 2,148

20


14. Financial Instruments (continued)

Interest rate risk PoliciesTheGroup’spolicyistohold10%-70%ofitsinvestmentsininterestbearingmoneymarketinvestmentsandfixedinterestinvestments.TheGroupdoesnotuseinterestrateswapsofforwardrateagreementstomanageitsinterestraterisk.

Credit riskPolicies TheGroupincurscreditriskfromtransactionswithtradereceivablesandfinancialinstitutionsinthenormalcourseofitsbusiness.FinancialinstrumentswhichpotentiallysubjecttheGrouptoconcentrationsofcreditriskconsistprincipallyofbankbalances,receivablesandinvestments.Amountsowedbytradereceivablesareunsecured.TheGroupdoesnotrequireanycollateralorsecuritytosupporttransactionswithfinancialinstitutions.Thecounterpartiesusedforbankingandinvestmentactivitiesarefinancialinstitutionswithhighcreditratings.

Fair valueThefollowingmethodsandassumptionsareusedtoestimatethefairvaluesofeachmajorclassoffinancialinstrumentforwhichitispracticaltoestimate. BankBalances,Investments,DepositsandCreditors:Carryingamountisequivalenttofairvalue. Sharesinothercompanies:Carryingamountisequivalenttothefairvalueasdeterminedonabasisconsistentwiththatnoted

intheStatementofAccountingPolicies.

Repricing analysisThefollowingtablesidentifytheperiodsinwhichinterestratesaresubjecttoreviewoninterestbearingfinancialassetsandliabilities,andprovidesthecurrentweightedaverageinterestrateofeachitem.Tradereceivables,tradecreditors,sundryreceivablesandcreditorshavenotbeenincludedinthetableastheyarenotinterestratesensitive.Therearenoliabilitieswhichareinterestratesensitive.

Group 2014Current

$1 - 2 years

$2 - 5 years

$> 5 years

$non sensitive

$Total

$AssetsBank 0.0%-3.00% 524,158 - - - - 524,158 Investments 7.65% 21,666,542 1,697,179 1,074,000 550,050 22,800,055 47,787,826 Total assets 22,190,700 - 1,074,000 550,050 22,800,055 48,311,984

Group 2013$ $ $ $ $ $

AssetsBank 0.0%-3.15% 977,306 - - - - 977,306 Investments 2.92% 18,197,611 - 4,205,832 5,106,068 17,892,143 45,401,654 Total assets 19,174,917 - 4,205,832 5,106,068 17,892,143 46,378,960

Parent 2014Current

$1 - 2 years

$2 - 5 years

$> 5 years

$non sensitive

$Total

$AssetsBank 0.0%-3.00% 71,706 - - - - 71,706 Investments 1,409 - - - - 1,409Total assets 73,115 - - - - 73,115

Parent 2013$ $ $ $ $ $

AssetsBank 0.0%-3.15% 25,482 - - - - 25,482 Investments 2,148 - - - 2,148Total assets 27,630 - - - - 27,630

Investmentsnon-sensitiverelatetoequityinvestmentswhicharenotaffectedbyinterestratechanges.

21


15. Payable to Ngāti Ruanui Tahua Trust

On27February2014,theTrusteesofNgāti Ruanui Tahua Trust (the “Trust”) resolved to transfer the operations, contracts, obligationsandservicesoftheTrusttotheNgātiRuanuiTahuaLimited(NRTL)withtheobjectiveofcontinuingtheservicesoftheTrusttothemembersofNgātiRuanui.

Atotalof$156,849ofnetassetsweretransferredbytheTrusttoNRTL.WhiletheintentionoftheTrusteesistotransferthenetassetsfornilconsideration,aHighCourtresolutioniscurrentlybeingobtainedtofinalisetheTrustees’resolutionsurroundingthesettlementoftheseassets.UntilsucharesolutionisobtainedthevalueofthenetassetstransferredhasbeenpresentedinNRTL’sfinancialstatementsas“PayabletoNgātiRuanuiTahuaTrust”.

On1March2014,NRTLtookovertheoperationsoftheTrustwhichincludedanearlychildhoodeducationoperations,amedicalpracticeandsocialdevelopmentservices.

Thefollowingtablesummarisestheconsiderationpaidandfairvalueofassetsacquiredandliabilitiesassumedattheacquisitiondate:

$000’sTotal consideration 156Less:RecognisedamountsofidentifiableassetsacquiredandliabilitiesassumedCash 204Receivables 56FixedAssets 65Revenue received in advance (70Employeerelatedliabilities (92Otherliabilities (7Totalidentifiablenetassets 156

Goodwill/Discountonacquisition -

IntheeventthatHighCourtapprovalisobtainedallowingthetransferatnilconsiderationagainwillberecognisedinthestatementoffinancialperformanceinafutureyear.

)))

1021,

10 to 21

24

Ngāti Ruanui Holdings Corporation Limited

ANNUAL REPORT

For the year ended 31st March 2014

Contents 26 Chairpersons Report

28 Ngāti Ruanui Stratford Mountain House








26

Ngāti Ruanui Holdings Corporation LimitedANNUAL REPORTFor the year ended 31st March 2014

Tēnā koutou e nga mana, e nga reo, e nga karangatanga maha, uri noa i nga hapū o Ngāti Ruanui, Tēnā koutou katoa.

It is again a privilege for Ngāti Ruanui Holdings Corporation Limited to present its annual report. I pay homage to our tupuna of Ngāti Ruanui. “He Tangata too mua, He Whenua too muri”.

Since settlement Ngāti Ruanui Holdings Corporation Limited has sought to develop Ngāti Ruanui’s investment culture and investment capacity. This investment culture is foundered on the vision, values and Investment beliefs of Ngāti Ruanui (as determined by the Pou Tuara) to provide a suitable Ngāti Ruanui investment framework. This framework has evolved to focus on a direct, prudent and long-term investment approach, which is controlled by Ngāti Ruanui to achieve the vision and the mission of Te Rūnanga o Ngāti Ruanui.

This investment framework has required increased size and scale to make it feasible. In recognition of our tribal connections Ngāti Ruanui and Nga Rauru have come together to collectively and collaboratively manage each iwi’s investment assets and we have formed a joint-venture investment management company called Taranaki Capital Partners Limited. The directors of this company are myself and Ta Mark Solomon.

Investment Returns

It is pleasing to report Ngāti Ruanui Holdings Corporation Limited achieved a net surplus for the year of $2,739,360 just behind that achieved last year of

$2,990,660. Last year’s surplus benefitted greatly from the equity markets recovery especially in New Zealand and Australia.

The uncertainty with respect to European sovereign debt, as well as Chinese and US growth, appears to be dissapating, but the markets are still nervous as the Middle East political uncertainy continues to spread. Investment markets are likely to be more volatile over the next year, than they have been for the past two years.

Investment Portfolio

As has been mentioned in previous years Ngāti Ruanui Holdings Corporation Limited has taken advantage of the risk-adjusted outperformance of cash and bonds versus equities and other growth assets since settlement. We increased our equity weighting from 2012 and this has benefited returns over the past two years. The company has improved its growth investment weighting to increase returns and to structure the portfolio to suitably benefit future generations.

This increased allocation to growth assets has included the equity increase mentioned and this year investments were made into smaller high growth businesses and property.

Property with long-term leases to high quality tenants providing high rental yields is ideally suited to a long-term portfolio such as that of Ngāti Ruanui. Ngāi Tahu and Tainui have had substantial returns from their property investments. Taranaki Capital Partners Limited now provides the scale to allow Ngāti Ruanui to develop a

properly diversified investment property portfolio.

Pathway Ahead

Ngāti Ruanui Holdings Corporation Limited is also seeking direct investments to increase returns and to increase its investment networks. This networking will provide high-quality investment opportunities and will increase the likelihood of bringing these opportunities to South Taranaki to provide employment for our uri and economic advantages for our rohe.

We have co-invested with a small group of investors including Māori groups from the Bay of Plenty in a small niche-market apple variety, which sells at a significant premium to other apples. These apples are grown on Māori land in Hawkes Bay. Investment in niche horticulture provides the opportunity to source other niche horticultural varieties, which we may be able to grow within our rohe.

We are seeking further land use opportunities and we are continuing to work with PKW to find a suitable dairy investment where we may be able to employ and train our people in farming.

Ngāti Ruanui Holdings Corporation Limited continues to operate the Ngāti Ruanui Stratford Mountain House. This provides the iwi with a direct link to our mountain the business operates at a very high standard creating a reputation that all Ngāti Ruanui beneficiaries can be proud of and winning for the second year in a row, a Trip Advisor Award of Excellence, places

CHAIRPERSONS REPORT

27

the Mountain House in the top 10% of all businesses worldwide.

Dividend

The stable income from investments continues to generate sufficient cash funds to provide the Pou Tuara with the ability to deliver the development projects, events, scholarships and sponsorship for the benefit of the current generation of Ngāti Ruanui.

Ngāti Ruanui Holdings Limited has paid a dividend of $1,150,000 (2013 $1,150.000) to Te Rūnanga o Ngāti Ruanui Trust. Being both prudent and conservative in these continuing uncertain times the Directors held this dividend at the same level as previous years.

We are seeking to leverage our investments to provide attractive investment returns as well as employment and economic development opportunities within our rohe. This can only be done through an investment vehicle such as Taranaki Capital Partners Limited, which allows collaborative direct investment.

Nga mihi

Debbie Ngarewa-Packer

Director/Chair

He aha te tohu o te Rangatira – he Manāki! Manākitanga (hospitality) is the core value that drives the way we do business at the Mountain House. Manākitanga is more than just being an excellent host, it’s also about establishing the responsibilities of the host and implies guardianship of the manuhiri (visitors), whenua (land), taonga (treasures), and tangata (the people).

Ngāti Ruanui own and operate one of the most iconic businesses in Aotearoa. Purchasing the Mountain House has helped to re-establish the unique and intimate relationship the Iwi

have with our Maunga and awa within the takiwa o Ngāti Ruanui.

As well as the Mountain Café, award winning licensed Mountain Restaurant and Mountain Bar, the Mountain House offers luxurious and elegant alpine accommodation and is now recognised as a great place for gatherings that range from an intimate wedding to conferences and functions.

Within walking distance our manuhiri will also find easy grade walking tracks and experience alpine flora and birdlife.

Our vision is to further develop the tourism profile of the Iwi. Tourism

contributes $17.1 billion to Aotearoa GDP and supports 110,800 full time workers, which equates to 5.7% of our country’s overall workforce. Developing the Mountain House enables Ngāti Ruanui to promote our values and share one of the tribes most precious treasures along with our stories and our traditions.

This tourism venture allows Ngāti Ruanui to not only host visitors, but to re-connect with the environment and provide rich experiences for now and for generations to come.

Ngāti Ruanui Stratford Mountain House

29

Ngāti Ruanui Holdings Corporation LimitedCompany DirectoryFor the year ended 31st March 2014

Nature of Business Investment Incorporated 30June2006 CompanyNumber 1824549 IRDNumber 94-377-277 RegisteredOffice 151GloverRoad Hawera Taranaki Directors DebbiePacker(Chairperson) Taari Nicholas Mark Solomon Bankers ASB Bank Hawera Auditors PWC NewPlymouth Solicitors Govett Quilliam NewPlymouth Shareholders Te Rūnanga o Ngāti Ruanui Trust 1

30

Ngāti Ruanui Holdings Corporation LimitedDirector’s ReportFor the year ended 31st March 2014

TheBoardofDirectorspresenttheirAnnualReportincludingfinancialstatementsofthecompanyfortheyearended31March2014.

Asrequiredbysection211oftheCompaniesAct1993wedisclosethefollowinginformation:ThenatureofthebusinessistoholdinvestmentsonbehalfofTeRūnanga o NgātiRuanui.Thenatureofthecompany’sbusinesshasnotchangedduringtheyearunderreview.

FinancialstatementshavebeenpreparedinaccordancewithacceptedpracticesusedinthepreparationoffinancialstatementsbasedonNewZealandFinancialReportingStandards(NZFRS).

The Board received no notices during the year from directors that they had an interest in any transactions or proposed transactionsbythecompany.

Thefollowingdirectorsremunerationorotherbenefitswerepaidduringtheyear:DebbiePacker $37,000Taari Nicholas $25,000Mark Solomon $25,000 $87,000

Noemployeesreceivedremunerationandanyotherbenefitsofmorethan$100,000duringtheperiod.

Nodonationsweremadebythecompanyduringtheperiod.

Thefollowinghelddirectorshipsduringthefinancialyear:DebbiePacker(Chairperson) CurrentTaari Nicholas Current Mark Solomon Current

TheCompanypaidadividendof$1,150,000duringtheyear.

Itisnotproposedtomakeanytransfertoreserves.

Thecompanyhasnotenteredintoanyindemnityorinsuranceinrespectofanyliabilitythatthedirectormayincurinhiscapacityasdirector.

Theboardreceivednonoticesduringtheyearfromthedirectorrequestingtousecompanyinformationreceivedintheircapacityasdirectorthatwouldnothavebeenotherwiseavailabletothem.

Nodirectoracquiredordisposedofanyinterestinsharesinthecompanyduringtheyear.

31

Ngāti Ruanui Holdings Corporation LimitedDirector’s ReportFor the year ended 31st March 2014

2014 $

2013 $

SummaryRetainedEarningsatbeginningofyear 6,409,971 4,569,311 Net Surplus for the year 2,739,360 2,990,660 Dividend Paid (1,150,000 (1,150,000 Retained Earnings at end of year 7,999,331 6,409,971

State of Affairs

Thestateofaffairsat31Marchwere: Assets totalled 49,818,311 48,032,198

These were financed by:Shareholders Funds of 48,761,232 47,171,872 Liabilitiesof 1,057,079 860,326

49,818,311 48,032,198

General

IntheDirectors’opinion,thecurrentfinancialpositionofthecompanyisconsideredtobesatisfactory.

The Directors of NgātiRuanuiHoldingsCorporationLimitedauthorisedthesefinancialstatementsforissueonthebelowdate.

ForandonbehalfoftheBoard

_________________________________ Director

_________________________________ Date 24/9/14

))

32

Ngāti Ruanui Holdings Corporation LimitedStatement of Financial PositionFor the year ended 31st March 2014

Note 2014 $

2013 $

Current AssetsASB Bank 186,745 779,913 GSTReceivable,net 1,893 - AccountsReceivable 8,603 34,247 Portfolio Investments current portion 21,665,133 19,172,769

21,862,374 19,986,929

Non Current AssetsPortfolio Investments 26,121,283 26,226,737 Ngāti Ruanui Holdings Operating Company Limited Shares 200,000 330,000

ReceivablefromNgāti Ruanui Holdings Operating Company Limited 2 24,887 1,488,532 Buildingandbuildingimprovements 1,609,767 -

27,955,937 28,045,269

Total Assets 49,818,311 48,032,198

CurrentLiabilitiesAccountsPayable 25,826 39,184 PayabletoNgāti Ruanui Fishing Limited 2 - 236PayabletoTRoNRT 2 1,031,253 820,906

1,057,079 860,326

Net Assets 48,761,232 47,171,872

Equity

Share Capital 41,200,000 41,200,000 Retained Earnings 7,561,232 5,971,872

48,761,232 47,171,872


_________________________________ Director

_________________________________ Date

The Statement of Accounting Policies and the accompanying notes form part of the Finanacial Statement

24/9/14

33

Ngāti Ruanui Holdings Corporation LimitedStatement of Movements in EquityFor the year ended 31st March 2014

Note 2014 $

2013 $

Share CapitalOrdinarysharesatthebeginningoftheyear 4 41,200,000 41,200,000 Contributions - - Ordinary shares at the end of the year 41,200,000 41,200,000

Retained earnings

Retainedearningsatthebeginningofyear 5,971,872 4,131,212

Net surplus 2,739,360 2,990,660 Totalrecognisedrevenueandexpenses 2,739,360 2,990,660

Dividend paid (1,150,000 (1,150,000

Retained earnings at the end of year 7,561,232 5,971,872

Total shareholders’ equity 48,761,232 47,171,872


))

34

Ngāti Ruanui Holdings Corporation LimitedStatement of Financial PerformanceFor the year ended 31st March 2014

Note 2014 $

2013 $

Investment IncomeDividends International equities 647,266 330,162 Dividends Australasian equities 1,598 13,133 Interest Received 314,802 452,466 InterestReceivedFixedInterest 583,233 766,047 Foreign Currency (losses) / gains (25,213 7,531 Property Rental 2,000 - Revaluations-FixedInterest(losses) (135,448 (217,680Revaluations Australasian equities - gains 1,171,524 1,543,998 Revaluations International equities - gains 782,253 760,133

3,342,015 3,655,790

ExpenditureProfessional and Employee ExpensesAdvisory, Management Fees 267,962 110,512 Auditors Fees 4,500 4,000 Bank Charges 93 99 Management Fees 6,750 6,900 Legal 9,679 - Annual Report & AGM costs 2,000 1,000 Professional fees 1,500 3,019 Subscriptions 90 91 Salaries 41,691 16,519

334,265 142,140Directors ExpensesDirectors Costs - 65 Directors Fees 87,000 87,000 Directors Training 12,500 - Directors Travel 1,231 2,781 Insurance - Indemnity 3,144 3,144

103,875 92,990Property ExpensesMaintenance-feepaidtoNRHCLtocoverbuildingMaintenance 32,500 - Depreciation 2,015 -

34,515 - Impairment in carrying value of investment in Ngāti Ruanui Holdings Operating Company Limited 130,000 430,000 Totalexpenditure 602,655 665,130 Net Surplus for the year 2,739,360 2,990,660


))

)

35

Ngāti Ruanui Holdings Corporation LimitedNotes to the Financial StatementsFor the year ended 31st March 2014

1. Statement of Accounting Policies

Reporting EntityThefinancialstatementspresentedhereareforNgātiRuanuiHoldingCorporationLimited(the“Company”).Theycovertheperiod1April2013to31March2014.ThefinancialstatementshavebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct1993,theFinancialReportingAct1993andNewZealandgenerallyacceptedaccountingpractice.

TheCompanyhaschosennottoadopttheNewZealandEquivalentstoInternationalFinancialReportingStandards(“NZIFRS”).ThedecisionnottoadoptisconsistentwiththeexemptionprovidedbyAccountingStandardsReviewBoard(“ASRB”)Release9,issuedinSeptember2007.ASRBRelease9providesachoicetocertainqualifyingentitiestoeitheradoptNZIFRSortocontinuetoapplyNewZealandFinancialReportingStandards(“NZFRS”).TheCompanyisaqualifyingentityonthebasisthatitisnotanissuer,isnotrequiredtofilefinancialstatementswiththeRegistrarofCompaniesundersection19oftheFinancialReportingAct1993andisnotconsideredlarge(lessthan$20mrevenueandlessthan50full-timeemployeeequivalents).

Measurement BaseTheaccountingprincipalsrecognisedasappropriateforthemeasurementandreportingofearningsandfinancialpositiononahistoricalbasishavebeenfollowed.

Specific Accounting PoliciesThefollowingspecificaccountingpolicieswhichmateriallyeffectthemeasurementoffinancialperformanceandfinancialpositionhavebeenapplied:

Changes to financial reporting requirementsTheCompanyhasadoptedExternalReportingBoardStandardA1AccountingStandardsFramework(For-profitEntitiesUpdate)(XRBA1).XRBA1establishesafor-profittierstructureandoutlineswhichsuiteofaccountingstandardsentitiesindifferenttiersmustfollow.TheCompanyiseligibletoandhaselectedtoreportinaccordancewithTier4For-profitAccountingStandards(NZOldGAAP)onthebasisthatitisnotpubliclyaccountable,itisnotlarge(asdefinedinXRBA1),itisnotrequiredtofilefinancialstatementsunderSection19oftheFinancialReportingAct1993anditwasapplyingOldGAAPat30June2011.ThereisnoimpactonthecurrentorprioryearfinancialstatementsoftransitioningtothenewAccountingStandardsFramework.

TheXRBisexpectedtoremovetheOldGAAPsuiteofaccountingstandardsforperiodsbeginningonorafter1April2015.ThereforeitisexpectedthattheCompanywillhavetotransitiontoNZIFRSReducedDisclosureRegimeforitsannualperiodending31March2016.UnderNZIFRSRDRtheCompanywillhavetoprepareastatementofcashflows.

Revenue Revenuecomprisesthefairvaluefortheconsiderationreceivedorreceivableforinterest,dividendsandmarketvaluemovementsininvestmentsheld.Revenueisrecognisedasfollows:(i) Interest income Interestincomeisrecognisedusingtheeffectiveinterestmethod.(ii) Dividend income Dividendincomeisrecognisedwhentherighttoreceivepaymentisestablished.(iii) Revaluation income on investments Changesinthefairvalueofinvestmentsarerecognisedintheperiodinwhichtheyarise. Accounts ReceivableAccountsReceivablearestatedattheirestimatedrealisablevalue.Debtsconsidereduncollectiblearewrittenoff.

TaxationTheCompanyhascharitablestatusfrominception,asconfirmedbytheInlandRevenueDepartmentandisregisteredwiththeCharitiesCommission.Allincomeisthereforeexemptfromtax.Taxreceivablebalancesarerecognisedwhenthereisresidentwithholdingtaxduetoberefunded

Goods and Services TaxThefinancialstatementshavebeenpreparedonaGSTinclusivebasisasNgāti Ruanui Holdings Limited is not registered for GoodsandServicesTax.

InvestmentsInvestmentsinsharesandfixedinterestarecarriedatfairvalueunlesstheyarenotquotedinanactivemarketandtheirfairvaluecannotbereliablymeasuredinwhichcasetheyarerecordedatthelowerofcostandnetrealisablevalue.Thefairvalueofsuchinvestmentsisreliablymeasurablewherethevariabilityinrangeforthereasonablefairvalueestimateisnotsignificantorprobabilitiesofvariousestimateswithintherangeoffairvaluescanbereasonablyassessedandusedinestimatingfairvalues.

Investmentswhicharenotexpectedtoberealisedinthenexttwelvemonthsafterreportingdateareclassifiedasnon-currentinthestatementoffinancialposition.

36


2. Related Parties

TheCompanyisawhollyownedsubsidiaryofTeRūnanga o NgātiRuanuiTrust(TRoNRT).TheCompanyhadpaymentsmadeonitsbehalfbyTRoNRTandmadeadvancestoTRoNRTduringtheyearoffsetbyannualdividendpayment.ThesepaymentsrelatetooperatingexpensesoftheCompany.AsaresulttheCompanyowes$1,031,253toTRoNRTatbalancedate(2013:$820,906).

TRoNRT2014

$2013

$OpeningBalancepayable (820,906 (288,306Total Net Advance to TRoNRT 932,903 610,500 Dividend paid (1,150,000 (1,150,000Management Fee 6,750 6,900 ClosingBalancepayable (1,031,253 (820,906

NRHOCLTheCompanyhasawhollyownedsubsidiaryNgātiRuanuiHoldingsOperatingCompanyLimited(NRHOCL).On18June2010thiswhollyownedsubsidiarycompanypurchasedtheStratfordMountainHouseandcarriedoutextensiverefurbishmentandupgradingbeforereopeningfortradingon27January2011.

ThesepremisesareonDepartmentofConservationlandandtheexistingLeaseagreementexpireson23June2028.ThebuildingwaspurchasedduringtheyearfromNRHOCLasdiscussedinNote3.TheamountresultingfromthesaleagreementwasoffsettothebalancereceivablefromNRHOCL.

OpeningBalancereceivable 1,488,532 955,782 TotalNet(repayments)AdvancesbyNRHCL (1,463,645 532,750 ClosingBalancereceivable 24,887 1,488,532

FollowingthetransferofthebuildingfromNRHCL,theCompanystartedpaying$182,500perannumtoNRHCLasaservicefeeforthegeneralmanagementoftheMountainHousebuilding.ThiswasrecognisedbytheCompanyasanexpenseinthestatementoffinancialperformance.

TheCompanyprovidesadvancestoNRHOCLtosupportitsoperations.AsaresulttheCompanyisowed$24,887toNRHOCLatbalancedate(2012:$1,488,532wasowed).

Thebalancedue(inter-companyinterestfreeadvance)fromtheaboverelatedpartyisreceivableondemand,howeverNRHOCLhasbeenadvisedthatthebalanceisnotexpectedtobecalledwithinthenext12months.

NRFLOpening Balance (236 275,000Repayment/(Advance)interestbearing7.75% 236 (275,236ClosingBalancepayable - (236

The Company made a loan advance to NgātiRuanuiFishingLimitedallowingthatcompanytoinvestinPNFKouraCollectiveLimitedin2012.Theloanearned7.75%interestandwasrepaidduringtheyear.Therewasnointerestincomefromtheloanduringtheyear(2013:$14,016).


PropertyBuildingsandbuildingimprovementsarestatedatcostlessaccumulateddepreciationat1.5%diminishingvalueperannum

Differential reportingTheCompanyisaqualifyingentitywithintheFrameworkofDifferentialReporting.TheCompanyqualifiesonthebasisthatitisnotpubliclyaccountableandthereisnoseparationbetweentheownersandgoverningbody.TheCompanyhastakenadvantageofalldifferentialreportingconcessionsavailable.

Changes in Accounting Policies Therehavebeennochangesinaccountingpoliciesduringtheyear.Allpolicieshavebeenappliedonabasisconsistentwiththoseusedinpreviousyears.

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3. Building and Building improvements On18March2014theCompanypurchasedtheMountainHousebuildingandimprovementsfromNRHOCL.Theassetswererecognisedatcostof$1,611,781.

At cost 1,611,781 Less accumulated depreciation 2,014

1,609,767

4. Share Capital

Asat31March2014therewas1shareissuedandfullypaid(2013:1).Allordinarysharesrankequallywithonevoteattachedtoeachfullypaidordinaryshare.


Therearenocontingentliabilitiesatbalancedate(2013:nil).


Thereisacapitalcommitmentatbalancedateof$2,047,941(2013:$2,388,464).Thisrelatestoanagreementtocommitcapitalofupto$4,200,000toDirectCapitalIVLimitedPartnershipofwhich$2,152,059hadbeencalledbyBalanceDate(2013:$1,811,536).

Thereisacapitalcommitmentatbalancedateof$US206,649($NZ238,735)(2013:$US292,460:$NZ349,636).Thisrelatestoanagreementtocommitcapitalofupto$US500,000($NZ577,634)toTaurusResourcesFundNo.2ofwhich$US293,351($NZ338,899)hadbeencalledbyBalanceDate(2013:$US207,540;$NZ248,114).

7. Events After Balance Date

Therearenoeventssubsequentto31March2014thatrequiredisclosureoradjustmentinthesefinancialstatements(2013:nil).

PricewaterhouseCoopers, Level 7, The PwC Centre, 54 Gill Street, PO Box 144, New Plymouth 4340, New Zealand T: +64 6 757 5477, F: +64 6 757 9497, pwc.co.nz

Independent Auditors’ Report to the shareholders of Ngati Ruanui Holdings Corporation Limited Report on the Financial Statements We have audited the financial statements of Ngati Ruanui Holdings Corporation Limited (the “Company”) on pages 4 to 8, which comprise the statement of financial position as at 31 March 2014, the statement of financial performance and the statement of movements in equity for the year then ended, and the notes to the financial statements that include a summary of significant accounting policies and other explanatory information. Directors’ Responsibility for the Financial Statements The Directors are responsible for the preparation of these financial statements in accordance with generally accepted accounting practice in New Zealand and that give a true and fair view of the matters to which they relate and for such internal controls as the Directors determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand) and International Standards on Auditing. These standards require that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider the internal controls relevant to the Company’s preparation of financial statements that give a true and fair view of the matters to which they relate, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Other than in our capacity as auditors we have no relationship with, or interests in, Ngati Ruanui Holdings Corporation Limited.

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Independent Auditors’ Report Ngati Ruanui Holdings Corporation Limited Opinion In our opinion, the financial statements on pages 4 to 8:

(i) comply with generally accepted accounting practice in New Zealand; and

(ii) give a true and fair view of the financial position of the Company as at 31 March 2014, and its financial performance for the year then ended.

Report on Other Legal and Regulatory Requirements We also report in accordance with Sections 16(1)(d) and 16(1)(e) of the Financial Reporting Act 1993. In relation to our audit of the financial statements for the year ended 31 March 2014:

(i) we have obtained all the information and explanations that we have required; and

(ii) in our opinion, proper accounting records have been kept by the Company as far as appears from an examination of those records.

Restriction on Distribution or Use This report is made solely to the Company’s shareholders, as a body, in accordance with Section 205(1) of the Companies Act 1993. Our audit work has been undertaken so that we might state to the Company’s shareholders those matters which we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our audit work, for this report or for the opinions we have formed. Chartered Accountants New Plymouth 24 September 2014

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Ngāti Ruanui Fishing Limited

ANNUAL REPORT


Contents42 Chairpersons Report








42

Ngāti Ruanui Fishing LimitedANNUAL REPORTFor the year ended 31st March 2014

CHAIRPERSONS REPORTREPORT ON FISHERIES SETTLEMENT ASSETS

This Annual Report is provided as good businesspracticeandincompliancewiththereportingrequirementsoftheconstitution of Ngāti Ruanui Fishing Limited and the Māori Fisheries Act 2004 and covers the period 1 April 2013 to 31 March2014.Thankyoufortakingthetimetoreadthisreport.

1. Settlement QuotaTheSettlementQuotaheldbyNgāti RuanuiFishingLimitedatthebeginningoftheyear(1April2013)was472.897metric tonnes and this had increased to 590.220metrictonnesasat31March2014.Themarketvalueofthisquota(forreportingpurposes)hadincreasedby$218,282atbalancedateto$2,605,958,thisincreasebeingasaresultofadditional quota allocation during the year.

2. PerformanceTotal income increased from $273,125 last year to $424,941 this year as the result of increased ACE returns from the IwiCollectivePartnershipandICPKouraCollective.

Operatingexpenditurethisyearof$75,118wasslightlydownonthatrecorded last year of $82,960 as the resultofnointerestbeingpayableontheshorttermloan(raisedtoenableinvestment in ICP Koura Collective) whichwasrepaidinfullintheprioryear.The net surplus recorded this year of $28,816isdownonthepreviousyearof$177,614 this as a result of the need to writedowntheinvestmentinAotearoaFisheriesLimitedby$330,000.

3. InvestmentsInvestment of Ngāti Ruanui Fishing Limited moneyTherewasnoNgāti Ruanui Fishing Limitedmoneyinvestedexternallyforthisreportingperiod,thefundsbeingheldintheASBbankaccount$71,013(2013:$150,376).Ngāti Ruanui Fishing Limited has an investmentof$107,125inacrayfishprocessingandexportingbusiness(ICPKouraCollective).As part of Settlement funds an investment is held in Aotearoa Fisheries Limitedthisbeingvaluedat$1,248,368(2013:$1,578,368).Settlement Quota InterestsTherewerenoregisteredinterestsagainst the Quota Shares of Ngāti Ruanui FishingLimitedinthisreportingperiod.Income Shares tradedTherewerenoIncomeSharestraded,sold,exchangedoracquiredinthisreportingperiod.Settlement Quota tradedTherewasnoSettlementQuotatraded,soldorexchangedinthisreportingperiod.Registered Interest on Settlement QuotaTherewerenoregisteredinterestsbywayofcaveatormortgageplacedoverthe Settlement Quota in this reporting period.

4. Interactions between Ngāti Ruanui Fishing Limited and Group membersNgāti Ruanui Fishing Limited reported quarterly in this reporting period as is required under the Deed of Trust of Te Rūnanga o NgātiRuanui.Ngāti Ruanui Fishing Limited also attended the AGM

held15thDecember2013.Therewerenootherformalinteractionsinthisreportingperiod.

5. Annual Plan Review and Projected PerformanceThe Annual Plan for the period 1 April 2013to31March2014projectedaprofitof $133,836 and the company achieved aprofit(beforeextraordinaryinvestmentwritedown)of$358,816(reasonsexplainedin2.above).Ngāti Ruanui FishingLimitedisprojectingaprofitof$100,141 for the period 1 April 2014 to 31March2015.(i) Ngāti Ruanui Fishing Limited intends

to:• monitor the sale of ACE derived from

settlementquotaviatheICPwhichmanagesthefishingquotaonitsbehalf.

• reorganise the settlement quota bybuying,exchangingandsellingsettlementquotainaccordancewiththeActasopportunitiesarise.

• monitor the performance of ICP KouraCollective.

6. Constitutional AmendmentsTherewerenochangesmadetoandcurrently no proposal to amend the constitution of Ngāti Ruanui Fishing Limited.

Pat RangihaeataDirector

43

Ngāti Ruanui Fishing LimitedCompany DirectoryFor the year ended 31st March 2014

Nature of Business Fishing Quota Company

Incorporated March 6, 2006

CompanyNumber 1773938

IRDNumber 92-979-954

RegisteredOffice 151GloverRoad Hawera Taranaki

Directors PatRangihaeata(appointed26February2012)

Bankers ASB Bank Hawera

Auditors PWC NewPlymouth

Solicitors Govett Quilliam NewPlymouth

Shareholders Te Rūnanga o Ngāti Ruanui Trust 16

44

Ngāti Ruanui Fishing LimitedDirector’s ReportFor the year ended 31st March 2014

TheBoardofDirectorspresenttheirAnnualReport,includingfinancialstatementsofthecompany,fortheyearended31March2014.

Asrequiredbysection211oftheCompaniesAct1993wedisclosethefollowinginformation:

Thenatureofthebusinessisquotamanagementservices.Thenatureofthecompany’sbusinesshasnotchangedduringtheperiodunderreview.

Financialstatementshavebeenpreparedinaccordancewithpracticesusedinthepreparationoffinancialstatementsforpreviousfinancialperiods.

The Board received no notices during the year from directors that they had an interest in any transactions or proposed transactionsbythecompany.

Thefollowingdirectorsremunerationorotherbenefitswerepaidduringtheyear:Pat Rangihaeata $ 25,000 $ 25,000

Noemployeesreceivedremunerationandanyotherbenefitsofmorethan$100,000duringtheperiod.

Nodonationsweremadebythecompanyduringtheperiod.

TheDirectordeclaredthatadividendof$75,000bepaidduringtheyearunderreview.

Itisnotproposedtomakeanytransfertoreserves.

Thecompanyhasindemnityandliabilityinsuranceinrespectofanyliabilitythatthedirectormayincurinhiscapacityasdirector.

Theboardreceivednonoticesduringtheyearfromthedirectorrequestingtousecompanyinformationreceivedintheircapacityasdirectorthatwouldnothavebeenotherwiseavailabletothem.

Nodirectoracquiredordisposedofanyinterestinsharesinthecompanyduringtheyear.

45

Ngāti Ruanui Fishing LimitedDirector’s ReportFor the year ended 31st March 2014

2014 $

2013 $

Trading ResultsNet Surplus for the year 28,816 177,614 Opening Retained Earnings 4,046,718 3,919,104 LeavingAvailableforAppropriation 4,075,534 4,096,718 Dividend Paid (75,000 (50,000Share Capital 1 1 LeavingAvailableforAppropriation 4,000,535 4,046,719

State of Affairs

Thestateofaffairsat31Marchwere:

Assets totalled 4,033,116 4,223,782

These were financed by:Shareholders Funds of 4,000,535 4,046,719 Liabilitiesof 32,581 177,063

4,033,116 4,223,782

General

IntheDirector’sopinion,thecurrentfinancialpositionofthecompanyisconsideredtobesatisfactory.

The Director of NgātiRuanuiFishingLimitedauthorisedthesefinancialstatementsforissueonthebelowdate.


_________________________ Director

_________________________ Date 22/9/14

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Ngāti Ruanui Fishing LimitedStatement of Financial PositionFor the year ended 31st March 2014

Note 2014 $

2013 $

Current Assets

ASB Bank 71,013 150,376 AccountsReceivable 651 - ReceivablefromNgāti Ruanui Holdings Corporation Limited 2 - 236

71,664 150,612

Non Current Assets

Investment in Unlisted Shares - Aotearoa Fisheries Ltd 3 1,248,368 1,578,368 Fish Quota Holdings 3 2,605,958 2,387,676 Investment in ICP Koura Collective 3 107,125 107,125 Investment in Deep Water Group Limited 3 1 1

3,961,452 4,073,170

Total Assets 4,033,116 4,223,782

Current Liabilities

AccountsPayable 7,160 6,418 GSTPayable 22,315 28,631 PayabletoTeRūnanga o Ngāti Ruanui Trust 2 3,106 142,014

32,581 177,063

Net Assets 4,000,535 4,046,719

EquityShare Capital 1 1 Retained Earnings 4,000,534 4,046,718

4,000,535 4,046,719


_________________________ Director

_________________________ Date


22/9/14

47

Ngāti Ruanui Fishing LimitedStatement of Movements in EquityFor the year ended 31st March 2014

Note 2014 $

2013 $

Share CapitalSharecapitalatbeginningofyear 1 1 Share capital at end of year 8 1 1

Retained earnings

Retainedearningsatthebeginningofyear 4,046,718 3,919,104

Net surplus 28,816 177,614 Totalrecognisedrevenueandexpenses 28,816 177,614

Dividend paid 75,000 50,000

Retained earnings at the end of year 4,000,534 4,046,718

Total shareholders’ equity 4,000,535 4,046,719


48

Ngāti Ruanui Fishing LimitedStatement of Financial PerformanceFor the year ended 31st March 2014

Note 2014 $

2013 $

Income 4 424,941 273,125

424,941 273,125

OperatingExpenses 5 75,118 82,960 (Reversal of previous impairment) / Impairment of Quota, net 3 (8,993 12,551

66,125 95,511

Operating surplus 358,816 177,614

Less: Impairment of investment in AFL shares 3 330,000 -

Net surplus 28,816 177,614


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Ngāti Ruanui Fishing LimitedNotes to the Financial StatementsFor the year ended 31st March 2014


Reporting Entity ThefinancialstatementspresentedhereareforNgātiRuanuiFishingLimited(the“Company”).Theycovertheperiod1April2013to31March2014.ThefinancialstatementshavebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct1993andtheFinancialReportingAct1993.ThefinancialstatementsarepreparedinaccordancewithNewZealandgenerallyacceptedaccountingpractice.

TheCompanyhaschosennottoadopttheNewZealandEquivalentstoInternationalFinancialReportingStandards(“NZIFRS”).ThedecisionnottoadoptisconsistentwiththeexemptionprovidedbyAccountingStandardsReviewBoard(“ASRB”)Release9,issuedinSeptember2007.ASRBRelease9providesachoicetocertainqualifyingentitiestoeitheradoptNZIFRSortocontinuetoapplyNewZealandFinancialReportingStandards(“NZFRS”).TheCompanyisaqualifyingentityonthebasisthattheyarenotissuers,arenotrequiredtofilefinancialstatementswiththeRegistrarofCompaniesundersection19oftheFinancialReportingAct1993andarenotconsideredlarge(lessthan$20mrevenueandlessthan50full-timeemployeeequivalents).

Measurement BaseTheaccountingprinciplesrecognisedasappropriateforthemeasurementandreportingofearningsandfinancialpositiononahistoricalbasisasmodifiedfortherevaluationofcertainassetsasidentifiedinspecificaccountingpoliciesbelow.


Accounts ReceivableAccountsReceivablearestatedattheirestimatedrealisablevalue.Debtsconsidereduncollectiblearewrittenoff.ThereisnoprovisionforDoubtfulDebtsduringtheyearspresented.

TaxationTheCompanyhascharitablestatusfrominception,asconfirmedbytheInlandRevenueDepartmentandisregisteredwiththeCharitiesCommission.Allincomeisthereforeexemptfromtax.Taxreceivablebalancesarerecognisedwhenthereisresidentwithholdingtaxduetoberefunded.

Goods and Services TaxThefinancialstatementshavebeenpreparedonaGSTexclusivebasisexceptforAccountsReceivableandAccountsPayablewhichareshowninclusiveofGoodsandServicesTax.

RevenueRevenuecomprisesthefairvalueoftheconsiderationreceivedorreceivableforinterest,dividendsandmarketvaluemovementsininvestmentsheld.Revenueisrecognisedasfollows: (i) Interestincomeisrecognisedusingtheeffectiveinterestmethod. (ii) Dividendincomeisrecognisedwhentherighttoreceivepaymentisestablished. (iii) AnnualCatchEntitlementincomeisrecognisedwhentherighttoreceivepaymentisestablished. (iv) IncomefromICPKouraCollectiveinvestmentsisrecognisedwhentherighttoreceivepaymentisestablished.

Investments Fishquotasharesreceivedbywayofsettlementarerecognisedattheirfairvalueatthedateofsettlement.Fishquotapurchasedarerecognisedatcost.AdditionalallocationoffishquotasharesarerecognisedatfairvalueatdateofallocationandarerecognisedasincomeintheStatementofFinancialPerformance.Fishquotashareshaveanindefinitelifeandarethereforenotamortised.Theyaretestedannuallyforimpairmentandarecarriedatcostorfairvalueatdateofsettlementorallocationlessaccumulatedimpairment.

Investmentsinsharesarecarriedatfairvalueunlesstheyarenotquotedinanactivemarketortheirfairvaluecannotbereliablymeasured.Thefairvalueofsuchinvestmentsisreliablymeasurablewherethevariabilityintherangeforfairvalueestimateisnotsignificantorprobabilitiesofthevariousestimateswithintherangeoffairvaluescanbereasonablyassessedandusedinestimatingfairvalue.GainsandlossesoninvestmentsarerecognisedintheStatementofFinancialPerformance

Differential reportingTheCompanyisaqualifyingentitywithintheFrameworkofDifferentialReporting.TheCompanyqualifiesonthebasisthatitisnotpubliclyaccountableandthereisnoseparationbetweentheownersandgoverningbody.TheCompanyhastakenadvantageofalldifferentialreportingconcessionsavailableexceptforFRS19-AccountingforGoodsandServicesTax,withwhichtheyhavecompliedfully.

50


Statement of Accounting Policies (Continued)

Changes in Accounting PoliciesTherehavebeennochangesinaccountingpoliciesduringtheyear.Allpolicieshavebeenappliedonabasisconsistentwithpreviousyears.

Changes to financial reporting requirementsTheCompanyhasadoptedExternalReportingBoardStandardA1AccountingStandardsFramework(For-profitEntitiesUpdate)(XRBA1).XRBA1establishesafor-profittierstructureandoutlineswhichsuiteofaccountingstandardsentitiesindifferenttiersmustfollow.TheCompanyiseligibletoandhaselectedtoreportinaccordancewithTier4For-profitAccountingStandards(NZOldGAAP)onthebasisthatitisnotpubliclyaccountable,itisnotlarge(asdefinedinXRBA1),itisnotrequiredtofilefinancialstatementsunderSection19oftheFinancialReportingAct1993anditwasapplyingOldGAAPat30June2011.ThereisnoimpactonthecurrentorprioryearfinancialstatementsoftransitioningtothenewAccountingStandardsFramework.

TheXRBisexpectedtoremovetheOldGAAPsuiteofaccountingstandardsforperiodsbeginningonorafter1April2015.ThereforeitisexpectedthattheCompanywillhavetotransitiontoNZIFRSReducedDisclosureRegimeforitsannualperiodending31March2016.UnderNZIFRSRDRtheCompanywillhavetoprepareastatementofcashflows.

2. Related Parties

TheCompanyisawhollyownedsubsidiaryofTeRūnanga o NgātiRuanuiTrust(the“Trust”).TheCompanyhadpaymentsmadeonitsbehalfbytheTrustduringtheyear.ThesepaymentsrelatetooperatingexpensesoftheCompany.

NgātiRuanuiHoldingsCorporationLimited(NRHCL)madeanadvancetotheCompanytoallowtheCompanytoinvestintheICPKouraCollective.

OutstandingbalancesatyearendareshownintheStatementofFinancialPosition.

2014 2013TrustOpening Balance (142,014 (77,732Total Payments Net 144,908 (58,282ManagementFeepayabletotheTrust (6,000 (6,000ClosingBalanceowedtotheTrust (3,106 (142,014

ThebalanceowedtotheTrustisinterestfreeanddueondemand.

NRHCLOpening Balance 236 (275,000Total Net Advances (made) repaid (236 275,236 ClosingBalanceowedby/(to)NRHCL - 236

ThebalanceowedtoNRHCLof$275,000wasinterestbearingat7.75%.Totalinterestexpensefortheyearamountedtonil(2013:$14,016).Theloanbalancewasfullysettledduringtheyear.

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3. Investments

On1April2006,theCompanyreceivedsettlementproceedsinaccordancewiththeMāoriFisheriesAct2004.

Aotearoa Fisheries Limited 1,248,368 1,578,368

ThevalueoftheAotearoaFisheriesLimited(AFL)sharesuponreceiptwererecordedat$1,theyweresubsequentlyrevaluedtofairvalue.

Thesharescompriseof1672incomesharesinAFL.Theseincomeshareshavenovotingrightsattachedandcanonlybetradedamongstiwi.

Section 77 of the MāoriFisheriesAct2004stipulatesthatAFLarerequiredtopayadividendofnotlessthan40%ofnetprofitaftertaxasfrom30September2004.SuchpaymentisexpectedinDecembereachyear,howevernodividendwasreceivedthisyearasAFLmadeatradinglossafterrecognisingawritedownonitsinvestmentinSealord.

TheAFLsharesarenotactivelytradedandarevaluedusingmarketacceptedvaluationtechniques.

Thevalueoftheshareshasbeendeterminedusingadiscountedcashflowmodelusingmarketdataandexpectedcashinflowsfromtheinvestment.Animpairmentlossof$330,000wasrecognisedduringtheyear(2013:nil)toaccountforthedifferencebetweenthecarryingvalueoftheinvestmentandtheestimatedrealisablevalueresultingfromthediscountedcashflow.

Note 2014 $

2013 $

Deep Water Group LimitedShares held 1 1 1

ThevalueoftheDeepWaterGroupLimitedsharesarerecordedat$1thisbeinganotforprofitorganisation.

Fish Quota holdings are represented by:Opening value 2,387,676 2,032,618 Quota Purchased during the period 209,289 367,609 Impairment of Quota (280,626 (81,977Reversal of previous impairment of Quota 289,619 69,426 Closing value 2,605,958 2,387,676

ThefishquotaassetswereindependentlyvaluedbyDonalBoylefromQuotaManagementSystemsLimitedat31March2014:$2,954,622(2013:$2,758,859)todeterminethefairvalueoffishquotawithreferencetomarketevidenceofcurrentmarketprices.DonalBoyleisanindependentvaluernotrelatedtotheCompany.Hehas32yearsexperienceinthefishingindustryand19yearsvaluingfishquota.Thecarryingvalueisadjustedsuchthatclosingvalueequalsoriginalcostofindividualquotalessimpairment.Anyrecoveryofvalueofquotaisrecognisedasanimpairmentreversaltotheextentoforiginalquotacost.Anyupliftbeyondoriginalcostisnotrecognised.

ICP Koura Collective investment movements during year:Opening Balance 107,125 575,221 Purchase CRA4 ACE - (16,494Purchase CRA3 quota shares - (175,175Purchase CRA4 quota shares - (192,434GSTpayable - (52,653WorkingCapitalcontributionrepaid - (31,340InvestmentinICPland,buildingsetc 107,125 107,125

In2011,theCompanyjoinedthenewlyformedIwiCollectivePartnership(ICP)alongwithotherIwitomanagetheCompany’scrayfishquotaonitsbehalf.Thisarrangementhasthebenefitsofeconomiesofscale,groupingsmallquotaallocationsintoviableparcelsandalargerknowledgebasetomanagetheasset.AninitialcontributionwasmadebytheCompanyrepresenting8.33%interestintheICP.

In 2012, the ICP has entered into a co-investment agreement, alongside Ngāti Mutunga and Parininihi Ki Waitotara, to invest in twocrayfishquotasownedbyPortNicholsonFisheries(PNF)andPNF’sexistingcrayfishplantfacility.Accordingly,aportionoftheamountcontributedwasusedtopurchasethecrayfishquota.TheremainingamountrepresentstheCompany’sproportionateshareinthecrayfishplantfacility.

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4. Income

Dividend received AFL - 45,664 MāoriAuthorityTaxCreditrefundonAFLdividend - 38,035 Annual Catch Entitlement income 249,745 185,970 ICP Koura Collective Investment income 172,407 -Interest Received 2,789 3,456 Total Income 424,941 273,125

5. Expenditure

2014 2013Professional and Employee ExpensesAdministration Fees 6,000 6,000 Administration&SundryExpenses 139 245 Annual Report & AGM costs 1,250 1,000 Audit Fees 4,500 4,000 Deep Water Group Limited 2,337 1,610 Fish Serve Levies 1,391 30 Insurance 911 911 Interest (NRHCL) - 14,016 Ministry of Fisheries & Industry Levies 25,520 24,971 QuotaManagementSystemsValuationCosts 1,848 1,636 Subscriptions 39 39 TOKM Fees 200 187

44,135 54,645 Directors ExpensesDirectors Fees 25,000 25,000 Directors Meeting - Other Costs 5,983 3,315

30,983 28,315 Total Expenses 75,118 82,960


Therearenocapitalcommitmentsatbalancedate(2013:Nil).


TherearenocontingentLiabilitiesatbalancedate(2013:Nil).

8. Share Capital

Asat31March2014therewere16ordinarysharesissuedandfullypaid(2013:16).Allordinarysharesrankequallywithonevoteattachedtoeachfullypaidordinaryshare.

3. Investments (Continued)

TheICPhassetupthefollowingentitiestoholdtheinvestmentsintheICP:· ICPKouraOperationsLimitedPartnership–tomanagethesalesofAnnualCatchEntitlementforthecrayfishquotaonbehalf

ofthecontributingpartners;and· ICPKouraFacilitiesLimitedPartnership–toholdtheICP’sinvestmentinPortNicholsonFacilitiesLP,whichcatches,

processesandsellsAnnualCatchEntitlementforcrayfishquota.

PricewaterhouseCoopes, Level 7, The PwC Centre, 54 Gill Street, PO Box 144, New Plymouth 4340, New Zealand T: +64 (6)757 5477, F: +64 (6)757 9497, www.pwc.com/nz

Independent Auditors’ Report to the shareholders of Ngati Ruanui Fishing Limited Report on the Financial Statements We have audited the financial statements of Ngati Ruanui Fishing Limited (the “Company”) on pages 4 to 10, which comprise the statement of financial position as at 31 March 2014, the statement of financial performance and the statement of movements in equity for the year then ended, and the notes to the financial statements that include a summary of significant accounting policies and other explanatory information. Director’s Responsibility for the Financial Statements The Director is responsible for the preparation of these financial statements in accordance with generally accepted accounting practice in New Zealand and that give a true and fair view of the matters to which they relate and for such internal controls as the Directors determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand) and International Standards on Auditing. These standards require that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider the internal controls relevant to the Company’s preparation of financial statements that give a true and fair view of the matters to which they relate, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Other than in our capacity as auditors we have no relationship with, or interests in, Ngati Ruanui Fishing Limited.

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Independent Auditors’ Report Ngati Ruanui Fishing Limited Opinion In our opinion, the financial statements on pages 4 to 10:


(ii) give a true and fair view of the financial position of the Company as at 31 March 2014, and its financial performance for the year then ended.

Report on Other Legal and Regulatory Requirements We also report in accordance with Sections 16(1)(d) and 16(1)(e) of the Financial Reporting Act 1993. In relation to our audit of the financial statements for the year ended 31 March 2014:



Restriction on Distribution or Use This report is made solely to the Company’s shareholders, as a body, in accordance with Section 205(1) of the Companies Act 1993. Our audit work has been undertaken so that we might state to the Company’s shareholders those matters which we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our audit work, for this report or for the opinions we have formed. Chartered Accountants New Plymouth 24 September 2014

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55


ANNUAL REPORT


Contents57 Chairpersons Report






57

Ngāti Ruanui Tahua LimitedANNUAL REPORTFor the year ended 31st March 2014

Tēnā Koutou,

It is my privilege to present the first annual report as the Chairperson of Ngāti Ruanui Tahua Limited.

A key outcome this year has been the receipt of the unqualified Audited Accounts, which was due to the hard work and dedication of the present Management, following the previous two years qualified audits.

This year I am also proud to inform you that currently we deliver medical services to 5,000 people within our community; an increase in 2000 patients in just twelve months.

The future challenge for us will be to determine how we continue to deliver and expand quality services within a “Whanau Ora approach” determined by our people.

We await the impact of the Government’s campaign promise of free doctor visits to up to 13 year olds, and through our own

policy initiative extend free visits through to 16 year olds.

A further challenge, along with many other health providers, particularly in rural communities, is about recruiting and retaining doctors. We will need to think creatively how this maybe done in order to reduce costs while still meeting the expectation of quality services by our community.

The relocation of Te Kohanga Reo o Ngāti Ruanui to new modern premises was another key highlight this year. We now are looking at the potential to extend our Early Childhood Service, including moving Te Puawaitanga O Ngāti Ruanui to the current Rūnanga Glover Street building in the coming year.

It should be acknowledged that 40 people are employed within the Tahua Company making it one of the biggest single Māori owned employers within South Taranaki and certainly the biggest Iwi employer within Taranaki. This allows many of our

people to work and remain in Taranaki keeping the home fires burning.

Finally, I wish to acknowledge the confidence Te Rūnanga o Ngāti Ruanui Trust has shown in my appointment.

I also want to extend my appreciation to the Management of the Rūnanga and staff of the Tahua for their hard work over the past year in the merging the Tahua Trust with the Rūnanga; a concept that was endorsed more than ten years ago.

Lastly, but by no means least, I wish to acknowledge the previous Trustees of the Tahua who gave their time and energy to realise the moemoea of our Kaumatua who wanted Ngāti Ruanui uri to deliver services to Ngāti Ruanui uri.

Nga mihi Darryn Ratana Director/Chairperson

CHAIRPERSONS REPORT

Left: Ngarita King with her niece Peizha Cassidy keep warm at the Ngāti Ruanui sports day.

58

Ngāti Ruanui Tahua LimitedANNUAL REPORTFor the year ended 31st March 2014


Financial Report

For the Period Ended

31st March 2014

ThefinancialstatementswereauthorisedbytheDirectoronthebelowdate.

_______________________________ _______________________________ Director Date

2/9/14

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Note 2014 $

Current AssetsBNZ-ChequeAccount 110,653 BNZ-OncallAccount 52,620 Receivables 4 229,900 Total Current Assets 393,173

Non Current AssetsFixedAssets 3 71,992

Total Non Current Assets 71,992

Total Assets 465,165

Current LiabilitiesAccountsPayable 59,387 Sundry Creditors 158,778 PayabletoTeRūnanga o Ngāti Ruanui Trust 6 5,977 GSTPayable 11,160Receipts in advance 71,908 PayabletoNgāti Ruanui Tahua Trust 7 156,849 Total Current Liabilities 464,059

Total Liabilities 464,059

Net Liabilities 1,106

EquityShare Capital -Retained Earnings 1,106 Closing Equity 1,106

The Director of the NgātiRuanuiTahuaLimitedauthorisedthesefinancialstatementsforissueonthebelowdate.

_______________________________ _______________________________ Director Date


Ngāti Ruanui Tahua LimitedStatement of Financial PositionAs at 31st March 2014

2/9/14

60

Note 2014 $

Share CapitalOrdinary shares at 13 May 2013 - Issuableduringtheperiod - Ordinary shares at 31 March 2014 9 -

Retained EarningsRetained earnings at 13 May 2013 - Net surplus for the period 1,106 Retained earnings at 31 March 2014 1,106

Total shareholders’ equity 1,106


Ngāti Ruanui Tahua LimitedStatement of Movements in EquityFor the one month period ended 31st March 2014

61

2014 $

IncomeHealth 146,615 Education 65,765 IwiSocialServices-MinistryofSocialDevelopment 8,943 Total Income 221,323

Less: ExpensesAccountancy fees 2,508 Audit Fees 1,000 Bank Charges 230 Cleaning & Laundry 3,310 Communications 2,304 Management fees 12,500 Depreciation 1,582 Foodstuffs 1,677 Leasing Costs 1,290 LegalExpenses 3,346 Hair Salon Supplies 1,138 MedicalExpensesandSupplies 4,399 NZQAFees 150 NZNOFees 251 Power 2,101 Professional Services 4,629 Print, Post & Stationary 913 Rent 9,099 Repairs & Maintenance 1,157 Resources Materials 54 Security 554 SoftwareSupport 1,200 Subscriptions&Levies 94 Training 1,372 TravelReimbursment 53 UniformAllowance 432 Vehicle 2,363 Wages & Salaries 160,511 Total Expenses 220,217

Net surplus 1,106

Ngāti Ruanui Tahua LimitedStatement of Financial Performance For the one month period ended 31st March 2014


62


Reporting Entity ThefinancialstatementspresentedhereareforNgātiRuanuiTahuaLimited(the“Company”).TheCompanycommencedtradingon1March2014aftertakingovertheoperations,contracts,obligationsandservicesofNgāti Ruanui Tahua Trust and as suchthefinancialstatementscovertheperiod1March2014to31March2014.ThefinancialstatementshavebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct1993andtheFinancialReportingAct1993andtheNewZealandgenerallyacceptedaccountingpractices.

TheCompanyhaschosennottoadopttheNewZealandEquivalentstoInternationalFinancialReportingStandards(“NZIFRS”).ThedecisionnottoadoptisconsistentwiththeexemptionprovidedbyAccountingStandardsReviewBoard(“ASRB”)Release9,issuedinSeptember2007.ASRBRelease9providesachoicetocertainqualifyingentitiestoeitheradoptNZIFRSortocontinuetoapplyNewZealandFinancialReportingStandards(“NZFRS”).TheCompanyisaqualifyingentityonthebasisthattheyarenotissuers,arenotrequiredtofilefinancialstatementswiththeRegistrarofCompaniesundersection19ofthe Financial Reporting Act 1993 and are not considered large (less than $20m revenue and less than 50 full-time employee equivalents).

Measurement BaseTheaccountingprinciplesrecognisedasappropriateforthemeasurementandreportingofearningsandfinancialpositiononahistoricalbasishavebeenfollowed.


(a)FixedAssets&DepreciationTheentityhasthefollowingclassesoffixedassetsanddepreciationhasbeencalculatedusingthefollowingrates:

Land nilBuildings 3.0%-26.0%MotorVehicles 18.0%-26.0%Furniture&Fittings 9.6%-28.8%OfficeEquipment 10.2%-36.0%Plant&Equipment 7.8%-36.0%

Allfixedassetsarerecordedatcostorvaluationlessaccumulateddepreciation.

DepreciationoftheassetshasbeencalculatedatthemaximumratespermittedbytheIncomeTaxAct2007.

(b)RevenueRevenuecomprisesthefairvaluefortheconsiderationreceivedorreceivableforinterestandservicesprovidedandisrecognisedasfollows: (i)Interestincomeisrecognisedusingtheeffectiveinterestmethod. (ii)Incomefromservicesisrecognisedatthetimetheservicewasprovided.

(c)ReceivablesReceivablesarestatedattheirestimatedrealisablevalue.Baddebtsarewrittenoffintheyearinwhichtheyareidentified.

(d)GoodsandServicesTaxThefinancialstatementshavebeenpreparedonaGSTexclusivebasisexceptforAccountsReceivableandAccountsPayablewhichareshowninclusiveofGoodsandServicesTax.

(e)TaxationTheCompanyhascharitablestatusfrominception,asconfirmedbytheInlandRevenueDepartmentandisregisteredwiththeCharitiesCommission.Allincomeisthereforeexemptfromtax.Taxreceivablebalancesarerecognisedwhenthereisresidentwithholdingtaxduetoberefunded.

(f)AccountsPayableTheseamountsrepresentliabilitiesforgoodsandservicesprovidedtotheTrustpriortotheendofthefinancialyearwhichareunpaid.Theseamountsareunsecuredandareusuallypaidon20thofthemonthfollowingrecognition.

Ngāti Ruanui Tahua LimitedNotes to the Financial StatementsFor the one month period ended 31st March 2014

63


(g) Cash and cash equivalentsCashandcashequivalentsincludescashonhand,depositsheldatcallwithfinancialinstitutions,othershort-term,highlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorlessthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue,andbankoverdrafts.

(h) Leased AssetsOperatingleasesarethosewhichalltherisksandbenefitsaresubstantiallyretainedbythelessor.Leasepaymentsareexpensedintheperiodstheamountsarepayable.

Differential reportingTheCompanyisaqualifyingentitywithintheFrameworkofDifferentialReporting.TheCompanyqualifiesonthebasisthatitisnotpubliclyaccountableandthereisnoseparationbetweentheownersandgoverningbody.TheCompanyhastakenadvantageofalldifferentialreportingconcessionsavailableexceptforFRS19-AccountingforGoodsandServicesTax,withwhichtheyhavecomplied fully

ComparativesThisisthefirstyearofthecompany’soperationsandthereforenocomparativefiguresareavailable.

ChangestofinancialreportingrequirementsTheExternalReportingBoard(XRB)issuedthenewAccountingStandardsFrameworkwhichintroducesaPublicBenefitEntity(PBE)tierstructureandrelatedPBEaccountingstandards.Thestandardiseffectiveforreportingperiodsbeginningonorafter1April2015underwhichtheCompanywillbeclassifiedasaTier3entityonthebasisthatitisnotpubliclyaccountableanditisnotlarge.Asaresult,theCompanywillapplythePBEaccountingstandardsforitsyearended31March2016onwards.

2. Lease Commitments

Rent of Property NgātiRuanuiHealthCentreoccupiespremisesat41HunterStreetwhichhastworightsofrenewaleffectiveon16September2018and16September2023.Annualrentissetat$95,000perannum.Rentreviewsareontheleaserenewaldates.

2014 $

Within one year: 95,000 Laterthanoneyearandnotlaterthantwoyears: 95,000 Laterthantwoyearsandnotlaterthanfiveyears: 138,542 Laterthanfiveyears -

328,542 Lease of vehiclesWithin one year: 30,848 Laterthanoneyearandnotlaterthantwoyears: 8,475 Laterthantwoyearsandnotlaterthanfiveyears: 2,112 Laterthanfiveyears -

41,435 LeaseofOfficeEquipmentWithin one year: 8,345 Laterthanoneyearandnotlaterthantwoyears: - Laterthantwoyearsandnotlaterthanfiveyears: - Laterthanfiveyears -

8,345


64

3. Fixed Assets2014

$ Motor VehiclesAt cost 2,263 Less Accumlated Depreciation 37

2,226 Furniture & FittingsAt cost 16,941 Less Accumulated Depreciation 281

16,660 Office EquipmentAt cost 24,543 Less Accumulated Depreciation 682

23,861 Plant & EquipmentAt cost 29,827 Less Accumulated Depreciation 582

29,245

Total Fixed Assets 71,992

4. Receivables

Accountsreceivable 85,186 Funding in arrears 105,410 PatientandECEfeereceivables 39,304

229,900


Therearenocontingentliabilitiesatbalancedate.

6. Related Parties

TheCompanyisawhollyownedsubsidiaryofTeRūnanga o NgātiRuanuiTrust(TRoNRT).TheCompanyhadpaymentsmadeonitsbehalfbytheTrustduringtheperiod.ThesepaymentsrelatetooperatingexpensesoftheCompany.

OutstandingbalancesatyearendareshownintheStatementofFinancialPosition.

TRoNRTOpening Balance - Total payments 5,977 ClosingBalanceowedtoTRoNRT 5,977


65

7. Payable to Ngāti Ruanui Tahua Trust

On27February2014,theTrusteesofNgāti Ruanui Tahua Trust (the “Trust”) resolved to transfer the operations, contracts, obligationsandservicesoftheTrusttotheCompanywiththeobjectiveofcontinuingtheservicesoftheTrusttothemembersofNgātiRuanui.

Atotalof$156,849ofnetassetsweretransferredbytheTrusttotheCompany.WhiletheintentionoftheTrusteesistotransferthenetassetsfornilconsideration,aHighCourtresolutioniscurrentlybeingobtainedtofinalisetheTrustees’resolutionsurroundingthesettlementoftheseassets.UntilsucharesolutionisobtainedthevalueofthenetassetstransferredhasbeenpresentedintheCompany’sfinancialstatementsas“PayabletoNgātiRuanuiTahuaTrust”.

On1March2014,theCompanytookovertheoperationsoftheTrustwhichincludedanearlychildhoodeducationoperations,amedicalpracticeandsocialdevelopmentservices.

Thefollowingtablesummarisestheconsiderationpaidandfairvalueofassetsacquiredandliabilitiesassumedattheacquisitiondate:

$000’sTotal consideration 156Less:RecognisedamountsofidentifiableassetsacquiredandliabilitiesassumedCash 204Receivables 56FixedAssets 65Revenue received in advance (70Employeerelatedliabilities (92Otherliabilities (7Totalidentifiablenetassets 156

Goodwill/Discountonacquisition -

IntheeventthatHighCourtapprovalisobtainedallowingthetransferatnilconsiderationagainwillberecognisedinthestatementoffinancialperformance.


Therearenocapitalexpenditurecommitmentsatbalancedate(2013:$nil).

9. Share Capital

Asat31March2014therewere16ordinarysharesissuedanduncalled.Allordinarysharesrankequallywithonevoteattachedtoeachfullypaidordinaryshare.


)))

P ricewaterhouseCoopers, Level 7, The PwC Centre, 54 Gill Street, PO Box 144, New Plymouth 4340, New Zealand T: +64 (6)757 5477, F: +64 (6)757 9497, www.pwc.com/nz

Independent Auditors’ Report to the shareholders of Ngati Ruanui Tahua Limited Report on the Financial Statements We have audited the financial statements of Ngati Ruanui Tahua Limited (the “Company”) on pages 2 to 8, which comprise the statement of financial position as at 31 March 2014, and the statement of financial performance and statement of movements in equity for the period then ended, and the notes to the financial statements that include a summary of significant accounting policies and other explanatory information. Directors’ Responsibility for the Financial Statements The Directors are responsible for the preparation of these financial statements in accordance with generally accepted accounting practice in New Zealand and that give a true and fair view of the matters to which they relate and for such internal controls as the Directors determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand) and International Standards on Auditing. These standards require that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider the internal controls relevant to the Company’s preparation of financial statements that give a true and fair view of the matters to which they relate, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Other than in our capacity as auditors we have no relationship with, or interests in, Ngati Ruanui Tahua Limited.

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Page 2

Independent Auditors’ Report Ngati Ruanui Tahua Limited Opinion In our opinion, the financial statements on pages 2 to 8:


(ii) give a true and fair view of the financial position of the Company as at 31 March 2014, and its financial performance for the period then ended.

Report on Other Legal and Regulatory Requirements We also report in accordance with Sections 16(1)(d) and 16(1)(e) of the Financial Reporting Act 1993. In relation to our audit of the financial statements for the period ended 31 March 2014:



Restriction on Use of our Report This report is made solely to the Company’s shareholders, as a body, in accordance with Section 205(1) of the Companies Act 1993. Our audit work has been undertaken so that we might state to the Company’s shareholders those matters which we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our audit work, for this report or for the opinions we have formed. Chartered Accountants New Plymouth 3 September 2014

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151 Glover RoadPOBox594

HAWERA 4640

Phone: 06 278 0148Web:www.ruanui.co.nz

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