Te Runanga o Ngati Ruanui Trust Annual Report 2014 by iStudios Multimedia Ltd

Te Rﾅｫnanga o Ngﾄ》i Ruanui Trust Annual Report 2014

Contents Te Rūnanga o Ngāti Ruanui Trust

Ngāti Ruanui Fishing Limited

Tumu Whakaae Report

Chairpersons Report

08 10

Te Rā O Ruaputahanga - Ngāti Ruanui Festival

Company Directory

Directors’ Report

Statement of Financial Performance

Statement of Financial Position

11 12

Statement of Movements of Equity

Statement of Movements in Equity

Statement of Financial Performance

Auditors’ Report

Notes to the Financial Statements

Auditors’ Report

Statement of Financial Position

Notes to the Financial Statements

Ngāti Ruanui Holdings Corporation Limited 26

Chairpersons Report

Ngāti Ruanui Tahua Limited

28 Ngāti Ruanui Stratford Mountain House

Chairpersons Report

Company Directory

Statement of Financial Position

Directors’ Report

Statement of Movements in Equity

Statement of Financial Position

Statement of Financial Performance

Statement of Movements in Equity

Notes to the Financial Statements

Statement of Financial Performance

Auditors’ Report

Notes to the Financial Statements

Auditors’ Report

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.

Introduction Ko te ahi o Tahurangi mō te pukeāo Ka tū tonu te pukeāo Ka whakahinga te pukeāo i ngā awatea i nga ahiahi Tahurangi is like an alpine cloud that descends the peak and remains suspended It then falls during the day and in the evening

Te Rﾅｫnanga o Ngﾄ》i Ruanui Trust ANNUAL REPORT For the year ended 31st March 2014

Contents 07

Tumu Whakaae Report

08 10

Te Rā O Ruaputahanga - Ngāti Ruanui Festival

Statement of Financial Performance

11 12

Statement of Movements of Equity

Auditors’ Report

Statement of Financial Position

Notes to the Financial Statements

Te Rūnanga o Ngāti Ruanui Trust ANNUAL REPORT For the year ended 31st March 2014

TUMU WHAKAAE REPORT HE MAIOHA ACKNOWLEDGEMENT

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

Kia herea ngā tōmairangi ki te whenua

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

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

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

Left: Ngāti Tupito performing their choral

Te Rā O Ruaputahanga - Ngāti Ruanui Festival 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.

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).

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

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, 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’.

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…”

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

Foreground: Haimona Maruera Jnr. leading the haka.

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

Background: Roger Maruera, Huia Davis and Robert Rio.

Te Rﾅｫnanga o Ngﾄ》i Ruanui Trust Financial Report For the year ended 31st March 2014

Te Rﾅｫnanga o Ngﾄ》i Ruanui Trust Financial Report For the Year Ended 31st March 2014 The financial statements were authorised by the Trustees on the below date.

21/9/14 _______________________ _______________________ _______________________ Trustee Trustee Date

Te Rūnanga o Ngāti Ruanui Trust Statement of Financial Position As at 31st March 2014 Note Current Assets Petty Cash ASB Bank ASB Bank Investment Accounts Receivable Investment Portfolio Inventory GST Receivable Ngāti Ruanui Fishing Ltd Ngāti Ruanui Holdings Corporation Ltd Prepayment Prepayment Ketemarae Marae Prepayment Pairiroa Marae Prepayment Taiporohenui Marae Prepayment Wharepuni Marae Non Current Assets Investment Portfolio Fish Quota holdings Investment in Aotearoa Fisheries Ltd Investment in Deep Water Ltd Investment in ICP Koura Collective Investment in Ngāti Ruanui Fishing Ltd Investment in Ngāti Ruanui Holdings Corporation Ltd Property, Plant & Equipment - Non current Land and buildings Plant and Equipment Motor vehicles Office Equipment

Payable to Ngāti Ruanui Tahua Trust GST Payable

Parent 2014 $

Group 2013 $

Parent 2013 $

50 69,670 1,986 104,920 811 3,106

450 135,885 840,971 62,653 19,174,917 16,362 -

50 23,497 1,935 39,870 5,610 142,014

820,906

10 10 10 10

15,000 17,665 20,000 5,000 22,622,471

15,000 17,665 20,000 5,000 1,269,460

33,373 25,000 27,665 30,000 15,000 20,362,276

25,000 27,665 30,000 15,000 1,131,547

5 5 5 5 5 13

26,121,284 2,605,958 1,248,368 1 107,125 -

1,409 1

26,226,737 2,387,676 1,578,368 1 107,125 -

2,148 1

41,200,000

30,082,736

41,201,410

30,299,907

41,202,149

2,630,108 270,675 4,496 188,452 3,093,731

1,081,743 20,729 2,269 24,149 1,128,890

2,617,183 274,690 5,810 163,886 3,061,569

1,066,802 19,122 5,810 10,532 1,102,266

55,798,938

43,599,760

53,723,752

43,435,962

148,364 554,026 156,849

41,013 159,512 -

96,606 326,112 -

30,026 158,174 -

10 10

4 4 4 4

Total Assets Accounts Payable Accrued Charges

Group 2014 $

450 366,238 157,470 352,229 21,666,542 21,877 -

1,031,252

41,200,000

19,176 878,415 878,415

200,525 200,525

32,907 455,625 455,625

188,200 188,200

Net Assets

54,920,523

43,399,235

53,268,127

43,247,762

Retained Earnings Total Trust Capital

54,920,523 54,920,523

43,399,235 43,399,235

53,268,127 53,268,127

43,247,762 43,247,762

Total Liabilities

The Trustees of the Te Rūnanga O Ngāti Ruanui Trust authorised these financial statements for issue on the below date.

21/9/14 _______________________ _______________________ _______________________ Trustee Trustee Date This Statement is to be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements.

Te Rﾅｫnanga o Ngﾄ》i Ruanui Trust Statement of Financial Performance For the year ended 31st March 2014 Note

Group 2014 $

Parent 2014 $

Group 2013 $

Parent 2013 $

Income

5,164,737

1,545,093

5,190,751

1,568,901

Expenditure Net surplus from trading

2,994,661 2,170,076

1,205,940 339,153

2,712,989 2,477,762

1,051,488 517,413

5 10

330,000 100,000 900 22,499 4,054 60,227 1,652,396

100,000 900 22,499 4,054 60,227 151,473

200,000 2,381 1,300 32,161 4,800 40,219 29,656 2,454 2,164,791

200,000 2,381 1,300 32,161 4,800 40,219 29,656 2,454 204,442

Less: AFL shareholding impairment Less: Grants to Marae Less: Grants to Kaumatua / Kaunihera Less: Grants to Sports Codes Less: Tertiary Student Scholarships Less: Grants Cultural Less: Projects Consultation Hui Less: Projects Festival Less: Projects Net surplus

Statement of Movements in Equity For the year ended 31st March 2014 Note

Group 2014 $

Parent 2014 $

Group 2013 $

Parent 2013 $

Opening Equity balance Net surplus

53,268,127 1,652,396

43,247,762 151,473

51,103,336 2,164,791

43,043,320 204,442

Closing Equity balance

54,920,523

43,399,235

53,268,127

43,247,762

This Statement is to be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements.

Te Rūnanga o Ngāti Ruanui Trust Notes to the Financial Statements For the year ended 31st March 2014 1 Statement of Accounting Policies Reporting Entity The financial statements presented here are for Te Rūnanga O Ngāti Ruanui Trust (the “Trust”) and its 100% owned subsidiary companies, Ngāti Ruanui Fishing Limited, Ngāti Ruanui Holdings Corporation Limited and its 100% owned subsidiary, Ngāti Ruanui Holdings Operating Company Limited and Ngāti Ruanui Tahua Limited (together “the Group”). They cover the period 1 April 2013 to 31 March 2014. During the year TRoNRT created a wholly owned subsidiary company Ngāti Ruanui Tahua Limited to take over the operational activities and assets of Ngāti Ruanui Tahua Trust. The new company traded for one month (March) during the year under review. The Group has chosen not to adopt the New Zealand Equivalents to International Financial Reporting Standards (“NZ IFRS”). The decision not to adopt is consistent with the exemption provided by Accounting Standards Review Board (“ASRB”) Release 9, issued in September 2007. ASRB Release 9 provides a choice to certain qualifying entities to either adopt NZ IFRS or to continue to apply New Zealand Financial Reporting Standards (“NZ FRS”). The Trust is a qualifying entity on the basis that it is not an issuer, are not required to file financial statements with the Registrar of Companies under section 19 of the Financial Reporting Act 1993 and are not considered large (less than $20m revenue and less than 50 full-time employee equivalents). Differential reporting The Group is a qualifying entity within the Framework of Differential Reporting. The Group qualifies on the basis that it is not publicly accountable and it is not large. The Group has taken advantage of all differential reporting concessions available except for FRS 19 - Accounting for Goods and Services Tax, with which they have complied fully. The financial statements have been prepared in accordance with the Trust Deed and New Zealand generally accepted accounting practice. Measurement Base The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on a historical basis as modified by the revaluation of certain assets as identified in specific accounting policies below. Specific Accounting Policies The following specific accounting policies which materially effect the measurement of financial performance and financial position have been applied: Revenue Revenue comprises the fair value for the consideration received or receivable for the sale of goods and services, interest, dividends and market value movements in investments held. Revenue is recognised as follows:

(i) Interest income from investments Interest income is recognised using the effective interest method. (ii) Dividend income Dividend income is recognised when the right to receive payment is established. (iii) Revaluation income on investments Changes in the fair value of investments are recognised in the period in which they arise. (iv) Trading income Trading income comprise of restaurant and bar sales and accommodation revenue. Restaurant and bar sales are recognised when the sale occurs and the product is delivered to a customer. The recorded revenue comprises the amounts received and receivable for goods supplied to customers. Accommodation revenue is recognised in the accounting period in which the accommodation was occupied. (v) Annual Catch Entitlement Annual catch entitlement income is recognised when the right to receive payment is established. (vi) Grants Grants received are recognised when the requirements under the grant agreement have been met. (vii) Rental income Rental income is recognised in the period when the the premises leased to third party was occupied. (viii) Services income is recognised at the time the service is provided.

Accounts payable and accrued charges These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid on 20th of the month following recognition. Accounts Receivable Accounts Receivable are stated at their estimated realisable value. Debts considered uncollectible are written off. There is no provision for Doubtful Debts Prepayments Prepayments are recorded at amounts paid and represents payments made before due date. Inventory Inventory is stated at cost this being determined on a first in first out basis.

Te Rﾅｫnanga o Ngﾄ》i Ruanui Trust Notes to the Financial Statements For the year ended 31st March 2014 1. Statement of Accounting Policies (Continued) Taxation The Trust has charitable status from 20th March 2005, as confirmed by the Inland Revenue Department and is registered with the Charities Commission. All income is therefore exempt from income tax. Tax receivable balances are recognised when there is resident withholding tax due to be refunded. Goods and Services Tax The financial statements have been prepared on a GST exclusive basis except for Accounts Receivable and Accounts Payable which are shown inclusive of Goods and Services Tax. Property, Plant and Equipment Property, Plant and Equipment are stated at cost less accumulated depreciation. Depreciation has been calculated using the following rates: Office Equipment 18.0% - 80.4% DV Furniture & Fittings 11.0% - 48.0% DV Building and Settlement Properties 0.0% - 39.6% DV Operating Leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the Income Statement over the period of the lease. Consolidation The consolidated financial statements have been prepared using the purchase method of consolidation and include the financial statements of the parent and subsidiary companies. Financial Instruments Financial Instruments primarily comprise cash at bank, debtors, creditors, and investments. All Financial Instruments are recognised in the Financial Statements at fair value. Investments Fish quota shares received by way of settlement are recognised at their fair value at the date of settlement. Fish quota purchased are recognised at cost. Additional allocation of fish quota shares are recognised at fair value at date of allocation and are recognised as income in the Statement of Financial Performance. Fish quota shares have an indefinite life are therefore not amortised. They are tested annually for impairment and are carried at cost or fair value at date of settlement or allocation less accumulated impairment. Investments in shares are carried at fair value unless they are not quoted in an active market or their fair value cannot be reliably measured. The fair value of such investments is reliably measurable where the variability in the range for fair value estimates is not significant or probabilities of the various estimates within the range of fair values can be reasonably assessed and used in estimating fair value. Gains and losses on investments are recognised in the Statement of Financial Performance. Investments which are not expected to be realised within the next twelve months after reporting date are classified as non-current in the statement of financial position. Changes in Accounting Policies There have been no changes in accounting policies during the year. All policies have been applied on a basis consistent with those used in previous years. Changes to financial reporting requirements A new Accounting Standards Framework (incorporating a Tier structure and a separate suite of accounting standards for PBEs) has been issued by the External Reporting Board (XRB). The group will qualify under Tier 2 and is eligible to report in accordance with NZ IFRS PBE Differential Reporting Regime (NZ IFRS PBE Diff Rep) on the basis that it is not publicly accountable and the Group is not large as defined in XRB A1. There is no impact on the current or prior year financial statements of transitioning to the new Accounting Standards Framework. Under the new Accounting Standards Framework, the Group will have to transition to the new Not-for-Profit Public Benefit Entities (NFP PBE) Standards that will be based on International Public Sector Accounting Standards (IPSAS). The effective date for the new NFP PBE Standards is for reporting periods beginning on or after 1 April 2015. Therefore the Group will have to prepare its financial statements in accordance with the new NFP PBE Standards for the first time for the annual period ending 31 March 2016.

Te Rūnanga o Ngāti Ruanui Trust Notes to the Financial Statements For the year ended 31st March 2014 2. Principal Activities Te Rūnanga o Ngāti Ruanui Trust is established through the Hapū Representatives, to: (a) be the repository of the collective tino rangatiratanga of Ngāti Ruanui; (b) be the representative of the collective interest of Ngāti Ruanui and the legal representative of Ngāti Ruanui in relation to the collective interest; (c) receive assets transferred or settled by the crown (i) pursuant to the Deed of Settlement; and (ii) following settlement of any other claims by Ngāti Ruanui relating to the breach by the Crown of any obligations to Ngāti Ruanui under the Treaty of Waitangi; (d) hold the assets of Te Rūnanga and administer those assets and the liabilities of Te Rūnanga as kaitiaki of Ngāti Ruanui; and (e) constitute the body through which Ngāti Ruanui will confirm the tribal structure which properly represents its tino rangatiratanga; and (f) will through itself and such other persons as it considers appropriate, manage its affairs, business activities, assets and liabilities; and (g) may distribute benefits directly or indirectly to the registered beneficiaries upon any basis which Te Rūnanga may decide. Ngāti Ruanui Fishing Limited’s principal activity is the management of fishing quota for the Ngāti Ruanui group. Ngāti Ruanui Holdings Corporation Limited’s principal activity is to hold investments on behalf of Te Rūnanga o Ngāti Ruanui. Ngāti Ruanui Holdings Operating Company Limited’s principal activity is to operate the Ngāti Ruanui Stratford Mountain House on behalf of Te Rūnanga o Ngāti Ruanui. Ngāti Ruanui Tahua Limited’s main activity is to operate the health and education activities on behalf of Te Rūnanga of Ngāti Ruanui. The balance date of all subsidiaries is 31 March and all subsidiaries are incorporated in New Zealand. 3. Income

Group Parent 2014 2014 $ $ Annual Catch Entitlement 249,745 ICP Koura Collective Investment income 172,407 Fish Settlement Funds 72 72 Dividends Received 648,865 1,225,000 Management Fees Received 82,500 113,000 Trading Sales 863,916 Income from health, education and social services 215,786 Interest Received 2,841 52 Rent Received 54,813 54,813 Grants and Sundry Income 174,406 143,921 Gain / (loss) on asset disposal 8,235 8,235 Investment Interest Received 898,035 Investment FX gain / (loss) (25,213) Investment Revaluation Fixed Interest (losses) (135,448) Investment Revaluation Australasian equities gain 1,171,524 Investment Revaluation International equities gain 782,253 Total Income 5,164,737 1,545,093 Note

Group 2013 $ 185,970 47,009 426,994 15,000 929,641 3,498 59,095 229,755 (4,690) 1,204,497 7,531 (217,680) 1,543,998 760,133 5,190,751

Parent 2013 $

47,009 1,200,000 33,000 42 59,095 229,755 1,568,901

Te Rūnanga o Ngāti Ruanui Trust Notes to the Financial Statements For the year ended 31st March 2014 4. Property, Plant and Equipment Note Land & Buildings At cost Plus Purchases Less Accum Depreciation Plant & Equipment At cost Plus Purchases Less Disposals Less Accum Depreciation Furntiture & Fittings At cost Plus Purchases Less Accum Depreciation Motor Vehicles At cost Plus Purchases Less Disposal Less Accum Depreciation Total Property, Plant & Equipment

Group 2014 $

Parent 2014 $

Group 2013 $

Parent 2013 $

2,971,179 43,765 (384,836) 2,630,108

1,359,397 43,765 (321,419) 1,081,743

2,971,179 (353,996) 2,617,183

1,359,397 (292,595) 1,066,802

616,394 40,987 (386,706 ) 270,675

230,591 8,208 (218,070 ) 20,729

619,476 4,233 (7,315) (341,704) 274,690

229,131 1,460 (211,469) 19,122

316,214 58,165 (185,927 ) 188,452

37,650 16,681 (30,182 ) 24,149

314,943 1,271 (152,328) 163,886

37,225 425 (27,118) 10,532

54,662 2,263 (28,889) (23,540) 4,496 3,093,731

54,662 (28,889) (23,504) 2,269 1,128,890

54,662 (48,852) 5,810 3,061,569

54,662 (48,852) 5,810 1,102,266

5. Investments On 1 April 2006, the Group received settlement proceeds in accordance with the Māori Fisheries Act 2004.

Aotearoa Fisheries Limited Opening value Impairment of share value Closing value

Group 2014 $ 1,578,368 (330,000) 1,248,368

Parent 2014 $

Group 2013 $ -

Parent 2013 $

1,578,368 1,578,368

The value of the Aotearoa Fisheries Limited (AFL) shares upon receipt were recorded at $1, they were subsequently revalued to fair value. The shares comprise of 1,672 income shares in AFL. These income shares have no voting rights attached and can be traded amongst iwi. Section 77 of the Māori Fisheries Act 2004 stipulates that AFL are required to pay a dividend of not less than 40% of net profit after tax as from 30 September 2004. Such payment is expected in December each year, however no dividend was received this year as AFL made a trading loss after recognising a writedown on its investment in Sealord. The AFL shares are not actively traded and are valued using market accepted valuation techniques. The value of the shares has been determined using a discounted cash flow model using market data and expected cash inflows from the investment. An impairment loss of $330,000 was recognised during the year (2013: nil) to account for the difference between the carrying value of the investment and the estimated realisable value resulting from the discounted cash flow. Deep Water Group Limited The value of the Deep Water Group Limited shares are recorded at $1 (2013: $1) this being a not for profit organisation. Fish Quota Holdings are represented by: Opening value Additional Quota shares Impairment of Quota Reversal of previous impairment of Quota Closing value

2,387,676 209,289 (280,626) 289,619 2,605,958

2,032,618 367,609 (81,977 ) 69,426 2,387,676

Te Rūnanga o Ngāti Ruanui Trust Notes to the Financial Statements For the year ended 31st March 2014 5. Investments (Continued) The fish quota assets were independently valued by Donal Boyle from Quota Management Systems Limited at 31 March 2014: $2,954,622 (2013: $2,758,859) to determine the fair value of fish quota with reference to market evidence of current market prices. Donal Boyle is an independent valuer not related to the Company. He has 32 years experience in the fishing industry and 19 years valuing fish quota. The carrying value is adjusted such that closing value equals original cost of individual quota less impairment. Any recovery of value of quota is recognised as an impairment reversal to the extent of original quota cost. Any uplift beyond original cost is not recognised. ICP Koura Collective investment movements during year: Opening Balance 107,125 Purchase CRA4 ACE Purchase CRA3 quota shares Purchase CRA4 quota shares GST payable Working Capital contribution repaid Investment in ICP land, buildings etc 107,125

575,221 (16,494) (175,175) (192,434) (52,653) (31,340) 107,125

“In 2011, the Company joined the newly formed Iwi Collective Partnership (ICP) along with other Iwi to manage the Company’s crayfish quota on its behalf. This arrangement has the benefits of economies of scale, grouping small quota allocations into viable parcels and a larger knowledge base to manage the asset. An initial contribution was made by the Company representing 8.33% interest in the ICP. In 2012, the ICP has entered into a co-investment agreement, alongside Ngāti Mutunga and Parininihi Ki Waitotara, to invest in two crayfish quotas owned by Port Nicholson Fisheries (PNF) and PNF’s existing crayfish plant facility. Accordingly, a portion of the amount contributed was used to purchase the crayfish quota. The remaining amount represents the Company’s proportionate share in the crayfish plant facility. The ICP has set up the following entities to hold the investments in the ICP: - ICP Koura Operations Limited Partnership - to manage the sales of Annual Cath Entitlement for the crayfish quota on behalf of the contributing partners; and - ICP Koura Facilities Limited Partnerhip - to hold ICP’s investment in Port Nicholson Facilities LP, which catches, processes and sells Annual Catch Entitlement for crayfish quota.” Investment Portfolio These funds are invested via New Zealand Asset Management and Apteryxwealth platform following investment advice given to the Group by various investment advisors. The funds are currently invested in the Money Market, Fixed Term Investments, New Zealand, Australian and International Equity Markets. The investments are stated at market value at as 31 March each year. Money Market - cash Fixed Interest NZ & Australian Equities International Equities

10,758,796 14,228,974 17,506,991 5,293,065 47,787,826

1,409 1,409

16,249,959 9,448,017 14,796,015 4,907,663 45,401,654

2,148 2,148

Te Rﾅｫnanga o Ngﾄ》i Ruanui Trust Notes to the Financial Statements For the year ended 31st March 2014 6. Expenditure

Rﾅｫnanga Running Expenses Advertising AGM & Annual Report costs Iwi Chair Meeting expenses Election expenses Koha Pataka Whata Admin Fee Meeting Catering Publications Strategic Planning Travel Trustee Fees and expenses Professional and Employee Expenses Legal Fees Professional Fees Quota impairment/(reversal) Staff Expenses Wages & Salaries Vehicle Expenses Trading Purchases Directors Expenses Repairs and Maintenance Buildings, Property and Plant Cleaning & Laundry Computer Consumables Photocopier expenses Security Website Maintenance Administration Expenses Administration & Sundry Expenses Audit Fees Credit Card & Bank Fees Light, Power & Heating Postage, Freight & Courier Stationery Subscriptions Telephone & Tolls Standing Charges Insurance Rent Rates Depreciation Land & Buildings Furniture & Fittings Plant & Equipment Motor Vehicles Total Expenses

Group 2014 $

Parent 2014 $

Group 2013 $

Parent 2013 $

46,791 11,971 2,681 12,300 11,013 3,249 58,066 121,750 267,821

1,035 8,721 2,681 12,300 9,336 3,249 58,066 121,750 217,138

49,368 6,481 8,241 15,728 16,410 5,141 6,954 3,889 13,234 43,163 139,550 308,159

5,294 4,481 8,241 15,728 16,410 5,141 6,955 3,889 13,234 43,164 139,550 262,087

32,401 162,449 (8,993) 41,519 1,503,377 1,730,753 26,904 261,988 131,715

19,376 4,153 23,289 665,176 711,994 4,456 -

12,460 146,000 12,551 4,291 1,240,920 1,416,222 31,043 291,102 118,096

12,460 4,034 2,602 525,395 544,491 11,583 -

66,585 51,437 12,622 17,405 3,061 3,384 154,494

48,936 6,713 8,722 8,407 2,049 3,064 77,891

51,143 46,459 3,907 12,192 796 3,382 117,879

36,740 4,063 3,907 5,204 536 2,829 53,279

2,622 46,534 10,699 70,737 5,446 9,625 11,987 26,744 184,394

1,532 29,034 1,229 10,780 5,286 6,378 8,314 19,578 82,131

1,865 46,634 9,286 68,747 1,117 4,977 7,204 18,137 157,967

312 31,134 1,141 8,569 778 2,024 6,214 13,627 63,799

57,822 28,028 39,990 125,840

36,282 36,282 72,564

59,998 20,455 39,654 120,107

36,160 35,965 72,125

30,839 32,916 45,682 1,315 110,752 2,994,661

28,824 3,064 6,602 1,276 39,766 1,205,940

53,650 40,202 55,293 3,269 152,414 2,712,989

30,041 1,969 8,845 3,269 44,124 1,051,488

Te Rūnanga o Ngāti Ruanui Trust Notes to the Financial Statements For the year ended 31st March 2014 7. Taxation On the 20th March 2005 the Trust became a charitable entity for income Tax purposes. 8. Lease Commitments (a) Capital commitments - There is no capital commitment at balance date, (2013: nil). (b) Lease commitments - The Group leases motor vehicles, point of sale equipment and photocopiers on fixed monthly payments. The Group has commitments for minimum lease payments in relation to non-cancellable operating leases, these are payable as follows:

Within one year Later than one year but not later than five years Later than five years Total

Group 2014 $ 53,440 25,375 78,815

Parent 2014 $

Group 2013 $ 15,394 15,394

Parent 2013 $

In addition to the above, the Group leases: (a) the land on which the Mountain House is built from the Department of Conservation for 33 years up to 23 June 2028. Rent payable for the land use is 2.5% of the gross annual turnover of the business conducted on the land. (b) premises at 41 Hunter Street, Hawera which has two rights of renewal effective on 16 September 2018 and 16 September 2023. Annual rent is set at $95,000 per annum. Rent reviews are on the lease renewal dates. 9. Events After Balance Date There are no events subsequent to 31 March 2014 that require disclosure or adjustment in these financial statements (2013: nil). 10. Related Parties During the year, the Trust made net payments on behalf of its subsidiaries Ngāti Ruanui Fishing Limited, Ngāti Ruanui Holdings Corporation Limited, Ngāti Ruanui Holdings Operating Company Limited and Ngāti Ruanui Tahua Limited relating to normal operating expenses incurred in the normal course of its respective operations. The Trust also charged to each of its subsidiaries management fees of $6,000 annually for administration and accounting services. As a result of these transactions, the Trust is owed / (owes) related parties amounts as detailed below: Ngāti Ruanui Fishing Limited Opening Balance Total payments made on behalf Dividend Received Management fee Closing Balance Ngāti Ruanui Holdings Corporation Limited Opening Balance Total (repayments) / payments made on behalf Dividend Received Management fee Closing Balance Ngāti Ruanui Tahua Limited Total payments made on behalf Total (repayments) received Closing Balance

142,014 (164,908 ) 20,000 6,000 3,106

77,732 38,282 20,000 6,000 142,014

820,906 (945,654 ) 1,150,000 6,000 1,031,252

288,306 (623,400) 1,150,000 6,000 820,906

12,856 (6,879 ) 5,977

The receivable from Ngāti Ruanui Fishing Limited and Ngāti Ruanui Holdings Corporation Limited are interest-free and due on demand. Debbie Packer (Kaiarataki) is a 50% shareholder in ‘Added Value Inc Limited’. During the year this building firm provided building project management services and building materials totalling $37,118 (2013: $5,232). Te Rūnanga o Ngāti Ruanui consists of 16 hapū and 9 marae. The Trust makes a per annum grant to each Marae, a number of Marae have been granted advance payment of this grant to meet the cost of capital works. The balance shown is the prepaid amount outstanding at balance date.

Te Rūnanga o Ngāti Ruanui Trust Notes to the Financial Statements For the year ended 31st March 2014 11. Capital Commitments There are capital commitments at balance date of $2,286,676 (2013: $2,738,100). This relates to an agreement by Ngāti Ruanui Holdings Corporation Limited to commit capital into the following investment funds. It is unlikely that the committed funds will be called in total. The committment to Taurus Resources Fund No.2 is $US500,000. Commitment Direct Capital IV Limited Partnership Taurus Resources Fund No.2

Called at Balance $

4,200,000

2,152,059

2014 Commitment outstanding $

2013 Commitment outstanding $

2,047,941

2,388,464

577,634

338,899

238,735

349,636

4,777,634

2,490,958

2,286,676

2,738,100

(Taurus Resources $US conversion rate used 0.8656)

12. Contingent Liabilities There are no contingent liabilities at balance date (2013: nil). 13. Investments in subsidiaries The Trust’s investment in subsidiaries comprises shares at cost. Subsidiaries at balance date comprise: Name of entity

Principal activities Health and Education

Ngāti Ruanui Fishing Limited (NRFL)

Management of Fishing Quota

Ngāti Ruanui Tahua Limited (NRTL)

2014 100%

Investment Ngāti Ruanui Holdings Corporation Limited (NRHCL) NRHCL investment in subsidiaries at Balance Date comprise: Trading Ngāti Ruanui Holdings Operating Company Limited

2013 0%

100%

All subsidiaries have a balance date of 31 March and are incorporated in New Zealand. 14. Financial Instruments The Group is subject to a number of financial risks which arise as a result of its investment activities. To manage and limit the effects of those financial risks, the Trustees have approved policy guidelines and authorised the use of various financial instruments. The policies approved, and financial instruments being utilised at balance date, are outlined below. Currency risk Policies Investments held are currently invested in Money Market, Fixed Term Investments, Private Equity, New Zealand, Australian and International Equity Markets. As a result of these investments the Group is exposed to fluctuations in foreign currency exchange rates. It is Group policy not to hedge these exposures. These investments are denominated in the following currencies at 31 March:

New Zealand dollar Australian dollar United States of America dollar Euro Great Britain pounds Canadian Dollar Swedish Krona Total investments

Group 2014 $

35,009,608 6,995,206

3,956,712

1,697,477

481

5,619

122,723

47,787,826

Parent 2014 $

1,409

Group 2013 $

32,062,367

Parent 2013 $

2,148

8,384,566

3,410,944

1,397,662

453

14,716

1,409

130,946

45,401,654

2,148

Te RĹŤnanga o NgÄ ti Ruanui Trust Notes to the Financial Statements For the year ended 31st March 2014 14. Financial Instruments (continued) Interest rate risk Policies The Groupâ&#x20AC;&#x2122;s policy is to hold 10% - 70% of its investments in interest bearing money market investments and fixed interest investments. The Group does not use interest rate swaps of forward rate agreements to manage its interest rate risk. Credit risk Policies The Group incurs credit risk from transactions with trade receivables and financial institutions in the normal course of its business. Financial instruments which potentially subject the Group to concentrations of credit risk consist principally of bank balances, receivables and investments. Amounts owed by trade receivables are unsecured. The Group does not require any collateral or security to support transactions with financial institutions. The counterparties used for banking and investment activities are financial institutions with high credit ratings. Fair value The following methods and assumptions are used to estimate the fair values of each major class of financial instrument for which it is practical to estimate. Bank Balances, Investments, Deposits and Creditors: Carrying amount is equivalent to fair value. Shares in other companies: Carrying amount is equivalent to the fair value as determined on a basis consistent with that noted in the Statement of Accounting Policies. Repricing analysis The following tables identify the periods in which interest rates are subject to review on interest bearing financial assets and liabilities, and provides the current weighted average interest rate of each item. Trade receivables, trade creditors, sundry receivables and creditors have not been included in the table as they are not interest rate sensitive. There are no liabilities which are interest rate sensitive.

Assets Bank Investments Total assets

Current $ 0.0% - 3.00% 7.65%

524,158 21,666,542 22,190,700 $

0.0% - 3.15% 2.92%

0.0% - 3.00%

25,482 2,148 27,630

> 5 years $

1,074,000 1,074,000 Group 2013 $

$ -

4,205,832 4,205,832

550,050 550,050

22,800,055 22,800,055 $

5,106,068 5,106,068

> 5 years $ -

Parent 2013 $

non sensitive $

Parent 2014 2 - 5 years $

1 - 2 years $

71,706 1,409 73,115 $

0.0% - 3.15%

1,697,179 -

977,306 18,197,611 19,174,917

Current $

Group 2014 2 - 5 years $

1 - 2 years $

non sensitive $

$ -

Investments non-sensitive relate to equity investments which are not affected by interest rate changes.

524,158 47,787,826 48,311,984 $

17,892,143 17,892,143

Total $

977,306 45,401,654 46,378,960

Total $ 71,706 1,409 73,115 $

25,482 2,148 27,630

Te Rūnanga o Ngāti Ruanui Trust Notes to the Financial Statements For the year ended 31st March 2014 15. Payable to Ngāti Ruanui Tahua Trust On 27 February 2014, the Trustees of Ngāti Ruanui Tahua Trust (the “Trust”) resolved to transfer the operations, contracts, obligations and services of the Trust to the Ngāti Ruanui Tahua Limited (NRTL) with the objective of continuing the services of the Trust to the members of Ngāti Ruanui. A total of $156,849 of net assets were transferred by the Trust to NRTL. While the intention of the Trustees is to transfer the net assets for nil consideration, a High Court resolution is currently being obtained to finalise the Trustees’ resolution surrounding the settlement of these assets. Until such a resolution is obtained the value of the net assets transferred has been presented in NRTL’s financial statements as “Payable to Ngāti Ruanui Tahua Trust”. On 1 March 2014, NRTL took over the operations of the Trust which included an early childhood education operations, a medical practice and social development services. The following table summarises the consideration paid and fair value of assets acquired and liabilities assumed at the acquisition date: Total consideration Less: Recognised amounts of identifiable assets acquired and liabilities assumed Cash Receivables Fixed Assets Revenue received in advance Employee related liabilities Other liabilities Total identifiable net assets Goodwill / Discount on acquisition

$000’s 156 204 56 65 (70) (92) (7) 156 -

In the event that High Court approval is obtained allowing the transfer at nil consideration a gain will be recognised in the statement of financial performance in a future year.

21,

10 to 21

Ngﾄ》i Ruanui Holdings Corporation Limited ANNUAL REPORT For the year ended 31st March 2014

Contents

26 Chairpersons Report 28 Ngāti Ruanui Stratford Mountain House 29

Company Directory

Directors’ Report

Statement of Financial Position

Statement of Movements in Equity

Statement of Financial Performance

Notes to the Financial Statements

Auditors’ Report

Ngāti Ruanui Holdings Corporation Limited ANNUAL REPORT For the year ended 31st March 2014

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

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

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”.

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.

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

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

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 Ngﾄ》i Ruanui. Ngﾄ》i Ruanui Holdings Limited has paid a dividend of $1,150,000 (2013 $1,150.000) to Te Rﾅｫnanga o Ngﾄ》i 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

Ngāti Ruanui Stratford Mountain House 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.

Ngﾄ》i Ruanui Holdings Corporation Limited Company Directory For the year ended 31st March 2014

Nature of Business Investment Incorporated 30 June 2006 Company Number 1824549 IRD Number 94-377-277 Registered Office 151 Glover Road Hawera Taranaki Directors Debbie Packer (Chairperson) Taari Nicholas Mark Solomon Bankers ASB Bank Hawera Auditors PWC New Plymouth Solicitors Govett Quilliam New Plymouth Shareholders Te Rﾅｫnanga o Ngﾄ》i Ruanui Trust 1

Ngāti Ruanui Holdings Corporation Limited Director’s Report For the year ended 31st March 2014 The Board of Directors present their Annual Report including financial statements of the company for the year ended 31 March 2014. As required by section 211 of the Companies Act 1993 we disclose the following information: The nature of the business is to hold investments on behalf of Te Rūnanga o Ngāti Ruanui. The nature of the company’s business has not changed during the year under review. Financial statements have been prepared in accordance with accepted practices used in the preparation of financial statements based on New Zealand Financial Reporting Standards (NZ FRS). The Board received no notices during the year from directors that they had an interest in any transactions or proposed transactions by the company. The following directors remuneration or other benefits were paid during the year: Debbie Packer $37,000 Taari Nicholas $25,000 Mark Solomon $25,000 $87,000 No employees received remuneration and any other benefits of more than $100,000 during the period. No donations were made by the company during the period. The following held directorships during the financial year: Debbie Packer (Chairperson) Current Taari Nicholas Current Mark Solomon Current The Company paid a dividend of $1,150,000 during the year. It is not proposed to make any transfer to reserves. The company has not entered into any indemnity or insurance in respect of any liability that the director may incur in his capacity as director. The board received no notices during the year from the director requesting to use company information received in their capacity as director that would not have been otherwise available to them. No director acquired or disposed of any interest in shares in the company during the year.

Ngāti Ruanui Holdings Corporation Limited Director’s Report For the year ended 31st March 2014

Summary Retained Earnings at beginning of year Net Surplus for the year Dividend Paid Retained Earnings at end of year

2014 $ 6,409,971 2,739,360

(1,150,000 ) 7,999,331

2013 $ 4,569,311 2,990,660 (1,150,000) 6,409,971

State of Affairs The state of affairs at 31 March were: Assets totalled These were financed by: Shareholders Funds of Liabilities of

49,818,311

48,032,198

48,761,232

47,171,872

49,818,311

48,032,198

1,057,079

860,326

General In the Directors’ opinion, the current financial position of the company is considered to be satisfactory. The Directors of Ngāti Ruanui Holdings Corporation Limited authorised these financial statements for issue on the below date. For and on behalf of the Board

_________________________________ Director

24/9/14 _________________________________ Date

Ngﾄ》i Ruanui Holdings Corporation Limited Statement of Financial Position For the year ended 31st March 2014

Note Current Assets ASB Bank GST Receivable, net Accounts Receivable Portfolio Investments current portion

Non Current Assets Portfolio Investments Ngﾄ》i Ruanui Holdings Operating Company Limited Shares Receivable from Ngﾄ》i Ruanui Holdings Operating Company Limited Building and building improvements

Total Assets Current Liabilities Accounts Payable Payable to Ngﾄ》i Ruanui Fishing Limited Payable to TRoNRT

Net Assets

2 2

2013 $

2014 $ 186,745 1,893 8,603 21,665,133 21,862,374

779,913 34,247 19,172,769 19,986,929

26,121,283 200,000

26,226,737 330,000

1,609,767 27,955,937

28,045,269

49,818,311

48,032,198

25,826 -

39,184 236

24,887

1,488,532

1,031,253 1,057,079

820,906 860,326

48,761,232

47,171,872

41,200,000 7,561,232 48,761,232

41,200,000 5,971,872 47,171,872

Equity Share Capital Retained Earnings For and on behalf of the Board

_________________________________ Director

24/9/14 _________________________________ Date

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

NgÄ ti Ruanui Holdings Corporation Limited Statement of Movements in Equity For the year ended 31st March 2014

Note Share Capital Ordinary shares at the beginning of the year Contributions Ordinary shares at the end of the year

2014 $

2013 $

41,200,000 41,200,000

Retained earnings at the beginning of year

5,971,872

4,131,212

Net surplus Total recognised revenue and expenses

2,739,360 2,739,360

2,990,660 2,990,660

(1,150,000 )

(1,150,000)

7,561,232

5,971,872

48,761,232

47,171,872

Retained earnings

Dividend paid Retained earnings at the end of year

Total shareholdersâ&#x20AC;&#x2122; equity

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

Ngﾄ》i Ruanui Holdings Corporation Limited Statement of Financial Performance For the year ended 31st March 2014 Note Investment Income Dividends International equities Dividends Australasian equities Interest Received Interest Received Fixed Interest Foreign Currency (losses) / gains Property Rental Revaluations - Fixed Interest (losses) Revaluations Australasian equities - gains Revaluations International equities - gains

Expenditure Professional and Employee Expenses Advisory, Management Fees Auditors Fees Bank Charges Management Fees Legal Annual Report & AGM costs Professional fees Subscriptions Salaries Directors Expenses Directors Costs Directors Fees Directors Training Directors Travel Insurance - Indemnity Property Expenses Maintenance - fee paid to NRHCL to cover building Maintenance Depreciation Impairment in carrying value of investment in Ngﾄ》i Ruanui Holdings Operating Company Limited Total expenditure Net Surplus for the year

2014 $

2013 $

647,266 1,598 314,802 583,233 (25,213) 2,000 (135,448) 1,171,524 782,253 3,342,015

330,162 13,133 452,466 766,047 7,531 (217,680) 1,543,998 760,133 3,655,790

267,962 4,500 93 6,750 9,679 2,000 1,500 90 41,691 334,265

110,512 4,000 99 6,900 1,000 3,019 91 16,519 142,140

87,000 12,500 1,231 3,144 103,875

65 87,000 2,781 3,144 92,990

32,500 2,015 34,515

130,000

430,000

602,655 2,739,360

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

665,130 2,990,660

Ngāti Ruanui Holdings Corporation Limited Notes to the Financial Statements For the year ended 31st March 2014 1. Statement of Accounting Policies Reporting Entity The financial statements presented here are for Ngāti Ruanui Holding Corporation Limited (the “Company”). They cover the period 1 April 2013 to 31 March 2014. The financial statements have been prepared in accordance with the requirements of the Companies Act 1993, the Financial Reporting Act 1993 and New Zealand generally accepted accounting practice. The Company has chosen not to adopt the New Zealand Equivalents to International Financial Reporting Standards (“NZ IFRS”). The decision not to adopt is consistent with the exemption provided by Accounting Standards Review Board (“ASRB”) Release 9, issued in September 2007. ASRB Release 9 provides a choice to certain qualifying entities to either adopt NZ IFRS or to continue to apply New Zealand Financial Reporting Standards (“NZ FRS”). The Company is a qualifying entity on the basis that it is not an issuer, is not required to file financial statements with the Registrar of Companies under section 19 of the Financial Reporting Act 1993 and is not considered large (less than $20m revenue and less than 50 full-time employee equivalents). Measurement Base The accounting principals recognised as appropriate for the measurement and reporting of earnings and financial position on a historical basis have been followed. Specific Accounting Policies The following specific accounting policies which materially effect the measurement of financial performance and financial position have been applied: Changes to financial reporting requirements The Company has adopted External Reporting Board Standard A1 Accounting Standards Framework (For-profit Entities Update) (XRB A1). XRB A1 establishes a for-profit tier structure and outlines which suite of accounting standards entities in different tiers must follow. The Company is eligible to and has elected to report in accordance with Tier 4 For-profit Accounting Standards (NZ Old GAAP) on the basis that it is not publicly accountable, it is not large (as defined in XRB A1), it is not required to file financial statements under Section 19 of the Financial Reporting Act 1993 and it was applying Old GAAP at 30 June 2011. There is no impact on the current or prior year financial statements of transitioning to the new Accounting Standards Framework. The XRB is expected to remove the Old GAAP suite of accounting standards for periods beginning on or after 1 April 2015. Therefore it is expected that the Company will have to transition to NZ IFRS Reduced Disclosure Regime for its annual period ending 31 March 2016. Under NZ IFRS RDR the Company will have to prepare a statement of cash flows. Revenue Revenue comprises the fair value for the consideration received or receivable for interest, dividends and market value movements in investments held. Revenue is recognised as follows: (i) Interest income Interest income is recognised using the effective interest method. (ii) Dividend income Dividend income is recognised when the right to receive payment is established. (iii) Revaluation income on investments Changes in the fair value of investments are recognised in the period in which they arise. Accounts Receivable Accounts Receivable are stated at their estimated realisable value. Debts considered uncollectible are written off. Taxation The Company has charitable status from inception, as confirmed by the Inland Revenue Department and is registered with the Charities Commission. All income is therefore exempt from tax. Tax receivable balances are recognised when there is resident withholding tax due to be refunded Goods and Services Tax The financial statements have been prepared on a GST inclusive basis as Ngāti Ruanui Holdings Limited is not registered for Goods and Services Tax. Investments Investments in shares and fixed interest are carried at fair value unless they are not quoted in an active market and their fair value can not be reliably measured in which case they are recorded at the lower of cost and net realisable value. The fair value of such investments is reliably measurable where the variability in range for the reasonable fair value estimate is not significant or probabilities of various estimates within the range of fair values can be reasonably assessed and used in estimating fair values. Investments which are not expected to be realised in the next twelve months after reporting date are classified as non-current in the statement of financial position.

Ngāti Ruanui Holdings Corporation Limited Notes to the Financial Statements For the year ended 31st March 2014 1. Statement of Accounting Policies (Continued) Property Buildings and building improvements are stated at cost less accumulated depreciation at 1.5% diminishing value per annum Differential reporting The Company is a qualifying entity within the Framework of Differential Reporting. The Company qualifies on the basis that it is not publicly accountable and there is no separation between the owners and governing body. The Company has taken advantage of all differential reporting concessions available. Changes in Accounting Policies There have been no changes in accounting policies during the year. All policies have been applied on a basis consistent with those used in previous years. 2. Related Parties The Company is a wholly owned subsidiary of Te Rūnanga o Ngāti Ruanui Trust (TRoNRT). The Company had payments made on its behalf by TRoNRT and made advances to TRoNRT during the year offset by annual dividend payment. These payments relate to operating expenses of the Company. As a result the Company owes $1,031,253 to TRoNRT at balance date (2013: $820,906). 2013 2014 $ TRoNRT $ Opening Balance payable (288,306) (820,906) Total Net Advance to TRoNRT 610,500 932,903 Dividend paid (1,150,000) (1,150,000) Management Fee 6,900 6,750 Closing Balance payable (820,906) (1,031,253) NRHOCL The Company has a wholly owned subsidiary Ngāti Ruanui Holdings Operating Company Limited (NRHOCL). On 18 June 2010 this wholly owned subsidiary company purchased the Stratford Mountain House and carried out extensive refurbishment and upgrading before re opening for trading on 27 January 2011. These premises are on Department of Conservation land and the existing Lease agreement expires on 23 June 2028. The building was purchased during the year from NRHOCL as discussed in Note 3. The amount resulting from the sale agreement was offset to the balance receivable from NRHOCL. Opening Balance receivable Total Net (repayments) Advances by NRHCL Closing Balance receivable

1,488,532 (1,463,645 ) 24,887

955,782 532,750 1,488,532

Following the transfer of the building from NRHCL, the Company started paying $182,500 per annum to NRHCL as a service fee for the general management of the Mountain House building. This was recognised by the Company as an expense in the statement of financial performance. The Company provides advances to NRHOCL to support its operations. As a result the Company is owed $24,887 to NRHOCL at balance date (2012: $1,488,532 was owed). The balance due (inter - company interest free advance) from the above related party is receivable on demand, however NRHOCL has been advised that the balance is not expected to be called within the next 12 months. NRFL Opening Balance Repayment / (Advance) interest bearing 7.75% Closing Balance payable

(236) 236 -

275,000 (275,236) (236)

The Company made a loan advance to Ngāti Ruanui Fishing Limited allowing that company to invest in PNF Koura Collective Limited in 2012. The loan earned 7.75% interest and was repaid during the year. There was no interest income from the loan during the year (2013: $14,016).

Ngﾄ》i Ruanui Holdings Corporation Limited Notes to the Financial Statements For the year ended 31st March 2014 3. Building and Building improvements On 18 March 2014 the Company purchased the Mountain House building and improvements from NRHOCL. The assets were recognised at cost of $1,611,781.

At cost Less accumulated depreciation

1,611,781 2,014 1,609,767

4. Share Capital As at 31 March 2014 there was 1 share issued and fully paid (2013: 1). All ordinary shares rank equally with one vote attached to each fully paid ordinary share. 5. Contingent Liabilities There are no contingent liabilities at balance date (2013: nil). 6. Capital Commitments There is a capital commitment at balance date of $2,047,941 (2013: $2,388,464). This relates to an agreement to commit capital of up to $4,200,000 to Direct Capital IV Limited Partnership of which $2,152,059 had been called by Balance Date (2013: $1,811,536). There is a capital commitment at balance date of $US206,649 ($NZ238,735) (2013: $US292,460: $NZ349,636). This relates to an agreement to commit capital of up to $US500,000 ($NZ577,634) to Taurus Resources Fund No. 2 of which $US293,351 ($NZ338,899) had been called by Balance Date (2013: $US207,540; $NZ248,114). 7. Events After Balance Date There are no events subsequent to 31 March 2014 that require disclosure or adjustment in these financial statements (2013:nil).

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 to 8, 37 which comprise the statement of financial position as at 31 March 2014, “Company”) on pages 32 4 to 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.

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 Ngati Ruanui Holdings Corporation Limited

Opinion 32toto8:37: In our opinion, the financial statements on pages 4 (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 24 September 2014

Page 2

New Plymouth

Ngﾄ》i Ruanui Fishing Limited ANNUAL REPORT For the year ended 31st March 2014

Contents 42

Chairpersons Report

Company Directory

Directorsâ&#x20AC;&#x2122; Report

Statement of Financial Position

Statement of Movements in Equity

Statement of Financial Performance

Notes to the Financial Statements

Auditorsâ&#x20AC;&#x2122; Report

Ngāti Ruanui Fishing Limited ANNUAL REPORT For the year ended 31st March 2014

CHAIRPERSONS REPORT held 15th December 2013.

REPORT ON FISHERIES SETTLEMENT ASSETS

3. Investments Investment of Ngāti Ruanui Fishing Limited money

There were no other formal interactions in this reporting period.

This Annual Report is provided as good business practice and in compliance with the reporting requirements of the constitution of Ngāti Ruanui Fishing Limited and the Māori Fisheries Act 2004 and covers the period 1 April 2013 to 31 March 2014. Thank you for taking the time to read this report.

There was no Ngāti Ruanui Fishing Limited money invested externally for this reporting period, the funds being held in the ASB bank account $71,013 (2013: $150,376).

5. Annual Plan Review and Projected Performance

1. Settlement Quota

As part of Settlement funds an investment is held in Aotearoa Fisheries Limited this being valued at $1,248,368 (2013: $1,578,368).

The Settlement Quota held by Ngāti Ruanui Fishing Limited at the beginning of the year (1 April 2013) was 472.897 metric tonnes and this had increased to 590.220 metric tonnes as at 31 March 2014. The market value of this quota (for reporting purposes) had increased by $218,282 at balance date to $2,605,958, this increase being as a result of additional quota allocation during the year. 2. Performance Total income increased from $273,125 last year to $424,941 this year as the result of increased ACE returns from the Iwi Collective Partnership and ICP Koura Collective. Operating expenditure this year of $75,118 was slightly down on that recorded last year of $82,960 as the result of no interest being payable on the short term loan (raised to enable investment in ICP Koura Collective) which was repaid in full in the prior year. The net surplus recorded this year of $28,816 is down on the previous year of $177,614 this as a result of the need to write down the investment in Aotearoa Fisheries Limited by $330,000.

Ngāti Ruanui Fishing Limited has an investment of $107,125 in a crayfish processing and exporting business (ICP Koura Collective).

Settlement Quota Interests There were no registered interests against the Quota Shares of Ngāti Ruanui Fishing Limited in this reporting period. Income Shares traded There were no Income Shares traded, sold, exchanged or acquired in this reporting period. Settlement Quota traded There was no Settlement Quota traded, sold or exchanged in this reporting period. Registered Interest on Settlement Quota There were no registered interests by way of caveat or mortgage placed over the Settlement Quota in this reporting period.

The Annual Plan for the period 1 April 2013 to 31 March 2014 projected a profit of $133,836 and the company achieved a profit (before extraordinary investment write down) of $358,816 (reasons explained in 2. above). Ngāti Ruanui Fishing Limited is projecting a profit of $100,141 for the period 1 April 2014 to 31 March 2015. (i) Ngāti Ruanui Fishing Limited intends to: •

monitor the sale of ACE derived from settlement quota via the ICP which manages the fishing quota on its behalf.

•

reorganise the settlement quota by buying, exchanging and selling settlement quota in accordance with the Act as opportunities arise.

•

monitor the performance of ICP Koura Collective.

6. Constitutional Amendments There were no changes made to and currently no proposal to amend the constitution of Ngāti Ruanui Fishing Limited.

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

Pat Rangihaeata Director

Ngﾄ》i Ruanui Fishing Limited Company Directory For the year ended 31st March 2014

Nature of Business

Fishing Quota Company

Incorporated

March 6, 2006

Company Number

1773938

IRD Number

92-979-954

Registered Office 151 Glover Road Hawera Taranaki Directors

Pat Rangihaeata (appointed 26 February 2012)

Bankers ASB Bank Hawera Auditors PWC New Plymouth Solicitors Govett Quilliam New Plymouth Shareholders Te Rﾅｫnanga o Ngﾄ》i Ruanui Trust

NgÄ ti Ruanui Fishing Limited Directorâ&#x20AC;&#x2122;s Report For the year ended 31st March 2014 The Board of Directors present their Annual Report, including financial statements of the company, for the year ended 31 March 2014. As required by section 211 of the Companies Act 1993 we disclose the following information: The nature of the business is quota management services. The nature of the companyâ&#x20AC;&#x2122;s business has not changed during the period under review. Financial statements have been prepared in accordance with practices used in the preparation of financial statements for previous financial periods. The Board received no notices during the year from directors that they had an interest in any transactions or proposed transactions by the company. The following directors remuneration or other benefits were paid during the year: Pat Rangihaeata $ 25,000 $ 25,000 No employees received remuneration and any other benefits of more than $100,000 during the period. No donations were made by the company during the period. The Director declared that a dividend of $75,000 be paid during the year under review. It is not proposed to make any transfer to reserves. The company has indemnity and liability insurance in respect of any liability that the director may incur in his capacity as director. The board received no notices during the year from the director requesting to use company information received in their capacity as director that would not have been otherwise available to them. No director acquired or disposed of any interest in shares in the company during the year.

Ngāti Ruanui Fishing Limited Director’s Report For the year ended 31st March 2014 2014 $

Trading Results Net Surplus for the year Opening Retained Earnings Leaving Available for Appropriation Dividend Paid Share Capital Leaving Available for Appropriation

2013 $

28,816 4,046,718 4,075,534 (75,000) 1 4,000,535

177,614 3,919,104 4,096,718 (50,000) 1 4,046,719

4,033,116

4,223,782

4,000,535 32,581 4,033,116

4,046,719 177,063 4,223,782

State of Affairs The state of affairs at 31 March were: Assets totalled These were financed by: Shareholders Funds of Liabilities of

General In the Director’s opinion, the current financial position of the company is considered to be satisfactory. The Director of Ngāti Ruanui Fishing Limited authorised these financial statements for issue on the below date. For and on behalf of the Board

_________________________ Director

22/9/14 _________________________ Date

Ngﾄ》i Ruanui Fishing Limited Statement of Financial Position For the year ended 31st March 2014 Note Current Assets ASB Bank Accounts Receivable Receivable from Ngﾄ》i Ruanui Holdings Corporation Limited

2014 $

2013 $

71,013 651 -

150,376 236

71,664

150,612

1,248,368 2,605,958 107,125 1 3,961,452

1,578,368 2,387,676 107,125 1 4,073,170

4,033,116

4,223,782

7,160 22,315 3,106

6,418 28,631 142,014

32,581

177,063

4,000,535

4,046,719

1 4,000,534 4,000,535

1 4,046,718 4,046,719

Non Current Assets Investment in Unlisted Shares - Aotearoa Fisheries Ltd Fish Quota Holdings Investment in ICP Koura Collective Investment in Deep Water Group Limited

3 3 3 3

Total Assets Current Liabilities Accounts Payable GST Payable Payable to Te Rﾅｫnanga o Ngﾄ》i Ruanui Trust

Net Assets

Equity Share Capital Retained Earnings

For and on behalf of the Board

_________________________ Director

22/9/14 _________________________ Date

This Statement is to be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements.

NgÄ ti Ruanui Fishing Limited Statement of Movements in Equity For the year ended 31st March 2014

Note Share Capital Share capital at beginning of year Share capital at end of year

2013 $

2014 $ 1 1

1 1

4,046,718

3,919,104

Net surplus Total recognised revenue and expenses

28,816 28,816

177,614 177,614

Dividend paid

75,000

50,000

Retained earnings at the end of year

4,000,534

4,046,718

Total shareholdersâ&#x20AC;&#x2122; equity

4,000,535

4,046,719

Retained earnings Retained earnings at the beginning of year

This Statement is to be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements.

Ngﾄ》i Ruanui Fishing Limited Statement of Financial Performance For the year ended 31st March 2014

Note Income

Operating Expenses (Reversal of previous impairment) / Impairment of Quota, net

5 3

Operating surplus Less: Impairment of investment in AFL shares Net surplus

2014 $ 424,941

2013 $ 273,125

424,941

273,125

75,118 (8,993) 66,125

82,960 12,551 95,511

358,816

177,614

330,000

28,816

177,614

This Statement is to be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements.

Ngāti Ruanui Fishing Limited Notes to the Financial Statements For the year ended 31st March 2014 1. Statement of Accounting Policies Reporting Entity The financial statements presented here are for Ngāti Ruanui Fishing Limited (the “Company”). They cover the period 1 April 2013 to 31 March 2014. The financial statements have been prepared in accordance with the requirements of the Companies Act 1993 and the Financial Reporting Act 1993. The financial statements are prepared in accordance with New Zealand generally accepted accounting practice. The Company has chosen not to adopt the New Zealand Equivalents to International Financial Reporting Standards (“NZ IFRS”). The decision not to adopt is consistent with the exemption provided by Accounting Standards Review Board (“ASRB”) Release 9, issued in September 2007. ASRB Release 9 provides a choice to certain qualifying entities to either adopt NZ IFRS or to continue to apply New Zealand Financial Reporting Standards (“NZ FRS”). The Company is a qualifying entity on the basis that they are not issuers, are not required to file financial statements with the Registrar of Companies under section 19 of the Financial Reporting Act 1993 and are not considered large (less than $20m revenue and less than 50 full-time employee equivalents). Measurement Base The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on a historical basis as modified for the revaluation of certain assets as identified in specific accounting policies below. Specific Accounting Policies The following specific accounting policies which materially effect the measurement of financial performance and financial position have been applied: Accounts Receivable Accounts Receivable are stated at their estimated realisable value. Debts considered uncollectible are written off. There is no provision for Doubtful Debts during the years presented. Taxation The Company has charitable status from inception, as confirmed by the Inland Revenue Department and is registered with the Charities Commission. All income is therefore exempt from tax. Tax receivable balances are recognised when there is resident withholding tax due to be refunded. Goods and Services Tax The financial statements have been prepared on a GST exclusive basis except for Accounts Receivable and Accounts Payable which are shown inclusive of Goods and Services Tax. Revenue Revenue comprises the fair value of the consideration received or receivable for interest, dividends and market value movements in investments held. Revenue is recognised as follows: (i) Interest income is recognised using the effective interest method. (ii) Dividend income is recognised when the right to receive payment is established. (iii) Annual Catch Entitlement income is recognised when the right to receive payment is established. (iv) Income from ICP Koura Collective investments is recognised when the right to receive payment is established. Investments Fish quota shares received by way of settlement are recognised at their fair value at the date of settlement. Fish quota purchased are recognised at cost. Additional allocation of fish quota shares are recognised at fair value at date of allocation and are recognised as income in the Statement of Financial Performance. Fish quota shares have an indefinite life and are therefore not amortised. They are tested annually for impairment and are carried at cost or fair value at date of settlement or allocation less accumulated impairment. Investments in shares are carried at fair value unless they are not quoted in an active market or their fair value cannot be reliably measured. The fair value of such investments is reliably measurable where the variability in the range for fair value estimate is not significant or probabilities of the various estimates within the range of fair values can be reasonably assessed and used in estimating fair value. Gains and losses on investments are recognised in the Statement of Financial Performance Differential reporting The Company is a qualifying entity within the Framework of Differential Reporting. The Company qualifies on the basis that it is not publicly accountable and there is no separation between the owners and governing body. The Company has taken advantage of all differential reporting concessions available except for FRS 19 - Accounting for Goods and Services Tax, with which they have complied fully.

Ngāti Ruanui Fishing Limited Notes to the Financial Statements For the year ended 31st March 2014 Statement of Accounting Policies (Continued) Changes in Accounting Policies There have been no changes in accounting policies during the year. All policies have been applied on a basis consistent with previous years. Changes to financial reporting requirements The Company has adopted External Reporting Board Standard A1 Accounting Standards Framework (For-profit Entities Update) (XRB A1). XRB A1 establishes a for-profit tier structure and outlines which suite of accounting standards entities in different tiers must follow. The Company is eligible to and has elected to report in accordance with Tier 4 For-profit Accounting Standards (NZ Old GAAP) on the basis that it is not publicly accountable, it is not large (as defined in XRB A1), it is not required to file financial statements under Section 19 of the Financial Reporting Act 1993 and it was applying Old GAAP at 30 June 2011. There is no impact on the current or prior year financial statements of transitioning to the new Accounting Standards Framework. The XRB is expected to remove the Old GAAP suite of accounting standards for periods beginning on or after 1 April 2015. Therefore it is expected that the Company will have to transition to NZ IFRS Reduced Disclosure Regime for its annual period ending 31 March 2016. Under NZ IFRS RDR the Company will have to prepare a statement of cash flows. 2. Related Parties The Company is a wholly owned subsidiary of Te Rūnanga o Ngāti Ruanui Trust (the “Trust”). The Company had payments made on its behalf by the Trust during the year. These payments relate to operating expenses of the Company. Ngāti Ruanui Holdings Corporation Limited (NRHCL) made an advance to the Company to allow the Company to invest in the ICP Koura Collective. Outstanding balances at year end are shown in the Statement of Financial Position.

Trust Opening Balance Total Payments Net Management Fee payable to the Trust Closing Balance owed to the Trust

2013

2014 (142,014 ) 144,908 (6,000 ) (3,106 )

(77,732) (58,282) (6,000) (142,014)

The balance owed to the Trust is interest free and due on demand. NRHCL

Opening Balance Total Net Advances (made) repaid Closing Balance owed by / (to) NRHCL

236 (236)

(275,000 ) 275,236

The balance owed to NRHCL of $275,000 was interest bearing at 7.75%. Total interest expense for the year amounted to nil (2013:$14,016). The loan balance was fully settled during the year.

236

Ngāti Ruanui Fishing Limited Notes to the Financial Statements For the year ended 31st March 2014 3. Investments On 1 April 2006, the Company received settlement proceeds in accordance with the Māori Fisheries Act 2004. Aotearoa Fisheries Limited

1,248,368

1,578,368

The value of the Aotearoa Fisheries Limited (AFL) shares upon receipt were recorded at $1, they were subsequently revalued to fair value. The shares comprise of 1672 income shares in AFL. These income shares have no voting rights attached and can only be traded amongst iwi. Section 77 of the Māori Fisheries Act 2004 stipulates that AFL are required to pay a dividend of not less than 40% of net profit after tax as from 30 September 2004. Such payment is expected in December each year, however no dividend was received this year as AFL made a trading loss after recognising a writedown on its investment in Sealord. The AFL shares are not actively traded and are valued using market accepted valuation techniques. The value of the shares has been determined using a discounted cash flow model using market data and expected cash inflows from the investment. An impairment loss of $330,000 was recognised during the year (2013: nil) to account for the difference between the carrying value of the investment and the estimated realisable value resulting from the discounted cash flow. Note Deep Water Group Limited Shares held 1

2013 $

2014 $ 1

The value of the Deep Water Group Limited shares are recorded at $1 this being a not for profit organisation. Fish Quota holdings are represented by: Opening value Quota Purchased during the period Impairment of Quota Reversal of previous impairment of Quota Closing value

2,387,676 209,289 (280,626) 289,619 2,605,958

2,032,618 367,609 (81,977) 69,426 2,387,676

The fish quota assets were independently valued by Donal Boyle from Quota Management Systems Limited at 31 March 2014: $2,954,622 (2013: $2,758,859) to determine the fair value of fish quota with reference to market evidence of current market prices. Donal Boyle is an independent valuer not related to the Company. He has 32 years experience in the fishing industry and 19 years valuing fish quota. The carrying value is adjusted such that closing value equals original cost of individual quota less impairment. Any recovery of value of quota is recognised as an impairment reversal to the extent of original quota cost. Any uplift beyond original cost is not recognised. ICP Koura Collective investment movements during year: Opening Balance Purchase CRA4 ACE Purchase CRA3 quota shares Purchase CRA4 quota shares GST payable Working Capital contribution repaid Investment in ICP land, buildings etc

107,125 107,125

575,221 (16,494) (175,175) (192,434) (52,653) (31,340) 107,125

In 2011, the Company joined the newly formed Iwi Collective Partnership (ICP) along with other Iwi to manage the Company’s crayfish quota on its behalf. This arrangement has the benefits of economies of scale, grouping small quota allocations into viable parcels and a larger knowledge base to manage the asset. An initial contribution was made by the Company representing 8.33% interest in the ICP. In 2012, the ICP has entered into a co-investment agreement, alongside Ngāti Mutunga and Parininihi Ki Waitotara, to invest in two crayfish quotas owned by Port Nicholson Fisheries (PNF) and PNF’s existing crayfish plant facility. Accordingly, a portion of the amount contributed was used to purchase the crayfish quota. The remaining amount represents the Company’s proportionate share in the crayfish plant facility.

Ngāti Ruanui Fishing Limited Notes to the Financial Statements For the year ended 31st March 2014 3. Investments (Continued) The ICP has set up the following entities to hold the investments in the ICP: · ICP Koura Operations Limited Partnership – to manage the sales of Annual Catch Entitlement for the crayfish quota on behalf of the contributing partners; and · ICP Koura Facilities Limited Partnership – to hold the ICP’s investment in Port Nicholson Facilities LP, which catches, processes and sells Annual Catch Entitlement for crayfish quota. 4. Income Dividend received AFL

Māori Authority Tax Credit refund on AFL dividend Annual Catch Entitlement income ICP Koura Collective Investment income Interest Received Total Income 5. Expenditure

249,745 172,407 2,789 424,941

Professional and Employee Expenses Administration Fees Administration & Sundry Expenses Annual Report & AGM costs Audit Fees Deep Water Group Limited Fish Serve Levies Insurance Interest (NRHCL) Ministry of Fisheries & Industry Levies Quota Management Systems Valuation Costs Subscriptions TOKM Fees

Directors Expenses Directors Fees Directors Meeting - Other Costs Total Expenses

45,664 38,035 185,970 3,456 273,125

2014

2013

6,000 139 1,250 4,500 2,337 1,391 911 25,520 1,848 39 200

6,000 245 1,000 4,000 1,610 30 911 14,016 24,971 1,636 39 187

44,135

54,645

25,000 5,983 30,983 75,118

25,000 3,315 28,315 82,960

6. Capital Commitments There are no capital commitments at balance date (2013: Nil).

7. Contingent Liabilities There are no contingent Liabilities at balance date (2013: Nil). 8. Share Capital As at 31 March 2014 there were 16 ordinary shares issued and fully paid (2013: 16). All ordinary shares rank equally with one vote attached to each fully paid ordinary share.

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 46 4 to 10, 52 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.

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 Ngati Ruanui Fishing Limited

Opinion 46toto10: 52: In our opinion, the financial statements on pages 4 (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

Chartered Accountants 24 September 2014

Page 2

New Plymouth

Ngﾄ》i Ruanui Tahua Limited ANNUAL REPORT For the year ended 31st March 2014

Contents 57

Chairpersons Report

Statement of Financial Position

Statement of Movements in Equity

Statement of Financial Performance

Notes to the Financial Statements

Auditorsâ&#x20AC;&#x2122; Report

Ngāti Ruanui Tahua Limited ANNUAL REPORT For the year ended 31st March 2014

CHAIRPERSONS REPORT 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.

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

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.

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

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

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

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

Ngﾄ》i Ruanui Tahua Limited ANNUAL REPORT For the year ended 31st March 2014

Ngﾄ》i Ruanui Tahua Limited Financial Report For the Period Ended 31st March 2014 The financial statements were authorised by the Director on the below date.

2/9/14 _______________________________ _______________________________ Director Date

Ngāti Ruanui Tahua Limited Statement of Financial Position As at 31st March 2014

Note Current Assets BNZ - Cheque Account BNZ - Oncall Account Receivables Total Current Assets

2014 $ 110,653 52,620 229,900 393,173

Non Current Assets Fixed Assets

71,992 71,992

Total Non Current Assets

465,165

Total Assets Current Liabilities Accounts Payable Sundry Creditors Payable to Te Rūnanga o Ngāti Ruanui Trust GST Payable Receipts in advance Payable to Ngāti Ruanui Tahua Trust Total Current Liabilities

59,387 158,778 5,977

11,160 71,908 156,849 464,059 464,059

Total Liabilities Net Liabilities

1,106

Equity Share Capital Retained Earnings Closing Equity

1,106 1,106

The Director of the Ngāti Ruanui Tahua Limited authorised these financial statements for issue on the below date.

2/9/14 _______________________________ _______________________________ Director Date

This Statement is to be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements.

NgÄ ti Ruanui Tahua Limited Statement of Movements in Equity For the one month period ended 31st March 2014

Note

2014 $

Share Capital Ordinary shares at 13 May 2013 Issuable during the period Ordinary shares at 31 March 2014

Retained Earnings Retained earnings at 13 May 2013 Net surplus for the period Retained earnings at 31 March 2014

1,106 1,106

Total shareholdersâ&#x20AC;&#x2122; equity

1,106

This Statement is to be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements.

Ngﾄ》i Ruanui Tahua Limited Statement of Financial Performance For the one month period ended 31st March 2014

Income Health Education Iwi Social Services - Ministry of Social Development Total Income Less: Expenses Accountancy fees Audit Fees Bank Charges Cleaning & Laundry Communications Management fees Depreciation Foodstuffs Leasing Costs Legal Expenses Hair Salon Supplies Medical Expenses and Supplies NZQA Fees NZNO Fees Power Professional Services Print, Post & Stationary Rent Repairs & Maintenance Resources Materials Security Software Support Subscriptions & Levies Training Travel Reimbursment Uniform Allowance Vehicle Wages & Salaries Total Expenses Net surplus

2014 $ 146,615 65,765 8,943 221,323

2,508 1,000 230 3,310 2,304 12,500 1,582 1,677 1,290 3,346 1,138 4,399 150 251 2,101 4,629 913 9,099 1,157 54 554 1,200 94 1,372 53 432 2,363 160,511 220,217 1,106

This Statement is to be read in conjunction with the Statement of Accounting Policies and Notes to the Financial Statements.

Ngāti Ruanui Tahua Limited Notes to the Financial Statements For the one month period ended 31st March 2014 1. Statement of Accounting Policies Reporting Entity The financial statements presented here are for Ngāti Ruanui Tahua Limited (the “Company”). The Company commenced trading on 1 March 2014 after taking over the operations, contracts, obligations and services of Ngāti Ruanui Tahua Trust and as such the financial statements cover the period 1 March 2014 to 31 March 2014. The financial statements have been prepared in accordance with the requirements of the Companies Act 1993 and the Financial Reporting Act 1993 and the New Zealand generally accepted accounting practices. The Company has chosen not to adopt the New Zealand Equivalents to International Financial Reporting Standards (“NZ IFRS”). The decision not to adopt is consistent with the exemption provided by Accounting Standards Review Board (“ASRB”) Release 9, issued in September 2007. ASRB Release 9 provides a choice to certain qualifying entities to either adopt NZ IFRS or to continue to apply New Zealand Financial Reporting Standards (“NZ FRS”). The Company is a qualifying entity on the basis that they are not issuers, are not required to file financial statements with the Registrar of Companies under section 19 of the Financial Reporting Act 1993 and are not considered large (less than $20m revenue and less than 50 full-time employee equivalents). Measurement Base The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on a historical basis have been followed. Specific Accounting Policies The following specific accounting policies which materially effect the measurement of financial performance and financial position have been applied: (a) Fixed Assets & Depreciation The entity has the following classes of fixed assets and depreciation has been calculated using the following rates: Land nil Buildings 3.0% - 26.0% Motor Vehicles 18.0% - 26.0% Furniture & Fittings 9.6% - 28.8% Office Equipment 10.2% - 36.0% Plant & Equipment 7.8% - 36.0% All fixed assets are recorded at cost or valuation less accumulated depreciation. Depreciation of the assets has been calculated at the maximum rates permitted by the Income Tax Act 2007. (b) Revenue Revenue comprises the fair value for the consideration received or receivable for interest and services provided and is recognised as follows: (i) Interest income is recognised using the effective interest method. (ii) Income from services is recognised at the time the service was provided. (c) Receivables Receivables are stated at their estimated realisable value. Bad debts are written off in the year in which they are identified. (d) Goods and Services Tax The financial statements have been prepared on a GST exclusive basis except for Accounts Receivable and Accounts Payable which are shown inclusive of Goods and Services Tax. (e) Taxation The Company has charitable status from inception, as confirmed by the Inland Revenue Department and is registered with the Charities Commission. All income is therefore exempt from tax. Tax receivable balances are recognised when there is resident withholding tax due to be refunded. (f) Accounts Payable These amounts represent liabilities for goods and services provided to the Trust prior to the end of the financial year which are unpaid. These amounts are unsecured and are usually paid on 20th of the month following recognition.

Ngāti Ruanui Tahua Limited Notes to the Financial Statements For the one month period ended 31st March 2014 1. Statement of Accounting Policies (Continued) (g) Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. (h) Leased Assets Operating leases are those which all the risks and benefits are substantially retained by the lessor. Lease payments are expensed in the periods the amounts are payable. Differential reporting The Company is a qualifying entity within the Framework of Differential Reporting. The Company qualifies on the basis that it is not publicly accountable and there is no separation between the owners and governing body. The Company has taken advantage of all differential reporting concessions available except for FRS 19 - Accounting for Goods and Services Tax, with which they have complied fully Comparatives This is the first year of the company’s operations and therefore no comparative figures are available. Changes to financial reporting requirements The External Reporting Board (XRB) issued the new Accounting Standards Framework which introduces a Public Benefit Entity (PBE) tier structure and related PBE accounting standards. The standard is effective for reporting periods beginning on or after 1 April 2015 under which the Company will be classified as a Tier 3 entity on the basis that it is not publicly accountable and it is not large. As a result, the Company will apply the PBE accounting standards for its year ended 31 March 2016 onwards. 2. Lease Commitments Rent of Property Ngāti Ruanui Health Centre occupies premises at 41 Hunter Street which has two rights of renewal effective on 16 September 2018 and 16 September 2023. Annual rent is set at $95,000 per annum. Rent reviews are on the lease renewal dates.

Within one year: Later than one year and not later than two years: Later than two years and not later than five years: Later than five years Lease of vehicles Within one year: Later than one year and not later than two years: Later than two years and not later than five years: Later than five years Lease of Office Equipment Within one year: Later than one year and not later than two years: Later than two years and not later than five years: Later than five years

2014 $ 95,000 95,000 138,542 328,542 30,848 8,475 2,112 41,435 8,345 8,345

Ngﾄ》i Ruanui Tahua Limited Notes to the Financial Statements For the one month period ended 31st March 2014 3. Fixed Assets Motor Vehicles At cost Less Accumlated Depreciation Furniture & Fittings At cost Less Accumulated Depreciation Office Equipment At cost Less Accumulated Depreciation Plant & Equipment At cost Less Accumulated Depreciation

Total Fixed Assets

2014 $ 2,263 37 2,226 16,941 281 16,660 24,543 682 23,861 29,827 582 29,245 71,992

4. Receivables Accounts receivable Funding in arrears Patient and ECE fee receivables

85,186 105,410 39,304 229,900

5. Contingent Liabilities There are no contingent liabilities at balance date. 6. Related Parties The Company is a wholly owned subsidiary of Te Rﾅｫnanga o Ngﾄ》i Ruanui Trust (TRoNRT). The Company had payments made on its behalf by the Trust during the period. These payments relate to operating expenses of the Company. Outstanding balances at year end are shown in the Statement of Financial Position. TRoNRT Opening Balance Total payments Closing Balance owed to TRoNRT

5,977 5,977

Ngāti Ruanui Tahua Limited Notes to the Financial Statements For the one month period ended 31st March 2014 7. Payable to Ngāti Ruanui Tahua Trust On 27 February 2014, the Trustees of Ngāti Ruanui Tahua Trust (the “Trust”) resolved to transfer the operations, contracts, obligations and services of the Trust to the Company with the objective of continuing the services of the Trust to the members of Ngāti Ruanui. A total of $156,849 of net assets were transferred by the Trust to the Company. While the intention of the Trustees is to transfer the net assets for nil consideration, a High Court resolution is currently being obtained to finalise the Trustees’ resolution surrounding the settlement of these assets. Until such a resolution is obtained the value of the net assets transferred has been presented in the Company’s financial statements as “Payable to Ngāti Ruanui Tahua Trust”. On 1 March 2014, the Company took over the operations of the Trust which included an early childhood education operations, a medical practice and social development services. The following table summarises the consideration paid and fair value of assets acquired and liabilities assumed at the acquisition date:

Total consideration Less: Recognised amounts of identifiable assets acquired and liabilities assumed Cash Receivables Fixed Assets Revenue received in advance Employee related liabilities Other liabilities Total identifiable net assets

$000’s 156 204 56 65 (70) (92) (7) 156

Goodwill / Discount on acquisition

In the event that High Court approval is obtained allowing the transfer at nil consideration a gain will be recognised in the statement of financial performance. 8. Capital Commitments There are no capital expenditure commitments at balance date (2013: $nil). 9. Share Capital As at 31 March 2014 there were 16 ordinary shares issued and uncalled. All ordinary shares rank equally with one vote attached to each fully paid ordinary share.

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 59

to 65, 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.

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 Ngati Ruanui Tahua Limited Opinion

59toto8:65: In our opinion, the financial statements on pages 2 (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 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: (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 Use of our Report

Chartered Accountants 3 September 2014

Page 2

New Plymouth

151 Glover Road PO Box 594 HAWERA 4640 Phone: 06 278 0148 Web: www.ruanui.co.nz