93 / 96
89
Financial liabilities as per statement of financial position
Liabilities at fair
value through
surplus or deficit
$'000
Liabilities at
amortised cost
$'000
Total
$'000
Consolidated
At 31 March 2016
Borrowings
-
250,352
250,352
Derivative financial instruments
10,735
-
10,735
Trade and other payables
-
10,497
10,497
10,735
260,849
271,584
At 31 March 2015
Borrowings
-
268,133
268,133
Derivative financial instruments
7,686
-
7,686
Trade and other payables
-
10,594
10,594
7,686
278,727
286,413
(f) Capital risk management
The Trust’s capital is its equity (comprised to retained earnings and reserves) plus its debt. Equity is represented by net assets. The
Trust is subject to the financial management and accountability provisions of the Charities Act 2005, Waikato Raupatu Claims
Settlement Act 1995 and the Waikato-Tainui Raupatu Claims (Waikato River) Settlement Act 2010. The Trust manages its revenues,
expenses, assets, liabilities, investments and general financial dealings prudently. The Trust’s equity is largely managed as a by-
product of managing revenues, expenses, assets, liabilities, investments and general financial dealings. The objective of managing
the Trust’s equity is to ensure the Trust effectively achieves its objectives and purpose, whilst remaining a going concern in order
to provide returns for the Waikato Raupatu Lands Trust and to maintain an optimal capital structure to reduce the cost of capital.
During 2015 the Trust (excluding the hotels) restructured its arrangements with all banks to align the debt facilities with relevant
Controlled entity entities that have contributed towards the debt. This has resulted in a cost effective structure which has led
to a number of assets being released from unnecessary security. The Trust debt reported is $250m (2015: $268m) (see note
19). The Trust has not breached any bank covenants as required by the ANZ, ASB Bank, Bank of New Zealand and Westpac
New Zealand Limited during the reporting period (see note 19) (2015: no breach). There are no externally imposed capital
requirements at balance date (2015: nil).
Consolidated
Note
2016
$'000
2015
$'000
Total borrowings
250,352
268,094
Less: cash and cash equivalents
20 (181,010)
(176,959)
Net debt
69,342
91,135
Total equity
939,882
861,561
Total capital
1,009,224
952,696
Gearing ratio
7%
10%
28 EVENTS OCCURRING AFTER THE BALANCE DATE
On 7 April 2016, the Trust entered into a new lease with TGHL for a 120 year period.
On 8 April 2016, Tainui Group Holdings Limited agreed to sell a 50 percent interest in The Base Limited to Kiwi Property
Holdings Limited for $192.5 million. Settlement occurred on 31 May 2016.
On 4 May 2016, the assets and liabilities of Hamilton Riverview Hotel Limited were sold into Hamilton Riverview Hotel Limited
Partnership. Tainui Group Holdings Limited continue to hold 100 percent ownership and voting interest in Hamilton Riverview
Hotel Limited Partnership.