98
(b) Contingent liabilities
Guarantees
The Trust and Group had contingent liabilities at 31 March 2014 in respect of:
Raukura Whare Limited has agreed to underwrite certain Housing Corporation of New Zealand mortgages. Raukura Whare
Limited is liable for any mortgages which default if total claims exceed $23.3m. The life of the loan is 20 years. The Trustees
believe that the expectation of defaulting mortgages exceeding $23.3m is remote.
Tainui Group Holdings Limited and guaranteeing subsidiaries (Tainui Corporation Limited, Tainui Development Limited, TGH No.1
Limited, Raukura Moana Seafoods Limited, and The Base Limited) have granted to Westpac New Zealand Limited and the Bank of
New Zealand a charge in and over all present and future assets and present and future rights and interest in any asset as security
for the finance facilities (see note 23).
The Trust has first priority security of $15m over the present and future undertakings, property, assets, revenues and capital of
Raukura Moana Seafoods Limited, Tainui Corporation Limited, Tainui Development Limited and Tainui Group Holdings Limited.
Each company jointly and severally, unconditionally and irrevocably guarantees to the Trust all secured monies.
The Trustees believe that the expectation of a liability arising due to the guarantees and mortgages in place is remote.
3 0 . c omm i t men t s
Expenditure contracted for at the reporting date but not recognised as liabilities is as follows:
Consolidated
Parent
2014
2013
2014
2013
$'000
$'000
$'000
$'000
Inventories ‑ sections for sale
894
-
-
-
Investment properties
1,742
-
-
-
2,636
-
-
-
Other
17,854
583
-
-
17,854
583
-
-
Other commitments are for Tainui Group Holdings Limited and include the capital call commitment for investment in Pioneer
Capital for $8.2m (2013: $0.6m), Genesis Energy shares purchased in April 2014 for $8.3m and livestock purchased for $1.4m.
3 1 . e v en t s s u b s e qu en t t o t h e r e p o r t i ng p e r i od
In May 2014, Tainui Development Limited purchased the remaining 17% non‑controlling interest share in Hamilton Riverview
Hotel Limited for $5m.
In May 2014, Waikato‑Tainui Te Kauhanganui Inc. resolved to distribute $15m in Marae grants.
On 20 June 2014 Tainui Group Holdings Limited declared a dividend of $12m (9.2c per share) in relation to the year ended 31
March 2014 (2013: Tainui Group Holdings Limited $11.1m (8.5c per share) and Waikato‑Tainui Fisheries Limited $0.4m ($3,700
per share)), of which $8.4m has been advanced by Tainui Group Holdings at balance date.
29. Contingencies (continued)
waikato raupatu lands trust
notes to the financial statements
f o r t h e y e a r e n d e d 3 1 m a r c h 2 0 1 4
