Chatham Islands Enterprise Trust and Subsidiaries Financial Statements For The Year Ended 30 June 2010

CHATHAM ISLANDS ENTERPRISE TRUST AND SUBSIDIARIES
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
CONTENTS Page
Chairman’s Report 2-3
Chief Executive’s Report 4
Companies Reports 5-9
Statement of Comprehensive Income 10
Statement of Changes in Equity 10
Statement of Financial Position 11
Statement of Cash Flows 12
Notes to the Financial Statements 13 - 40
Audit Report 41 – 42
Trading Companies 43 - 48
CHATHAM ISLAND ENTERPRISE TRUST
REPORT OF THE CHAIRMAN
On behalf of fellow Trustees welcome to the Annual Report of the Chatham Islands Enterprise Trust (The Trust) for
the year ended 30 June 2010.
The Trustee election resulted in a change to the Board with Ron Tuuta being elected and Greg Horler narrowly
defeated. Welcome Ron and thanks to Greg for your involvement, commitment and input. To the rest of the Trustees,
thank you for your support, commitment and contributions throughout the year.
To the management team, I wish to acknowledge your contribution to the operation of the Trust. Your efforts and
guidance have assisted the governance role considerably and is appreciated. During the year Trustees however,
regretfully accepted Ian McFarlane’s resignation as Chief Executive Officer. Ian spent almost two and a half years as
CEO of the Trust. During this time Ian helped develop and implement the numerous projects the Trust embarked on.
We wish him well with his future endeavours. The Trust is still in the process of recruiting a new CEO, with Ron
Tuuta covering the role in the interim.
All other staff, directors of the Companies, service providers to the Trust and everyone else that has contributed to the
overall operation of the Trust, thank you for all you have done to serve the Trust. The success of the Trust and its
Companies is dependent on your valuable contribution.
The year has been both exciting and challenging with some achievements and some difficulties. The Trust has been
able to maintain its focus on economic development, charitable activity and infrastructure facilities.
Trust/Council
As part of considering the appropriateness of combining all or part of the respective organizations, the
Morrison/Rennie Report was completed and both parties have had several joint meetings. There is a common interest
to create an environment that leads to the best possible outcomes for the Chatham Islands. A single voice, especially
when seeking Government assistance, is an essential ingredient towards that. The Trust will continue to work with
Council on this issue.
Government Funding
The Trust does not generate sufficient funds to fully operate and develop all of its activities. Efforts into obtaining
Government funding to assist with infrastructure upgrade have so far been unsuccessful. With the assistance of
Chatham Islands Council, the Trust will continue to lobby for an investment by Central Government into the Chatham
Islands.
Infrastructure/Economic Development
Issues with infrastructure limit economic and social development. The Trust has given priority to some of the
affordable issues as a means of improving economic development. The major work has been repairs to the stock
wharf, wind generation, committing to tourism and exploring options for an Island shipping operation.
There are two limiting factors relating to economic development. They are the cost of transport and the cost of energy.
The Trust has already signaled an intention to invest in and develop a shipping service for the Chatham Islands. This
intention has now reached a point where serious consideration is being applied to take this matter closer to reality.
The wind generation project is now producing power. This provides the opportunity for greater usage of electricity
which will ultimately reduce the price of power to the consumer. The Trust is looking at ways to create opportunities
that require power usage.
There is a commitment to establish a Tourism Development Officer to look at initiating tourism opportunities.
Charitable Status
Contributions towards all levels of education werer granted to eligible students and institutions.
The promotion of enterprising and community awards are also provided for by the Trust.
PROMOTING ECONOMIC DEVELOPMENT AND WELLBEING 2

Conclusion
The vision of the Trust is “to provide the Chatham Islands community with key infrastructure facilities and
services, promote economic and social development, in a cost effective and sustainable manner in
accordance with the Trust Deed.”
Trustees are committed and passionate about continuing to deliver this vision and look forward to working with the
community and stakeholders to achieve this.
Phil Seymour
Chairman.

CHATHAM ISLAND ENTERPRISE TRUST
REPORT OF THE CHIEF EXECUTIVE
The year has been significant for the Trust and the potential growth of the Chatham Islands. We have nearly
completed the installation of wind turbines and integration with the network and has taken considerable effort to
implement. This will provide a buffer to possible future power price increases because of increases in the price of
fossil fuels. It is now up to the Trust to develop new business opportunities to utilize this energy. There were many
people involved in making this project become a reality, so thank you to those staff members, directors and
contractors. Acknowledgement of Robyn and Alfred Preece is made for agreeing to provide their property for the
turbines to be installed. The official opening of the Turbines will be on Monday 29 November 2010, which is Chatham
Islands Day.
We thank our electricians for the work they do on behalf of the company. These men at times work all hours and in
terrible weather and dangerous conditions to ensure that those on the grid have power.
At the request of the community the fuel trading business was established and has been operating for 14 months. This
has resulted in a degree of price stabilization and hopefully islanders now have a more competitive fuel price with a
lower differential to that of New Zealand. Fuel is now available 24/7, and has provided a more convenient fuel service.
I would like to take this opportunity to thank Diknee Fleming for her commitment in distributing the fuel around the
island to our customers, any time of the day and in any weather.
The 44 South shipping service has now been established, which has allowed the farmers to get stock off the island,
avoiding the backlog which has added hardship to farmers and stock in the recent past. The Trust continues its
investigations into securing a long term viable shipping service for the benefit of all islanders.
Efforts in relation to a single voice for the island include various meetings with Council. Whanaungatanga Hui have
taken place towards the end of the financial year. This gives an opportunity for each of the four governance groups to
advise what they are doing within their organisations and what they aim to do. This is building stronger relationships
between the organisations.
Makeri Construction and Hunter Civil did repairs and maintenance on the Waitangi wharf this year. We thank Steve
and Graham for their practical common sense and good workman ship. Our security cameras installed at the Port
have been well worth the investment as fishing vessels are now not being left tied to the wharf and causing unnecessary
damage.
Our airport remains compliant and we do our best to keep it in good condition. This company along with the port
continues to run at a loss.
Chatham Islands Quota continues to make a profit. Directors are hoping to further develop the deep sea species we
hold. Directors aim to keep the inshore lease prices realistic for the benefit of those who continue to live in our
community.
The Chatham’s forestry blocks are currently in “growing mode”, annual thinning and pruning will continue. Trustees
and Directors are currently considering the best option for this investment.
We have now started to see the benefits of focused strategic planning in conjunction with community consultation. As
always the objectives of the Trust is a better future for the Island. The trustees however need the islanders support to
achieve this.
We would like to thank all for their support during the year.
Ian McFarlane Ron Tuuta
Past Chief Executive Officer Acting Chief Executive Officer

CHATHAM ISLANDS FORESTRY LIMITED
Chatham Islands Forestry Ltd is comprised of a 380.5 hectares pine forest in Mahia and approximately 42 hectares of
macrocarpa on the Chatham Islands.
Mahia Forest
The tree crop has had its final prune and is now in growth mode until harvest.
As already announced the directors are considering the sale of this forest and have a number of offers currently being
investigated. One of the main reasons for selling is that the cost of operating this forest exceeds the growth value of
the trees or at best will break even. The total spent on Mahia as at June 2010 is $3,048,054.
Application is in progress to register the forest for carbon credits under the Emissions Trading Scheme.
Chatham Forest
Pruning and thinning continues with this forest to produce high quality trees.
With current freight, harvesting costs and log prices it seems more viable to promote the use of macrocarpa locally.
Thanks to Don Tantrum, my fellow director, for his enthusiasm and technical advice throughout the year.
Directors Interests
Directors have declared the following interests with the company during the year.
Phil Seymour leases approximately 5 hectares of land from the company.
Share Dealings
There have been no share dealings through the year
Use of Company Information
During the year no notices were received from directors requesting to use company information received in their
capacity as directors which would not have been otherwise available to them.
Phil Seymour
Chairman

CHATHAM ISLANDS ELECTRICITY LIMITED
This last twelve months has seen a solid financial performance as compared to the loss in 2009 due to tighter financial
management, and tighter back office processes.
The year has been dominated by installation of two 225kw wind turbines at Owenga. Both turbines have been
installed and are being fine tuned for integration with the diesel generators and grid supply. It is anticipated it will take
a couple of months before their integration is complete. The delivery of this project delivers on the directors and
trustees strategy of reducing dependency on fossil fuels.
Power prices may not reduce in the short term but the installation of wind power will assist insulating island electricity
users from future diesel price increases. and tries to lock in power prices at a more reasonable level.
Electricity company directors thank all their customers for their patience through the commissioning stages of the
turbines, given the disruptions to electricity supply. As always the electricians try to keep disruptions to a minimum.
To commemorate the commissioning of the wind turbines and open day will be held on Chatham Islands Day, 29
November 2010 where the public will be able to inspect the turbines up close.
Directors Interests
Directors have declared the following interests in the following transactions with the company.
The electricity company has engaged Chatham Motors (owned by Terry Tuanui) to maintain motor vehicles and
provide sundry items for maintenance. During the year the company engaged Water Shed solutions (owned by Roger
Burchett) for consultancy relating to various projects. All figures are disclosed in the financial statements.
Remuneration of Directors
Directors fees paid or due and payable to directors, for services are disclosed in the financial statements.
Use of company information
During the year no notices were received from directors requesting to use company information in their capacity as
directors, which would have not otherwise been available to them.
Terry Tuanui
Chairperson

CHATHAM ISLANDS QUOTA LIMITED
The Quota Company has recorded a surplus of $655,329 for the year ended 30 June 2010 as compared to a profit of
$588,633 for the year ended 30 June 2098.
A dividend of $580,000 was paid to the Enterprise Trust. This money is used to support other activities of the Trust.
The water testing for the oyster development work has been completed. We will now seek persons interested in the
ACE and work with the prospective fisher to further the project as necessary.
The Quota Company entered into a Memorandum Of Understanding with other island groups to explore the
opportunities for working co-operatively in the BCO4 fishery. We continue to work with these groups for the benefit
of island fisherman.
Submissions have been made to the Ministry regarding the proposed introduction of bladder kelp into the quota
system. The Quota Company supports 1,000 tonne TACC, and sees the potential this could have for local industry.
At our April 2010 meeting we received with regret the resignation of Pet Lanauze, our Chairperson. We thank Pet for
her many years of directorship, and wish her well.
Donna Gregory-Hunt was then made Chairperson, and on 1 July 2010 we welcomed Carol Neilsen on as a new
Director.
We thank Dave Sharp for his continued wisdom as fisheries advisor, and Denise Meo for her outstanding effort with
administration.
Directors Interests:
Directors have declared interests in the following transactions with the company: During the year, Dave Sharp was
engaged as a fisheries advisor on an as required basis. Total fees paid to Mr Sharp for the year ended 30 June 2010
were $13,535.
Share Dealings:
There were no share dealings during the year.
Remuneration of Directors:
Use of Company Information:
During the year, no notices were received from directors requesting to use company information received in their
capacity as directors, which would not otherwise have been available to them.
Donna Gregory-Hunt
Chairperson

CHATHAM ISLANDS AIRPORT LIMITED
The airport facility has operated this year on budget and at similar levels of income and expenditure to previous years.
The financial loss for the company was ($114,438) against the budgeted loss of ($117,470) the main difference arising
from a slightly less than forecast income resulting from fewer aircraft landings.
In accordance with the directive from the Trust’s Strategic plan, Directors investigated numerous options to increase
revenue this year, the only viable option being a significant increase in landing fees. After considerable debate and
consultation with end users and given the advice received in the Morrison /Rennie report, Directors decided to hold
off further increases until the ownership and ongoing funding issues are resolved. Directors have therefore advised the
Trust of the expected result and sought a continuance of Trust’s funding for this facility.
Given the financial constraints, expenditure has been kept to the absolute minimum with only a minimal amount of
maintenance work being undertaken. It is clear that a major source of funding will be required in the next few years to
bring the facility up to an acceptable standard.
At the commencement of the year the refurbishment of the radio room was completed which now provides a dry
secure area for the equipment. During the year Murray Dix has carried out minor repairs and urgent maintenance work
including assisting Raana to maintain the fences, to which we are thankful.
The Company has been advised that the old valve based NDB navigation aide located in town will no longer be
serviceable due to a lack of replacement parts. Directors are considering a proposal by Airways Corp to provide a
newer second hand transistorized unit. Consideration is being given to relocation of the NDB to the airport as was
originally intended, however due to our limited resources this option may need to be differed.
The CEO spent considerable time this year trying to determine why the Chathams community are required to fund the
ongoing costs for the NDB when other similar airports are provided with Government funding for maintenance of
this equipment. Investigations to date have drawn a blank so we will continue to seek financial support for this vital
facility from the various Government agencies.
In terms of compliance, the airport has again been issued with its annual operating certificate by CAA. We thank Toni
for her ongoing dedication to the safe operation of this facility.
Raana has again provided her invaluable input in maintaining the cleanliness and presentation of the airport and her
attentive reporting to the Board on issues that require attention. Thank you Raana.
Finally a thank you to fellow Directors, Stuart Hughes for his invaluable input and to our local director Josh Thomas
who has also assisted with minor maintenance work throughout the year.
Directors Interests
Directors have no declared interests in any financial transactions of the Company
Share Dealings
There have been no Share Dealing this financial year.
Directors fees paid or due or due payable are disclosed in the financial statements.
Use of Company Information
During the year, no notices were received from Directors requesting to use Company information received in their
capacity as directors which would not have otherwise been available to them.
Brent Mallinson
Chairman

CHATHAM ISLANDS PORT LIMITED
The Chatham Islands Ports Company has under gone some significant changes during the year; with the resignation of
long time director Tom Lanauze and Trustee Greg Horler. Welcome to the newest appointed director and chairman
Deborah Goomes. I have resigned as chairman on the Ports Company as of 1 July 2010 to allow me the time to focus
on Trustee responsibilities without conflicts of interest. The Company Directors are now, myself, Stuart Hughes and
Deborah Goomes.
Chatham Islands Ports has again posted a lost for this financial year of ($223,262).
Through the year the company strategic and annual business plan has been completed and adopted by the directors.
Standard conditions of business has been completed and introduced for part operations.
In relation to the bulk fuel area the port section has been cleared and resurfaced such that it is tidy and more room
available for fuel transfer to tankers and trucks.
An asset management plan has been completed and will be ratified in the next directors meeting and a port safety
pamphlet completed. Health, safety and emergency response plans have been reviewed and updated.
The possible sale of ports company facilities has been initiated with an offer to sell to Chatham Islands Council
Waitangi wharf including stock access, fishermen’s, Tee Head wharves with Pitt Island wharf including the storage
shed. This process is dependent on the success of council obtaining secure funding sources that the Trust may not
have otherwise been able to secure.
Hunter Civil and Markeri Construction completed repair work to fisherman’s wharf, stock access wharf and the tee
head of the main wharf, this work cost approx $50,000 during the year.
During the last few months, Brent Mallinson has been doing repairs and maintenance to Pitt Island wharf shed facility.
Thanks Stuart and Toni for completing all the new plans
I take this opportunity to thank directors and staff.
Directors Interests
Stuart Hughes declared an interest in the associated transactions with the company. Josh Thomas acted as maintenance
support for the earlier part of the year on a part time basis. All Figures are disclosed in the financial statements.
Share Dealings
There have been no Share dealings through the year.
Use of Company information
During the year no notices were received from directors requesting to use company information received in their
capacity as directors, which would not have otherwise been available to them.
Ron Tuuta
Past Chairman

STATEMENT OF COMPREHENSIVE INCOME
Notes Group Parent

30-Jun-10 30-Jun-09 30-Jun-10 30-Jun-09
NZ$ NZ$ NZ$ NZ$
INCOME
Income from Trading Companies 4,214,296 2,918,809 - -
Dividend Income - - 580,000
Sundry Income 44,472 40,389 - -
Fair Value Movement in Forestry Assets 16 37,000 27,000 - -
Grant Income 25,000 129,629 - -
South Coast Lines Adjustment to Fair Value 5 16,040 15,923 - -
TOTAL INCOME 1 $ 4,336,808 3,131,749 580,000 -
EXPENDITURE
Cost of Sales of Trading Companies 1,766,149 1,257,468 - -
Operating Expenses 462,679 435,790 - -
Administration Expenses 2 1,203,561 1,185,546 131,624 131,624
Directors Fees 11 60,501 50,125 - -
Enterprise Trust Expenditure 17,539 22,749 17,539 22,749
Grants and Donations 20 48,693 63,028 895,994 63,028
Trustees Fees and Disbursements 11 85,565 81,657 - -
Depreciation 6 407,653 397,699 - -
Loss on Disposal of Property 6 1,339 - - -
Trading Losses of Trading Companies Funded 11 - - 529,006 482,243
TOTAL EXPENDITURE $ 4,053,680 3,494,061 1,574,164 699,644
OPERATING SURPLUS/(LOSS) $ 283,128 (362,312) (994,164) (699,644)
Interest Income 283,319 229,628 646,055 527,472

Interest Expenditure (48,328) (3,528) - -
NET FINANCE INCOME $ 234,991 226,100 646,055 527,472
SURPLUS/(LOSS) FOR THE YEAR 518,119 (136,212) (348,109) (172,172)
OTHER COMPREHENSIVE INCOME

Change in Fair Value of Equities Gain/(Loss) 152,373 (222,679) 152,373 (222,679)
TOTAL OTHER COMPREHENSIVE INCOME $ 152,373 (222,679) 152,373 (222,679)
TOTAL COMPREHENSIVE INCOME $ 670,492 (358,891) (195,736) (394,851)

STATEMENT OF CHANGES IN EQUITY
Group Parent
30-Jun-10 30-Jun-09 30-Jun-10 30-Jun-09
NZ$ NZ$ NZ$ NZ$
EQUITY AT START OF PERIOD 21,301,584 21,660,476 9,052,237 9,447,088

TOTAL COMPREHENSIVE INCOME $ 670,492 (358,891) (195,736) (394,851)
EQUITY AT END OF PERIOD 12 $ 21,972,077 21,301,584 8,856,501 9,052,237
The Statement of Accounting Policies and notes form an integral part of, and should be read in conjunction with these financial statements

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2010
Notes Group Parent

30-Jun-10 30-Jun-09 30-Jun-10 30-Jun-09
NZ$ NZ$ NZ$ NZ$
CURRENT ASSETS
Cash and Cash Equivalents 9 256,295 499,976 214,978 446,527
Term Deposits 17 475,900 724,737 475,900 710,281
Trade & Other Receivables 3 825,111 956,455 8,702 124,749
Inventory 19 591,332 598,214 - -
RWT Paid 10 3,785 3,785 1,487 1,487
Other Financial Assets 5 2,771,251 2,247,233 2,754,751 2,229,233
TOTAL CURRENT ASSETS 4,923,674 5,030,401 3,455,817 3,512,277
NON CURRENT ASSETS

Other Financial Assets 5 2,250,377 1,992,956 2,241,831 1,985,911
Shares in Trading Companies 12 - - 600 600
Intangible Assets 4 7,075,805 6,961,049 - -
Forestry Assets 16 1,463,754 1,423,416 - -
Loans to Trading Companies 11 - - 4,259,281 4,572,292
Property, Plant & Equipment 6 7,248,044 7,262,742 - -
TOTAL NON CURRENT ASSETS 18,037,980 17,640,162 6,501,712 6,558,803
TOTAL ASSETS 22,961,654 22,670,562 9,957,530 10,071,080
CURRENT LIABILITIES
Trade and Other Payables 7 353,492 700,179 17,210 15,722
Term Loans 15 55,125 - - -
Loans from Trading Companies 11 - - 1,083,821 1,003,120
Employee Entitlements 21 41,175 23,450 - -
TOTAL CURRENT LIABILITIES 449,792 723,629 1,101,030 1,018,842
NON CURRENT LIABILITIES

Term Loans 14 539,785 645,349 - -
TOTAL NON CURRENT LIABILITIES 539,785 645,349 - -
NET ASSETS $ 21,972,077 21,301,584 8,856,501 9,052,237
TRUST EQUITY
Retained earnings 7,807,512 7,289,392 926,807 1,274,916
Other Reserves 14,164,565 14,012,192 7,929,694 7,777,321
Equity Carried Forward 12 $ 21,972,077 21,301,584 8,856,501 9,052,237
________________ ___________________
Chairman Trustee
Dated: 31 August 2010

CASH FLOW STATEMENT
Group Parent
30-Jun-10 30-Jun-09 30-Jun-10 30-Jun-09
NZ$ NZ$ NZ$ NZ$
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers 4,415,112 2,943,148 - -
Interest Income 48,323 83,124 44,964 66,377
4,463,435 3,026,272 44,964 66,377
Cash was applied to:
Payments to Suppliers 3,809,701 2,594,228 196,371 263,530
Energy Investigation - 194,356 - -
Payments to Employees 11,000 553,670 - -
Directors and Trustees Fees 146,066 131,782 - -
Interest Paid 48,328 3,528 - -
4,015,095 3,477,564 196,371 263,530
Net Cash Outflow from Operating Activities 448,340 (451,292) (151,407) (197,153)
CASH FLOWS FROM INVESTING ACTIVITIES

Repayment of Term Deposit 248,835 - 234,380 -
Investment Withdrawal - 1,950,000 - 1,832,743
Repayment of Chatham Island Council Loan 5,930 5,425 5,930 5,425
Repayment of South Coast Line Extension 16,040 15,923 - -
270,804 1,971,348 240,310 1,838,168

Forestry Investment 3,338 5,057 - -
Purchase of Fixed Assets 394,294 495,019 - -
Purchase of Fish Quota - 699,575 - -
Wind Resource Consent 114,757 84,656 - -
Investment Contribution 400,000 - 400,000 -
Investment in Term Deposit - 525,670 - 710,281
RWT Paid - 1,488 - 1,487
912,388 1,811,465 400,000 711,768
Net Cash Outflow from Investing Activities (641,583) 159,883 (159,689) 1,126,400
CASH FLOWS FROM FINANCING ACTIVITIES

Advances from Trading Companies - - 79,548 -
Advances from Term Loans - 645,349 - -
- 645,349 79,548 -

Repayment of Loans 50,439 - - -
Loan to Trading Companies - - - 526,499
Net Cash Inflow/ (Outflow) from Financing Activities (50,439) 645,349 79,548 (526,499)
Net (Decrease)/ Increase in Cash Held (243,682) 353,940 (231,549) 402,748
Add Cash at Start of Year 499,976 146,036 446,527 43,779
Balance at End of Year $ 256,295 499,976 214,978 446,527

NOTES TO THE FINANCIAL STATEMENTS
1. Reporting Entity
Chatham Islands Enterprise Trust (the “Trust”) is a Charitable Trust which was established 1 December 1991 to take
over the ownership and administration of essential services (airport, electricity, port and local abattoir) which were
previously provided by Government Departments. The Trust operates for the benefit of current and future
inhabitants of the Chatham Islands.
The primary objective of the Trust is to provide goods or services for the community or social benefit of the Chatham
Islands. The Trust is not established for the purpose of providing financial return to equity holders. Accordingly the
Trust has designated itself and the group as public benefit entities for the purposes of New Zealand equivalents to
International Financial Reporting Standards.
The Trust group consists of seven subsidiary companies which are wholly owned by the Trust and are registered under
the Companies Act 1993. The subsidiary companies are: Chatham Islands Management Limited, Chatham Islands
Airport Limited, Chatham Islands Electricity Limited, Chatham Islands Forestry Limited, Chatham Islands Ports
Limited, Chatham Islands Quota Holdings Limited and Chatham Islands Shipping Limited.
The Trust operates solely within New Zealand.
2. Basis of Preparation
Statement of compliance
The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting
Practice (NZ GAAP). They comply with New Zealand equivalents to International Financial Reporting Standards
(NZIFRS) and other applicable financial reporting standards as appropriate for public benefit entities.
A change in financial reporting standards presentation (NZ IAS 1) has required the reclassification of 2009 equity. A
change in fair value of equities loss of $222,679 has been reclassified to reserves from retained earnings.
All other accounting policies set out below have been consistently applied to all periods presented in these financial
statements.
The following new standards, interpretations and amendments may have an impact on Chatham Island Enterprise
Trust financial statements, but are not yet effective for the year ended 30 June 2010, and have not been applied in these
financial statements:
Effective for annual reporting

periods commencing on or
after
NZ IFRS 9 Financial Instruments (Replacement for NZ IAS 39 Financial Instruments) 1 January 2013
Various Improvements to New Zealand equivalents to IFRS 1 January 2010
NZ IAS 24 Related Parties (Revised 2009) 1 January 2011
The financial statements were approved by Philip Seymour (Chairman) and Denise Thomas (Trustee) on behalf of
Trustees on 31 August 2010.
Basis of measurement
The financial statements have been prepared on the historical cost basis, modified by the revaluation of biological
assets and financial instruments.

Functional and presentation currency
These financial statements are presented in New Zealand dollars ($), which is the Trusts’ functional currency.
Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The
estimates and the associated assumptions are based on historical experience and various other factors that are believed
reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values
of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected.
Information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies
that have the most significant effect on the amount recognised in the financial statements are described in the
following notes:
• Note 5 – Other financial assets
• Note 16 – Valuation of forestry assets
Judgement has also been exercised in preparing these financial statements in relation to the following:
• Calculating provisions for doubtful debts.
• Calculating provisions for employee benefits.
• Calculating general accruals.
• Determining useful life of assets for accounting depreciation.
• Assessing the fair value to assess whether assets are impaired.
• Capitalisation of intangible assets.
3. Significant accounting policies
a. Consolidated financial statements
Consolidated financial statements for the Trust and trading companies have been accounted for using the purchase
method. Corresponding assets, liabilities, equity, revenues and expenses are added on a line by line basis. All intra
group balances, transactions and income & expenses are eliminated on consolidation. Investments in subsidiaries are
carried at cost in the Trust parent entity financial statements.
b. Property, plant and equipment
The Trust took over the assets of the Chatham Islands Meat Works, Airport, Electricity Supply and Waitangi and
Flower Pot Port Facilities on 1 December 1991, at a nominal price of $1 each. These assets were then revalued to fair
value in 1992/93. Assets other than land and buildings have not been subsequently revalued.
Land and buildings were revalued in 1996/97 and this has been deemed to be opening cost going forward under NZ
IFRS.

Land and Buildings, plant and equipment, and leasehold improvements are stated at cost less accumulated depreciation
and impairment. Cost includes expenditure that is directly attributable to the acquisition of the item. Depreciation is
provided on a straight line basis on all fixed assets, other than freehold land and airport land preparation costs, at rates
which will write off the cost of the assets, less their estimated residual values, over their useful lives. The estimated
useful lives of major classes of assets are:
Airport Runway and Paved Areas 20 years
Computer Software 3 to 5 years
Buildings and Timber Structures 20 to 40 years
Electricity Reticulation Line 40 years
Fixtures & Fittings 5 to 10 years
Generators 5 to 10 years
Motor Vehicles 5 years
Office Equipment 5 years
Plant 10 years
Wharf Structure (concrete) 50 years
Wharf T Head 7 years
The assets’ residual values and useful lives are reviewed, and adjusted where appropriate, at each balance date. An
assets carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater
than its estimated recoverable amount.
c. Statement of cash flows
The statement of cash flows has been prepared using the direct method. Definitions are:
1) Operating Activities
All transactions and other events that are related to the operation of the Trust and includes interest expense
on funds borrowed.
2) Investing Activities
All transactions relating to the acquisition and disposal of long term assets and other investments not
included in cash equivalents.
3) Financing Activities
The change in equity and debt capital structure of the reporting entity and the cost of servicing the equity
capital.

4) Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks, investments in term
deposits with maturities of less than 3 months, bank overdrafts and other highly liquid investments that are
readily convertible to known amounts of cash as part of its day to day cash management and which are
subject to an insignificant risk of changes in value.
d. Accounting for income taxes
The Chatham Islands Enterprise Trust is registered as a Charitable Trust and has obtained an exemption from income
tax from the Inland Revenue Department (IRD). During the 1997/98 financial year, the trading companies received
an exemption from income tax from the IRD on the basis that the trading companies are all wholly owned subsidiaries
of a Charitable Trust.
e. Income and expense recognition
Revenue is recognised upon the delivery of goods or services to customers.
Chatham Islands Enterprise Trust receives government grants from Trade and Enterprise and the Sustainable Farming
Fund. These grants subsidise costs relating to project investigations and also are a conduit for funding development
projects on the island. The grants are recognised as revenue upon entitlement as conditions pertaining to the relevant
grant or associated elligible expenditure have been fullfilled.
Interest income for investments other than those in managed funds is recognised using the effective interest method.
Operating expenses are recognised in the Income Statement upon utilisation of services or at the date of origin.
Grant expenditure includes discretionary grants. These are grants that the Trust has no obligation to award on receipt
of the grant application and are recognised as expenditure when a successful applicant has been notified of the Trust’s
decision.
Grants also include donations made from the Trust Parent to a subsidiary in order to achieve outcomes as prescribed
under the trust deed.
f. Equity
The components of equity include share capital, retained earnings and reserves. Retained earnings include all current
and prior period results as disclosed in the Income Statement.
g. Contingent assets and liabilities
Probable inflows of economic benefits that do not meet the recognition criteria of an asset are considered contingent
assets until earned. These are described along with the Trusts’ contingent liabilities in note 13.
h. Goods and services tax
The Trust is not registered for GST. Each of the subsidiary companies are registered for GST and the financial
statements have been prepared on a GST exclusive basis except for debtors and creditors, which are presented on a
GST inclusive basis. The balances of GST refunds or payments due are included in the Statement of Financial
Position.
The net GST paid to, or received from the Inland Revenue, including the GST relating to investing and financing
activities is classified as an operating cash flow in the Statement of Cash Flows.
i. Trade and other receivables
Trade receivables are projected to be due within 30 days and do not bear any effective interest rate. All trade
receivables are subject to credit risk exposure.

Trade receivables are measured at market value less any provision for impairment.
j. Financial assets and liabilities
The Trust’s financial liabilities include overdrafts, and trade and other payables. These are included in the Statement of
Financial Position line items “bank overdraft” and “trade and other payables”. Trade payables are recognised at their
carrying amount.
The Trust’s financial assets includes cash and cash equivalents, debtors and other receivables, loans and investments
with AMP and ING.
Financial assets and liabilities are initially measured at fair value plus transaction costs unless they are carried at fair
value through the profit and loss in which case the transaction costs are recognised in the income statement. Any
impairment of financial assets by comparing fair value to carrying value is taken through the profit and loss.
The Trust classifies its financial assets into the following categories, fair value through surplus or deficit and loans and
receivables.
Loans and receivables include loans to South Coast Line residents, the Chatham Islands Council, The BNZ for quota
purchase and related parties. After initial recognition they are measured at amortised cost using the effective interest
method.
Fair value through profit and loss financial assets include the Trust’s interest earning investments with AMP Capital
Investors and ING (NZ) Limited, and equity investments with ING. The returns from the investments have been
recognised as income/(loss) in the Income Statement of the Chatham Islands Enterprise Trust, the Consolidated
Income Statement and as cash flows from operating activities in the Consolidated Statement of Cash Flows.
k. Impairment of property, plant and equipment and intangible assets.
At each reporting date the Chatham Island Enterprise Trust reviews the carrying amounts of its tangible and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amounts of the asset is estimated in order to determine the extent of the impairment
loss (if any).
Recoverable amount is assessed by comparing to book value the fair value less costs to sell or the value in use.
Recoverable amount is the higher of fair value less costs to sell, and value in use. Value in use looks at cash flows for
cash generating assets and for Public Benefit Entities the depreciated replacement cost.
Depreciated replacement cost is applicable for airport, port, electricity and other infrastructural assets on the basis that
these assets have future economic benefits that are not primarily dependent on the assets ability to generate net cash
inflows, and if deprived of the asset, the trust would replace the asset in order to retain its future economic benefits or
service potential.
If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount. An impairment loss is
recognised in the profit or loss (income statement) immediately
l. Inventories
Inventories are valued at the lower of cost, determined on a First In First Out basis, and net realisable value. Net
realisable value is the estimated selling price in the ordinary course of business, less applicable selling expenses.
m. Intangible assets
Under NZIFRS fish quotas are classified as an intangible asset with an indefinite life and are required to be tested
annually for impairment. Impairment occurs when the book value of an asset exceeds its recoverable amount. Where

an asset is considered to be impaired the book value of the asset must be written down to the impaired value through
the income statement.
Under NZ IFRS quota has been valued at original cost or if it has been granted by the crown fair value at the time the
species was allocated to the Trust.
Resource consent costs relating to a wind power project have been treated as an intangible asset. The resource consent
has been granted as at 30 June 2010.
The consent costs will be tested annually for impairment or whenever there is an indication that the asset may be
impaired. Impairment occurs when the book value of an asset exceeds its recoverable amount.
n. Biological assets
Biological assets are stated at fair value less estimated point-of-sale costs, with any resultant gain or loss recognised in
the income statement where the fair value can be reliably measured. Point of sale costs includes all costs that would be
necessary to get assets to market.
Trees are valued at fair value based on the present value of market price less costs to point of sale.
The Mahia forestry investment is recognised at fair value in accordance with NZIAS 41 Agriculture. The Mahia forest
was revalued as at 30 June 2010. The Chatham’s forestry investment is recorded at fair value which equates to cost.
o. Financial Instruments
The Trust is involved with third parties in transactions involving financial instruments. These transactions take place
as part of the Trust's normal business. Involvement in financial instruments is limited to term deposits, accounts
receivable, accounts payable, loans, and investments as noted in (j).
All revenue and expenditure relating to financial instruments is recorded in the income statement.
p. Leases
At balance date the trust does not have any finance leases of fixed assets, where substantially all the risks and benefits
incidental to the ownership pass to the Trust or operating leases where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased item.
q. Employee entitlements
Provision has been made in respect of the Trusts liability for annual and long service leave, at balance date.
Employee benefits expected to be settled within 12 months of balance date are deemed to be short term employee
entitlements and are measured at nominal values based on accrued entitlements at current rates of pay.
A liability and an expense are recognised for bonuses where the Trust has a contractual obligation or where there is a
past practice that has created a constructive obligation.
The Trust does not accrue sick leave.
r. Changes in accounting policies
There have been no changes in accounting policies. The trust has adopted the following revisions to accounting
standards during the financial year, which have had only a presentational or disclosure effect.
• NZ IAS1 Presentation of Financial Statements (Revised 2007)
• NZIFRS 7 Financial Instruments Disclosures

1. Total revenue
Group Parent
30-Jun-10 30-Jun-09 30-Jun-10 30-Jun-09
NZ$ NZ$ NZ$ NZ$
Trading revenue 4,214,296 2,918,809 - -

Dividend Income - - 580,000 -
Sundry income 44,472 40,389 - -
Fair Value Movement in Forestry Assets 37,000 27,000 - -
South Coast Lines Adjustment to Fair Value 16,040 15,923 - -
Grant income 25,000 129,629 - -
Total revenue $ 4,336,808 3,131,749 580,000 -
2. Administration expenses
Group Parent
30-Jun-10 30-Jun-09 30-Jun-10 30-Jun-09
NZ$ NZ$ NZ$ NZ$
Audit fees - Electricity and Management 14,000 - - -

Audit fees - Group Allocation 47,000 53,000 - -
Accounting fees 57,921 73,056 - -
Consultancy fees 143,846 109,290 - -
Economic development 14,941 71,423 - -
Insurance 53,634 67,320 - -
Rates 25,156 17,925 - -
Salaries and wages 643,828 556,928 - -
Telecommunications 23,239 20,282 - -
Sundry/Administration fees 179,994 216,322 131,624 131,624
Total administration expenses $ 1,203,561 1,185,546 131,624 131,624
Employee benefits:
Employee relocation costs - 71,423 - -

Salaries and wages 602,651 462,054 - -
Annual leave provision 30,175 15,951 - -
Provision for bonuses 11,000 7,500 - -
Total employee benefits $ 643,828 556,928 - -
3. Trade and other receivables
Group Parent
For the year to 30-Jun-10 30-Jun-09 30-Jun-10 30-Jun-09
NZ$ NZ$ NZ$ NZ$
Trade receivables 826,544 956,064 8,702 124,749

Less provision for impairment of receivables (1,434) (3,939) - -
Travel Prepayment - 4,330 - -
Net trade and other receivables $ 825,111 956,455 8,702 124,749
There is a concentration of credit risk in relation to trade receivables in that the Trust has the majority of its customers
based on the Chatham Islands.
The movement in provision for impairment of trade receivables is as follows:
Opening provision for impairment trade receivables 3,939 8,020 - -

Less bad debts recovered - - - -
3,939 8,020 - -
Less bad debts written off - - - -
3,939 8,020 - -
add current year movement in provision (2,505) (4,081) - -
Closing provision for impaired trade receivables $ 1,434 3,939 - -
Certain accounts receivable have been identified as potentially being non collectible. The provision provides for
potential impairment without writing these receivables off as bad debts whilst collection efforts continue.

NOTES TO THE FINANCIAL STATEMENTS AND SUBSIDIARIES
4. Intangible Assets
Quota Held
In 1992, Wet fish Quota was allocated to the Trust Group from the Crown with the agreement of Chatham Island
fishermen. The current policy is the original quota allocated is to be held in perpetuity by the Trust Group for the
benefit of Chatham’s based fishermen.
Certain restrictions exist in relation to original quota granted by the NZ government to the Trust. The original deed of
transfer for wet fish (1,202.4 Tonne) is able to be traded for a better mix of species at market values that better reflects
the fin fisheries in the Chatham’s Islands waters whilst promoting the interest of current and future inhabitants of the
Chatham Islands.
All other quota acquired or purchased has no caveats or encumbrances and can be freely traded.
The species mix is as follows:
Species Area Tonnage Tonnage Tonnage

(Ex Crown) 30/06/2009 30/06/2010
Anchovy 4 8.000 8.000 8.000

Barracouta 4 - 43.332 43.332
Blue Cod 4 158.000 359.500 359.500
Butterfish 4 5.070 5.070 5.070
Deepwater Red Crab 4 3.200 3.200 3.200
Deepwater Tuatua 4 0.800 0.800 0.800
Fine Dosinia 4 0.800 0.800 0.800
Frilled Venus Shell 4 0.800 0.800 0.800
Frost Fish 4 3.928 21.997 21.997
Garfish 4 1.600 1.600 1.600
Gurnard 3 57.176 65.819 73.495
Hapuka/Bass 4 172.800 190.600 190.600
Horse Mussel 4 0.800 0.800 0.800
Kahawai 4 8.000 7.200 7.200
King Crab 4 8.000 8.000 8.000
Kingfish 4 0.740 0.740 0.740
Large Trough Shell (MDI) 4 0.800 0.800 0.800
Large Trough Shell (MMI) 4 0.800 0.800 0.800
Leather Jacket 4 5.567 5.567 5.567
Ling 4 300.000 303.017 303.017
Paddle Crab 4 18.707 18.707 18.707
Pilchard 4 8.000 8.000 8.000
Ribaldo 4 83.064 83.064 83.064
Ringed Dosinia 4 0.800 0.800 0.800
School Shark 4 136.300 145.500 145.500
Sea Cucumber 4 1.600 1.600 1.600
Sea Perch 4 179.890 307.129 307.129
Spiny Dogfish 4 774.541 774.470 774.470
Sprat 4 8.000 8.000 8.000
Stargazer 4 300.000 300.000 300.000
Tarakihi 4 85.800 89.735 89.735
Triangle Shell 4 0.800 0.800 0.800
Trumpeter 4 23.876 27.136 27.136
White Warehou 4 10.673 16.010 16.010
Yellow-eyed Mullet 4 80,000,000 shares - -
Crayfish 4 8,914,000 shares 32.103 32.103
Knobbed Whelk 4 80,000,000 shares 4.800 4.800
Eel 17 0.021 0.021 0.021
Oyster 4 80,000,000 shares 12.000 12.000
Deepwater King Clam 4 80,000,000 shares 0.960 0.960
Prawn Killer 4 80,000,000 shares 0.800 0.800
Tuatua, Pipi, Cockles 4 80,000,000 shares - -

NOTES TO THE FINANCIAL STATEMENTS AND SUBSIDIARIES
During the 2009/2010 financial year, no new species were allocated to the Trust Group by the Ministry of Fisheries
under s.49 (4) of the Fisheries Act 1996.
Quota has been valued at cost.
Under NZIFRS fish quota is classified as an intangible asset with an indefinite life and is tested annually for
impairment or whenever there is an indication that the asset may be impaired. Impairment occurs when the book
value of an asset exceeds its recoverable amount. Individual fish species are considered for impairment. Where an
asset is considered to be impaired the book value of the asset is written down to the impaired value through the
income statement.
30-Jun-10 30-Jun-09
NZ$ NZ$
Wetfish Quota
Opening book value at cost 4,450,417 4,450,417
Closing net book value 4,450,417 4,450,417

CRA6 Quota
CRA6 Quota opening cost 2,425,976 1,726,401
Add Purchase of Quota - 699,575
Closing net book value 2,425,976 2,425,976
Total closing book value 6,876,393 6,876,393
Impairment Test for Quota
Fish quota is considered to have an indefinite useful life. Based on an analysis of all the relevant factors, there is no
foreseeable limit to the period over which the asset is expected to generate net cash inflows for the entity or economic
benefits to the community.
The carrying value of the fish quota in the Statement of Financial Position has been reviewed as at 30 June 2010. The
directors consider that the carrying value of quota (at cost) is not impaired.
In assessing the value of the quota for financial reporting purposes, the Directors of Chatham Island Quota Holdings
Limited took the following issues into consideration when undertaking the review of quota values as at 30 June 2010:
- An appraisal by Donal Boyle of Quota Management Systems Limited as at 30th June 2010. This appraisal reflects the
limited returns available from wet fish species due to low Chatham’s port prices.
- Some of the quota held by the Trust is owned in accordance with a trust deed and is only able to be traded to secure a
better species mix.
- If in the unlikely event that the existing quota was placed in the market for sale, there would be a limited number of
buyers for some inshore species.
- Chatham’s operational costs are higher than mainland New Zealand costs and therefore, port prices are lower. This
is recognised by Ministry of Fisheries in setting deemed values which are essentially a financial penalty for over-fishing.
Chatham’s deemed values are on average 70% of mainland levies.
- There has been no indication that the cost of the quota may be impaired.
The trust after relying on the appraisal of market prices less costs to sell determined that there was no impairment of
quota shares as at 30 June 2010.

Wind Resource Consents
Resource consent costs relating to a wind power project have been treated as an intangible asset. The resource consent
has been granted as at 30 June 2010.
The consent costs will be tested annually for impairment or whenever there is an indication that the asset may be
impaired. Impairment occurs when the book value of an asset exceeds its recoverable amount.
Wind Resource Consents

For the year to 30-Jun-10 30-Jun-09
NZ$ NZ$
Opening Balance 84,656 -

Additions 114,756 84,656
Total 199,412 84,656
Total Intangible Assets

NZ$ NZ$
Wind Resource Consents 199,412 84,656

Fish Quota 6,876,393 6,876,393
Total 7,075,805 6,961,049
5. Other financial assets
Group Parent
30-Jun-10 30-Jun-09 30-Jun-10 30-Jun-09
NZ$ NZ$ NZ$ NZ$
South Coast Line Extension 25,044 25,044 - -

Chatham Islands Council - Loan 194,988 200,918 194,988 200,918
ING (NZ) Limited Equities Portfolio 2,053,327 1,790,924 2,053,325 1,790,923
ING - fixed interest securities 1,562,932 1,131,241 1,562,932 1,131,241
AMP - fixed interest securities 1,185,337 1,092,062 1,185,337 1,092,062
Total Other Financial Assets 5,021,628 4,240,189 4,996,582 4,215,144
Split
Current portion
2,771,251 2,247,233 2,754,751 2,229,233
Term portion
2,250,377 1,992,956 2,241,832 1,985,911
Total Other Financial Assets 5,021,628 4,240,189 4,996,582 4,215,144
Chatham Islands Council - Loan

Opening principal 200,918 206,343 200,918 206,343
Less Repayments 5,930 5,425 5,930 5,425
Closing balance $ 194,988 200,918 194,988 200,918
South Coast Line Extensions Residents

Opening principal 25,044 25,044 - -
Advances - - - -
Less Repayments 16,040 15,923 - -
Less Impairment to Fair Value (16,040) (15,923) - -
Closing balance $ 25,044 25,044 - -

The ING investment represents a portfolio of Trans-Tasman listed public company shares. The portfolio is marked to
market and is at market value. This investment fund has increased by 8.01% for the year ended 30 June 2010 (30 June
2009: 8.30% decrease).
The ING (NZ) Limited investment represents a managed fund of fixed interest trustee securities which returned
9.97% for the year ended 30 June 2010 (30 June 2009: 5.14%).
The AMP investment represents a managed fund of fixed interest trustee securities. The investment performance for
the fund was 8.44% for the year ended 30 June 2010 (30 June 2009: 6.61%).
In June 2005 the Chatham Island Enterprise Trust provided a loan of $220,000 to Chatham Islands Council. The loan
is classified as loans and receivables with a fixed rate of 9% for a term of 5 years after which the Council will refinance
the loan. The carrying amount is deemed to be not materially different from market value.
In November 2005 Chatham Island Electricity completed the South Coast line extension. The 11 residents were lent
$306,900 to be repaid over 20 years at a rate of 0.3763% per annum. A fair value assessment as required by NZIAS
39 requires an assessment of the fair value of these loans. Given the low coupon rate the fair value of the loans is
deemed to be $25,044.
The carrying value of the investments and loans represent the maximum credit exposure to the Trust.
6. Property, plant and equipment
Fixed assets for the various companies are made up as follows:
6.1 Chatham Islands Management
Description of Asset Valuation Opening Additions Depn Depn Depn Accumulated

(or Cost) BookValue (Disposals) Rate Method Value Depreciation Valuation
(or Cost)
Brother Plain Paper Fax 1,073 - 20% SL - 1,073 -

Cafe Fixtures and Fittings 1,318 - - 20% SL - 1,318 -
Canon Photocopier GP215 6,500 - - 20% SL - 6,500 -
Computer Equipment 58,535 - 4,158 20% SL 376 54,753 3,782
Computer Software 13,830 - - 33% SL - 13,830 -
Digital Camera 987 - - 20% SL - 987 -
Digital Projector (X50) 3,878 193 - 20% SL 193 3,878 -
Gauge Unit and Pumping System 9,246 - 9,246 11% SL 405 405 8,842
House 110,927 71,554 - 2.5% SL 2,773 42,147 68,781
House Fixtures 3,195 1,445 - 20% SL 639 2,389 806
House Section 10,000 10,000 - 0.0% SL - - 10,000
Land - Accommodation Block 10,000 10,000 - 0.0% SL - - 10,000
Land - Factory Site 15,000 15,000 - 0.0% SL - - 15,000
Accommodation - Flat 9,412 - 9,412 2.5% SL 116 116 9,296
Chatham Fuels Land 57,051 57,051 - 0.0% SL - - 57,051
Chatham Fuels Building 215,723 201,948 1,956 2.5% SL 5,393 17,212 198,511
Meatworks Buildings 100,001 67,501 - 2.5% SL 2,500 35,000 65,001
Minolta Photocopier 8,388 559 - 20% SL 559 8,387 -
Motor Vehicle-Toyota Corona 14,222 - - 10% SL - 14,222 -
Motor Vehicle-Toyota Prado 18,476 16,628 - 10% SL 1,848 3,695 14,781
Motor Vehicle - Nissan Condor Fuel Tanker 32,000 - 32,000 10% SL 2,133 2,133 29,867
Mini Fuel Tanker 4,150 - 4,150 10% SL 277 277 3,873
Fuel Truck 4,500 4,463 - 10% SL 450 488 4,013
Office Upgrade 98,349 - - 10% SL - 98,349 -
Office Furniture 17,309 6,208 469 20% SL 3,392 14,023 3,286
Office Security/Fire System 3,752 1,127 - 10% SL 375 3,001 751
PABX Communication System 10,954 5,189 1,332 10% SL 984 5,417 5,537
Eftpos Machine 1,499 1,399 - 40% SL 600 700 799
Fuel Bowsers 84,285 84,285 11% SL 7,375 7,375 76,910
Lawn Mower 693 - 693 48% SL 222 222 471
Radio Equipment 1,997 170 - 10% SL 187 2,014 (17)
Server and Network 10,142 1,148 4,401 20% SL 1,808 6,402 3,741
Vacant Section - (Lot 5) 5,000 5,000 - - SL - - 5,000
Vacuum Cleaner 537 - - 80% SL - 537 -
Broadband Connection 3,192 1,915 - 20% SL 638 1,915 1,277
Totals 946,123 478,498 152,104 33,242 348,764 597,358
The total rateable value of land and buildings owned by Chatham Islands Management Limited as at 30 June 2010 was
$497,000 (30 June 2009: $576,000).

6.2 Chatham Islands Airport Ltd
Description of Asset Valuation Opening Additions Depn Depn Accumulated Closing

(or Cost) BookValue (Disposals) Rate Method Value Depreciation BookValue
Apron Lighting System 9,931 0 0 10.0% SL 0 9,931 0

Cleaning Equipment 567 0 0 20.0% SL 0 567 0
Electricity Reticulation System 3,004 0 0 10.0% SL 0 3,004 0
Fencing 40,450 23,250 10,450 2.5% SL 1,011 7,761 32,689
Fixtures&Fittings 59,111 1,289 856 20.0% SL 2,145 59,111 0
Generator No.1 12,224 0 0 10.0% SL 0 12,224 0
Generator No.2 3,556 0 0 20.0% SL 0 3,556 0
Land 40,000 40,000 0 0.0% SL 0 0 40,000
Land Preparation 900,000 900,000 0 0.0% SL 0 0 900,000
Passenger Terminal Building 205,737 109,250 15,737 2.5% SL 5,143 85,893 119,844
Pay Phone 650 0 0 10.0% SL 0 650 0
Radio Equipment 3,854 343 0 10.0% SL 343 3,854 0
Rescue Fire Building 84,311 49,277 0 2.5% SL 2,108 37,142 47,169
Runway and Paved Areas 900,000 495,000 0 5.0% SL 45,000 450,000 450,000
Runway Brooms 10,062 0 0 10.0% SL 0 10,062 0
Water Reticulation System 20,000 15,500 0 2.5% SL 500 5,000 15,000
Lighting - Apron Area 5,209 3,675 0 10.0% SL 521 2,055 3,154
Totals 2,298,666 1,637,584 27,043 56,771 690,810 1,607,856
The total rateable value of land and buildings owned by Chatham Islands Airport Limited as at 30 June 2010 was
$4,205,500 (30 June 2009: $586,500).
6.3 Chatham Islands Forestry Ltd
Description of Asset Valuation Opening Additions Depn Depn Depn Accumulated Closing
(or Cost) BookValue (Disposals) Rate Method Value Depn BookValue
Computer Software 647 0 0 33.00% SL 0 647 0

Electric Fence Unit 410 0 0 20.00% SL 0 410 0
GPS Equipment 861 193 0 10.00% SL 86 754 107
Planting Equipment 1,731 0 0 20.00% SL 0 1,731 0
Pole Peeler 5,540 0 0 10.00% SL 0 5,540 0
Pruning Equipment 3,498 0 0 20.00% SL 0 3,498 0
Releasing Equipment 528 0 0 20.00% SL 0 528 0
Residential Subdivision Dev. 18,912 18,912 0 0.00% SL 0 0 18,912
Scrub Cutter 1,410 0 0 20.00% SL 0 1,410 0
Land - Mahia 480,337 480,337 0 0.00% SL 0 0 480,337
Land - Chathams 60,000 60,000 0 0.00% SL 0 0 60,000
Totals 573,874 559,442 0 86 14,518 559,356
The total rateable value of land and improvements owned by Chatham Islands Forestry Limited as at 30 June 2010 was
$1,034,000 (30 June 2009 $1,997,000).

6.4 Chatham Islands Electricity Ltd
Description of Asset Valuation Opening Additions Depn Depn Depn Accum Closing
(or Cost) BookValue (Disposals) Rate Method Value Depn BookValue
Powerstation Assets
Chainsaw 524 0 0 20.00% SL 0 524 0
Control Room 33,000 11,880 0 4.00% SL 1,320 22,440 10,560
Cooling Towers 25,000 0 0 20.00% SL 0 25,000 0
Fax Machine 499 24 0 10.00% SL 24 499 0
Fire Alarm System 21,199 2,680 0 10.00% SL 2,120 20,639 561
Micro Hydro 77,285 74,824 2,461 0.00% SL 0 0 77,285
Fuel Systems 38,266 0 0 10.00% SL 0 38,266 0
Garage 7,000 2,519 0 4.00% SL 280 4,761 2,239
Generators 1 & 3 228,909 0 0 20.00% SL 0 228,909 0
Generator #1 122,964 32,791 0 20.00% SL 24,593 114,766 8,198
Generator 2 31,550 0 0 20.00% SL 0 31,550 0
Generator 4 28,394 0 0 20.00% SL 0 28,394 0
Generator 5 278,945 107,810 0 10.00% SL 27,894 199,029 79,915
Generator Building 57,440 22,864 0 4.00% SL 2,298 36,874 20,566
Generator Building #5 47,907 34,094 0 4.00% SL 1,916 15,729 32,178
PLC/Control/Cable Upgrade 79,512 23,191 0 10.00% SL 7,951 64,272 15,240
Radiator Cooling System 36,714 10,476 0 20.00% SL 7,343 33,581 3,133
Water Reticulation 12,209 0 0 10.00% SL 0 12,209 0
42.68% 1,127,316 323,152 2,461 75,739 877,442 249,874
Reticulation Assets
Airport Power Centre 17,224 10,473 1,357 4.00% SL 689 6,082 11,142
Recloser 163,361 147,025 0 5.00% SL 8,168 24,504 138,857
Cable Locator 5,618 2,762 0 10.00% SL 562 3,418 2,200
Reticulation Equipment 2,466 1,055 0 10.00% SL 247 1,658 809
Reticulation Line 1,548,782 1,205,838 0 2.50% SL 38,720 381,664 1,167,118
Reticulation Line - SouthC 564,599 508,849 0 2.50% SL 14,115 69,865 494,734
Reticulation Line - Owenga 172,278 0 172,278 2.50% SL 0 0 172,278
Line Store 50,800 27,248 0 4.00% SL 2,032 25,584 25,216
Test Equipment - Data Logger 1,249 794 0 17.50% SL 219 674 575
Test Instrument 2,227 1,350 0 17.50% SL 390 1,267 961
Power Pruner 1,909 1,241 0 17.50% SL 334 1,002 907
36.90% 2,530,515 1,906,635 173,636 65,474 515,719 2,014,796
General Assets
Dangerous Goods Bunker 2,000 1,040 0 4.00% SL 80 1,040 960
Control Panel #5 17,338 5,057 0 10.00% SL 1,734 14,015 3,323
House No 1 95,132 64,941 0 2.50% SL 2,378 32,569 62,563
House Section (Lot 2) 10,000 10,000 0 0.00% SL 0 0 10,000
House No 1 - Fix & Fit 18,114 1,446 0 20.00% SL 1,446 18,115 0
House No 2 91,362 63,815 0 2.50% SL 2,284 29,831 61,531
House Section (Lot 1) 10,000 10,000 0 0.00% SL 0 0 10,000
Land - Hydro Project 26,815 26,815 0 0.00% SL 0 0 26,815
Land - W/Shop 20,000 20,000 0 0.00% SL 0 0 20,000
Motor Vehicles 72,390 0 8,967 20.00% SL 299 63,722 8,668
Printer 1,476 0 0 20.00% SL 0 1,476 0
Satelite Phone 2,503 0 2,503 17.50% SL 183 183 2,321
Radio Upgrade 9,862 1,334 0 10.00% SL 986 9,513 348
Receipt Printer 3,401 0 0 40.00% SL 0 3,401 0
Scada System 98,188 75,614 0 20.00% SL 19,638 42,212 55,976
Refridgeration Equipment 2,750 1,179 0 10.00% SL 275 1,846 904
Security System 1,422 0 0 10.00% SL 0 1,421 0
Vacant Section (Lot 6) 5,000 5,000 0 0.00% SL 0 0 5,000
Water Blaster 951 339 0 10.00% SL 95 707 244
Wind Farm Land 41,574 41,574 0 0.00% SL 0 0 41,574
Workshop Building 89,580 35,066 0 4.00% SL 3,583 58,097 31,483
Workshop Fix & Fit 2,469 0 0 10.00% SL 0 2,469 0
Workshop Upgrade 9,354 5,900 0 4.00% SL 374 3,828 5,525
Mitsubishi Van EFB535 13,778 8,267 0 20.00% SL 2,756 8,267 5,511
Fencing 14,947 0 14,947 10.00% SL 125 125 14,821
20.42% 660,406 377,386 26,417 36,235 292,838 367,567
Totals 4,318,237 2,607,173 202,514 177,449 1,685,999 2,632,238
The total rateable value of land and buildings owned by Chatham Islands Electricity Limited as at 30 June 2010 was
$1,939,000 (30 June 2009: $1,805,000).

6.5 Chatham Islands Ports Ltd
Description of Asset Valuation Opening Additions Depn Depn Depn Depn Accumulated Closing
(or Cost) BookValue (Disposals) (Loss) on Sale Rate Method Value Depreciation BookValue
Cement Mixer 5,000 - - - 20% SL - 5,000 -

Concrete Barriers 4,060 364 - - 10% SL 364 4,060 -
Container Building 262,798 161,837 - - 2.5% SL 6,570 107,531 155,267
Fish Wharf Upgrade 54,716 - - - 10% SL - 54,716 -
Floating Boom 10,268 - - - 10% SL - - -
Land-TikiTiki Hill 25,000 25,000 - - 0% SL - - 25,000
Land - Tank Site 20,000 20,000 - - 0% SL - - 20,000
Plant & Machinery 10,855 - - - 10% SL - 10,855 -
Pitt Island Wharf 209,571 136,683 - - 5% SL 10,479 83,367 126,204
Pitt Island Ramp - - - - 0% SL - - -
Radio Equipment 574 18 - (18) 10% SL - - -
Security/Fire Protection System 6,956 - 4,360 - 10% SL 109 2,705 4,251
Stock Facilities 42,666 37,020 - - 2.5% SL 1,067 6,713 35,953
Wharf Flood Lights 8,384 1,584 - - 10% SL 838 7,638 746
Wharf Facility - - - 2% SL - - -
T-Head 809,323 403,468 - - 10% SL 80,694 486,549 322,774
Impairment of T-Head (NZIFRS) - - SL - - -
Electrical Cabling - T-Head 8,274 - 8,274 - 6% SL 165 165 8,109
New Conrete Jetty (access to T Head) 930,433 612,165 - - 2% SL 18,609 336,877 593,556
Fishermans Wharf 144,987 95,392 - - 2% SL 2,900 52,495 92,492
Land Reclamation 226,665 226,665 - - 0% SL - - 226,665
Diesel Fuel Tanks 261,583 258,531 - - 7% SL 18,311 21,363 240,220
Table & Chairs 2,087 1,321 - (1,321) 20% SL - - -
- -
3,044,200 1,980,048 12,634 (1,339) 140,106 1,180,034 1,851,237
Less Disposals 12,929 - - - - - -

Totals 3,031,271 1,980,048 12,634 (1,339) 140,106 1,180,034 1,851,237
The total rateable value of land and buildings owned by Chatham Islands Ports Limited as at 30 June 2010 was
$2,516,000 (30 June 2009 $595,000).

The carrying book value amounts of property, plant and equipment are analysed as follows:
Group
As at 30-Jun-10 30-Jun-09
NZ$ NZ$
Chatham Island Management Ltd
Opening carrying amount 478,496 436,931
Additions 152,104 63,569
630,600 500,500
Depreciation 33,242 22,004
Closing carrying amount 597,358 478,496
Chatham Island Airport Ltd

Opening carrying amount 1,637,584 1,691,209
Additions 27,043 5,049
1,664,627 1,696,258
Closing carrying amount 1,607,856 1,637,584
Chatham Island Electricity Ltd

Opening Carrying Amount 2,607,173 2,634,028
Additions 202,514 164,815
2,809,687 2,798,843
Chatham Island Forestry Ltd

Opening Carrying Amount 559,442 559,610
Additions - -
559,442 559,610
Depreciation 86 168
Closing carrying amount 559,356 559,442
Chatham Island Ports Ltd

Additions 12,634 261,582
Disposals - -
1,992,681 2,105,224
Accumulated depreciation 140,106 125,178
Loss on Disposal of Property 1,339 -
Total property plant and equipment

Additions 394,294 495,016
Disposals - -
7,657,036 7,660,437
All depreciation charges are included in “depreciation” in the Statement of Comprehensive Income.

7. Trade and other payables
Group Parent
NZ$ NZ$ NZ$ NZ$
Trade payables 186,628 456,930 10,969 -

Accruals 166,864 243,249 6,241 15,722
Total closing payables 353,492 700,179 17,210 15,722
Due to their short duration, management considers the carrying amounts of trade and other payables recognised in the
Statement of Financial Position to be a reasonable approximation of their fair value.
8. Operating cashflow reconciliation
Group Parent
NZ$ NZ$ NZ$ NZ$
Reported surplus (loss) 518,119 (136,212) (348,109) (172,172)

Non cash items - -
Depreciation 407,657 397,699 - -
Loss on Disposal of Property 1,339 - - -
Fair Value Movement in Forestry Assets (37,000) (27,000) - -
Inter-Entity Dividends - - (580,000) -
Charitable Donations to Trading Companies - - 847,301 -
Trading losses of company funded - - 497,186 482,243
Interest from trading companies - - (334,278) (314,591)
Unrealised gain on fixed interest securities (234,996) (146,504) (234,996) (146,504)
South Coast Lines Adjustment to Fair Value (16,040) (15,923) - -
639,079 72,060 (152,896) (151,023)
Changes in working capital
Trade and other payables (311,240) (35,080) 1,489 (46,128)
Employee entitlements (17,726) (7,142) - -
Inventory 6,883 (335,451) - -
Trade and other receivables 131,344 (145,678) - -
(190,739) (523,351) 1,489 (46,128)
Net cash flow from operating activities 448,340 (451,292) (151,407) (197,153)

9. Cash and cash equivalents
Group Parent
As at 30-Jun-10 30-Jun-09 30-Jun-10 30-Jun-09
NZ$ NZ$ NZ$ NZ$
ANZ current account 252,946 497,159 214,978 446,527

BNZ current account 3,349 2,817 - -
Total cash 256,295 499,976 214,978 446,527
10. RWT Paid
Resident withholding tax has been deducted in error. A refund request has been lodged with the Inland Revenue
Department.
11. Related party transactions
Inter-Group Transactions and Balances
During the year, financial advances were made between the Trust and its trading companies. These advances consist of
payments made to the various trading companies to facilitate working capital requirements. For the purposes of these
accounts, where a trading company has made a loss in the period to 30 June 2010, the Trust has provided a grant to
cover the loss. Losses incurred by Chatham Islands Forestry Limited will not be written off as it is anticipated that in
the long-term, a profit will be generated by the Forestry Company to cover such losses.
Advances were made as follows:
CIM CIA CIE CIF CIP CIQH Total
Accumulated advances to (from) 4,240,077 841,496 536,804 1,952,300 1,493,882 930,027 9,994,585
Grants made to companies to cover losses
Prior year accumulated losses 617,883 334,635 - - 522,402 - 1,474,920
Current year losses 191,305 114,438 - - 223,262 - 529,006
Advance shown as asset 1,002,188 - 374,319 2,882,774 - - 4,259,281

Advance shown as a liability - 606,851 - - 452,756 24,213 1,083,821
Key Management, Trustees and Directors
Key management personnel include trustees, directors of the trading companies and chief executive. The total
compensation paid to key management personnel was $299,814 (2009: $266,984). This was all salaries and short term
benefits.
A summary of director appointments and resignations for the year ended 30 June 2010 as follows:
Chatham Island Management Ltd
Appointments:
• Ronald Phillp Tuuta 1 December 2009
Resignations:
• Gregory Francis Horler 30 November 2009

Chatham Island Quota Ltd
Resignations:
• Ngarata Leigh Lanauze 30 April 2010
Appointments:
• Gregory Francis Horler 1 July 2009
• Ronald Phillip Tuuta 1 December 2009
Resignations:
• Gregory Francis Horler 31 December 2009
• Thomas Henry Lanauze 31 March 2010
Chatham Island Forestry Ltd
Appointments:
• Phillip Douglas Seymour 1 July 2009
Chatham Island Airport Ltd
Appointments:
• Brent Mallinson 1 July 2009
Where a Trustee, Director or member of staff have entered into related party transactions with the Trust and its
trading companies, the nature and amount of the transaction has been disclosed in the Chairman’s Report of the Trust
or the appropriate company.
Directors and Trustee Remuneration
The board remuneration policy is to ensure the remuneration package properly reflects the individual’s duties and
responsibilities and that remuneration is competitive in attracting, retaining and motivating people of the highest
quality.

Details of the nature and the amount of each major element of emoluments of each director of the trust are:
Directors & trustees Directors Trustees Salary Other Fees Total

Fees Fees
Stuart Hughes 6,000 - - 11,065 17,065

Brent Mallinson 3,313 10,500 - 845 14,658
Joshua Thomas 3,313 - 8,343 - 11,656
Denise Thomas 8,000 10,500 2,618 - 21,118
Roger Burchett 8,000 - - 31,311 39,311
Terence Tuanui 8,000 - - - 8,000
Phillip Seymour 5,000 26,000 - 71 31,071
Don Tantrum 5,000 - - - 5,000
Donna Gregory-Hunt 5,375 10,500 - 280 16,155
Gregory Horler 1,375 4,375 - - 5,750
Ronald Tuuta 2,167 6,125 - - 8,292
Ngarata Lanauze 4,958 - - - 4,958
60,501 68,000 10,961 43,572 183,034
Chatham Islands Management Limited paid Trustees Fees and expenses totalling $85,565 (30 June 2009; $81,657) of
which $68,000 were fees, the balance of $17,565 being meeting and election costs. Details of Director’s interests are
disclosed in note 12.
Other Related Parties
During the year, Chatham Islands Management Limited provided management services to the Chatham Islands
Enterprise Trust and the following companies within the group:

NZ$ NZ$
Chatham Islands Enterprise Trust 131,625 131,625

Chatham Islands Airport Limited 66,000 66,000
Chatham Islands Electricity Limited 163,000 163,000
Chatham Islands Forestry Limited 10,000 15,000
Chatham Islands Ports Limited 59,000 59,000
Chatham Islands Quota Holdings Limited 91,000 91,000
Total 520,625 525,625
During the year, Chatham Islands Electricity Limited provided electrical services to the following companies within the
group:

NZ$ NZ$
Chatham Islands Airport Limited 5,504 6,308

Chatham Islands Ports Limited 14,197 14,362
Chatham Island Management 8,617 7,946
Total 28,318 28,616

During the 2006 year Chatham Island Electricity Limited completed the South Coast line extension. As part of
completing the extension the company granted 20 year loans to the 11 residents totalling $306,900 in 2006 and 1 in
2007 of $27,900. All 12 residents contributed $27,900 each for the line extension which was funded by the Company
providing a loan to each resident for 20 years at an effective rate of 0.3763% per annum repaid in equal monthly
instalments over the life of the loan. The 12 residents contributed $334,800 towards the project. Greg Horler, (Past
Trustee) and Terry Tuanui (Chairman of Chatham Islands Electricity Ltd) are each included as one of those residents.
The balance of the loans as at 30 June 2010 were; Greg Horler $21,415 and Terry Tuanui $21,415 (30 June 2009; Gary
Cameron (Past Chairman) $22,753, Greg Horler $22,753 and Terry Tuanui $22,753).
During the year Greg Horler (Awarakau Farm Stays) provided accomodation to contractors employed by the Trust and
its companies during the year.
Management and staff of the trust purchased goods and services from trust companies at normal commercial rates.
Management and staff as part of their employment packages can purchase whiteware goods retailed by Chathams
Island Electricity Limited for personal consumption at cost plus 10% plus freight.
Chatham Island Management Ltd provided fuel to Chatham Island Electricity Ltd.

NZ$ NZ$
Chatham Islands Electricity Limited 674,282 108,560

Total 674,282 108,560
Chatham Island Port Ltd leased bulk fuel tanks to Chatham Island Management Ltd.

NZ$ NZ$
Chatham Islands Management Limited 25,231 2,500

Total 25,231 2,500
Donna Gregory-Hunt as a director of Chatham Island Quota Holdings Limited has a direct family member whom
receives allocation of ACE from Chatham Islands Quota Holdings Limited. ACE prices are the same as for all ACE
holders. The independent director oversees the process for allocation of ACE. Donna Gregory-Hunt declares an
interest and plays no party in the allocation to the direct family member.
Terry Tuanui as a director of Chatham Island Electricity Limited has a company Chatham Motors, which provides
motor vehicle related services to group entities. The amount paid to Chatham Motors from group entities for the year
ended 30 June 2010 was $21,386 (30 June 2009; $13,618)

12. Share capital and equity
The trust has an objective of maintaining and growing the equity base of the trust for the benefit of current and future
inhabitants of Chatham Islands. The Trust carries insurance for all of its operations in accordance with normal
commercial practice.
The Share Capital has been established at $100 for each of the six companies. Chatham Island Shipping is a shell
company with no share capital. The shares are owned by the Chatham Islands Enterprise Trust and are fully paid.
Trust Airport Electricity Forestry Management Ports Quota Shipping Consolidation Total
Entries
Shares - 100 100 100 100 100 100 - - 600
Reserves
Opening 7,777,321 1,004,344 331,545 - - 2,100,776 2,797,606 - - 14,011,592
Change in fair value of equities gain/(loss) 152,373 - - - - - - - - 152,373
Closing 7,929,694 1,004,344 331,545 - - 2,100,776 2,797,606 - - 14,163,965
Retained earnings
Opening 1,274,915 1,210,000 1,557,175 (625,555) 101,177 263,785 3,472,456 - 35,439 7,289,392
Movement for year (348,109) - 1,019,372 (243,096) - - 75,329 - 14,624 518,120
Closing 926,806 1,210,000 2,576,546 (868,651) 101,177 263,785 3,547,785 - 50,063 7,807,512
Total equity 8,704,127 2,214,444 2,908,191 (868,551) 101,277 2,364,661 6,345,491 - 50,063 21,972,077
Group Parent
30-Jun-10 30-Jun-09 30-Jun-10 30-Jun-09
NZ$ NZ$ NZ$ NZ$
Retained earnings
Opening 7,512,071 7,648,283 1,274,916 1,447,088
Movement for year 518,119 (136,212) (348,109) (172,172)
Closing 8,030,190 7,512,071 926,807 1,274,916
Reserves
Opening 13,789,513 14,012,192 7,777,321 8,000,000
Movement for year 152,373 (222,679) 152,373 (222,679)
Closing 13,941,886 13,789,513 7,929,694 7,777,321
Total equity 21,972,077 21,301,584 8,856,501 9,052,237
A change in financial reporting standards presentation (NZ IAS 1) has required the reclassification of 2009 equity. A
change in fair value of equities loss of $222,679 has been reclassified to reserves from retained earnings.
13. Contingent assets and other contingent liabilities
There are no contingent assets or liabilities as at 30 June 2010 (30 June 2009; $0).

14. Financial instruments
The accounting policies for financial instruments have been applied to the line items below:
Group Parent
30-Jun-10 30-Jun-09 30-Jun-10 30-Jun-09
NZ$ NZ$ NZ$ NZ$
FINANCIAL ASSETS
Fair Value through Surplus or Deficit

TOTAL FAIR VALUE THROUGH SURPLUS OR DEFICIT 4,801,596 4,014,227 4,801,596 4,014,227
Loans and Receivables

Cash and Cash Equivalents 256,295 499,976 214,978 446,526
Debtors and Other Receivables 825,111 956,455 8,702 124,749
TOTAL LOANS AND RECEIVABLES 1,081,406 1,456,431 223,680 571,275
Other Financial Assets

- Term Deposits 475,900 724,737 475,900 710,281
- Chatham Islands Council - Loan 194,988 200,918 194,988 200,918
- South Coast Lines Extension Loan 25,044 25,044 - -
- Loans to Related Parties - - 4,259,281 4,572,292
TOTAL OTHER FINANCIAL ASSETS 2,858,745 3,863,561 5,377,529 6,626,042
FINANCIAL LIABILITIES
Financial liabilities at amortised cost

Trade and Other Payables 353,492 700,179 17,210 15,722
Borrowings
- Secured Loans 594,911 645,349 - -
- Loans From Related Parties - - 1,083,821 1,003,120
TOTAL FINANCIAL LIABILITIES AT AMORTISED COST 948,402 1,345,529 1,101,030 1,018,842
Financial Risk Management Objectives
The Trust has a treasury policy to manage risk associated with financial instruments. The Trust does not enter into or
trade financial instruments, including derivative instruments for speculative purposes.
Capital Management
The Trust’s capital includes retained earnings and reserves. The Trust is not subject to any externally imposed capital
requirements.
Credit Risk
There are no contingent assets or liabilities as at 30 June 2010 (30 June 2009; $0).
The Trust's exposure to credit risk is mainly associated with short-term deposits, debtors and fund management of its
fixed interest, equity investment portfolio and loans to South Coast Line residents and the Chatham Islands Council.
The Trust minimises its risk by diversification of investments through the managed Trusts made by each of the
portfolio managers. There is risk that financial assets will suffer loss through normal market risks.
On a consolidated basis, the credit risk associated with debtors is minimal. For several trading companies, the credit
risk for debtors is more pronounced, as there is a concentration of debt.
Currency Risk
There is no exposure to currency risk.

Interest Rate Risk
There is some exposure to interest rate risk in relation to funds managed by AMP and ING, but portfolio managers
actively manage fixed interest investments to reduce this risk. The Trust is exposed to interest rate risk on the South
Coast Line Loan, Bank of New Zealand term loan and Chatham Island Council loan as the interest rate is fixed.
Financial assets and liabilities exposed to interest rate risk are as follows:
Group Parent
NZ$ NZ$ NZ$ NZ$
Financial Liabilities
BNZ Term Loan 594,911 645,349 - -
Total Financial Liabilities 594,911 645,349 - -
Financial Assets
ANZ term deposit 475,900 434,515 475,900 434,515
BNZ term deposit - 275,767 - 275,767
SFFund term deposit - 14,455 - -
Total Financial Assets 3,444,202 3,174,002 3,419,157 3,134,502
Split
Current portion
BNZ Term Loan 55,125 - - -
Term Portion
BNZ Term Loan 539,785 645,349 - -
Total Financial Liabilities 594,911 645,349 - -
The term loan is secured by mortgages over the assets of Chatham Island Quota Ltd. The loan has a current interest
rate of 7.99%, which is fixed for a period of 5 years from 24 April 2009.
The carrying value of the financial liabilities represents the maximum exposure of the Trust.
Market Risk
The Trust has a market risk associated with its portfolio of shares. The portfolio is diversified over a number of listed
companies, with no undue exposure. There is also market risk associated with the recession being experienced in the
New Zealand economy.
The carrying amounts of the financial assets and financial liabilities recorded in the financial statements approximate
their fair values. The fair values of financial assets and financial liabilities with standard terms and conditions and
traded on active liquid markets are determined with reference to quoted market prices.
Sensitivity Analysis
In managing interest rate risks, the Trust aims to reduce the impact of short term fluctuations on the earnings. Over
the longer term, however changes in interest rates will affect reported profits.
The following tables summaries the impact of interest rate changes:

Effect on equity Effect on net profit

NZ$ NZ$ NZ$ NZ$
1% increase in interest rates (5,949) (6,453) (5,949) (6,453)
1% decrease in interest rates 5,949 6,453 5,949 6,453
Financial Assets
1% increase in interest rates 34,442 31,740 34,442 31,740
1% decrease in interest rates (34,442) (31,740) (34,442) (31,740)
Net Effect
1% increase in interest rates 28,493 25,287 28,493 25,287
1% decrease in interest rates (28,493) (25,287) (28,493) (25,287)
Credit Quality of Financial Assets
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to Standard
and Poor’s credit ratings (if available) or to historical information about counterparty default rates.
Group Parent
30-Jun-10 30-Jun-09 30-Jun-10 30-Jun-09
NZ$ NZ$ NZ$ NZ$
COUNTERPARTIES WITH CREDIT RATINGS

Cash at bank and term deposits
AA 732,195 1,224,713 690,878 1,156,807
Total Cash at Bank and Term Deposits 732,195 1,224,713 690,878 1,156,807
Fair Value Financial Assets

AA 3,616,259 2,922,165 3,616,259 2,922,165
Total Fair Value Financial Assets 3,616,259 2,922,165 3,616,259 2,922,165
COUNTERPARTIES WITHOUT CREDIT RATINGS
Fair Value Financial Assets

Existing couterparty with no defaults in the past 1,405,369 1,318,024 1,380,325 1,292,980
Total Fair Value Financial Assets 1,405,369 1,318,024 1,380,325 1,292,980
Contractual Maturity of Financial Liabilities, excluding Derivatives
The table below analyses the Parent and Group’s financial liabilities into relevant maturity groupings based on the
remaining period at balance date to the contractual maturity date. The amounts disclosed are the contractual
undiscounted cash flows and include interest payments.

Carrying Contractual Less than 1-2 Years 2-5 Years More Than
Amount Cash 1 Year 5 Years
Flows
$NZ $NZ $NZ $NZ $NZ $NZ
Group 2010
Trade and Other Payables 353,492 353,492 353,492 - - -

Borrowings
- Secured Loans 594,911 705,509 100,200 250,200 355,109 -
- Loans From Related Parties
TOTAL 948,402 1,059,001 453,692 250,200 355,109 -
Group 2009

Borrowings
- Secured Loans 645,349 805,709 100,200 100,200 605,309 -
- Loans From Related Parties
TOTAL 1,345,529 1,505,889 800,379 100,200 605,309 -
Parent 2010

Borrowings
- Loans From Related Parties 1,083,821 1,083,821 1,083,821 - - -
TOTAL 1,101,030 1,101,030 1,101,030 - - -
Parent 2009

Borrowings
- Loans From Related Parties 1,003,120 1,003,120 1,003,120 - - -
TOTAL 1,018,842 1,018,842 1,018,842 - - -
Contractual Maturity of Financial Assets
The table below analyses the Parent and Group’s financial assets into relevant maturity groupings based on the
remaining period at balance date to the contractual maturity date. The amounts disclosed are the contractual
undiscounted cash flows and include interest receipts.

Carrying Contractual Less than 1-2 Years 2-5 Years More Than
Amount Cash 1 Year 5 Years
Flows
$NZ $NZ $NZ $NZ $NZ $NZ
Group 2010
ING - fixed interest securities 1,562,932 1,562,932 1,562,932 - - -

AMP - fixed interest securities 1,185,337 1,185,337 1,185,337 - - -
Cash and Cash Equivalents 256,295 256,295 256,295 - - -
Debtors and Other Receivables 825,111 825,111 825,111 - - -
Term Deposits 475,900 483,106 483,106 - - -
Chatham Islands Council - Loan 194,988 363,196 23,816 23,816 71,448 244,115
South Coast Lines Extension Loan 25,044 278,375 18,000 18,000 54,000 188,375
TOTAL 4,525,607 4,954,352 4,354,598 41,816 125,448 432,490
Group 2009

Term Deposits 724,737 732,901 732,901 - - -
South Coast Lines Extension Loan 25,044 296,375 18,000 18,000 54,000 206,375
TOTAL 4,630,434 5,096,022 4,454,451 41,816 125,448 474,306
Parent 2010

Term Deposits 475,900 483,106 483,106 - - -
Loans to Related Parties 4,259,281 4,259,281 4,259,281 - - -
TOTAL 7,902,118 8,077,532 7,738,152 23,816 71,448 244,115
Parent 2009

Term Deposits 710,281 718,436 718,436 - - -
Loans to Related Parties 4,572,292 4,572,292 4,572,292 - - -
TOTAL 8,278,071 8,472,320 8,109,124 23,816 71,448 267,931
15. Capital Commitments
Chatham Islands Forestry Limited has planted woodlots on privately owned land under Forestry Rights Agreements.
In return for providing a fenced area of land, the landowners will receive a percentage of the return on the forest at
harvest. This remains unchanged in 2010.
The Trust Group has no capital commitments (30 June 2009; $103,572).
16. Forestry assets
At 30 June 2009, the value of the Mahia Forest was assessed at $1,082,000 by PF Olsen Ltd. The increase in value, a
total of $37,000, is shown as a profit in the profit and loss during the 2009 year (30 June 2009: $27,000 increase).
During the 1996/97 financial year, a total of 29.0 hectares of Macrocarpa was planted as part of the Chatham’s
Forestry Project. A total of 21.7 hectares was planted under Forestry Rights Agreements with three private land

owners. The balance of 7.3 hectares was planted on land owned by Chatham Islands Forestry Limited.
During the 1997/98 financial year, a total of 34 hectares of Macrocarpa and 13 hectares of Pine were planted on
privately owned land under a Forestry Rights Agreement. During the 1998/99 financial year, a total of 18 hectares of
Macrocarpa was planted on land owned by Chatham Islands Forestry Limited. A further 20 hectares of Macrocarpa
was planted on the same property during the 1999/2000 financial year. As at 30 June 2010, $381,754 had been
invested in the Chatham’s Project (30 June 2009: $378,416). This has been carried forward as the opening cost under
NZ IFRS and has not been revalued under NZIAS 41 due to materiality.
Group
30-Jun-10 30-Jun-09
NZ$ NZ$
Chatham's Forest
Opening book value 378,416 373,359
Additions during year 3,338 5,057
Closing net book value $ 381,754 378,416
Mahia Forest
Opening book value 1,045,000 1,018,000
Additions during year - -
Gain/(Loss) arising from changes in fair value less estimated
point of sale costs 37,000 27,000
Closing net book value $ 1,082,000 1,045,000
Total Forestry Assets $ 1,463,754 1,423,416
17. Term deposits
Group Parent
NZ$ NZ$ NZ$ NZ$
ANZ term deposit 475,900 434,515 475,900 434,515

BNZ term deposit - 275,767 - 275,767
SFFund term deposit - 14,455 - -
Total term deposits 475,900 724,737 475,900 710,281
18. Operating Leases
Chatham Islands Enterprise Trust has no operating lease payments or commitments (30 June 2009: Nil).
19. Inventories
Group
NZ$ NZ$
Fuel - Chatham Island Management Ltd 378,338 397,962

Fuel - Chatham Island Electricity Ltd 52,151 40,631
Consumables - Chatham Island Electricity Ltd 160,843 159,622
591,332 598,214

20. Charitable Donations
During the year the Trust released debt owed by Chatham Islands Electricity Limited to the Trust, via a charitable
donation. This amount was $847,301 (30 June 2009: Nil). This donation was in relation to costs incurred by Chatham
Islands Electricity Limited in relation to Macro Hydro Investigations. A feasible project was delivered by Chatham
Islands Electricity Limited, but did not proceed due to lack of government funding support.
21. Employee Benefits
Employee Entitlements
Group Parent
NZ$ NZ$ NZ$ NZ$
Annual leave provision 30,175 15,950 - -

Provision for bonuses 11,000 7,500 - -
Total closing employee entitlements 41,175 23,450 - -
22. Significant events subsequent to balance date
The following director appointments were made subsequent to balance date:
Chatham Island Quota Ltd
• Carol Neilson 1 July 2010
• Deborah Goomes 1 July 2010
As at 10 August the Directors had signed a contractual agreement with Chatham Island Wind Limited domicilied out
of Sydney (Subsidiary of CBD). This agreement relates to the wind generation power project and the construction and
operation of wind turbines on the Chatham Islands on a “Build, Own, Operate transfer basis”.

TRADING COMPANIES
CHATHAM ISLANDS MANAGEMENT LIMITED
Statement of Comprehensive Income for the Year Ended 30 June 2010
30 June 2010 30 June 2009

INCOME
Management Fees 506,000 511,000
Trading Income 1,555,029 116,092
Grants Received - 104,629
Rent Received 20,160 8,950
Sundry Income 14,660 9,642
Total Income 2,095,849 750,313
EXPENDITURE
Cost of Sales 1,488,729 145,429
Audit Fees - Company 7,000 -
Audit Fees - Group Allocation 9,718 44,782
Administrative Costs 288,799 268,068
Economic Development 14,941 71,423
Employee Costs 300,723 269,149
Financing Fees 820 2,957
Trustees Fees & Disbursements 85,565 81,657
TOTAL EXPENDITURE 2,229,539 905,469
OPERATING PROFIT/(LOSS) $ (133,689) (155,155)
Interest Income 620 1,090
Interest Expenditure (58,236) (4,119)
NET FINANCE INCOME (57,616) (3,029)
PROFIT/(LOSS) FOR THE PERIOD (191,305) (158,184)
Grant from Owner (Enterprise Trust) 191,305 158,184
Other Comprehensive Income - -
TOTAL COMPREHENSIVE INCOME $ - -

Statement of Changes in Equity for the Year Ended 30 June 2010
Equity at the Start of the Period 101,277 101,277

Total Comprehensive Income - -
Equity at the End of the Period $ 101,277 101,277

Statement of Financial Position as at 30 June 2010
30 June 2010 30 June 2009

SHAREHOLDERS EQUITY
Share Capital 100 100
Retained Earnings 101,177 101,177
$ 101,277 101,277
REPRESENTED BY:
CURRENT ASSETS
ANZ Bank 7,622 31,657
Stock on Hand 378,338 397,962
Debtors 217,258 234,355
GST 19,406 56,530
622,625 720,504
NON CURRENT ASSETS
Property, Plant and Equipment 597,358 478,498
TOTAL ASSETS 1,219,983 1,199,002
CURRENT LIABILITIES
Trade and Other Payables 93,984 178,757
Employee Entitlements 22,534 8,711
Chatham Islands Enterprise Trust 1,002,188 910,257
TOTAL LIABILITIES 1,118,706 1,097,725
NET ASSETS $ 101,277 101,277

TRADING COMPANIES
30 June 2010 30 June 2009

INCOME
Trading Income 2,045,505 1,768,056
Sundry Income 2,508 308
Grant Income 25,000 25,000
Write back of South Coast Lines to Fair Value 16,040 15,923
Charitable Donation 847,301 -
Total Income 2,945,314 1,818,827
EXPENDITURE
Cost of Sales 1,024,317 1,223,099
Operating Costs 88,215 129,397
Audit Fees - Company 7,000 -
Directors Fees 24,000 21,750
Financing Fees 5,852 214
TOTAL EXPENDITURE 1,834,134 2,062,174
OPERATING PROFIT/(LOSS) $ 1,111,180 (243,348)
Interest Income 2,239 2,278
PROFIT/(LOSS) FOR THE PERIOD 1,019,372 (317,928)
TOTAL COMPREHENSIVE INCOME $ 1,019,372 (317,928)

Equity at the Start of the Period 1,888,820 2,206,748

Total Comprehensive Income 1,019,372 (317,928)
Equity at the End of the Period $ 2,908,192 1,888,820

30 June 2010 30 June 2009

SHAREHOLDERS EQUITY
Income Appropriation Account 2,576,546 1,557,174
Reserves 331,546 331,546
$ 2,908,192 1,888,820
REPRESENTED BY:
CURRENT ASSETS
ANZ Bank 4,759 16,015
Debtors 430,612 309,975
South Coast Line Extension Loans 16,500 18,000
Provision for Impaired Debtors (1,434) (3,939)
Stock on Hand 212,994 200,252
663,430 540,303
NON CURRENT ASSETS

South Coast Line Extension Loans 8,544 7,044
Intangible Asset 199,412 84,656
Property, Plant and Equipment 2,632,237 2,607,173
2,840,194 2,698,873
TOTAL ASSETS 3,503,623 3,239,176
CURRENT LIABILITIES
Employee Entitlements 18,642 7,240
GST 12,163 16,334
Chatham Islands Enterprise Trust 374,319 1,070,573
TOTAL LIABILITIES 595,432 1,350,356
NET ASSETS $ 2,908,192 1,888,820

TRADING COMPANIES

30 June 2010 30 June 2009

INCOME
Operating Income 401 501
Sundry Income - 574
Fair Value Movement in Forestry Assets 37,000 27,000
Total Income 37,400 28,074
EXPENDITURE
Financing Fees 7 105
Depreciation 83 168
TOTAL EXPENDITURE 66,718 78,642
Interest Income 32 22
TOTAL COMPREHENSIVE INCOME $ (243,096) (249,370)

Equity at the Start of the Period (625,455) (376,085)

Total Comprehensive Income (243,096) (249,370)
Equity at the End of the Period $ (868,551) (625,455)

30 June 2010 30 June 2009

SHAREHOLDERS EQUITY
Income Appropriation Account (868,651) (625,555)
$ (868,551) (625,455)
REPRESENTED BY:
CURRENT ASSETS
ANZ Bank 2,092 4,816
Debtors 121 113
GST 2,274 2,055
4,488 6,984
NON CURRENT ASSETS
Property, Plant and Equipment 559,356 559,439
Forestry Assets 1,463,754 1,423,416
2,023,110 1,982,855
TOTAL ASSETS 2,027,598 1,989,839
CURRENT LIABILITIES
TERM LIABILITIES
Chatham Islands Enterprise Trust 2,882,774 2,591,462
TOTAL LIABILITIES 2,896,150 2,615,294
NET ASSETS $ (868,551) (625,455)

TRADING COMPANIES
CHATHAM ISLANDS PORTS LIMITED
30 June 2010 30 June 2009
INCOME
Operating Income 62,226 45,105
Total Income 137,581 95,413
EXPENDITURE
Interest Income 417 9,235
Interest Expenditure - -
NET FINANCE INCOME 417 9,235



30 June 2010 30 June 2009

SHAREHOLDERS EQUITY
Retained Earnings 263,785 263,785
Asset Revaluation Reserve 2,100,776 2,100,776
$ 2,364,661 2,364,661
REPRESENTED BY:
CURRENT ASSETS
ANZ Bank 15,256 1,497
Debtors 69,816 42,438
RWT Paid 2,298 2,298
GST 5,431 18,452
Mobil Tanks Deposit - -
545,557 423,179
NON CURRENT ASSETS
TOTAL ASSETS 2,396,796 2,403,227
CURRENT LIABILITIES
TOTAL LIABILITIES 32,135 38,566
NET ASSETS $ 2,364,661 2,364,661

TRADING COMPANIES
30 June 2010 30 June 2009
INCOME
Landing Fees 105,000 103,127
Total Income 117,349 112,936
EXPENDITURE
Interest Income - -
Interest Expenditure - -
NET FINANCE INCOME - -



30 June 2010 30 June 2009

SHAREHOLDERS EQUITY
Retained Earnings 1,210,000 1,210,000
Asset Revaluation Reserve 110,000 110,000
Reserves 894,344 894,344
$ 2,214,444 2,214,444
REPRESENTED BY:
CURRENT ASSETS
ANZ Bank 2,748 3,735
Debtors 16,651 21,779
GST 457 1,265
626,707 613,192
NON CURRENT ASSETS
TOTAL ASSETS 2,234,563 2,250,777
CURRENT LIABILITIES
NET ASSETS $ 2,214,444 2,214,444

TRADING COMPANIES
CHATHAM ISLANDS QUOTA HOLDINGS LIMITED
30 June 2010 30 June 2009
INCOME
Quota Income 1,027,381 914,372
Sundry Income 433 5,261
TOTAL INCOME 1,027,814 919,635
EXPENDITURE
Financing Fees 136 4,116
OPERATING PROFIT/(LOSS) $ 703,608 626,951
Interest Income 51 2
PROFIT/(LOSS) FOR THE PERIOD 655,330 588,635
TOTAL COMPREHENSIVE INCOME 655,330 588,635


Dividends Paid (580,000) -
Total Comprehensive Income 655,330 588,635

30 June 2010 30 June 2009

SHAREHOLDERS EQUITY
Fish Quota Revaluation Reserve 630,686 630,686
Income Appropriation Account 5,714,707 5,639,377
$ 6,345,493 6,270,163
REPRESENTED BY:
CURRENT ASSETS
ANZ Bank 8,841 10,184
Debtors 238,501 272,269
RWT Paid 1 1
247,343 282,454
NON CURRENT ASSETS
Intangible Assets 6,876,393 6,876,393
6,900,606 6,934,606
TOTAL ASSETS 7,147,949 7,217,060
CURRENT LIABILITIES
GST 28,797 32,208
Income in Advance 133,033 202,587
207,548 301,549
TERM LIABILITIES
BNZ Term Loan 594,910 645,348
594,910 645,348

NET ASSETS $ 6,345,493 6,270,163

Chatham Islands Enterprise Trust and Subsidiaries Financial Statements For The Year Ended 30 June 2010

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Chatham Islands Enterprise Trust and Subsidiaries Financial Statements For The Year Ended 30 June 2010

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CHATHAM ISLANDS ENTERPRISE TRUST AND SUBSIDIARIES

Chairman’s Report 2-3

Chief Executive’s Report 4

Companies Reports 5-9

Statement of Comprehensive Income 10

Statement of Changes in Equity 10

Statement of Financial Position 11

Statement of Cash Flows 12

Notes to the Financial Statements 13 - 40

REPORT OF THE CHAIRMAN

PROMOTING ECONOMIC DEVELOPMENT AND WELLBEING 2

PROMOTING ECONOMIC DEVELOPMENT AND WELLBEING 3

REPORT OF THE CHIEF EXECUTIVE

Ian McFarlane Ron Tuuta

Past Chief Executive Officer Acting Chief Executive Officer

PROMOTING ECONOMIC DEVELOPMENT AND WELLBEING 4

REPORT OF THE CHAIRMAN

Phil Seymour leases approximately 5 hectares of land from the company.

There have been no share dealings through the year

Use of Company Information

PROMOTING ECONOMIC DEVELOPMENT AND WELLBEING 5

REPORT OF THE CHAIRMAN

Use of company information

PROMOTING ECONOMIC DEVELOPMENT AND WELLBEING 6

REPORT OF THE CHAIRMAN

There were no share dealings during the year.

Use of Company Information:

PROMOTING ECONOMIC DEVELOPMENT AND WELLBEING 7

REPORT OF THE CHAIRMAN

Use of Company Information

PROMOTING ECONOMIC DEVELOPMENT AND WELLBEING 8

REPORT OF THE CHAIRMAN

I take this opportunity to thank directors and staff.

There have been no Share dealings through the year.

Use of Company information

PROMOTING ECONOMIC DEVELOPMENT AND WELLBEING 9

Notes Group Parent

Interest Income 283,319 229,628 646,055 527,472

OTHER COMPREHENSIVE INCOME

CHATHAM ISLANDS ENTERPRISE TRUST AND SUBSIDIARIES

EQUITY AT START OF PERIOD 21,301,584 21,660,476 9,052,237 9,447,088

PROMOTING ECONOMIC DEVELOPMENT AND WELLBEING 10

Notes Group Parent

NON CURRENT ASSETS

NON CURRENT LIABILITIES

Dated: 31 August 2010

PROMOTING ECONOMIC DEVELOPMENT AND WELLBEING 11

CASH FLOWS FROM INVESTING ACTIVITIES

Cash was applied to:

CASH FLOWS FROM FINANCING ACTIVITIES

Cash was applied to:

PROMOTING ECONOMIC DEVELOPMENT AND WELLBEING 12

The Trust operates solely within New Zealand.

Effective for annual reporting

PROMOTING ECONOMIC DEVELOPMENT AND WELLBEING 13

Functional and presentation currency

Use of estimates and judgements

• Note 5 – Other financial assets

• Note 16 – Valuation of forestry assets

• Calculating provisions for doubtful debts.

• Calculating provisions for employee benefits.

• Calculating general accruals.