Hoea ra - Ngāti Kahungunu Iwi Incorporated

Notes to and Forming Part of theFinancial StatementsFOR THE YEAR ENDED 30 JUNE 20108 QUOTAIn 2007 and 2010 the Kahungunu Asset Holding Company received quota as partof the Fisheries Settlement.Under the Mäori Fisheries Act 2004, the company must not sell its settlementquota until two years after transfer from Te Ohu Kaimoana. After two years, thecompany can only sell its settlement quota to another iwi or to a member of the TeOhu Kaimoana group. The quota has been recorded at the value placed on it forsettlement purposes.In addition to the settlements, further quota has been purchased and is recorded atcost.9 INVESTMENTSInvestments in SubsidiariesConsolidatedParent2010 2009 2010 2009$ $ $ $Shares TRONK Ltd (100%) - - 15,732 15,732Shares Kahungunu AssetHolding Company (100%) - - 2,200,000 1,200,000- - 2,215,732 1,215,732Shares in other companiesAotearoa Fisheries Ltd 19,874,735 19,874,735 - -Fiordland Lobster Company 953,850 953,850 - -Napier Mussels Ltd (40%) - - - -20,828,585 20,828,585 - -AdvancesTamatea Taiwhenua 18,485 18,485 18,485 18,485Napier Mussels Ltd 195,592 195,592 195,592 195,592Less: Provision (195,592) (195,592) (195,592) (195,592)18,485 18,485 18,485 18,485Amount due from/(to) SubsidiariesTu Kahu Ltd - - - -TRONK Ltd - - (15,732) (15,732)- - (15,732) (15,732)20,847,070 20,847,070 2,218,485 1,218,485Amount due from/(to) Current SubsidiariesKahungunu Asset Holding Company - - - 1,000,000- - - 1,000,000The Kahungunu Asset Holding Company has received, as part of the 2007Fisheries Settlement 7,874 shares in Aotearoa Fisheries Ltd (AFL). Thisrepresents a 6.3% holding in that company. The shares have been recorded atthe value established by Te Ohu Kaimoana on transfer. The net book value ofthe Kahungunu Asset Holding Company’s shareholding in AFL as disclosed inits Annual Report at 30 September 2009 was $22,547,575 (2008: $20,043,676).Under the Mäori Fisheries Act 2004, the company must not sell its AFL shares untiltwo years after transfer from Te Ohu Kaimoana. After two years, the company canonly sell its AFL shares to another iwi or to a member of the Te Ohu Kaimoanagroup.The Kahungunu Asset Holding Company owns 11,590 ordinary shares and100,000 redeemable convertible shares in Fiordland Lobster Company (FLC). Thisrepresents a 5.0% holding in that company. These shares have been includedat cost. The net book value of the Kahungunu Asset Holding Company’s shareholding in FLC as disclosed in its Annual Report at 31 March 2010 was $2,658,504(2009: $1,788,061).Page 22