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## Notes to the Financial Statements (continued) 

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## 13. Other Financial Assets (Non-Current) 

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## (a) Units in Unit Trusts 

Certain consumer finance receivables are sold, in accordance with an agreement, to a special purpose trust, “The Financial Assets Specialised Trust No. 1” (FAST). The consolidated entity may, but is not obliged to, sell receivables to FAST and FAST may, but is not obliged to, purchase some or all of consumer finance receivables. The receivables that have been sold to FAST, and which at balance date remain outstanding, total $34.27 million (2002: $51.74 million). The consolidated entity also holds monies on behalf of FAST relating to these receivables of $2.59 million (2002: $2.62 million) at balance date. 

In these financial statements, the consolidated entity’s interest in FAST is 24.46% (2002: 24.54%) of all issued equity units in FAST. These units are of variable amounts and are included in the consolidated financial statements in other financial assets of $9.08 million (2002: $12.15 million). Consumer finance receivables that have not been sold pursuant to this agreement are included in consumer finance loans. 

The consolidated entity, prior to selling the receivables, establishes a provision for doubtful debts, adequate to cover any bad or doubtful debts that may be sold back to the consolidated entity. 

The consolidated entity is exposed to interest rate risk through its investment in FAST. Under the Receivables Facility Agreement between the consolidated entity and the Manager and Trustee of FAST, the consolidated entity bears the cost of all interest paid in relation to commercial paper issued by FAST. Interest paid by FAST on commercial paper proceeds for the year ended 30 June 2003 was $2.18 million (2002: $2.06 million). The weighted average interest rate applicable to commercial paper issued by FAST for the year ended 30 June 2003 was 4.93% (2002: 4.71%). 

## (b) Securities Quoted on Prescribed Stock Exchanges in Unrelated Entities 

## Briscoe Group Limited 

The consolidated entity holds listed securities in Briscoe Group Limited, a company listed on the New Zealand Stock Exchange. Briscoe Group Limited operates the “Briscoes Homeware” and “Rebel Sports” retail chains in New Zealand. 

The consolidated entity holds a 2.5% ownership interest in Briscoe Group Limited. The carrying amount of this investment at cost at 30 June 2003 is $4,583,552. The market value at 30 June 2003 is $9,440,093. 

## Gazal Corporation Limited 

The consolidated entity holds listed securities in Gazal Corporation Limited (Gazal). The principal activities of Gazal include the design, manufacture, importation, wholesale and retail of well known branded apparel and accessories. 

The carrying amount and fair value of this investment at 30 June 2003 is $2,350,000. 

