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Stock.- This year a supplementary account has been prepared showing the position of the Sheep, Cattle, Horses, and Wool Accounts. In regard to the stock at the 31st March, 1922, I have accepted without reservation the figures as certified to by Mr. Park, the farm-manager, and by Mr. H. Syme, the farm-supervisor, and Mr. Harvey, as agent for the Native Trustee at Gisborne. You will notice the stock lias been taken at a very low figure, and in a great measure accounts for the loss shown in each of the statements. No notice has been taken of the stock which is in the bush. Some of the wandering stock may be recovered, and if so it will go to the credit of the year's working. It is intended to adopt standard values for live-stock in future years. Woo! Account. —The small profit shown on wool appears to be due to the fact that there were ninety bales unrealized at the 31st March, 1921 ; these were valued at £10 per bale, but only a portion of these have been realized, and at a much reduced price. At the 31st March, 1922, the value of the balance of the unrealized wool of the 1920 and 1921 clips was reduced to about £5 per bale. On the assets side of tho balance-sheet you will notice an amount of £410 16s.- sundry expenses re renewal of leases. This amount has been placed there temporarily until the question of the renewal, or otherwise, of the remaining leases has been decided upon. Mangatu Nos. 3 and 4 Blocks- -These accounts are incorporated in the accounts of Mangatu No. 1 Block, but a, separate balance-sheet and Income Account has been prepared, which, is enclosed herewith. You will observe; that the rent is insufficient to pay rates and taxes, &c, let alone interest on advances from Mangatu No. 1. Subject to the foregoing remarks, 1 certify that tho accounts, as signed by me, are in my opinion correct. I have, &c.,| Arthur T. Clarke.

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