1 SEPTEMBER
NEW ZEALAND GAZETTE
2691

Network Generation Energy Trading

Generation Plant
Cost - 31,707 -
Accumulated
Depreciation - (12,110) -
Book Value - 19,597 -

Plant and Equipment
Cost 2,978 402 310
Accumulated
Depreciation (1,735) (211) (156)
Book Value 1,243 191 154

Motor Vehicles
Cost 471 193 91
Accumulated
Depreciation (263) (122) (36)
Book Value 208 71 55

Furniture and Fittings
Cost 273 78 82
Accumulated
Depreciation (191) (55) (57)
Book Value 82 23 25

              19,182     23,497     364

An ODV valuation was completed in November 1994 as at
April 1994 as per the ODV handbook. The value of
distribution assets was calculated at $53.6 million and
other fixed assets at $1.4 million (based on an NPV basis).

The above assets have not been revalued.

13. TAXATION RECEIVABLE

Network Generation Energy Trading
Comprises:
Opening Balance 17 75 (26)
Charge on result for
the future (518) (2,269) 796
Taxation paid 524 2,297 (806)
Prior Year Adjustment 43 43 190 (66)
Balance as at 31/3/95 66 293 (102)

14. FINANCIAL INSTRUMENTS

a) The nature of activities and management policies with
respect to financial instruments is described as follows:

i) Interest Rates
The interest rate risk is limited to the effective
interest rate described in Note 10

ii) Credit
In the normal course of its business the company
incurs credit risk from trade debtors and financial
institutions. There are no significant concentrations
of credit risk. The company has a credit policy
which is used to manage this exposure to credit
risk. As part of this policy limits on exposures have
been set and are monitored on a regular basis. The
bank risk is reduced by spreading short term
investments over high credit quality financial
institutions.

iii) Foreign Exchange
The company had no currency risk during the
reporting period. All financial instruments are deal
with in New Zealand dollars.

b) Fair Values
Financial instruments in the current section of the
Balance Sheet are shown at values equivalent to their
fair values. Investments are shown at cost, and the fair
value of term liabilities is not significantly different
from the carrying amount. The Company anticipates
that investments will be held to maturity.

15. CONTINGENT LIABILITIES

There are no contingent liabilities at balance date other
than a claim before the Waitangi Tribunal relating to the
Rangitaiki River and, in particular, the Aniwhehua dam.

Disclosure of Financial Performance
Measures and Efficiency Performance
Measures Pursuant to Part II of the First
Schedule of the Electricity (Information
Disclosure) Regulations 1994.

1. Financial Performance Measures:

(a) Accounting return on total assets, being earnings
before interest and tax divided by average total funds
employed:

Accounting return on total assets = 5.60%

(b) Accounting return on equity, being net profit after tax,
divided by average total shareholders funds:

Accounting return on equity = 3.75%