4 SEPTEMBER NEW ZEALAND GAZETTE 2809

KING COUNTRY ENERGY LIMITED

NOTES TO THE ANNUAL FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH

THE ELECTRICITY INFORMATION DISCLOSURE REGULATIONS 1994

FOR THE YEAR ENDED 31 MARCH 1995

| 3. EXPENSES | | |
| Included in Operating | | |
| Expense are the | | |
| following items: | | |
| Transpower Charges | 2,606,923 | - |
| Line Charges | - | 10,002,454 |
| Depreciation | 715,595 | 73,683 |
| Bad Debts Written Off | 28,020 | 17,672 |
| Increase in Estimated | | |
| Doubtful Debts | - | 10,200 |
| Audit Fees paid to | | |
| Auditors | 6,615 | 4,200 |
| Directors' Remuneration | 64,518 | 12,982 |

| 4. INCOME TAX | | |
| The amount of Income | | |
| Tax attributable to | | |
| the financial period | | |
| differs from the prima | | |
| facie tax payable on | | |
| the net profit before | | |
| tax. The difference is | | |
| reconciled as follows: | | |
| | | |
| Operating Surplus | | |
| before Taxation | 10,319 | 1,215,508 |
| Taxation thereon at 33% | 3,405 | 401,118 |
| | | |
| Permanent differences | | |
| -Over Provision in | | |
| prior year | (4,868) | - |
| -Other | 13,359 | 13,236 |
| INCOME TAX ATTRIBUTABLE | | |
| TO OPERATING SURPLUS| 11,896 | 414,354 |
| | | |
| Comprising: | | |
| -Current Tax Provision | (19,975) | 377,631 |
| -Deferred Income Tax | | |
| Provision | 36,739 | 36,723 |
| -Over Provision in | | |
| prior year | (4,868) | - |
| | 11,896 | 414,354 |

FUTURE INCOME TAX BENEFIT |
| Balance at beginning | | |
| of year | 93,486 | 43,635 |
| Current year timing | | |
| differences | (36,739) | (36,723) |
| Balance at end of year | 56,747 | 6,912 |

IMPUTATION CREDIT MEMORANDUM ACCOUNT |
| Balance at beginning | | |
| of period | 91,181 | 108,819 |
| Taxation Payments Made | 5,340 | 389,445 |
| Balance at end of | | |
| period | 96,521 | 498,264 |

5. DIVIDENDS

Final Dividend Proposed | - | 60,000 |