NEW ZEALAND GAZETTE

9 SEPTEMBER

2873

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For The Year Ended 31 March 1997

1. Operating Revenue
   Electricity Sales | 28,659,037 | 27,553,570 | 39,256,987 | 35,807,534 |
   Line Contributions | 1,065,005 | 1,046,260 | - | - |
   Contracting Work | - | - | 3,523,447 | 2,035,455 |
   Interest Received | 334,398 | 313,760 | 855,342 | 578,370 |
   Application Fees etc. | - | - | - | 3,392 |
   | 30,058,440 | 28,913,590 | 43,635,776 | 38,428,751 |

2. Operating Surplus before Tax
   After Charging:
   Change Doubtful Debts Provision | 43,910 | 5,000 | 60,147 | 36,515 |
   Bad Debts Written Off | - | 28,098 | - | 298,215 |
   Depreciation | 2,978,263 | 2,795,557 | 337,700 | - |
   Directors’ Fees | 57,000 | 55,416 | 57,000 | 55,417 |
   Interest | 4,705 | 948 | - | - |
   Rental and Operating Lease Costs | 14,109 | 9,270 | 1,210 | 1,270 |
   Research & Development | 42,439 | 15,841 | 58,132 | 73,533 |
   Donations | - | - | 500 | 500 |
   Loss on Sale of Assets | - | 33,014 | - | - |

3. Auditors Remuneration
   Auditing Financial Statements | 21,000 | 20,600 | 2,000 | 2,400 |
   Other Services | 4,000 | 2,600 | 4,000 | 2,600 |

4. Taxation
   Profit Before Taxation | 6,110,589 | 6,547,216 | 2,768,618 | 945,920 |
   Prima Facia Taxation @ 33% | 2,016,494 | 2,160,581 | 913,644 | 312,153 |

   Plus Tax Effect of Permanent Differences:
   Use of Money Interest | 80,076 | 110,340 | - | - |
   Depreciation on Globo Assets | - | - | - | - |
   Legal Fees | (1,219)| 5,898 | 5,055 | 4,536 |
   Other Permanent Differences | - | - | - | 395 |
   Entertainment Expenses | - | - | 148 | 565 |

   Tax on Profits for Year | 2,095,351 | 2,276,819 | 918,847 | 317,649 |
   Prior Period Adjustment | (19,413)| - | (9,706) | 7,761 |
   | 2,075,938 | 2,279,467 | 909,141 | 325,410 |

   The Taxation Charge is Represented by:-
   Prior Period Adjustment | (19,413)| 2,648 | (9,706) | 7,761 |
   Current Taxation | 1,506,685 | 1,758,418 | 918,847 | 317,649 |
   Deferred Taxation | 588,666 | 518,401 | - | - |
   | 2,075,938 | 2,279,467 | 909,141 | 325,410 |

   Movements in Provision for Deferred Taxation:
   Opening Balance | (1,246,746) | (765,505) | - | - |
   Prior Period Adjustment | 27,453 | 37,160 | - | - |
   Current Movement in Timing Differences | (588,666)| (518,401) | - | - |
   | (1,807,959) | (1,246,746) | - | - |

   Imputation Credit Account:
   Opening Balance | 3,475,649 | 2,549,096 | 494,175 | 168,765 |
   Imputation credits attached to dividends paid | (2,093,971) | (643,844) | (521,645) | - |
   Income tax payments during year | 1,995,560 | 1,570,397 | 909,140 | 325,410 |
   | 3,377,238 | 3,475,649 | 881,670 | 494,175 |