18 AUGUST

NEW ZEALAND GAZETTE

2205

TAURANGA ELECTRICITY LIMITED

Shareholders' and Underwriting Agreements

The company has entered into a Shareholders' & Underwriting Agreement with PowerBuy Group Ltd whereby PowerBuy Group Ltd will distribute all profits to shareholders but the shareholders have agreed to underwrite any loss incurred by the company.

The directors of Tauranga Electricity Ltd are satisfied that the risk of PowerBuy Group Ltd incurring losses is minimised by systems and internal controls which have been reviewed by an independent party. Tauranga Electricity Ltd’s liability under this agreement is limited to $1,428,693.

Claim - Waitangi Tribunal

The company generates electricity from a hydro-electric station [Omanawa] located on the Omanawa River on land owned by the Tauranga District Council. The Ngāti Ranginui and Ngāti Rangikawa Hapū have claimed ownership of the land and lodged a claim with the Waitangi Tribunal on 18 February 1993. The amount of the claim is not able to be quantified.

11. COMMITMENTS

| Operating Lease Commitments | | | | | | |
| Lease commitments under non-cancellable operating leases. |
| Payable | - | - | - | 6,009 | 5,657 | 5,943 |
| • Not later than 1 year | - | - | - | | | |
| • Later than 1 year and not later than 2 years | - | - | - | 2,266 | 3,525 | 5,657 |
| • Later than 2 years and not later than 5 years | - | - | - | 2,832 | - | 3,525 |
| | - | - | - | $11,107 | $9,182 | $15,125 |

12. TRANSACTIONS WITH RELATED PARTIES

Tauranga Electricity Ltd paid/received the following amounts to/from related parties:

| Tauranga Civic Holdings Limited |
| Income | - | - | - | 6,000 | - | - |
| Expenditure | - | 3,460,218 | 923,085 | 120,050 | 1,236,842 | 37,966 |

| Kaimai Hydropower Limited |
| Income | - | - | - | 19,750 | - | - |
| Expenditure | 1,287,638 | 1,309,764 | 1,186,885 | 2,996,487 | 3,713,892 | 3,917,595 |

| Aspen Contractors Limited |
| Income | - | - | - | 3,244 | 34,828 | 5,071 |
| Expenditure | - | - | - | 20,497 | - | - |

| Kaimai HydroPower [TJGC] |
| Income | - | - | - | 230,953 | 103,168 | 89,706 |

The accompanying Statement of Accounting Policies and Notes form part of and are to be read in conjunction with these Financial Statements. The Financial Statements have been prepared solely for the purpose of complying with Regulations 6[2] and 6[3] of the Electricity [Information Disclosure] Regulations 1994 and are not intended for any other purpose.

[A.DR97]