3632 NEW ZEALAND GAZETTE No. 150

1998 1997
| | Total $000 | Line $000 | Energy $000 | Total $000 | Line $000 | Energy $000 |
|----------------|------------|-----------|------------|------------|-----------|------------|

5. TAXATION RECONCILIATION STATEMENT

i) The difference between the effective tax rate and the income tax rate of 33% is attributed to the following items:

| | | | | | | |
| Net earnings before taxation | 3,605 | 3,535 | 70 | 2,441 | 1,874 | 567 |
| Prima facie tax payable at 33%| 1,190 | 1,167 | 23 | 806 | 620 | 186 |
| Tax effect of permanent differences |
| - expenses not deductible | 3 | 3 | 0 | 4 | 3 | 1 |
| - prior year adjustments | (10) | (10) | 0 | 0 | 0 | 0 |
| - capital contributions | (67) | (67) | 0 | (8) | (6) | (2) |
| INCOME TAX EXPENSE | 1,116 | 1,093 | 23 | 818 | 629 | 189 |

ii) The taxation charge comprises -

| | | | | | | |
| - current taxation | 1,074 | 1,051 | 23 | 731 | 542 | 189 |
| - future tax benefit | 42 | 42 | 0 | 87 | 87 | 0 |
| INCOME TAX EXPENSE | 1,116 | 1,093 | 23 | 818 | 629 | 189 |

iii) Tax Reconciliation statement:

| | | | | | | |
| Income Tax expense as per accounts | 1,116 | 1,093 | 23 | 818 | 629 | 189 |
| Liability brought forward | (97) | (74) | (23) | (291) | (278) | (13) |
| Tax effect of timing differences | (51) | (48) | (3) | (62) | (58) | (4) |
| Prior period adjustments | 2 | 2 | 0 | 0 | 0 | 0 |
| Terminal and Provisional tax paid | (1,140) | (1,140) | 0 | (562) | (367) | (195) |
| CURRENT INCOME TAX PAYABLE | (170) | (167) | (3) | (97) | (74) | (23) |

iv) Future tax benefit -

| | | | | | | |
| Opening balance | 544 | 544 | 0 | 607 | 607 | 0 |
| Future tax benefit of current tax | (50) | (50) | 0 | (63) | (63) | 0 |
| Prior period adjustments | 2 | 2 | 0 | 0 | 0 | 0 |
| FUTURE TAX BENEFIT | 496 | 496 | 0 | 544 | 544 | 0 |

v) Imputation credits
The following imputation credits are available for distribution to shareholders:

| | | | | | | |
| Opening balance | 2,649 | 2,409 | 240 | 2,235 | 2,169 | 66 |
| Tax paid during the year | 1,140 | 1,139 | 1 | 562 | 367 | 195 |
| less credits attached to dividends paid | (246) | (215) | (31) | (148) | (127) | (21) |
| Closing balance | 3,543 | 3,333 | 210 | 2,649 | 2,409 | 240 |

6. RECEIVABLES

| | | | | | | |
| Net Trade Debtors | 3,447 | 1,822 | 1,625 | 3,945 | 2,014 | 1,931 |
| Hire Purchase Debtors | 720 | 0 | 720 | 529 | 0 | 529 |
| Total Receivables | 4,167 | 1,822 | 2,345 | 4,474 | 2,014 | 2,460 |

7. INVENTORIES

| | | | | | | |
| Construction stock | 670 | 515 | 155 | 759 | 637 | 122 |
| Appliance stock | 213 | 0 | 213 | 241 | 0 | 241 |
| Work in progress | 115 | 83 | 32 | 230 | 198 | 32 |
| Total Inventories | 998 | 598 | 400 | 1,230 | 835 | 395 |