✨ Financial Statements Notes
2674 NEW ZEALAND GAZETTE No. 112
THE LINES COMPANY LIMITED
(formerly Waitomo Energy Services Limited)
Line Business Activity
Notes to the Financial Statements
For the Year Ended 31st March 1998
NOTE 6: LOANS
| 1999 | 1998 | |
|---|---|---|
| $000 | $000 | |
| 3,000 | 3,000 |
The perpetual loans are subordinated debentures issued to:
- Waitomo Energy Services Customer Trust
$1,000,000 at a rate of 8.0% - Northern King Country Development Trust
$2,000,000 at a rate of 5.0%
The subordinated debentures are unsecured.
NOTE 7: DEFERRED TAXATION
Represented by the following timing differences:
| 1999 | 1998 | |
|---|---|---|
| $000 | $000 | |
| Fixed Assets | 859 | 834 |
| Accruals & Provisions | (370) | (478) |
| 489 | 357 |
NOTE 8: SEGMENTAL INFORMATION
The Lines Company Limited operates predominantly in one geographical segment. It is located in the mid-central North Island in the King Country. The head office is located in the township of Te Kuiti.
NOTE 9: RELATED PARTY TRANSACTIONS
During the year the Company paid Waitomo Energy Services Customer Trust $87,500 of interest on a subordinated debenture.
NOTE 10: SUBSEQUENT EVENTS
The company and its shareholders have entered into various agreements with King Country Energy Limited and its shareholders. These arrangements are as a result of the requirements of the Electricity Industry Reform Act and will be effected from the 1st April 1999.
In summary, the arrangements as they relate to the company are as follows:
- The company acquires the network distribution assets and business of King Country Energy for an amount of $24 million.
- The company sells its retail customer base, energy hedges and generation activities and all related business assets to King Country Energy for an amount of $10.5 million. A net profit on sale arises totalling $1.65 million.
- Funding required to settle the transaction has been raised by way of debt facility referred to in note 15 above.
- The respective company shareholders transfer an amount of their respective holdings in the entities to each other so that the King Country Electric Power Trust holds 25% of the shares of the company.
The impact of these related transactions has not been reflected in the current year financial statements shown above.
Next Page →
PDF embedding disabled (Crown copyright)
View this page online at:
VUW Te Waharoa —
NZ Gazette 1999, No 112
NZLII —
NZ Gazette 1999, No 112
✨ LLM interpretation of page content
🏭
Notes to the Financial Statements for The Lines Company Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Loans, Deferred Taxation, Segmental Information, Related Party Transactions, Subsequent Events