New Zealand Gazette – 1999 – No. 126

Page 3027

✨ Financial Statements Notes



17 SEPTEMBER
NEW ZEALAND GAZETTE
3027

Note 7 Deferred Shares

There are 23,191,670 deferred shares held by the Ashburton District Council and these have the following conditions attached to them.

(a) There is no right to distributions, dividends or rebates.

(b) There is a right to vote if the rights attached to the deferred shares are to be altered or there is a proposal which would change the control of the Company or the rights of the Council are not carried forward on an amalgamation.

(c) The shares are not transferable except to another local authority or if 25% of the voting shares are controlled by one person.

(d) The right to an equal distribution with the holders of the rebate shares on a winding up of the Company.

Note 8 Customer Deferred Discounts

Calculations for the rebate paid to each customer were based on the individual customer group’s contribution to the operating surplus and allocated according to the value of their electricity purchases for the financial year.

Note 9 Post Balance Date Events

In May the Minister of Commerce announced the Commerce (Controlled Goods and Services) Amendment Bill which will place all line businesses under price control by March 31, 2000. The Bill sets out a wide range of mechanisms through which the Commerce Commission can control prices or revenues or quality standards.

Specific thresholds and a CPI-X mechanism for price increases has been identified. The Commerce Commission can impose monetary penalties if it decides that prices are too high or it rules that quality standards have been breached.

The effect of the proposed Bill on the company has yet to be determined.

Note 10 Reconciliation of Net Cash Flows From Operating Activities to Operating Surplus After Taxation

1999 $ 1998 $
Operating Surplus After Taxation (494,680)
Plus Non Cash Items:-
Depreciation 2,774,555
Movement in Deferred Taxation (2,460,887)
Deferred Taxation Taken to Reserves 3,146,726
2,965,714
Movements Working Capital Items:-
Inventory 207,797
Accounts Receivable 252,988
Accounts Payable 2,091,447
Taxation (255,778)
2,296,454
Other
Net GST 346,314
Loss on Sale Included in Investing Activities 18,101
Net Cash Flows From Operating Activities $5,626,583


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✨ LLM interpretation of page content

🏭 Notes to the Financial Statements for Electricity Ashburton Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Deferred Shares, Customer Discounts, Post Balance Date Events, Reconciliation of Net Cash Flows, Operating Surplus, Depreciation, Deferred Taxation, Working Capital, GST, Electricity Ashburton Limited