1 SEPTEMBER NEW ZEALAND GAZETTE 3049

2000 1999

$ $

c) Expense to entities that are not related parties for -

i) Asset Maintenance 51,205 64,672
ii) Consumer Disconnection and Reconnections Services 0 0
iii) Meter Data 0 0
iv) Consumer-based load control Services 13,553 0
v) Royalty and Patent expense 0 0

vi) Total of specified expenses to non-related parties 64,758 64,672

d) Employee Salaries and Redundancies 1,247,540 1,015,116

e) Consumer billing and information system expense 0 0

f) Depreciation of-
i) System fixed assets 2,367,932 2,298,873
ii) Other system assets not listed in (i) 410,842 475,682

iii) Total Depreciation 2,778,774 2,774,555

g) Amortised of-
i) Goodwill 0 0
ii) Other Tangibles 0 0

iii) Total amortization of Intangibles 0 0

h) Corporate and Administration 81,673 298,904
i) Human Resource expenses 17,974 171,360
ii) Marketing and advertising 16,579 0
iii) Merger and acquisition expenses 0 0
iv) Takeover defence expense 0 0
v) Research and development expenses 39,932 65,473
vi) Consultancy and legal expenses 0 0

o) Donations 0 0
p) Directors fees 198,690 171,360
q) Auditors fees-
i) Audit fees paid to principal auditors 27,410 27,410
ii) Audit fees paid to other auditors 0 0
iii) Fees paid for other services provided by principal and other auditors 0 0
iv) Total auditors fees 27,410 27,410

r) Cost of offering credit-
i) Bad debts written off 0 0
ii) Increase in estimated doubtful debts 0 0
iii) Total cost of offering credit 0 0

s) Local Authority rate expense 9,712 0
t) AC loss - rental rebates (distribution to retailers) expense 0 0
u) Rebates to customers due to ownership interest 1,600,000 1,569,813
v) Subvention payments 0 0
w) Unusual expenses 191,521 308,706
x) Other expenditure not listed in (a to z) 0 0

Total Operating Expenditure 11,368,387 11,482,979

Operating surplus before interest and income tax 2,368,321 679,958

Interest Expense

a) Interest expense on borrowings 11,920 120,207
b) Financing charges related to finance lease 0 0
c) Other interest expense not listed in (a to b) 0 0

d) Total interest expense 11,920 120,207

Income Tax 1,198,978 1,054,431

Net Surplus after tax 1,177,423 (494,680)

4 TAXATION

Net Surplus before Taxation 2,376,401 559,751
Prima facie taxation at 33% 784,212 184,718

Prior year adjustment (295,000) 0
Deferred Tax Adjustment (12,062) 0
Less Tax effect on permanent differences 721,828 809,308
Less Tax effect of timing differences not Recognised 0 (60,405)

Total Taxation Expense 1,198,978 1,054,431

The Taxation charge comprises:

Current Taxation 479,338 308,186
Prior Year Adjustment (12,062) 60,405
Deferred Taxation 731,702 685,840

                                                                 1,198,978                1,054,431