New Zealand Gazette – 2002 – No. 104

Page 2832

✨ Financial Performance Measures

2832

NEW ZEALAND GAZETTE

No. 104

Counties Power Limited – Line Business
Derivation Table of Financial Performance Measures from Financial Statements
Pursuant to Regulation 16 of the Electricity (Information Disclosure) Regulations 1999 Schedule 1 Part 7
For the Year Ended 31 March 2002

Derivation Table	Input and Calculations	Symbol in formula	ROF	ROE	ROI
Operating surplus before interest and income tax from financial statements	4,805
Operating surplus before interest and income tax adjusted pursuant to regulation 18 (OSBIT)	4,805
Interest on cash, bank balances, and short-term investments (STI)	4	a
OSBIT minus STI	4,801		4,805		4,805
Net surplus after tax from financial statements	5,300	n
Net surplus after tax adjusted pursuant to regulation 18 (NSAT)	5,980			5,980
Amortisation of goodwill and amortisation of other intangibles	0	g	add	0	add
Subvention payment	0	s	add	0	add
Depreciation of SFA at BV (x)	2,844	d	add	0	add
Depreciation of SFA at ODV (y)	2,766
ODV depreciation adjustment	78	d*	add	0	add
Subvention payment tax adjustment	0	s*	add
Interest tax shield	13	i	add	13
Income tax charge/(credit)	(1,589)	p
Numerator		OSBIT^ADJ =	4,805
Fixed assets at end of previous financial year (FA_0)	90,522
Fixed assets at end of current financial year (FA_1)	94,126
Adjusted net working capital at end of previous financial year (ANWC_0)	779
Adjusted net working capital at end of current financial year (ANWC_1)	682
Average total funds employed (ATFE)	92,905	e	92,905		92,905
Total equity at end of previous financial year (TE_0)	75,045
Total equity at end of current financial year (TE_1)	87,256
Average total equity	81,201	k		81,261
WUC at end of previous financial year (WUC_0)	1,043
WUC at end of current financial year (WUC_1)	1,227	e	deduct	1,087	deduct
Average work in under construction
Revaluations
Half of revaluations	0	r	R/2
Intangible assets at end of previous financial year (IA_0)	0
Intangible assets at end of current financial year (IA_1)	0	m	add	0
Average total intangible asset
Subvention payment at end of previous financial year (S_0)	0
Subvention payment at end of current financial year (S_1)	0
Subvention payment tax adjustment at end of previous financial year	0
Subvention payment tax adjustment at end of current financial year	0	w	add	0
System fixed assets at end of previous financial year at book value (SFA_bv0)	83,967
System fixed assets at end of current financial year at book value (SFA_bv1)	89,721	f	deduct	86,844	deduct
Average value of system fixed assets at book value
System Fixed assets at year beginning at ODV value (SFA_odv0)	83,067
System Fixed assets at end of current financial year at ODV value (SFA_odv1)	89,721	h	add	86,844	add
Average value of system fixed assets at ODV value	86,844
Denominator		ATFE^ADJ = c+e+f	91,818	Ave TE^ADJ = k	80,174

Financial Performance Measure:

| | ROF = | 5.2 | ROE = | 7.5 | ROI = | 6.8 |
| | OSBIT^ADJ/ATFE^ADJ | NSAT^ADJ/ATE^ADJ | OSBIT^ADJ/ATFE^ADJ x 100 |

a = maximum statutory income tax rate applying to corporate entities
bv = book value
ave = average
odv = optimised deprival valuation
subscript "0" = end of the previous financial year
subscript "1" = end of the current financial year

ROF = return on funds
ROE = return on equity
ROI = returns on investment

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