NOTES TO THE FINANCIAL STATEMENTS

| | 2002
($'000) | 2001
($'000) |
|----------------|-----------------|---------------|

Note 7:
Property, plant equipment (contd.)
The fair value of the land and buildings is not materially different from their carrying amounts.

Note 8:
Accounts Payable
| | 2002
($'000) | 2001
($'000) |
|--------------------------|----------------|---------------|
| GST clearing account | 0 | 84 |
| Trade creditors | 916 | 403 |
| Other creditors & accruals| 603 | 2,629 |
| | 1,519 | 3,116 |

Note 9:
Employee Entitlements
The comparative figures have been restated to distinguish current from non-current liabilities.

Note 10:
Reconciliation of Cash Flow with Operating Surplus

| | 2002
($'000) | 2001
($'000) |
|-------------------------------------|-----------------|---------------|
| Reported surplus after taxation | 118 | 695 |

Add Non Cash Items
| Depreciation | 600 | 748 |
| Bad Debts | 0 | 0 |
| Increase/(decrease) in doubtful debts| 0 | 0 |
| Change in deferred tax provision | 0 | 299 |
| Obsolete stock | 0 | 0 |
| Interest and dividends reinvested | 0 | 0 |

Changes in Working Capital
| Increase/(decrease) in accounts payable & accruals | (1,597) | 2,611 |
| (Increase)/decrease in accounts receivable | (155) | 207 |
| (Increase)/decrease in inventory | (100) | 97 |
| Increase/(decrease) in employee entitlements | (109) | 86 |
| Increase/(decrease) in provision for taxation | 179 | 0 |
| Increase/(decrease) in provision for dividend | 50 | 0 |
| (Increase)/decrease in work in progress | (44) | 0 |

Items Classified as Investing Activities
| Net (surplus)/loss on disposal of investments | 0 | 0 |
| Net (surplus)/loss on disposal of property, plant and equipment | 4 | (4) |
| Write down of asset values | 0 | 0 |
| Net Cashflow from Operating Activities | (714)| 4,740 |

Note 11:
Analysis of non-cancellable operating lease commitments

| | 2002
($'000) | 2001
($'000) |
|--------------------------------------|-----------------|---------------|
| Payable not later than one year | 25 | 27 |
| Payable later than one year, not later than two years | 19 | 24 |
| Payable later than two years, not later than five years | 0 | 19 |
| Payable later than five years | 0 | 0 |
| | 44 | 70 |

Note 12:
Capital Commitments and Contingent Liabilities

As at 31 March 2002 the company had no contingent liabilities (2001 also Nil).

As at 31 March 2002 there were no capital commitments (2001 $23,000).