3 SEPTEMBER

NEW ZEALAND GAZETTE

3359

CENTRALINES LIMITED - LINES BUSINESS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDING 31 MARCH 2003

Note 8: Accounts Payable
GST clearing account 112 0
Trade creditors 113 916
Other creditors & accruals 0 603
———— ————
225 1,519

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

Note 10: Reconciliation of CashFlow with Operating Surplus

      Reported surplus after taxation        1,316      118

      Add Non Cash Items
      Depreciation                       1,016      600
      Bad Debts                            0        0
      Increase/(decrease) in doubtful debts  0        0
      Obsolete stock                     0        0
      Interest and dividends reinvested    0        0

      Changes in Working Capital
      Increase/(decrease) in accounts payable & accruals   (1,294)   (1,597)
      (Increase)/decrease in accounts receivable          (721)     155
      (Increase)/decrease in inventory                   74      (109)
      Increase/(decrease) in employee entitlements         10        0
      Increase/(decrease) in provision for taxation       547      179
      Increase/(decrease) in provision for dividend      (80)       80
      (Increase)/decrease in work in progress             22      (44)

      Items Classified as Investing Activities
      Net (surplus)/loss on disposal of investments        0        0
      Net (surplus)/loss on disposal of property, plant and equipment  0        4
      Net Cashflow from Operating Activities             890     (714)

Note 11: Analysis of non-cancelable operating lease commitments

      Payable not later than one year                   6       25
      Payable later than one year, not later than two years 0       19
                                                    ————   ————
                                                    6       44

      One of last years operating lease was replaced with a financial lease.

      Analysis of non-cancelable finance lease commitments

      Payable not later than one year                  12        0
      Payable later than one year, not later than two years 12       0
      Payable later than two year, not later than three years 10     0
      Future finance charges                         (5)       0
                                                    ————   ————
                                                    29       0

      Representing lease liabilities
      Current                                         9        0
      Non-Current                                    20        0
                                                    ————   ————
                                                    29       0

Note 12: Contingent Liabilities

      On 6 June 2003 the Commerce Commission published the final gazette notice in relation to the
      regulation of electricity lines businesses. These draft regulations focus primarily on quality and
      pricing of services and will be fully effective by April 2004. The Company will not know how
      the specific application of these regulations will impact on operations until later in the 2003
      calendar year.

      As at 31 March 2003 the company had no other contingent liabilities (2002 nil).

Note 13: Capital Commitments

      As at 31 March 2003 Centralines had no capital commitments (2002 nil).