3438

NEW ZEALAND GAZETTE, No. 138

28 OCTOBER 2004

Invercargill Artificial Sports Surface Trust 96,500 96,500 96,500
Northern Southland Medical Trust 50,000 50,000 –
Otautau Community Health Trust 30,000 30,000 –
913,385 913,385 938,055

Each loan is repayable on demand. All loans are interest free, with the exception of the loans to Topoclimate South Charitable Trust, which attracts interest at the 90 Day Bank Bill rate plus a margin of 2%, and the loan to Nga Hau E Wha Society, which attracts interest of 7%.

14. Investment In Associates

(a) Carrying Amount of Associates

Carrying amount at beginning of year 3,555,128 2,643,193 2,431,369
Equity accounted earnings of associates (811,394) – 211,824
Dividends from associates (2,995) – –
Impairment of investment (7,546) – –
Disposal of associate (2,643,193) (2,643,193) –
Carrying amount at end of year 90,000 – 2,643,193

(b) Goodwill Included in Carrying Amount of Associates

Carrying amount at beginning of year 75,978 – –
Amortisation of goodwill (75,978) – –
Carrying amount at end of year – – –

(c) Equity Accounted Earnings of Associates

Equity accounted earnings comprise:

Surplus/(deficit) before income tax (723,617) – –
Amortisation of goodwill (75,978) – –
Income tax (11,799) – –
Net surplus/(deficit) (811,394) – –

15. Tulip International Limited

The group financial statements include the equity accounted earnings of Tulip International Limited based on unaudited financial statements for the period to 31 March 2004. As at the date of these financial statements, the financial statements of Tulip International Limited for the years ended 31 March 2004 and 31 March 2003 have still not been audited. Prior period adjustments which existed at 31 March 2003 have been finalised at $27,800 reflecting rental expense for the 2003 financial year which is to be included as part of the final result for the 2004 financial year. No reassessment of the 2003 financial statements is to take place. In addition, as a result of a stock take at 31 March 2004, $2,023,551 of the stock on hand of Tulip International Limited was written off reflecting an actual book value of stock on hand of $750,000. This write-down of stock is reflected in the directors' assessment of the carrying value of the investment in Tulip International Limited as at 31 March 2004.

                    2004                        2004            2003
                    Group               Parent          Parent

16. Reconciliation With Operating Surplus

$ $ $
Net surplus/(deficit) before distribution 19,968,955 22,215,250 (12,483,402)
Less: Grants (6,923,045) (6,923,045) (8,489,491)
13,045,910 15,292,205 (20,972,893)

Add/(less) movements in working capital items:
Increase/(decrease) in accounts payable and accrued expenses 9,875 13,456 (15,923)
Increase/(decrease) in grants committed but not paid 2,215,184 2,215,184 (918,027)
(Increase)/decrease in accounts receivable (14,065) (7,353) 66,467
(Increase)/decrease in taxation refund due (31,220) – –
2,179,774 2,221,287 (867,483)

Add/(less) non-cash items:
Amortisation of goodwill 75,978 – –
Bad debts expense 377,027 – –
Depreciation 101,025 70,044 74,153
Impairment of debt 1,125,599 – –
Impairment of equity investment 7,547 – –
Less: Interest written off (included in impairment of debt above) (31,932) – –
Loss/(gain) on disposal of property, plant and equipment 413 413 5,660
Revaluation of property 251,228 251,228 –
Share of associates earnings 735,416 – 211,824
2,642,301 321,685 291,637