23 AUGUST 2005
NEW ZEALAND GAZETTE, No. 137
3325

NELSON ELECTRICITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year to 31 March 2005

4. Deferred Taxation
Balance 1 April (9) 300
Adjustment Prior Period 0 (306)
Current Period Provision (1) (3)
Balance 31 March (10) (9)

5. Share Capital
31-Mar-05 31-Mar-04
$ooo $ooo
Share Capital 1 1

As at 31 March 2005 Marlborough Lines Ltd and Network Tasman Ltd each held 500 shares. (2004 500 shares each)

6. Retained Earnings
31-Mar-05 31-Mar-04
$ooo $ooo
Opening Balance 1 April 2,392 2,092
Net Surplus for Year 1,770 2,200
Dividends Paid (2,200) (1,900)
Closing Balance 31 March 1,962 2,392

7. Reserves
31-Mar-05 31-Mar-04
$ooo $ooo
Pre acquisition Reserves (Retained earnings accumulated to
19.06.96 when the company was purchased by
Marlborough Lines Ltd and Network Tasman Ltd) 1,291 1,291

Revaluation Reserves - Credits to Revaluation Reserves
Land and Buildings 1,054 665
Distribution System assets 18,928 10,554
19,982 11,219

Revaluations totalling $8.763m were credited to revaluation reserves during the period. (2004 Nil)

Distribution system assets were revalued as at 1 April 2004 to current depreciated replacement cost (DRC). The valuation
was completed in accord with the requirements of FRS 3 by PricewaterhouseCoopers and their valuation report is dated
6 May 2005. The company's Haven Road land was also revalued to net current value as at 1 April 2004.

8. Plant Property and Equipment
As At As At
31-Mar-05 31-Mar-04
$ooo $ooo
Land (at valuation) 1,163 773
Buildings (at cost) 175 175
Accumulated Depreciation 82 79
Book Value 93 96

Distribution System Assets (at valuation)
Subtransmission Assets 3,725 1,372
Accumulated Depreciation 1,635 120
Book Value 2,090 1,252

Zone Substations 3,028 1,027
Accumulated Depreciation 1,917 173
Book Value 1,111 854

Distribution Assets 34,478 11,539
Accumulated Depreciation 17,099 1,259
Book Value 17,379 10,280

Other System Fixed Assets 3,227 1,293
Accumulated Depreciation 1,564 132
Book Value 1,663 1,161

Plant and Equipment (at cost) 215 202
Accumulated Depreciation 169 142
Book Value 46 60

Capital Work in Progress 512 518

Total Fixed Assets 24,057 14,994