18 JANUARY 2005 NEW ZEALAND GAZETTE, No. 15 339

7. CREDITORS, ACCRUALS AND PROVISIONS

| | Twelve Months
| | Ended
| | 31 March 2004
| | $000
|-------------------------------|-------------------
| Otago Power Services Limited | 310
| Other Trade Creditors & Accruals | 675
| GST Payable | 56
| Provision for Site Restoration | 97

Total Creditors, Accruals and Provisions | 1,138 | 1,196

| | Nine Months
| | Ended
| | 31 March 2003
| | $000
|-------------------------------|-------------------
| | 345
| | 558
| | 73
| | 220

Provision for site restoration represents the Management Committee’s estimate of the remaining costs to clean up residual contamination associated with a capacitor explosion and fire at a substation site. This event took place under the ownership of Otago Power Limited; the liability to restore the site was assigned to OtagoNet under the Sale and Purchase Agreement. It is anticipated restoration work will be completed in the year ended 31 March 2005.

8. RECONCILIATION OF NET SURPLUS AFTER TAXATION WITH CASH FLOWS FROM OPERATING ACTIVITIES

| | Twelve Months
| | Ended
| | 31 March 2004
| | $000
|-----------------------------------------------|-------------------
| Net Surplus After Taxation | 3,293

Plus/(Less) Non Cash Items:
| Depreciation | 3,386
| Amortisation of Goodwill | 757

| | 4,143 | 3,055

| | Nine Months
| | Ended
| | 31 March 2003
| | $000
|-----------------------------------------------|-------------------
| | 2,018
| | 2,487
| | 568

Plus/(Less) Movements in Working Capital Items:
| (Increase)/Decrease in Receivables and Prepayments | 166 | (1,354)
| (Decrease)/Increase in Accounts Payable and Provisions | (59) | 1,196
| (Decrease)/Increase in Provision for Taxation | 8 | (8)

| | 115 | 166

| Net Cash Flows from Operating Activities | 7,551 | 4,907

9. COMMITMENTS

No contractual commitments exist at 31 March 2004 (2003: Nil).

10. CONTINGENT LIABILITIES

OtagoNet Joint Venture has no contingent liabilities as at 31 March 2004 (2003: Nil) other than any shortfall in the provision for site restoration (refer Note 7).

11. OPERATING LEASE COMMITMENTS

OtagoNet Joint Venture has the following operating lease commitments for tenancy and repeater sites payable as follows:

| | Not later than one year | 2 | 6
| | Later than one year and not later than two years | 2 | 2
| | Later than two years and not later than five years | 4 | 4
| | Later than five years | 8 | 9