✨ Financial Statements
4612 NEW ZEALAND GAZETTE, No. 158 29 NOVEMBER 2006
Notes to the financial statements (continued)
For the year ended 31 March 2006
12 Bank and Intercompany Borrowings
In December 2005 Eastland Infrastructure Limited arranged bank funding from Commonwealth Bank and Westpac on behalf of the Eastland Infrastructure Group of Companies (Eastland Infrastructure Limited, Eastland Network Limited and Eastland Port Limited). The facility, initially for $50 million over a three year period, is unsecured and subject to a Deed of Negative Pledge. The borrowings are in the name of Eastland Infrastructure Limited with the other two companies acting as guarantors.
Drawings under the facility commenced on 28 December 2005 and were on lent to clear existing borrowings by Eastland Port Limited and Eastland Network Limited.
Existing borrowings from ASB Bank were repaid progressively from 28 December 2005 using funds advanced by Eastland Infrastructure Limited as "group" borrower under the above facility. The final payment to ASB Bank was made on 28 February 2006. Borrowings at 31 March 2006 were $34,100,000 advanced from Eastland Infrastructure Limited.
The company (and the "group") has a policy of hedging interest rates and at 31 March 2006, Eastland Network Limited had interest cover of $33 million for up to 5 years. The average fixed rate cover at this date was 6.52%. $19 million of these hedges are subject to a Novation Agreement dated 31 March 2006, transferring these hedges from Eastland Network Limited to Eastland Infrastructure Limited (and from ASB Bank to Commonwealth Bank). The transfers take effect at the next interest rate reset date progressively over the three months to 30 June 2006.
13 Net Cash Flow from Operating Activities
| 2006 | 2005 | |
|---|---|---|
| $'000 | $'000 |
The following is a reconciliation between the surplus after tax shown in the Statement of Financial Performance and the net cash flow from operating activities.
Surplus after tax | 4,817 | 3,626 |
Add/(less) items classified as investing/financing activities |
Capitalised interest on constructed assets | - | (182) |
Loss/(gain) on sale of other non current assets | (95) | 4 |
| (95) | (178) |
Add/(less) non-cash items |
Depreciation | 3,486 | 2,979 |
Decrease in future tax benefit | 1,000 | 941 |
| 4,486 | 3,920 |
Add/(less) movement in working capital |
Decrease/(increase) in trade and other receivables | (113) | (311) |
Decrease/(increase) in inventories | 2 | 3 |
(Decrease)/increase in trade and other payables | 1,039 | 1,393 |
| 928 | 1,085 |
Net Cash flow from Operating Activities | 10,136 | 8,453 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 158
Gazette.govt.nz —
NZ Gazette 2006, No 158
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Notes to the Financial Statements for Eastland Network Limited
(continued from previous page)
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