New Zealand Gazette – 2006 – No. 164

Page 4765

✨ Financial Statements



THE LINES COMPANY LIMITED - LINE BUSINESS ACTIVITY

| | 2006
$'000' | 2005
$'000' |
|----------------|-----------------------------|----------------------------|
| NOTE 4 : TAXATION EXPENSE |
| Nominal Operating Surplus Before Tax | 5,477 | 5,011 |
| Nominal Discount Paid to Customers | (4,088) | (3,800) |
| Prima Facie Taxation on Operating Surplus | 1,807 | 1,654 |
| Prima Facie Taxation on Nominal Discount | (1,349) | (1,254) |
| Net Taxation Expense | 458 | 400 |

NOTE 5 : FIXED ASSETS 2005

at cost at valuation accumulated depreciation carrying value
Land and Buildings - 562 17 545
Reticulation System - 101,182 3,793 97,389
Customer billing and Information system 77 - 38 40
Motor Vehicles 375 - 150 225
Office Equipment 463 - 402 62
Other Plant & Equipment 182 - 39 143
1,097 101,744 4,439 98,403

FIXED ASSETS 2006

at cost at valuation accumulated depreciation carrying value
Land and Buildings - 850 - 850
Reticulation System - 106,744 7,804 98,940
Customer billing and Information system 84 - 58 26
Motor Vehicles 467 - 217 250
Office Equipment 468 - 439 29
Other Plant & Equipment 192 - 69 123
1,211 107,594 8,588 100,217

Land and buildings were valued by Doyle Valuations Ltd (ANZI, SNZPI) and independent valuer with local experience, on 31 March 2006. Summation and income approaches were used for the valuation.

The Reticulation System has been valued based on Optimised Deprival Value (ODV) by our electrical engineer and verified by PricewaterhouseCoopers as at 31 March 2004. The valuation method used is depreciated cost, using the assumptions about replacement cost, useful lives and residual values as set in the "Handbook for Optimised Deprival Valuation of System Fixed Assets of Electricity Lines Businesses" issued by the Commerce Commission on the 30 August 2004.

NOTE 6 : LOANS

| | 2006 |
$'000' | 2005
$'000' |
|--------------------------|---------|-------------|
| "Other" (The Lines Company Activities) | 12,770 | 14,654 |
| Perpetual | 3,000 | 3,000 |
| Bank of New Zealand Loan | 12,800 | 11,100 |
| Total | 28,570 | 28,754 |

Bank loans are at floating rates and expose the Group to cashflow interest rate risk. Security held by the bank is a Negative Pledge Deed, where an undertaking has been given that certain actions will not be undertaken and key financial ratios will be maintained.

Perpetual loans are subordinated debentures which are unsecured.

The "Other" loan is an internal debt between the Electricity Lines Business and the other business activities, both within the Lines Company Limited (the disclosing entity). This represents the internal funding required by the Electricity Lines Business from the other businesses in order to continue its operations.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 164


Gazette.govt.nz — PDF NZ Gazette 2006, No 164




✨ LLM interpretation of page content

💰 Notes to the Financial Statements for The Lines Company Limited (continued from previous page)

💰 Finance & Revenue
Financial Statements, Equity, Revenue, Expenditure, Line Business Activity