✨ Financial Statements Notes
4766
NEW ZEALAND GAZETTE, No. 164
4 DECEMBER 2006
THE LINES COMPANY LIMITED - LINE BUSINESS ACTIVITY
NOTE 6 CONTINUED : LOANS
The following interest rates applied at balance date
| "Other" (The Lines Company Activities) | 7.00% | 7.00% |
|---|---|---|
| Perpetual - $1,000,000 loan | 7.42% | 6.75% |
| Perpetual - $2,000,000 loan | 5.00% | 0.00% |
| Bank of New Zealand Loan (effective interest rate) | 9.26% | 9.08% |
NOTE 7 : DEFERRED TAX
| 2006 | 2005 | |
|---|---|---|
| Fixed Assets | 7,717 | 7,259 |
| Accruals & Provisions | (213) | (213) |
| 7,504 | 7,046 |
NOTE 8 : SEGMENTAL INFORMATION
The Lines Company Limited operates predominantly in one geographical segment. It is located in the mid-central North Island in the King Country. The head office is located in Te Kuiti.
NOTE 9 : CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
At balance date the company had no capital commitments or contingent liabilities (2005: Nil).
NOTE 10 : CASHFLOW RECONCILIATION WITH NET PROFIT
| 2006 | 2005 | |
|---|---|---|
| Net Profit after Tax and Customer Discount | 931 | 811 |
| Add: Non cash items | ||
| Depreciation | 4,176 | 4,084 |
| 5,107 | 4,895 | |
| Add/Less: Movements in Working Capital | ||
| (Increase)/Decrease in Receivables | 2,633 | (111) |
| (Increase)/Decrease in Inventory | 384 | 100 |
| (Increase)/Decrease in Work in Progress | 127 | (122) |
| Increase/(Decrease) in Accounts Payable | (2,394) | (352) |
| Increase/(Decrease) in Provision for Discount | (460) | 172 |
| Increase/(Decrease) in Other | 535 | 297 |
| 825 | (16) | |
| Net cashflows from operating activities | 5,931 | 4,879 |
NOTE 11 : EVENTS AFTER BALANCE DATE
No events have occurred after balance date that could materially affect these financial statements.
NOTE 12 : FINANCIAL INSTRUMENTS
The fair values of financial instruments are considered to be not materially different from the carrying values shown in the Financial Statements.
Financial instruments that potentially subject the Company to credit risk principally consist of bank deposits and accounts receivable.
Credit risk in respect of debtors is limited as the major debtors either have high credit rating by recognised international rating agencies or have their debt secured by way of bank guarantee. Other Accounts Receivable are subject to credit control and are unsecured.
Borrowing Facilities from the Bank of New Zealand
The Company has a Multi Option facility of $16 million with the Bank of New Zealand. Against this facility the Company drew down a loan of $13.5 million for the purchase of King Country Energy's lines.
Part of the loan ($5 million) is covered by interest rate swaps (pay fixed, receive floating) that hedge servicing costs for the next three years. The swap cover diminishes by $1 million per year.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 164
Gazette.govt.nz —
NZ Gazette 2006, No 164
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Notes to the Financial Statements for The Lines Company Limited
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Loans, Deferred Tax, Segmental Information, Capital Commitments, Cashflow Reconciliation, Events After Balance Date, Financial Instruments