New Zealand Gazette – 2008 – No. 56

Page 1590

✨ Financial Statements



1590

NEW ZEALAND GAZETTE, No. 56

7 MARCH 2008

THE LINES COMPANY LIMITED - LINES BUSINESS ACTIVITY

2007
$'000'		 2006
$'000'
NOTE 5 : TAXATION EXPENSE
Nominal operating surplus before tax 5,435 5,477
Nominal discount paid to customers (4,237) (4,088)
Prima facie taxation on operating surplus 1,793 1,807
Prima facie taxation on nominal discount (1,398) (1,349)
Net taxation expense 395 458

NOTE 6 : FIXED ASSETS

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

FIXED ASSETS 2007

at cost at valuation accumulated
depreciation		 carrying
value
Land and buildings 188 850 13 1,025
Reticulation system 7,405 106,744 11,995 102,154
Customer billing and information system 120 - 75 46
Motor vehicles 511 - 220 291
Office equipment 493 - 445 47
Other plant & equipment 187 - 101 87
8,904 107,594 12,848 103,651

Land and buildings were valued on 31 March 2006 by Doyle Valuations Ltd (ANZI, SNZPI), an independent valuer with local
experience. 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 7 : LOANS

2007 2006
"Other" (The Lines Company Activities) 15,940 12,770
Perpetual 3,000 3,000
Bank of New Zealand loan 13,200 12,800
32,140 28,570

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. The loan is a committed cash advance facility with an end date of 30 November 2012.

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 2008, No 56


Gazette.govt.nz — PDF NZ Gazette 2008, No 56




✨ LLM interpretation of page content

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

💰 Finance & Revenue
Financial Statements, Taxation Expense, Fixed Assets, Loans, Valuation, Depreciation