✨ Financial Statements Notes
7 MARCH 2008
NEW ZEALAND GAZETTE, No. 56
1591
THE LINES COMPANY LIMITED - LINES BUSINESS ACTIVITY
| 2007 | 2006 | |
|---|---|---|
| $'000' | $'000' |
NOTE 7 : LOANS - CONTINUED
The following interest rates applied at balance date
| \"Other\" (The Lines Company Activities) | 7.00% | 7.00% |
| Perpetual - $1,000,000 loan | 7.62% | 7.42% |
| Perpetual - $2,000,000 loan | 5.00% | 5.00% |
| Bank of New Zealand loan (effective interest rate) | 8.18% | 9.26% |
NOTE 8 : DEFERRED TAX
| Fixed assets | 8,113 | 7,717 |
| Accruals & provisions | (213) | (213) |
| 7,900 | 7,504 |
NOTE 9 : 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 10 : CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
At balance date the company had no capital commitments or contingent liabilities (2006:Nil).
NOTE 11 : CASHFLOW RECONCILIATION WITH NET PROFIT
| Net profit after tax and customer discount | 802 | 931 |
| Add: Non cash items | ||
| Depreciation | 4,336 | 4,176 |
| 5,139 | 5,107 | |
| Add/less: Movements in working capital | ||
| (Increase)/decrease in receivables | 429 | 2,633 |
| (Increase)/decrease in inventory | (57) | 384 |
| (Increase)/decrease in work in progress | 21 | 127 |
| Increase/(decrease) in accounts payable | (882) | (2,394) |
| Increase/(decrease) in provision for discount | (17) | (460) |
| Increase/(decrease) in other | 423 | 535 |
| (83) | 825 | |
| Net cashflows from operating activities | 5,056 | 5,931 |
NOTE 12 : EVENTS AFTER BALANCE DATE
No events have occurred after balance date that could materially affect these financial statements.
NOTE 13 : 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
The Company has a multi option facility of $16 million with the Bank of New Zealand.
Interest rate risks are managed by means of fixed interest rate caps and swaps that are applied within predefined limits over core debt, in accordance with Board policy.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 56
Gazette.govt.nz —
NZ Gazette 2008, No 56
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Notes to the Financial Statements for The Lines Company Limited
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Loans, Interest Rates, Deferred Tax, Segmental Information, Capital Commitments, Cashflow Reconciliation, Events After Balance Date, Financial Instruments