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notes to the financial Statements
for the year ended 31 March 2012
On 31st March 2011 Financial Corporation Limited declared and paid a dividend of $5,000,000. This was paid
through the intercompany loan, reducing the balance by the same amount. Because both companies are part
of the same ‘tax group’ no imputation credits were attached or RWT payable.
The following transactions occurred between The Lines Company Limited (TLC) and Financial Corporation
Limited (FCL) and have been eliminated in the Group consolidated accounts.
2012
2011
$’000
$’000
Management and acquisition fees received from FCL
288
274
Warehousing fee received from FCL
10
10
Installation of meter and relay assets by TLC
94
75
Dividend received from FCL
-
5,000
Purchase of on-network relays by TLC
-
1,967
Management and acquisition fees were based on an assessment of a sustainable amount that would be fair to
an external investor should one be sought.
Clearwater Hydro Limited
The Lines Company Limited established Clearwater Hydro Limited as a wholly owned subsidiary to develop and
manage small hydro generation schemes. Shares were exchanged for cash, which was subsequently used to
purchase resource consents and rights and know how for small schemes.
The loan to Clearwater Hydro Limited has been impaired in the Parent Company to recognise operating costs
and feasibility study costs that have already been recognised in the financial statements of Clearwater Hydro
Limited.
The following transactions occurred between The Lines Company Limited and Clearwater Hydro Limited
(CWH) and have been eliminated in the Group consolidated accounts.
2012
2011
$’000
$’000
Project management and engineering fees paid to CWH
43
40
Hydro management charge paid to CWH
20
18
Provision for impairment on intercompany loan
779
-
Matawai Hydro Limited
The Lines Company Limited established Matawai Hydro Limited as a wholly owned subsidiary that owns a
small hydro generation scheme. The scheme was constructed using The Lines Company cash resources, which
was then exchanged for shares.
There were no transactions between The Lines Company Limited and Matawai Hydro Limited (Matawai) for the
year.
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