Tainui Group Holdings
Annual Report
2013
71
24 Reconciliation of profit/(loss) for the year to net cash inflow/(outflow)
from operating activities
2013
2012
2013
2012
Notes
$’000
$’000
$’000
$’000
Net profit/(loss) for the year
44,776
39,353
205,897
(2,752)
Non‑cash items:
Depreciation, amortisation and impairment
5
2,812
2,541
308
489
Bad debts written off
5
82
14
-
-
Movement in doubtful debt provision
5
159
12
1
1
Gain on revaluation of biological assets 8, 14
(1,395)
(1,190)
(119)
(693)
Gain on shares in listed companies
– unrealised
(964)
-
(964)
-
Gain on shares in listed companies
– realised
8, 16
-
(4,050)
-
(4,050)
Realised (gain)/loss on shares in
unlisted companies
8, 16
(8)
53
(8)
53
Unrealised gain on shares in unlisted
companies
8, 15 (1,276)
(673)
(1,366)
(763)
Loss on interest rate swaps
8, 16
1,140
3,973
906
2,927
Movement in investment property liability
8
3,730
4,313
3,730
4,313
Share of total profits of associates
6
(109)
(334)
-
-
Gain on revaluation of investment
properties
8, 19
(25,686)
(23,624)
(3,590)
(9,255)
Impairment of land at cost
8
-
1,400
-
-
Dividends from subsidiaries
15
-
-
(217,015)
-
Other non‑cash items in relation to investing
and financing activities
(775)
2,693
(1,716)
2,190
(Increase)/decrease in current assets:
Trade and other receivables
(2,394)
5,063
130
254
Inventories
261
415
-
-
Biological assets
247
(239)
247
(239)
Trade and other receivables
– non‑cash fair value gain
119
693
119
693
Increase/(decrease) in current liabilities:
Trade and other payables
5,207
(9,144)
(711)
(1,734)
Net cash inflow from operating activities
25,926
21,269
(14,151)
(8,566)
Parent
Consolidated
25 Financial risk management
25.1 Financial risk factors
Exposure to credit, liquidity and market (currency, interest and price) risks arise in the normal course of the
Group’s business. The Company and Group have various financial instruments with off‑balance sheet risk.
Senior management are required to identify and report major risks affecting the business and develop
strategies to mitigate these risks. The board reviews and approves overall risk management strategies covering
specific areas.
(a) Credit risk
Credit risk is the risk that a third party will default on its obligations to the Parent or Group, causing the Parent
or Group to incur a loss. The Parent and Group do not have any significant concentrations of credit risk. The
