Apata Limited and Group

Apata Limited and Group
Financial Statements for the year ended 31 March 2008
apata (annual report 2007/08)
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apata (annual report 2007/08)
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Financial statements index
Apata Limited and Group :
2007/08 fi nancial statements
The directors are pleased to present the fi nancial statements of Apata Limited and Group for the year ended 31 March 2008.
For and on behalf of the Board of Directors:
D J Goodwin - Chairman P R O’Brien - Director
17 July 2008 17 July 2008
Balance sheet 27
Income statement 27
Statement of recognised income and expense 28
Statement of cash fl ows 28
Notes to the fi nancial statements 29
Auditors’ report 44
Statutory information 45

Balance sheet
As at 31 March 2008
Income statement
Year ended 31 March 2008
Note 2008 Group 2008 Company 2007 Group 2007 Company
Revenue from services provided 30,991,691 30,058,418 22,348,005 21,542,833
Revenue from goods sold 10,315,327 10,315,327 9,340,730 9,339,027
Total revenue 41,307,018 40,373,745 31,688,735 30,881,860
Other income 5 - - 67,666 67,666
Expenses 6 (38,587,444) (37,669,110) (29,428,873) (28,635,462)
Results from operating activities 2,719,574 2,704,635 2,327,528 2,314,064
Finance income 7 231,167 190,878 231,563 193,263
Finance expenses 7 (616,711) (616,711) (309,752) (309,752)
Net finance cost 7 (385,544) (425,833) (78,189) (116,489)
Profit before income tax 2,334,030 2,278,802 2,249,339 2,197,575
Income tax expense 8 (782,818) (764,593) (752,895) (735,813)
Profit for the year 1,551,212 1,514,209 1,496,444 1,461,762
The notes on pages 29 to 43 are an integral part of these financial statements.
Note 2008 Group 2008 Company 2007 Group 2007 Company
Assets
Property, plant and equipment 9 13,343,692 13,343,692 11,890,810 11,890,810
Deferred tax assets 14 37,359 37,359 – –
Investments 10 130,632 130,732 63,078 63,178
Total non-current assets 13,511,683 13,511,783 11,953,888 11,953,988
Inventories 11 2,289,474 2,289,474 1,836,708 1,836,708
Trade and other receivables 12 3,362,433 3,209,270 1,110,120 1,471,929
Cash and cash equivalents 13 1,073,290 845,194 1,035,717 434,121
Current tax assets – – 65,721 65,450
Total current assets 6,725,197 6,343,938 4,048,266 3,808,208
Total assets 20,236,880 19,855,721 16,002,154 15,762,196
Equity
Paid in share capital 15 5,466,006 5,466,006 5,390,216 5,390,216
Reserves 15 171,668 171,668 140,204 140,204
Retained earnings 15 3,486,467 3,325,621 2,686,114 2,562,271
Total equity 9,124,141 8,963,295 8,216,534 8,092,691
Liabilities
Loans and borrowings 16 5,900,000 5,900,000 3,200,000 3,200,000
Deferred tax liabilities 14 – – 71,122 71,122
Total non-current liabilities 5,900,000 5,900,000 3,271,122 3,271,122
Employee benefits 17 598,325 598,325 279,828 279,828
Trade and other payables 18 4,567,853 4,347,180 4,234,670 4,118,555
Current tax liabilities 15,189 15,549 – –
Derivatives 31,372 31,372 – –
Total current liabilities 5,212,739 4,992,426 4,514,498 4,398,383
Total liabilities 11,112,739 10,892,426 7,785,620 7,669,505
Total equity and liabilities 20,236,880 19,855,721 16,002,154 15,762,196
The notes on pages 29 to 43 are an integral part of these financial statements.
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apata (annual report 2007/08)
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Statement of recognised income and expense
Year ended 31 March 2008
Statement of cash flows
Year ended 31 March 2008
Note 2008 Group 2008 Company 2007 Group 2007 Company
Cash flows from operating activities
Cash receipts from customers 39,690,319 39,042,933 32,814,831 31,665,130
Cash paid to suppliers and employees (36,063,565) (35,020,703) (28,415,502) (27,762,039)
Dividend received 32,175 32,175 20,122 20,122
Interest received 198,938 158,649 210,131 171,831
Interest paid (569,825) (569,825) (320,965) (320,965)
Income tax paid 8 (810,387) (792,074) (898,147) (881,003)
Net cash from operating activities 23 2,477,655 2,851,155 3,410,470 2,893,076
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 9,500 9,500 67,666 67,666
Acquisition of property, plant and equipment (4,438,477) (4,438,477) (2,080,312) (2,080,312)
Acquisition of investments 10 (67,500) (67,500) – –
Net cash from/(used in) investing activities (4,496,477) (4,496,477) (2,012,646) (2,012,646)
Cash flows from financing activities
Treasury stock purchased 15 (374,405) (374,405) (377,221) (377,221)
Proceeds from sale of treasury stock 15 481,251 481,251 444,059 444,059
Proceeds from issue of share capital 15 408 408 5,309 5,309
Proceeds from borrowing 16 3,700,000 3,700,000 – –
Repayment of borrowings 16 (1,000,000) (1,000,000) (600,000) (600,000)
Dividends paid 15 (750,859) (750,859) (693,615) (693,615)
Net cash from/(used in) financing activities 2,056,395 2,056,395 (1,221,468) (1,221,468)
Net increase / (decrease) in cash and cash equivalents 37,573 411,073 176,356 (341,038)
Cash and cash equivalents at 1 April 1,035,717 434,121 859,361 775,159
Cash and cash equivalents at 31 March 13 1,073,290 845,194 1,035,717 434,121
The notes on pages 29 to 43 are an integral part of these financial statements.
Note 2008 Group 2008 Company 2007 Group 2007 Company
Profit for the year 1,551,212 1,514,209 1,496,444 1,461,762
Total recognised income and expense for the year 1,551,212 1,514,209 1,496,444 1,461,762
The notes on pages 29 to 43 are an integral part of these financial statements.

Notes to the financial statements (year ended 31 March 2008)
Note 1 : Reporting entity
Apata Limited (the “Group”) is a Group domiciled in New
Zealand, registered under the Companies Act 1993. The Group
is an issuer in terms of the Financial Reporting Act 1993.
Note 2 : Basis of preparation
(a) Statement of compliance
The financial statements have been prepared in accordance
with New Zealand Generally Accepted Accounting Practice
(“NZ GAAP”). The financial statements comply with New
Zealand Equivalents to International Financial Reporting
Standards (“NZ IFRS”), and other applicable Financial
Reporting Standards, as appropriate for profit–oriented
entities. Compliance with NZ IFRS ensures that the
financial statements also comply with International Financial
Reporting Standards (“IFRS”). The financial statements
are the Group’s first NZ IFRS financial statements and NZ
IFRS 1 First Time Adoption of New Zealand Equivalents
to International Reporting Standards has been applied.
The financial statements were approved by the Board of
Directors on 17 July 2008.
(b) Basis of measurement
The financial statements have been prepared on the historical
cost basis except for certain items recognised at fair value
discussed further in note 4.
(c) Functional and presentation currency
These financial statements are presented in New Zealand
dollars ($) rounded to the nearest dollar, which is the Group’s
functional currency.
Note 3 : Significant accounting policies
The financial statements presented are those of Apata Limited and
its wholly owned subsidiary (collectively “the Group”) as at and for
the year ended 31 March 2008. The Group is primarily involved in
the packing and coolstorage of kiwifruit and avocados.
(d) Use of estimates and judgements
The preparation of financial statements requires management
to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
and in any future periods affected. In particular, information
about significant areas of estimation uncertainty in applying
accounting policies that have the most significant effect
on the amount recognised in the financial statements are
described in the following notes:
– Note 4 – valuation of financial instruments
– Note 12 – other trade receivables
Management have made judgements in relation to the
application of NZ IFRS. These are set out in note 26 to the
financial statements.
The accounting policies set out below have been applied consistently to all years presented in these financial statements, including in
the preparation of the opening NZ IFRS balance sheet at 1 April 2006 for the purpose of transition to NZ IFRS.
a) Basis of consolidation
(i) Subsidiaries
Subsidiaries are entities controlled by the Group.
Control exists when the Group has the power to govern
the financial and operating policies of an entity so as to
obtain benefits from its activities. In assessing control,
potential voting rights that presently are exercisable
are taken into account. The financial statements of
subsidiaries are included in the consolidated financial
statements from the date that control commences until
the date that control ceases.
(ii) Transactions eliminated on consolidation
Intra–group balances, transactions and any unrealised
income and expenses arising from intra–group transactions,
are eliminated in preparing the consolidated financial
statements. Unrealised gains arising from transactions
with equity accounted investees are eliminated to the
extent of the Group’s interest in the entity.
(iii) Business combinations
The purchase method of accounting is used to account for
all business combinations, including business combinations
involving entities or businesses under common control,
regardless of whether equity instruments or other assets
are acquired. Cost is measured as the fair value of the
assets given and shares issued at the date of exchange
plus costs directly attributable to the acquisition. Where
equity instruments are issued in an acquisition, these are
measured at the fair value.
Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are
measured initially at their fair values at the acquisition
date. The excess of the cost of acquisition over the fair
value of the identifiable net assets acquired is recorded
as goodwill. If the cost of acquisition is less than the
fair value of the identifiable net assets of the subsidiary
acquired, the difference is recognised directly in the
income statement.
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Notes to the financial statements (year ended 31 March 2008)
apata (annual report 2007/08)
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(b) Financial instruments
The Group classifies its financial instruments in the following
categories: fair value through profit and loss, available for sale,
loans and receivables and other. The classification depends
on the purpose for which the instruments were acquired.
Management determines the classification at initial recognition
and re–evaluates this designation at each reporting date.
(i) Non-derivative financial instruments
Non–derivative financial instruments comprise
investments in equity securities, trade and other
receivables, cash and cash equivalents, loans and
borrowings, and trade and other payables.
Cash and cash equivalents comprise cash balances and call
deposits. Bank overdrafts that are repayable on demand
and form an integral part of the Group’s cash management
are included as a component of cash and cash equivalents
for the purpose of the statement of cash flows.
Accounting for finance income and expense is discussed
in note 3(k).
Non–derivative financial instruments are recognised
initially at fair value. Subsequent to initial recognition
non–derivative financial instruments are measured as
described below.
Available–for–sale financial assets
The Group’s investments in equity securities are classified
as available–for–sale financial assets. Subsequent to
initial recognition, they are measured at fair value and
the changes therein are recognised directly in equity.
When an investment is derecognised, the cumulative
gain or loss in equity is transferred to profit and loss.
Where there is no active market for the equity instrument
and their fair value cannot be reliably measured, the
instrument is measured at cost.
Other
Other non–derivative financial instruments are measured
at amortised cost using the effective interest method,
less any impairment losses.
Trade and other receivables
Trade and other receivables are stated at their cost less
impairment losses.
Loans and borrowings
Loans and borrowings are classified as other non–
derivative financial instruments.
Trade and other payables
Trade and other payables are stated at cost.
(ii) Derivative financial instruments
The Group uses derivative financial instruments to hedge
its exposure to interest rate risks arising from financing
activities. The Group does not hold or issue derivative
financial instruments for trading purposes. However,
derivatives are accounted for as trading instruments.
Derivative financial instruments are recognised initially at
fair value and transaction costs are expensed immediately.
Subsequent to initial recognition, derivative financial
instruments are stated at fair value. The gain or loss on
remeasurement to fair value is recognised immediately
in the income statement.
(c) Share capital
Share capital is classified as equity as it is redeemable only at the
Company’s option, and dividends are discretionary. Dividends
thereon are recognised as distributions within equity.
When share capital recognised as equity is repurchased,
the amount of the consideration paid, including directly
attributable costs, is recognised as a deduction from equity.
Repurchased shares are classified as treasury shares and are
presented as a deduction from paid in share capital.
(d) Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are
measured at cost less accumulated depreciation and
impairment losses.
Cost includes expenditures that are directly attributable to
the acquisition of the asset. The cost of self–constructed
assets includes the cost of materials and direct labour,
any other costs directly attributable to bringing the asset
to a working condition for its intended use, and the costs
of dismantling and removing the items and restoring the
site on which they are located. Purchased software that
is integral to the functionality of the related equipment
is capitalised as part of that equipment.
When parts of an item of property, plant and equipment
have different useful lives, they are accounted for as
separate items (major components) of property, plant
and equipment.
(ii) Subsequent costs
The cost of replacing part of an item of property, plant
and equipment is recognised in the carrying amount
of the item if it is probable that the future economic
benefits embodied within the part will flow to the Group
and its cost can be measured reliably. The costs of the
day–to–day servicing of property, plant and equipment
are recognised in the income statement as incurred.
(iii) Depreciation
Depreciation is recognised in the income statement on
a straight–line basis over the estimated useful life for
buildings and on diminishing value over the estimated
useful lives for all other items. Land is not depreciated.
The estimated useful lives for the current and comparative
years are as follows:
– buildings 10 - 50 years
– plant and equipment 5 – 15 years
– vehicles 5 – 15 years
– office equipment and furniture 3 – 20 years
Depreciation methods, useful lives and residual values
are reassessed at each reporting date.

(e) Leased assets
Leases in terms of which the Group assumes substantially all
the risks and rewards of ownership are classified as finance
leases. Upon initial recognition the leased asset is measured
at an amount equal to the lower of its fair value and the
present value of the minimum lease payments. Subsequent
to initial recognition, the asset is accounted for in accordance
with the accounting policy applicable to that asset.
Other leases are operating leases and the leased assets are
not recognised on the Group’s balance sheet.
(f) Inventories
Inventories are measured at the lower of cost and net
realisable value. The cost of inventories is based on the first–
in first–out principle, and includes expenditure incurred in
acquiring the inventories and bringing them to their existing
location and condition. Net realisable value is the estimated
selling price in the ordinary course of business, less the
estimated costs of completion and selling expenses.
(g) Employee Benefits
(i) Short-term benefits
Short–term employee benefit obligations are measured
on an undiscounted basis and are expensed as the
related service is provided.
(h) Impairment
The carrying amounts of the Group’s assets are reviewed
at each reporting date to determine whether there is any
objective evidence of impairment.
An impairment loss is recognised whenever the carrying
amount of an asset exceeds its recoverable amount.
Impairment losses directly reduce the carrying amount of
assets and are recognised in the income statement.
(i) Impairment of trade & other receivables
The recoverable amount of the Group’s receivables
carried at amortised cost is calculated as the present value
of estimated future cash flows, discounted at the original
effective interest rate (i.e., the effective interest rate
computed at initial recognition of these financial assets).
Receivables with a short duration are not discounted.
Impairment losses on an individual basis are determined
by an evaluation of the exposures on an instrument by
instrument basis. All individual instruments that are
considered significant are subject to this approach.
(ii) Non-financial assets
The carrying amounts of the Group’s non–financial
assets, other than inventories and deferred tax assets, are
reviewed at each reporting date to determine whether
there is any indication of impairment. If any such indication
exists then the asset’s recoverable amount is estimated.
The recoverable amount of an asset is the greater of
its value in use and its fair value less costs to sell. In
assessing value in use, the estimated future cash flows
are discounted to their present value using a discount
rate that reflects current market assessments of the time
value of money and the risks specific to the asset.
Impairment losses recognised in prior periods are
assessed at each reporting date for any indications
that the loss has decreased or no longer exists. An
impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the
extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined,
net of depreciation or amortisation, if no impairment
loss had been recognised.
(i) Revenue
(i) Services
Revenue from services rendered is recognised in
the income statement in proportion to the stage of
completion of the transaction at each reporting date.
(ii) Goods sold
Revenue from the sale of goods is measured at the fair
value of the consideration received or receivable, net of
returns and allowances. Revenue is recognised when
the significant risks and rewards of ownership have been
transferred to the buyer, recovery of the consideration
is probable, the associated costs and possible return
of goods can be estimated reliably, and there is no
continuing management involvement with the goods.
(iii) Agency relationship
When the Group acts in the capacity of an agent rather
than as the principal in a transaction, the revenue
recognised is the net amount receivable from services
provided by the Group.
Apata Suppliers Limited has the ultimate contract to
supply Zespri with kiwifruit. Apata Suppliers Limited also
arrange the logistics services and receive revenue for this
service performed on behalf of growers (via SouthLink
Limited). On the basis that Apata Suppliers Limited
is acting only as agent, and not owner of the fruit, the
receipts and payments are not reflected as revenue and
expenses, and instead treated as ‘pass–through’ money,
having no impact on financial performance. Accordingly
those receipts in respect of payments to growers are
excluded from the income statement and the statement
of cash flows.
(j) Lease payments
Payments made under operating leases are recognised in the
income statement on a straight–line basis over the term of the
lease. Lease incentives received are recognised as an integral
part of the total lease expense, over the term of the lease.
(k) Finance income and expenses
Finance income comprises interest income on funds invested
and dividend income. Interest income is recognised as it
accrues, using the effective interest method. Dividend
income is recognised on the date that the Group’s right to
receive payment is established.
Finance expenses comprise interest expense on borrowings
and changes in derivatives designated at fair value through
profit and loss. All borrowing costs are recognised in the
income statement using the effective interest method.
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Notes to the financial statements (year ended 31 March 2008)
apata (annual report 2007/08)
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(l) Income tax expense
Income tax expense comprises current and deferred tax.
Income tax expense is recognised in the income statement
except to the extent that it relates to items recognised
directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable
income for the year, using tax rates enacted or substantively
enacted at the reporting date, and any adjustment to tax
payable in respect of previous years.
Deferred tax is recognised using the balance sheet method,
providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for the initial recognition
of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable
profit. Deferred tax is measured at the tax rates that are
expected to be applied to the temporary differences when
they reverse, based on the laws that have been enacted or
substantively enacted by the reporting date.
A deferred tax asset is recognised to the extent that it is
probable that future taxable profits will be available against
which temporary difference can be utilised. Deferred tax
assets are reviewed at each reporting date and are reduced
to the extent that it is no longer probable that the related
tax benefit will be realised.
(m) Segment reporting
A segment is a distinguishable component of the Group that
is engaged either in providing related products or services
(business segment), or in providing products or services
within a particular economic environment (geographical
segment), which is subject to risks and rewards that are
different from those of other segments. The Group operates
in one geographical area, New Zealand, and operates in
one significant business segment, post–harvest operations,
engaged in providing packing, storage and logistics services
to the kiwifruit and avocado industries.
(n) New standards adopted and interpretations not yet
adopted
A number of new standards and interpretations are not
yet effective for the year ended 31 March 2008, and have
not been applied in preparing these financial statements.
Those relevant to the Group are:
• NZ IAS 1 - Presentation of financial statements (revised).
Approved: November 2007. Effective 1 January 2009.
The revised standard introduces “total comprehensive
income”, and a “Statements of Comprehensive Income”.
All non–owner changes in equity are presented in one
statement (i.e. a Statements of Comprehensive Income)
or two statements (i.e. an Income statements and a
Statement of Comprehensive Income). The revised
standard also prohibits presenting components of
comprehensive income in the Statements of Changes
in Equity. This will result in revised disclosure, but does
not affect recognition or measurement of any balances
within the financial statements.
• NZ IFRS 8 - Operating Segments replaces NZ IAS
14 Segment Reporting and changes how operating
segments are defined and how their results are disclosed
in the notes to the financial statements. This revised
standard will be effective for annual reporting periods
beginning on or after 1 January 2009 and is not expected
to have any impact on the consolidated financial results.
The Group has not yet determined if there are additional
disclosure requirements.
• NZ IAS 27 – Consolidated and Separate Financial
Statements (revised). Effective 1 January 2009. The
amendments relate mainly to changes in the accounting
for non–controlled interest and loss of control of a
subsidiary. The Group has not yet determined the effect
of these changes, if any.
There are a number of other standards and interpretations
which are not yet effective and management consider they
will have no impact on the Group.
The non relevant standards and interpretations are:
NZ IFRS 2 – Amendments to Share Based Payments
NZ IFRS 3 – Business Combinations
NZ IFRS 4 – Insurance Contracts
NZ IAS 23 – Borrowing Costs
NZ IAS 32 – Amendment to Puttable Instruments
and obligations arising on liquidation
NZ IFRIC 12 – Service Concession Arrangements
NZ IFRIC 13 – Customer Loyalty Programmes

Note 4 : Determination of fair values
A number of the Group’s accounting policies and disclosures
require the determination of fair value, for both financial and
non–financial assets and liabilities. Fair values have been
determined for measurement and/or disclosure purposes based
on the following methods.
Where applicable, further information about the assumptions
made in determining fair values is disclosed in the notes specific
to that asset or liability.
(a) Non-derivative financial liabilities
Fair value, which is determined for disclosure purposes, is
calculated based on the present value of future principal
and interest cash flows, discounted at the market rate of
interest at the reporting date.
Note 5 : Other income
(b) Available-for-sale financial assets
The fair value of available–for–sale financial assets is
determined by reference to their quoted bid price at the
reporting date, if available, or otherwise by reference to
other market information. Where there is no active market
for the equity instrument and their fair value cannot be
reliably measured, the instrument is measured at cost.
(c) Derivative financial instruments
The fair value of interest rate swaps is based on broker
quotes. Those quotes are tested for reasonableness by
discounting estimated future cash flows based on the terms
of maturity for each contract and using market interest rates
for a similar instrument at the measurement date.
2008 Group 2008 Company 2007 Group 2007 Company
Net gain on sale of property, plant & equipment – – 67,666 67,666
Note 6 : Expenses
The following items are included in expenses:
Note 7 : Finance income and expense
2008 Group 2008 Company 2007 Group 2007 Company
Operating materials and services 22,609,751 21,691,417 18,794,620 18,001,209
Employee benefits expense 12,488,843 12,488,843 7,895,803 7,895,803
Operating lease expenses 1,746,031 1,746,031 1,278,600 1,278,600
Auditor’s remuneration to KPMG 28,503 28,503 24,007 24,007
Other services provided by KPMG for transition to IFRS 4,500 4,500 – –
Directors fees 94,750 94,750 109,250 109,250
Depreciation 1,596,799 1,596,799 1,326,458 1,326,458
Loss on sale of property, plant and equipment 18,267 18,267 135 135
38,587,444 37,669,110 29,428,873 28,635,462
Shareholder rebates of $288,499 (2007: $235,053) have been offset against revenue, in accordance with IAS 18.
2008 Group 2008 Company 2007 Group 2007 Company
Interest income on bank deposits 198,938 158,649 210,131 171,831
Dividends received 32,229 32,229 21,432 21,432
Finance income 231,167 190,878 231,563 193,263
Net change in the value of derivative 31,372 31,372 – –
financial instruments
Interest expense on financial liabilities 585,339 585,339 309,752 309,752
measured at amortised cost
Finance expense 616,711 616,711 309,752 309,752
Net finance costs (385,544) (425,833) (78,189) (116,489)
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Notes to the financial statements (year ended 31 March 2008)
apata (annual report 2007/08)
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Note 8 : Income tax expense in the income statement
2008 Group 2008 Company 2007 Group 2007 Company
Current period tax expense 891,299 873,074 794,553 777,471
Deferred tax expense
Origination and reversal of temporary differences (112,217) (112,217) (41,658) (41,658)
Adjustment to deferred tax arising from change in tax rate 3,736 3,736 – –
(108,481) (108,481) (41,658) (41,658)
Total income tax expense 782,818 764,593 752,895 735,813
On 17 May 2007 the Government announced a reduction in the tax rate for Companies, from 33% down to 30%, enacted in the Taxation
(Kiwisaver and Company Tax Amendments) Act 2007. The reduced rate will be effective for the Group from the financial year beginning
on 1 April 2008, and has been applied to deferred tax expense.
Reconciliation of effective tax rate 2008 Group 2008 Company 2007 Group 2007 Company
Profit before income tax 2,334,030 2,278,802 2,249,339 2,197,575
Income tax using the Group’s domestic tax rate 770,230 752,005 742,282 725,200
Non–deductible expenses
Non–deductable/assessable items 19,488 19,488 17,686 17,686
Adjustment for imputation credits of net dividends received (10,636) (10,636) (7,073) (7,073)
Adjustment to deferred tax arising from change in tax rate 3,736 3,736 – –
782,818 764,593 752,895 735,813
Imputation credits 2008 Group 2008 Company 2007 Group 2007 Company
Imputation credits at 1 April 1,941,998 1,880,307 1,374,926 1,330,379
Tax payments, net of refunds 810,387 792,074 898,147 881,003
Imputation credits attached to dividends received 15,874 15,874 10,556 10,556
Imputation credits attached to dividends paid (369,828) (369,828) (341,631) (341,631)
Imputation credits at 31 March 2,398,431 2,318,427 1,941,998 1,880,307
Note 9 : Property, plant and equipment (Company and Group)
Plant & Office eqpmnt Total
Company & Group Land Building equipment Vehicles & furniture fixed assets
Balance at 1 April 2006 1,462,514 3,426,030 14,281,052 1,028,144 724,928 20,922,668
Additions 7,812 449,781 1,025,514 71,572 127,883 1,682,562
Disposals – – (871,170) (113,447) (45,976) (1,030,593)
Balance at 31 March 2007 1,470,326 3,875,811 14,435,396 986,269 806,835 21,574,637
Balance at 1 April 2007 1,470,326 3,875,811 14,435,396 986,269 806,835 21,574,637
Additions 26,245 600,058 3,544,435 219,597 143,791 4,534,125
Disposals – – (200,192) (100,019) (11,862) (312,073)
Balance at 31 March 2008 1,496,571 4,475,869 17,779,639 1,105,847 938,764 25,796,689
Depreciation
Balance at 1 April 2006 – 539,515 9,471,243 830,795 397,910 11,239,463
Depreciation for the year – 107,692 1,048,562 43,949 126,255 1,326,458
Disposals – – (871,170) (113,447) (45,840) (1,030,457)
Balance at 31 March 2007 – 647,207 9,648,635 761,297 478,325 11,535,464
Balance at 1 April 2007 – 647,207 9,648,635 761,297 478,325 11,535,464
Depreciation for the year – 144,829 1,222,492 74,907 154,571 1,596,799
Disposals – – (172,425) (100,019) (11,862) (284,306)
Balance at 31 March 2008 – 792,036 10,698,702 736,185 621,034 12,847,957
Carrying amounts
At 1 April 2006 1,462,514 2,886,515 4,809,809 197,349 327,018 9,683,205
At 31 March 2007 1,470,326 3,228,604 4,786,761 224,972 328,510 10,039,173
At 31 March 2008 1,496,571 3,683,833 7,080,937 369,662 317,730 12,948,732

Market valuation
The property, plant and equipment of the Group were
independently valued as at 30 September 2007 at $20,914,730.
The book value at 31 March 2008 of that same group of
assets, excluding additions subsequent to the valuation, was
$11,858,875. The valuations were based on their market value
for a going concern, and were undertaken by Property Solutions
(BOP) Limited and Asset Valuations Ltd.
Deemed cost
As part of its transition to NZ IFRS Apata has implemented NZ
IFRS–1 and deemed assets recorded at fair value to be cost
on transition. Assets previously revalued in 1991 for which
the valuation has been deemed to be cost on transition are
included in Buildings and had a value on transition of $35,839.
This amount had previously been shown in retained earnings.
Fully depreciated
Assets with a cost of $6,777,303 (2007: $6,509,973) are
fully depreciated.
Security
ANZ National Bank Limited loans are secured by General
Security Agreement over all present and after acquired property
of the Group and by a first mortgage over Group land and
buildings (see Note 16).
Capital works in progress
Capital works in progress represents costs incurred to balance
date on capital programmes due for completion in future
financial periods. Costs will be recognised as fixed assets,
and depreciation will commence, immediately following
commissioning of works.
2008 2007
Coolstore construction 290,800 1,384,367
Site development works – 467,270
Coolstore racking 104,160 –
Total capital works in progress 394,960 1,851,637
Fixed assets 12,948,732 10,039,173
Total property, plant and equipment 13,343,692 11,890,810
Note 10 : Investments
2008 Group 2008 Company 2007 Group 2007 Company
Available for sale investments
MG Marketing 36,478 36,478 36,424 36,424
Ballance Agri–Nutrients Limited 3,321 3,321 3,321 3,321
SouthLink Limited 53,333 53,333 23,333 23,333
Total available for sale investments 93,132 93,132 63,078 63,078
Advance to SouthLink Limited 37,500 37,500 – –
Investments in subsidiaries
(at cost and eliminated on consolidation)
Apata Suppliers Limited – 100 – 100
Total investments 130,632 130,732 63,078 63,178
MG Marketing and SouthLink Limited are recorded at cost due to the fact that the fair value of these investments cannot be reliably
measured with reference to an active market. An active market does not exist for these entities. Directors believe cost approximates
fair value. The company does not intend to dispose of these investments in the foreseeable future.
Note 11 : Inventories
Invoices for packaging materials are generally subject to retention of title clauses until paid for.
2008 Group 2008 Company 2007 Group 2007 Company
Packaging materials 2,288,758 2,288,758 1,250,011 1,250,011
Orchard work in progress 716 716 258,540 258,540
Work in progress – 2007 harvest – – 328,157 328,157
2,289,474 2,289,474 1,836,708 1,836,708
In 2008 raw materials, consumables and changes in packaging materials inventory recognised as cost of sales amounted to $7,841,701
(2007: $5,946,384).
apata (annual report 2007/08)
35

Notes to the financial statements (year ended 31 March 2008)
apata (annual report 2007/08)
36
Note 12 : Trade and other receivables
Note 14 : Deferred tax assets and liabilities (Company and Group)
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
Movement in temporary differences during the year
Note 2008 Group 2008 Company 2007 Group 2007 Company
Trade receivables due from related parties 24 294,933 294,933 208,072 208,072
Other trade receivables 3,067,500 2,914,337 902,048 1,263,857
3,362,433 3,209,270 1,110,120 1,471,929
Other trade receivables include estimates of earnings on kiwifruit packed prior to 31 March 2008, in respect of the 2008 harvest.
Such estimates were based on actual volumes packed and the terms of the Company’s standard contract for 2008 harvest services.
Note 13 : Cash and cash equivalents
2008 Group 2008 Company 2007 Group 2007 Company
Bank balances 340,400 112,304 1,029,303 427,707
Call deposits 732,890 732,890 6,414 6,414
Cash and cash equivalents in the statement of cash flows 1,073,290 845,194 1,035,717 434,121
Assets Assets Liabilities Liabilities Net Net
2008 2007 2008 2007 2008 2007
Property, plant and equipment – – 50,510 35,257 (50,510) (35,257)
Inventories – – 215 85,318 (215) (85,318)
Employee Entitlements 87,463 48,971 – – 87,463 48,971
Other items 621 482 – – 621 482
Tax assets / (liabilities) 88,084 49,453 50,725 120,575 37,359 (71,122)
Balance Recognised in Recognised Balance
2008 1 April 2007 profit or loss in equity 31 March 2008
Property, plant and equipment (35,257) (15,253) – (50,510)
Inventories (85,318) 85,103 – (215)
Employee Entitlements 48,971 38,492 – 87,463
Other items 482 139 – 621
(71,122) 108,481 – 37,359
Balance Recognised in Recognised Balance
2007 1 April 2006 profit or loss in equity 31 March 2007
Property, plant and equipment (5,045) (30,212) – (35,257)
Inventories (143,253) 57,935 – (85,318)
Employee Entitlements 32,776 16,195 – 48,971
Other items 2,742 (2,260) – 482
Tax loss carry–forwards (112,780) 41,658 – (71,122)

Note 15 : Capital and reserves
Reconciliation of movement in capital and reserves
Share Retained Total
Group Capital Reserves earnings equity
Balance at 1 April 2006 5,318,069 140,204 1,883,285 7,341,558
Total recognised income and expense – 1,496,444 1,496,444
Shares purchased as treasury stock (377,221) – – (377,221)
Shares sold from treasury stock 444,059 – – 444,059
New shares issued 5,309 – – 5,309
Dividends to equity holders – – (693,615) (693,615)
Balance at 31 March 2007 5,390,216 140,204 2,686,114 8,216,534
Balance at 1 April 2007 5,390,216 140,204 2,686,114 8,216,534
Total recognised income and expense – – 1,551,212 1,551,212
Shares purchased as treasury stock (374,405) – – (374,405)
Shares sold from treasury stock 449,787 31,464 – 481,251
Additional paid–up capital 408 – – 408
Dividends to equity holders – – (750,859) (750,859)
Balance at 31 March 2008 5,466,006 171,668 3,486,467 9,124,141
Share Retained Total
Company Capital Reserves earnings equity
Balance at 1 April 2006 5,318,069 140,204 1,794,124 7,252,397
Total recognised income and expense – 1,461,762 1,461,762
Shares purchased as treasury stock (377,221) – – (377,221)
Shares sold from treasury stock 444,059 – – 444,059
New shares issued 5,309 – – 5,309
Dividends to equity holders – – (693,615) (693,615)
Balance at 31 March 2007 5,390,216 140,204 2,562,271 8,092,691
Balance at 1 April 2007 5,390,216 140,204 2,562,271 8,092,691
Total recognised income and expense – – 1,514,209 1,514,209
Shares purchased as treasury stock (374,405) – – (374,405)
Shares sold from treasury stock 449,787 31,464 – 481,251
Additional paid–up capital 408 – – 408
Dividends to equity holders – – (750,859) (750,859)
Balance at 31 March 2008 5,466,006 171,668 3,325,621 8,963,295
Share Capital
Group 2008 Number 2008 Value ($) 2007 Number 2007 Value ($)
On issue at 1 April 4,460,317 5,390,216 4,418,702 5,318,069
Shares purchased as treasury stock (220,238) (374,405) (221,894) (377,221)
Shares sold from treasury stock 265,405 449,787 260,386 444,059
Issued for cash – – 3,123 5,309
Additional paid–up capital – 408 – –
On issue at 31 March 4,505,484 5,466,006 4,460,317 5,390,216
All issued shares are fully paid and have no par value. The holders of ordinary shares are entitled to receive dividends as declared from time
to time and are entitled to one vote per share at meetings of the Group. All shares rank equally with regard to the Group’s residual assets.
The 45,167 shares held as treasury stock at 31 March 2007 were all onsold during the period to 31 May 2007. The Company then
brought forward the purchase of the third and final tranche of the non pro rata share buy back agreement entered into during 2005,
and onsold all of those shares during the period to 31 March 2008.
apata (annual report 2007/08)
37

Notes to the financial statements (year ended 31 March 2008)
apata (annual report 2007/08)
38
Reserves
Reserves comprise the following:
Dividends
The following dividends, all fully imputed, were declared and paid by the Group for the year ended 31 March:
After 31 March 2008 the following dividends were proposed by the directors for 2008. The dividends have not been provided for and
there are no income tax consequences.
Dividends were not paid on shares held as treasury stock at the time of payment.
Note 16 : Loans and borrowings (Company and Group)
This note provides information about the contractual terms of the Group’s interest–bearing loans and borrowings. For more information
about the Group’s exposure to interest rate risk, see note 19.
Terms and debt repayment schedule
Terms and conditions of outstanding loans were as follows:
ANZ National Bank Limited loans are secured by General Security
Agreement over all present and after acquired property of the
Group and by a first mortgage over Group land and buildings.
2008 2007
Share premium reserve 41,182 41,182
Capital reserve 130,486 99,022
171,668 140,204
Share premium reserve comprises premiums paid on the purchase from the Company of shares at a price above that paid by the
Company for those shares. Capital reserve includes gains on sale of property plant and equipment and other items that are earnings
of a capital rather than revenue nature.
2008 cents 2008 2007 cents 2007
per share $ per share $
Final dividend in respect of the year ended
31 March 2007, paid September 2007 8.70 390,483 7.50 337,912
Interim dividend in respect of the year ended
31 March 2008, paid February 2008 8.00 360,376 8.00 355,703
750,859 693,615
2009 cents 2009 2008 cents 2008
per share $ per share $
Final dividend in respect of the year ended
31 March 2008, payable September 2008 9.86 444,241 8.70 390,483
2008 2007
Non-current liabilities - Secured bank loans 5,900,000 3,200,000
Current liabilities - Current portion of secured bank loans – –
5,900,000 3,200,000
Nominal Date of Available Carrying Available Carrying
interest rate maturity facility 2008 amount 2008 facility 2007 amount 2007
Secured bank loan
ANZ National Bank Limited Loans
# 16 9.82% 13/08/09 1,000,000 1,000,000 1,000,000 1,000,000
# 17 9.90% 03/06/10 1,200,000 1,200,000 2,200,000 2,200,000
# 18 9.84% 18/05/12 3,700,000 3,700,000 – –
Unsecured bank facility 11.0% 2,000,000 – 2,000,000 –
Total interest-bearing liabilities 7,900,000 5,900,000 5,200,000 3,200,000
Interest rates are at floating rates, with interest being based on
the Banks 90 day bill rate. Interest rates will reprice within 6
months or less. The Group has an undrawn term loan facility of
$2,000,000 (2007:$2,000,000).

Note 17 : Employee benefits (Company and Group)
2008 2007
Annual leave 327,183 155,742
Wages Accrued 271,142 124,086
Total employee benefits 598,325 279,828
Note 18 : Trade and other payables
2008 Group 2008 Company 2007 Group 2007 Company
Trade payables 3,310,115 3,170,718 3,690,224 3,574,334
Non-trade payables and accrued expenses 1,258,738 1,176,462 544,446 544,221
4,567,853 4,347,180 4,234,670 4,118,555
Note 19 : Financial instruments
Exposure to credit, interest rate and liquidity risks arises in the
normal course of the Group’s business.
Credit risk
Financial instruments which potentially subject the Group to
credit risk principally consist of cash and cash equivalents and
accounts receivable. The Group performs credit evaluations on
all customers requiring credit and generally does not require
collateral. The majority of revenue is generated from transactions
with growers, however payment for packaging and coolstorage
is received directly by the Group via Zespri as a deduction of
returns to growers. The Group places its cash with high credit
quality financial institutions.
Liquidity risk
Liquidity risk represents the Group’s ability to meet its contractual
obligations. The Group evaluates its liquidity requirements on an
ongoing basis. In general, the Group generates sufficient cash
flows from its operating activities to meet its obligations arising
from its financial liabilities and has credit lines in place to cover
potential shortfalls that may occur seasonally during the year.
The Group seeks to mitigate liquidity risks by structuring debt
with a spread of maturity dates, keeping sufficient undrawn
credit lines available for short term needs. At balance date, the
Group held an overdraft facility of $2m, (2007: $2m) which was
undrawn (2007: undrawn).
Interest rate risk
Interest rate risk is the risk that the value of the Groups assets and
liabilities will fluctuate due to changes in market interest rates.
The Group is exposed to interest rate risk primarily through its
cash and cash equivalents and bank borrowings. Interest rate
swaps have been entered into to achieve an appropriate mix of
fixed and floating exposure within the Group.
Quantitative disclosures
Credit risk
The carrying amount of financial assets represents the Group’s
maximum credit exposure. There is considered to be no
impairment of trade receivables at the reporting date, and therefore
no impairment allowance has been recorded (2007: $nil). Within
other trade receivables are $271,004 of past due receivables
between 30 and 90 days (2007: $54,934).
Liquidity risk
The Groups contractural cashflows for financial assets and
liabilities fall within six months or less except for secured bank
loans as set out below:
Balance Contractual 6 months 6 – 12 1 – 2 2– 5 More than
Group sheet cash flows or less months years years 5 years
2008
Secured bank loans 5,900,000 5,900,000 – – 1,000,000 4,900,000 –
2007
Secured bank loans 3,200,000 3,200,000 – – – 3,200,000 –
Interest rate risk – repricing analysis
The Company and Group have secured bank loans of $5,900,000
(2007: $3,200,000), which will reprice within 6 months.
The Company has an interest rate swap in place at balance date
for $3,000,000. The swap rate is 8.25% plus a margin of 1% and
matures on 21 March 2011.
Capital management
The Group’s capital includes share capital, reserves and
retained earnings.
The Group’s policy is to maintain a strong capital base so as
to maintain investor and creditor confidence and to sustain
future development of the business. The impact of the level of
capital on shareholders’ return is also recognised and the Group
recognises the need to maintain a balance between the higher
apata (annual report 2007/08)
39

Notes to the financial statements (year ended 31 March 2008)
apata (annual report 2007/08)
40
returns that might be possible with greater gearing and the
advantages and security afforded by a sound capital position.
The Group is not subject to any externally imposed
capital requirements. The Group’s policies in respect of capital
management and allocation are reviewed regularly by the Board
of Directors.
There have been no material changes in the Group’s management
of capital during the year.
Classification and fair values (Group)
Sensitivity analysis
In managing interest rate risks the Group aims to reduce the
impact of short–term fluctuations on the Group’s earnings. Over
the longer–term, however, permanent changes in interest rates
will have an impact on profit.
At 31 March 2008 it is estimated that an increase of one percentage
point in interest rates would decrease the Group’s profit before
income tax by approximately $59,000 (2007: $32,000). This excludes
the effect of the interest rate swap.
Other Total
Fair value Available Loans & amortised carrying
Note through P&L for sale receiveables costs amount
2008
Assets
Investments 10 – 130,632 – – 130,632
Total non–current assets – 130,632 – – 130,632
Trade and other receivables 12 – – 3,362,433 – 3,362,433
Cash and cash equivalents 13 – – 1,073,290 – 1,073,290
Total current assets – – 4,435,723 – 4,435,723
Total assets – 130,632 4,435,723 – 4,566,355
Liabilities
Loans and borrowings 16 – – – 5,900,000 5,900,000
Total non–current liabilities – – – 5,900,000 5,900,000
Trade and other payables 18 – – – 4,567,853 4,567,853
Employee benefits 17 – – – 598,325 598,325
Current tax liabilities – – – 111,491 111,491
Derivatives 31,372 – – – 31,372
Total current liabilities 31,372 – – 5,277,669 5,309,041
Total liabilities 31,372 – – 11,177,669 11,209,041
Other Total
Fair value Available Loans & amortised carrying
Note through P&L for sale receiveables costs amount
2007
Assets
Investments 10 – 63,078 – – 63,078
Total non–current assets – 63,078 – – 63,078
Trade and other receivables 12 – – 1,110,120 – 1,110,120
Cash and cash equivalents 13 – – 1,035,717 – 1,035,717
Current tax assets – – 65,721 – 65,721
Total current assets – – 2,211,558 – 2,211,558
Total assets – 63,078 2,211,558 – 2,274,636
Liabilities
Loans and borrowings 16 – – – 3,200,000 3,200,000
Total non–current liabilities – – – 3,200,000 3,200,000
Trade and other payables 18 – – – 4,234,670 4,234,670
Employee benefits 17 – – – 279,828 279,828
Total current liabilities – – – 4,514,498 4,514,498
Total liabilities – – – 7,714,498 7,714,498
Estimation of fair values
The methods used in determining the fair values of financial instruments are discussed in note 4. The face values of all current assets
and liabilities approximate their fair values and due to the fact that loans and borrowings are on floating interest rates it has been
determined that face value approximates fair value.

Note 20 : Operating leases
Leases as lessee
Non-cancellable operating lease rentals are payable as follows:
2008 Group 2008 Company 2007 Group 2007 Company
Less than one year 1,182,467 1,182,467 1,046,449 1,046,449
Between one and five years 1,526,696 1,526,696 2,218,364 2,218,364
More than five years – – 59,000 59,000
2,709,163 2,709,163 3,323,813 3,323,813
Note 21 : Capital commitments
The capital commitments at 31 March 2008 represents expenditure to complete an extension to a coolstore and install racking in an
existing coolstore. Both projects were underway as at 31 March 2008.
Note 22 : Contingencies
There are no contingent liabilities as at 31 March 2008 (2007: Nil).
2008 Group 2008 Company 2007 Group 2007 Company
Estimated capital expenditure contracted for at
balance date but not provide for 307,830 307,830 1,637,919 1,637,919
Note 23 : Reconciliation of the profit for the year with the net cash from operating activities
Note 2008 Group 2008 Company 2007 Group 2007 Company
Profit for the year 1,551,212 1,514,209 1,496,444 1,461,762
Adjustments for:
Depreciation 9 1,596,799 1,596,799 1,326,458 1,326,458
(Gain) on sale of property, plant & equipment 5 – – (67,666) (67,666)
Loss on sale of property, plant & equipment 6 18,267 18,267 135 135
Change in investments (capitalised dividends) (54) (54) (1,437) (1,437)
Movement in deferred tax 14 (108,481) (108,481) (41,658) (41,658)
Movement in working capital
Change in current tax liabilities 8 80,910 80,999 (103,594) (103,532)
Change in inventories 11 (452,766) (452,766) (22,871) (22,871)
Change in trade and other receivables 12 (2,362,239) (1,737,341) 907,248 494,893
Change in trade and other payables 1,835,510 1,621,026 16,158 (54,261)
Change in employee benefits 17 318,497 318,497 (98,747) (98,747)
Net cash from operating activities 2,477,655 2,851,155 3,410,470 2,893,076
apata (annual report 2007/08)
41

Notes to the financial statements (year ended 31 March 2008)
apata (annual report 2007/08)
42
Note 24 : Related parties
Transactions with directors and related entities
The directors trade with the Group in the normal course of business. All transactions are at arms length and on normal trading terms.
Parties associated with the directors contribute to a significant portion of the Group’s turnover. No debts owing to or from related
parties have been written off during the year. There are no amounts outstanding at the respective balance dates. Parties associated
with Directors of the Group control 39.3 % of the voting shares of the Group. The aggregate value of transactions and outstanding
balances due to the Group, at the respective 31 March year ends, relating to directors and entities over which they have control or
significant influence were as follows:
Summary of payments to: Summary of income from: Net balance receivable
2008 Group 2007 Group 2008 Group 2007 Group 2008 Group 2007 Group
David Goodwin 128,316 160,191 145,801 35,243 – 354
Max McGreevy 150,855 218,220 595,055 541,948 156,755 88,351
Peter Mayston 183,151 195,428 344,259 243,207 137,728 119,204
Michael Muller 92,949 78,467 26,105 30,970 197 163
Paul O’Brien 270,304 309,092 144,197 117,118 253 –
Peter Rogers 150 2,750 – – – –
825,725 946,148 1,255,417 968,486 294,933 208,072
The table below provides a breakdown by transaction type:
2008 Group 2008 Company 2007 Group 2007 Company
Payments for rebates, kiwistart and non standard
– David Goodwin 76,845 76,845 120,169 120,169
– Max McGreevy 56,324 56,324 76,039 76,039
– Peter Mayston 87,380 87,380 90,293 90,293
– Michael Muller 6,688 6,688 6,815 6,815
– Paul O’Brien 65,471 65,471 84,662 84,662
Payments for dividends (net)
– David Goodwin 51,471 51,471 40,022 40,022
– Max McGreevy 85,074 85,074 78,961 78,961
– Peter Mayston 92,595 92,595 85,942 85,942
– Michael Muller 60,487 60,487 63,807 63,807
– Paul O’Brien 6,346 6,346 4,913 4,913
Payments for executive services/consultancy fees
– Michael Muller 25,774 25,774 7,845 7,845
– Peter Rogers 150 150 2,750 2,750
Payments for harvest and picking services
– Max McGreevy – – 16,592 16,592
– Peter Mayston 2,853 2,853 14,980 14,980
– Paul O’Brien 198,487 198,487 219,517 219,517
Payments for other goods and services
– Max McGreevy 9,457 – 46,628 32,907
– Peter Mayston 323 323 4,213 –
Sales of packaging to directors
– Max McGreevy 577,169 577,169 455,649 455,649
– Peter Mayston 324,222 324,222 148,821 148,821
Revenue from packing and other goods
and services to directors
– David Goodwin 145,801 145,801 35,243 35,243
– Max McGreevy 17,886 6,861 86,299 74,398
– Peter Mayston 20,037 10,953 94,386 88,597
– Michael Muller 26,105 26,105 30,970 30,970
– Paul O’Brien 144,197 144,197 117,118 117,118
A direct relative of a director undertook a project for the Company, at arms length, on normal commercial terms. The relative was
professionally qualified to undertake the project, for which fees amounting to $9,788 (2007: Nil) were paid.

SouthLink Limited / Southlink Supply Limited
SouthLink Limited provides logistical services for the Group
and other industry parties at commercial rates. Mr Goodwin
is Chairman and Mr Low is a Director of SouthLink Limited,
representing the Apata Group. During the year to 31 March 2008,
payments amounting to $926,393 (2007: $774,911) for logistical
services were made by Apata Suppliers Limited to SouthLink
Limited. SouthLink Limited paid Apata Suppliers Limited $18,864
(2007: nil) for damaged pallets. SouthLink Limited paid Apata
Limited $8,250 (2007: $9,000) for office space, $5,000 (2007:
$5,000) in directors fees, $239,979 (2007: $236,333) in rebates, and
$1,897 (2007: nil) for administration services.
Southlink Supply Limited is a new company established to take
over the activities of SouthLink Limited prior to the 2008 harvest.
Centrepac Packhouse & Coolstore Limited
Apata Limited leases the building at Pyes Pa from Centrepac
Packhouse & Coolstore Limited. Centrepac Packhouse &
Coolstore Limited is a private company of which Mr Goodwin is a
director and shareholder. The lease rental has been determined
by negotiation between the parties; Mr Goodwin took no
part in the negotiations or board meetings concerning this
lease. During the year to 31 March 2008, payments amounting
$439,464 (2007: $439,911) for occupancy costs were made by
Apata Limited to Centrepac Packhouse & Coolstore Limited.
Tetley Coolstores Limited
Apata Limited leases the building at Katikati from Tetley
Coolstores Limited. Tetley Coolstores Limited is a private
company of which Mr M McGreevy is a director and shareholder.
The lease rental has been determined by negotiation between
Note 25 : Events after balance date
parties; Mr McGreevy took no part in the negotiations or
board meetings concerning this lease. During the year to 31
March 2008, payments amounting to $203,729 (2007: $190,733)
for occupancy costs were made by Apata Limited to Tetley
Coolstores Limited. In addition, as a shareholder in Apata
Limited, Tetley Coolstores Limited received net cash dividends
amounting to $61,057 (2007: $56,670).
Apata Suppliers Entity Limited
Apata Suppliers Entity Limited (ASEL) is a separate legal entity
with directors elected by Apata growers and appointed by the
Group and other independent coolstore facilities. This entity
does not form part of the Group. During the year to 31 March
2008, the Group received $26,566,498 (2007: $14,224,834) from
ASEL in respect of post–harvest services and fruit proceeds, and
made payments to ASEL of $743,763 (2007: $975,491) in respect
of post–harvest services.
Transactions with key management personnel
Apata’s Executive team have authority and responsibility for
planning, directing and controlling the activities of the Group. The
team was restructured during the year, with changes in personnel
and a reduction of the Executive team to four members.
The total value of short term remuneration paid to key
management personnel during the financial year was $804,363
(2007: $781,306).
At 31 March 2008, key management personnel held 62,000
shares in the Company (2007: 2,000 shares). Dividends paid to
key management personnel in respect of those shares amounted
to $10,354 (2007: $310).
On 26 June 2008 the Directors of the Company declared their intention to pay a final cash dividend of 9.86 cents per share (2007: 8.7
cents per share), to be paid in September 2008. As the intention was declared after balance date, the financial effect has not been
recognised in the financial statements.
Note 26 : Transition to NZ IFRS
The Group undertook a project to assess the key differences between NZ IFRS and NZ GAAP. The transition to NZ IFRS has not
affected the reported balance sheet, income statement and cash flows of the Company and Group.
apata (annual report 2007/08)
43

apata (annual report 2007/08)
44
Auditors’ report
Audit report
To the shareholders of Apata Limited
We have audited the financial statements on pages 27 to 43. The financial statements provide information
about the past financial performance and financial position of the company and group as at 31 March
2008. This information is stated in accordance with the accounting policies set out on pages 29 to 32.
Directors’ responsibilities
The Directors are responsible for the preparation of financial statements which give a true and fair
view of the financial position of the company and group as at 31 March 2008 and the results of their
operations for the year ended on that date.
Auditors’ responsibilities
It is our responsibility to express an independent opinion on the financial statements presented by
the Directors and report our opinion to you.
Basis of opinion
An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the
financial statements. It also includes assessing:
• the significant estimates and judgements made by the Directors in the preparation of the financial
statements;
• whether the accounting policies are appropriate to the company’s and group’s circumstances,
consistently applied and adequately disclosed.
We conducted our audit in accordance with New Zealand Auditing Standards. We planned and performed
our audit so as to obtain all the information and explanations which we considered necessary in order
to provide us with sufficient evidence to obtain reasonable assurance that the financial statements are
free from material misstatements, whether caused by fraud or error. In forming our opinion we also
evaluated the overall adequacy of the presentation of information in the financial statements.
Our firm has also provided other services to the company and its subsidiary in relation to taxation and
general accounting services. These matters have not impaired our independence as auditors of the
company and group. The firm has no other relationship with, or interest in, the company or its subsidiary.
Unqualified opinion
We have obtained all the information and explanations we have required.
In our opinion:
• proper accounting records have been kept by the company as far as appears from our examination
of those records;
• the financial statements on pages 27 to 43:
– comply with New Zealand generally accepted accounting practice;
– give a true and fair view of the financial position of the company and group as at 31 March
2008 and the results of their operations for the year ended on that date.
Our audit was completed on 17 July 2008 and our unqualified opinion is expressed as at that date.
Tauranga

Statutory information - Year ended 31 March 2008
a : Directors and remuneration
The broad remuneration policy is to ensure the remuneration package properly reflects the person’s duties and responsibilities and
that remuneration is competitive in attracting, retaining and motivating people of the highest quality.
Details of remuneration of each director of the Group are:
The Group has provided no other benefits to a director for services as a director.
Peter Rogers retired as a director during the course of the year.
Tony Marks was appointed as a director in April 2008.
b : Entries recorded in the interests register
The following entries were recorded in the interest register of the Group during the year:
Directors’ interests in transactions
Directors and their associated interests enter packaging,
packing and/or coolstorage contracts with the Group on normal
commercial terms and conditions in the ordinary course of
business activities with the Group. There were no other material
entries made in the interests register during the year.
Directors in office as at 31 March 2008
David Goodwin
– Director of Apata Limited
– Director of Apata Suppliers Limited
– Director of Apata Suppliers Entity Limited
– Trustee of Apata Suppliers Entity Limited Grower /Supplier
Trust
– Director of Centrepac Packhouse and Coolstore Ltd
– Director and shareholder of Harvestpac Packhouse and
Coolstore Limited
– Director of Abbey Holdings Limited
– Director of Chateau Nominees Limited
– Director of Kiwifruit Supply New Zealand Limited
– Director of SouthLink Limited
– Director of SouthLink Supply Limited
– Trustee of Harvest Ridge Trust Orchard
– Trustee of Charisma Orchard
Max McGreevy
– Director and shareholder of Apata Limited
– Director of Apata Suppliers Limited
– Director of Apata Suppliers Entity Limited
– Trustee of Apata Suppliers Entity Limited Grower /Supplier
Trust
– Partner of MR & CL McGreevy (trading as Claremont Services)
– Partner of Claremont Contractors Partnership
– Director and shareholder of Sheoke Orchards Ltd
– Director and shareholder of Tetley Coolstores Ltd
– Director and shareholder of Claremont Services Ltd
– Director and shareholder of Fern Garden Limited
2008 Group 2008 Company 2007 Group 2007 Company
David Goodwin 31,750 31,750 32,000 32,000
Peter Mayston 14,500 14,500 14,750 14,750
Michael Muller 15,000 15,000 14,750 14,750
Max McGreevy 16,500 16,500 16,500 16,500
Paul O’Brien 14,750 14,750 15,000 15,000
Peter Rogers 2,250 2,250 16,250 16,250
94,750 94,750 109,250 109,250
Peter Mayston
– Director of Apata Limited
– Director of Apata Suppliers Limited
– Director and shareholder of Bruntwood Farms Limited
– Trustee of Bruntwood Investment Trust
– Trustee of Bruntwood Trust
– Trustee of PM Mayston Family Trust
– Director and shareholder of Maniaroa Properties Limited
– Delegate of NZ Employers Association – Orchard and
Vineyard
Michael Muller
– Director of Apata Limited
– Director of Apata Suppliers Limited
– Director of Avalon Incorporated
– Director of Birdhurst Limited
– Director of Golden Bay Fruit 2008 Limited
– Trustee of Equality Property Trust Incorporated
– Director and shareholder of Muller & Associates Limited
– Trustee of Michael and Patricia Muller Family Trust
Paul O’Brien
– Director and shareholder of Apata Limited
– Director of Apata Suppliers Limited
– Director of Apata Suppliers Entity Limited
– Trustee of Apata Suppliers Entity Limited Grower /Supplier
Trust
– Director and shareholder of PR & PJ O’Brien Limited
– Trustee of PR & PJ O’Brien Family Trust
– Partner of PR & PJ O’Brien Partnership
– Partner of PR & CI & BJ O’Brien Partnership
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apata (annual report 2007/08)
46
Share dealings of directors in the Company
The Michael and Patricia Muller Family Trust, in which Michael
Muller has a beneficial interest, sold 33,333 shares during the
course of the year. The Harvest Ridge Trust, in which David
Goodwin has a beneficial interest, purchased 50,000 shares
during the course of the year. Paul O’Brien also has an interest
in the 13,000 shares held by P, C & B O’Brien.
Loans to directors
The Group has made no loans to a director nor has the Group
guaranteed any debts incurred by a director.
Directors’ indemnity and insurance
The Group has arranged directors and officers liability insurance
cover in respect of Apata Limited and Apata Suppliers Limited
for $2,500,000 with QBE Insurance International Limited at a
premium of $4,000 per annum. The directors portion of the
premium is $400.
c : Employee’s remuneration
During the year the following number of employees received
remuneration and other benefits of at least $100,000:
Number of
Apata Limited employees
$250,000 – $259,999 1
$140,000 – $149,999 1
$110,000 – $119,999 1
$100,000 – $109,999 1
d : Auditors’ remuneration
Shares held Shares held
31.3.2008 31.3.2007
David Goodwin (beneficially held) 308,209 258,209
Peter Mayston (beneficially held) 554,464 554,464
Michael Muller (beneficially held) 362,196 395,530
Max McGreevy (beneficially held) 509,425 509,425
Paul O’Brien 25,000 25,000
During the year $28,503 has been paid or accrued to KPMG as
the Group’s auditor (2007: $24,007), and $4,500 for other services
relating to the transition to IFRS.
e : Use of Group information
During the year the Board received no notices from directors
of the Group requesting to use Group information received in
their capacity as directors that would not otherwise have been
available to them.
f : Donations
The Group did not make any donations to charities during
the year.

Securities Act Exemption Notice information
Apata Limited (“the Company” or “the issuer”) has been
granted a Securities Act (Apata Limited) Exemption Notice 2006
by the Securities Commission (“the Exemption Notice”). The
Exemption Notice was gazetted on 27 July 2006 and expires on
27 July 2011.
The Exemption Notice grants the Company exemptions,
subject to conditions, from sections 37A(1)(c) and 54 of the
Securities Act 1978 and clauses 4 to 9, 11 to 20, 22 to 38, and
40 to 42 of Schedule 1 of the Securities Regulations 1983 (“the
Regulations”).
The exemption in clause 5(c) of the Exemption Notice is subject
to the condition that the information required by clauses
4, 5A, 6, 7, 12 to 14, 17, 18, 20, and 42 of Schedule 1 of the
Regulations is contained in every annual report of the Company.
The following information is provided in accordance with the
Exemption Notice:
Principal subsidiaries of issuer
No subsidiary of the issuer has total tangible assets that exceed
5 percent of the amount of the total tangible assets of the
issuing group.
Restrictions on directors’ powers
There are no modifications, exceptions or limitations on the
powers of the board of the Company imposed by the constitution
of the Company in force at 17 July 2008, except as provided in the
Companies Act 1993, which requires the approval of shareholders
to various matters including major transactions.
Substantial equity security holders of issuer
The ten largest holdings of equity securities of the issuer as at
30 June 2008 are:
Name of substantial equity security holder Holding
1. Murray Bindon, Peter Martyn Mayston &
Jenny Mayston 554,464
2. Tetley Coolstores Limited 365,612
3. Mike Muller, Patricia Muller & John Donald 362,196
4. Harvestpac Packhouse & Coolstore Limited 238,209
5. Melvyn Albert Walker, Delwyn Sonya
Walker & Kevin Garty 188,086
6. Melva Ethal Allan & William Beaumont
Holland 153,030
7. Stuart Barry Weston, Rachel Weston
& Fenton McFadden Trustee
Company Limited 149,059
8. Max Richard McGreevy & Catherine McGreevy 143,813
9. Kenneth Shaw 125,000
10. Trevor Goodman Sandes & Gweneth
Anne Sandes 100,000
None of the substantial equity security holders mentioned
above undertake any liability in respect of any securities that
may be offered by the Company.
Description of activities of issuing group
The Company, one of New Zealand’s leading post harvest
kiwifruit and avocado facilities, has been engaged in the following
activities during the 5 years preceding 17 July 2008:
– Coolstore of kiwifruit (conventional, medium term and
controlled atmosphere)
– Coolstorage of avocados
– Packing of kiwifruit and avocados
– Conditioning and pre-ripening of kiwifruit and avocados
– Laboratory services – pest management, Kiwistart, dry
matter, botrytis prediction
– Sales of local market and class II export kiwifruit and avocados
– Grower services
– Pre-packing
– Leasing and management of kiwifruit orchards
The other member of the issuing group (Apata Suppliers
Limited) has been engaged in the following activities during the
5 years preceding 17 July 2008:
– Logistical services for export kiwifruit
Details regarding the principal fixed assets held by members
of the issuing group:
Fixed Asset Use of fixed asset Owned/leased
Freehold land at
Apata Packing & Coolstore Owned
Buildings
Apata Packing & Coolstore Owned
Pyes Pa (Centrepac) Packing & Coolstore Leased
Whangarei Packing & Coolstore Leased
Katikati (Tetley) Packing & Coolstore Leased
Forklifts & vehicles
Truck (Apata) Packing & Coolstore Leased
Utility vehicles (6)
& car Packing & Coolstore Leased
All others Packing & Coolstore Owned
At all locations
Plant and equipment Packing & Coolstore Owned
Office equipment
and furniture Packing & Coolstore Owned
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apata (annual report 2007/08)
48
Securities paid up otherwise than in cash
Within the five years preceding 17 July 2008, no securities have
been paid for otherwise than in cash.
Options to subscribe for securities of issuing group
No options have been granted or are proposed to be granted
to any person.
Appointment and retirement of directors
A director may be appointed or removed from office by an
ordinary resolution.
At each Annual Meeting of the Company, one third of the
directors for the time being, or if their number is not three
or a multiple of three, then the nearest one third, shall retire
from office. The directors to retire in every year shall be those
who have been longest in office since their last election, but as
between persons who became directors on the same day, those
to retire shall (unless they otherwise agree among themselves)
be determined by lot.
A retiring director shall be eligible for re-election.
The board of directors may by resolution from time to time
appoint and remove two additional people as directors of the
Company (each an “additional director”). An additional director
will hold office for such term as is determined by the board at
the time of appointment, up to a maximum term of three years.
If no particular term is determined by the board, an additional
director holds office for a term of one year.
There are no rules relating to retirement age for directors.
Every director may, by notice given in writing to the Company,
appoint any persons (including any other director) to act as an
alternate director in the director’s place, either generally or in
respect of a specified meeting or meetings during the director’s
absence or inability to act as a director. Every director may, at
the director’s discretion by notice in writing to the Company,
remove that director’s alternate director.
An alternate director has the right to vote in the election of
other directors of the issuer.
Material contracts
Material contracts that have been entered into by any member
of the issuing group at any time in the two years preceding
17 July 2008 are:
ANZ National Bank Limited Loan Agreement for a principal
amount of $3,700,000 dated 15 May 2007.
In March 2008 this loan was converted from a 90 day bill loan
into an interest rate swap loan.
Pending proceedings
There are no legal proceedings that are pending at 17 July 2008
that may have a material adverse effect on the issuing group.
Restrictions on issuing group
Apata Limited must not make any distribution, other than a
distribution out of the business profits which is commercially
prudent at the time it is made. Such restriction results from an
ANZ National Bank Limited General Security Agreement dated
27 May 2004.
There are no restrictions on the ability of any other member of
the issuing group to make a distribution being restrictions that
result from any undertaking given or contract or deed entered
into, by the issuer or any of its subsidiaries.
There are no restrictions on the ability of any member of the
issuing group to borrow being restrictions that result from any
undertaking given or contract or deed entered into, by the
issuer or any of its subsidiaries.
Auditors’ report
A copy of the auditors’ report on the financial statements for the
year ended 31 March 2008 from KPMG is attached.

Company details
Company name Apata Limited
Company number 205019
Date of incorporation 22 August 1983
Nature of business Packhouse and Coolstore operators
Directors David John Goodwin
Max Richard McGreevy
Anthony John Marks
Peter Martyn Mayston
Michael Muller
Paul Rodney O’Brien
Executive Todd Muller, Chief Executive Officer
Colin Reilly, Chief Financial Officer
Bevan Bayne, General Manager Grower Services
Steve Low, Chief Operating Officer
Auditors KPMG
Tauranga
Bankers ANZ National Bank Limited
Tauranga
Solicitors Sharp Tudhope
Tauranga
Registered office Staples Rodway
132 First Avenue
Tauranga
Number of shares on issue 4,505,484 ordinary shares.
Distribution of Shareholding as at 5 June 2008
No. of Percentage of Percentage Average
shareholders Shares held shareholders of shares holding
Up to 1,999 shares 25 33,905 9.1% 0.8% 1,356
2,000 to 9,999 shares 184 795,790 66.9% 17.6% 4,325
10,000 to 24,999 shares 37 512,763 13.5% 11.4% 13,858
25,000 to 99,999 shares 19 783,557 6.9% 17.4% 41,240
100,000 shares or more 10 2,379,469 3.6% 52.8% 237,947
275 4,505,484 100.0% 100.0% 16,384
apata (annual report 2007/08)
49

apata
partners for growth
Northland
37 Southend Avenue
Otaika, Whangarei 0110
p : (09) 430 8003
f : (09) 430 8006
Pyes Pa
83 Pyes Pa Road
Tauranga 3112
p : (07) 543 1211
f : (07) 543 0096
e : reception@apata.co.nz w : www.apata.co.nz
Apata head office
Turntable Hill Road, RD 2
Katikati 3178
p : (07) 552 0911
f : (07) 552 0666