Apata Limited and Group

Apata Limited and Group 

Financial Statements for the year ended 31 March 2008 

apata (annual report 2007/08) 

25


26 

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. 


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 



27


28 

Statement of recognised income and expense 


Statement of cash flows 



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 




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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30 

(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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32 

(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 


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. 


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) 


33



34 

Note 8 : Income tax expense in the income statement 


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 


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. 


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). 


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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 


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 


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 


Total recognised income and expense – – 1,551,212 1,551,212 


Shares sold from treasury stock 449,787 31,464 – 481,251 

Additional paid–up capital 408 – – 408 



Share Retained Total 

Company Capital Reserves earnings equity 


Total recognised income and expense – 1,461,762 1,461,762 


Shares sold from treasury stock 444,059 – – 444,059 

New shares issued 5,309 – – 5,309 




Total recognised income and expense – – 1,514,209 1,514,209 


Shares sold from treasury stock 449,787 31,464 – 481,251 

Additional paid–up capital 408 – – 408 



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. 


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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 


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 


39



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: 


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). 


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 



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 


41



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: 


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 


– Paul O’Brien 6,346 6,346 4,913 4,913 

Payments for executive services/consultancy fees 


– 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 


– 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. 


43


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 




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 


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 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 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 




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 


45


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 


47


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 


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

Apata Limited and Group

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