Apata Limited and Group

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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
Page 1 and 2: Apata Limited and Group Financial S
Page 3 and 4: Balance sheet As at 31 March 2008 I
Page 5 and 6: Notes to the financial statements (
Page 7 and 8: (e) Leased assets Leases in terms o
Page 9 and 10: Note 4 : Determination of fair valu
Page 11 and 12: Market valuation The property, plan
Page 13: Note 15 : Capital and reserves Reco
Page 17 and 18: Note 20 : Operating leases Leases a
Page 19 and 20: SouthLink Limited / Southlink Suppl
Page 21 and 22: Statutory information - Year ended
Page 23 and 24: Securities Act Exemption Notice inf
Page 25 and 26: Company details Company name Apata

Apata Limited and Group

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