Landcorp - Crown Ownership Monitoring Unit

LANDCORP FARMING LIMITED AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTS CONTINUEDNote 17 – MaintenanceGroup Group Parent Parent2010 2009 2010 2009$000 $000 $000 $000Maintenance on land improvements 3,928 4,016 3,641 3,707Maintenance on buildings 1,880 1,711 1,794 1,642Maintenance on plant 1,881 2,035 1,522 1,582Maintenance on motor vehicles 3,018 3,297 2,728 2,832Maintenance on furniture and equipment 59 65 58 65Maintenance on computer equipment 103 115 103 113Total Maintenance 10,869 11,239 9,846 9,941Note 18 – Other Operating ExpensesGroup Group Parent Parent2010 2009 2010 2009$000 $000 $000 $000Fees to auditors– statutory audit 165 173 135 134– non-audit-related services 13 – 13 –Change in debtors impairment 142 53 141 50Directors’ remuneration 306 334 306 334Donations and scholarships 88 124 88 123Rent 4,120 3,715 5,835 2,772Research and Development 601 730 601 729Fuel 2,258 3,113 1,982 2,601Electricity 2,463 2,062 2,163 1,784Rates 3,591 3,515 3,322 3,312Other 6,362 6,713 4,978 4,808Total Other Operating Expenses 20,109 20,532 19,564 16,647The non-audit-related services expense relates to the secondment to Landcorp of a junior accountant from Landcorp’s auditors during 2009/10.The accountant is not a member of the audit team.Note 19 – Net Finance CostsGroup Group Parent Parent2010 2009 2010 2009$000 $000 $000 $000Interest on bank accounts and loans (6,396) (12,089) (6,396) (12,085)Interest capitalised on construction of assets 231 344 231 328Net cash flows from interest rate derivatives (5,289) (1,085) (5,289) (1,085)Net interest expense (11,454) (12,830) (11,454) (12,842)Interest received 88 89 3,174 6,625Net Finance Costs (11,366) (12,741) (8,280) (6,217)Lower loan interest costs reflect lower debt levels during the year resulting from the sale of farms, as described in Note 36.Interest income and expense on Landcorp’s transactional bank accounts are presented net with interest expense on bank loans as Landcorpmanages its daily cash requirements jointly with its debt programme. This presentation is considered to reflect the substance of Landcorp’sfunding costs.Interest has been capitalised on the construction of assets at Landcorp’s weighted average interest rate applicable over the time of construction,4.57% (2009 5.81%).Net cashflows from interest rate derivatives are presented within net interest expense as all interest rate derivatives are held to hedge Landcorp’sfunding costs.70