1996/97 STATE TRANSIT ANNUAL REPORT Financial Statements Notes To and Forming Part of the Financial Statements For the year ended 30 June 1997 13: RESERVES 1997 $000 1996 $000       Asset revaluation reserve 107,826 115,061       Movements in the reserve:           Opening balance 115,061 76,289 Revaluation increment/(decrement) -3,939 40,577 Realised increment on property, plant and equipment sold during the year transferred to accumulated funds -3,296 -1,805 Closing balance   107,826 115,061 Asset revaluation reserve comprises revaluation increments recognised during the revaluation of the Authority's non-current assets. Upon disposal or retirement, any related revaluation increment/(decrement) remaining in the reserve in respect of the asset at the time of disposal is transferred to accumulated funds. 14: COMMITMENTS Note 1997 $000 1996 $000 (I) Loans       Payable:       Not later than 1 year   104 ------ Later than 1 year but not later than 2 years   634 104 Later than 2 years but not later than 5 years   1,245 1,601 Later than 5 years   ------ 278 Total loans   1,983 1,983 Current liability 11 104 ------ Non-Current liability 11 1,879 1,983     1,983 1,983 (ii) Finance Lease Commitments       Payable:       Not later than 1 year   32,402 12,117 Later than 1 year but not later than 2 years   ------ 33,873 Total commitments   32,402 45,990 Less - future finance charges   838 6,191 Total lease liability   31,564 39,799 Current liability 11 31,564 8,177 Non-Current liability 11 ------ 31,622     31,564 39,799 (iii) Operating Lease Commitments       Payable:       Not later than 1 year   1,358 1,180 Later than 1 year but not later than 2 years   1,236 745 Later than 2 years but not later than 5 years   1,025 946 Later than 5 years   7,410 5,350     11,029 8,221 (iv) Capital Expenditure Commitments       Contracted for but not provided in the accounts payable               Not later than 1 year   50,425 33,969 Later than 1 year but not later than 2 years   20,375 26,400 Later than 2 years but not later than 5 years   ------ 21,290     70,800 81,659 These capital expenditure commitments relate primarily to contracts for the purchase of buses. 15. CONTINGENT ASSETS Insurance Claim A claim has been lodged with the Authority's insurers under the Fidelity Guarantee Insurance Policy for losses incurred as a result of ticket fraud in the operation of the Manly Ferry services. It is likely that a payment of $100,000 will be forthcoming under this claim. 16. CONTINGENT LIABILITIES Leasing Agreements Under several leasing agreements, the Authority has an option of renewal for a further term at a rental to be determined. If the option is not exercised, the lessor will auction the equipment in such a manner as may be required by the Authority. In this regard a contingent liability arises, as the Authority is liable for any shortfall between the value realised at auction and the residual value as determined by the lease agreements. End of audited financial statements. P.S. Dunn General Manager Corporate Policy & Resources North Sydney (Next Page) (Table of Contents) (Financial Statements Menu)

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