ANNUAL REPORT 2004–05 - V/Line

CONSOLIDATED PARENT2005 $’000 2004 $’000 2005 $’000 2004 $’00012 MONTHS 11.5 MONTHS 12 MONTHS 11.5 MONTHSNOTE 27 RECONCILIATION OF RESULT FROM ORDINARY ACTIVITIES TO NET CASH INFLOW FROM OPERATING ACTIVITIESResults from ordinary activities (650) 126,137 (650) 126,072Government funding for asset purchases - - - -Depreciation and amortisation 16,147 14,011 - -Unrealised gain on purchase of investment - (136,769) - (136,769)Provision of diminution of investments - - 650 10,697Provision for doubtful debts (63) 64 - -Decrement in value of non-current assets - 13 - -Change in operating assets and liabilities - - - -Decrease in receivables (1,365) 3,087 - -(Increase) in inventories (23) (18) - -Decrease in other operating assets (179) 1,968 - -Increase in trade creditors 2,755 479 - -Increase in other provisions 3,864 687 - -Net cash inflow from operating activities 20,486 9,659 - -NOTE 28 ECONOMIC DEPENDENCYThe consolidated entity provides public transport services to rural and regional Victoria. The provision of these services is subsidised by the StateGovernment of Victoria. Without the provision of that subsidy the consolidated entity could not continue as a going concern. The subsidy requirementsfor the year ending 30 June 2006 have been approved by the State. The consolidated entity's three year Business Plan has also been approved,pursuant to the Franchise Agreement.NOTE 29 DIVIDENDSNo dividends were paid, declared or recommended during the period, or subsequent to the period end.