✨ Financial Statements Notes
27 NOVEMBER
NEW ZEALAND GAZETTE
4583
NOTES TO THE FINANCIAL STATEMENTS
- EQUITY (continued)
The preference shares of $800 million, together with accumulated preference dividends of $437 million, were repaid on 1 July 1994 out of the proceeds of the sale of the shares in Trans Power New Zealand Limited to the Crown. All fully paid ordinary shares rank pari passu as to dividend and voting rights. Each share confers the right, on a poll, to vote at general meetings. For the financial periods ended 30.6.95 and 30.6.94, the total ordinary shares of $1 each that had not been allotted were 999,100,000. Allotment of the ordinary shares must be made in accordance with the provisions of ECNZ’s Articles of Association and the State-Owned Enterprises Act 1986. Those provisions restrict the allotment of shares other than to the Shareholding Ministers on behalf of the Crown.
1995
$000
1994
$000
- CAPITAL COMMITMENTS
Commitments in respect of Contracts for Capital Expenditure (all of which are planned for payment within 3 years)
65,827
47,772
- OPERATING LEASE COMMITMENTS
Operating Lease Commitments are payable:
Within One Year
1,706
1,820
One to Two Years
1,643
1,709
Two to Five Years
3,865
4,533
Later than Five Years
7,356
8,332
Total
14,570
16,394
The operating leases are of a rental nature and are on normal terms and conditions. The majority of the lease commitment dollars are for building accommodation. The remainder relate to small plant and equipment.
- CONTRIBUTIONS TO RETIREMENT SAVINGS PLAN
Contributions are made into ECNZ’s Retirement Savings Plan in respect of ECNZ’s employees who are members of the Plan. ECNZ contributes a maximum of 10% of the relevant employee’s basic salary. These contributions are charged against earnings.
- CONTINGENT LIABILITIES
CLAIMS
The amounts of claims made against ECNZ are not considered to be material to the results or to the financial position.
ECNZ is currently the subject of a periodic review by the Department of Inland Revenue. The financial effect, if any, on ECNZ of this review is not known but the Director’s believe that it would not be material to the results or to the financial position.
GUARANTEES
Energy Advances Limited (EAL) is a special purpose short term funding vehicle. Notes issued by EAL amounting to $96 million as at 30 June 1995 (1994 $67 million) are jointly and severally guaranteed by ECNZ and Citibank, N.A. ECNZ’s obligations under the EAL guarantee are offset by a counter-guarantee from Citibank, N.A.
- FINANCIAL INSTRUMENTS
(i) Currency, interest rate and revenue risk
Nature of activities and management policies with respect to financial instruments:
(a) Currency
ECNZ has exposure to foreign exchange risk as a result of offshore funding activities, and transactions denominated in foreign currencies, arising from normal trading activities.
Where exposures are certain, such as borrowings or capital commitments, it is ECNZ’s policy to hedge these risks as they arise.
ECNZ uses cross currency interest rate swaps and forward foreign exchange contracts to manage these exposures.
Next Page →
PDF embedding disabled (Crown copyright)
View this page online at:
VUW Te Waharoa —
NZ Gazette 1995, No 140
NZLII —
NZ Gazette 1995, No 140
✨ LLM interpretation of page content
🏭
Financial Statements of Electricity Corporation of New Zealand Limited
(continued from previous page)
🏭 Trade, Customs & IndustryElectricity, Financial Statements, Equity, Capital Commitments, Operating Leases, Retirement Savings, Contingent Liabilities, Financial Instruments