New Zealand Gazette – 1999 – No. 170

Page 4050

✨ Financial Statements Notes



NEW ZEALAND GAZETTE

No. 170

Electricity Corporation of New Zealand Limited

Notes to the Financial Statements

12. Deferred taxation

1999 1998
$M $M
Deferred taxation at start of the period 108 158
On profit for the year (note 5) (74) (50)
Deferred taxation at end of the period 34 108

13. Equity

Equity includes issued and paid up capital of:
1,000,000,000 ordinary shares

1999 1998
$M $M
1,000 1,000

Ordinary shares

All issued ordinary shares in ECNZ are owned by the Crown. Holders of ordinary shares have the following rights:

(a) The right to receive notice of and attend and vote at a meeting of the shareholders of the Company on any resolution. Each holder of a share will have one vote.

(b) The right to an equal share in dividends on a per share basis.

(c) The right to an equal share in the distribution of surplus assets on a per share basis.

14. Capital commitments

Commitments in respect of contracts for capital expenditure

1999 1998
$M $M
- 160

15. Operating lease commitments

Operating lease commitments are payable:

1999 1998
Within one year 1 2
Between one and two years 1 1
Between two and five years 2 4
Later than five years 5 8
Total 9 15

The operating leases are of a rental nature and are on normal commercial terms and conditions. The majority of the lease commitments are for building accommodation. The remainder relate to land or small items of plant and equipment.

16. Contributions to retirement savings plan

Contributions are made into ECNZ's Retirement Savings Plan in respect of ECNZ 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 profit.

17. Financial instruments

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 borrowing 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.

Contract amounts of foreign exchange instruments outstanding at balance date are as follows:

1999 1998
$M $M
Cross currency interest rate swaps 887 991
Forward foreign exchange contracts 34 124

The cash settlement requirements of the above instruments approximate the contract amounts shown above.



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✨ LLM interpretation of page content

🏗️ Electricity Corporation of New Zealand Limited Financial Notes (continued from previous page)

🏗️ Infrastructure & Public Works
Deferred taxation, Equity, Ordinary shares, Capital commitments, Operating lease commitments, Retirement savings plan, Financial instruments, Currency risk, Interest rate risk