✨ Financial Statements and Policies
14 AUGUST NEW ZEALAND GAZETTE 2739
13. Reconciliation of Net Surplus After Taxation with Net Operating Cash Flows
| 31 March 2002 | 31 March 2001 | |
|---|---|---|
| $000 | $000 |
Net Surplus After Taxation | 3,583 | 3,800 |
Plus/(Less) Non Cash Items:
Depreciation | 1,234 | 1,202 |
Movement in Deferred Tax | 37 | (208) |
| 1,271 | 994 |Plus/(Less) Items Classified as Investing Activities
Loss on Sale of Property, Plant and Equipment | - | 227 |
Gain on Sale of Property, Plant and Equipment | - | (35) |
| - | 192 |
Plus/(Less) Movements in Working Capital Items:
(Increase)/Decrease in Receivables and Prepayments | 98 | (401) |
(Increase)/Decrease in Stock and Work in Progress | 4 | (4) |
(Decrease)/Increase in Accounts Payable and Provisions | 244 | 195 |
(Decrease)/Increase in Provision for Taxation | (724) | 591 |
| (378) | 381 |
Net Cash Flows from Operating Activities | 4,476 | 5,367 |
14. Financial Instruments
Company Policy
It is Company policy to request a Retailer to sign a “Use of System Agreement” before that Retailer is allowed to use the Company’s lines to sell energy. As part of the “Use of System Agreement” it is Company policy that a Retailer maintain an acceptable credit rating of at least A3 (Moodys Investor Service Inc), A- (Standard & Poors rating group) or B+ (AM Best). If the Retailer cannot supply an acceptable credit rating then the Retailer must supply a cash bond or an irrevocable letter of credit equal to three months’ line charges.
It is Company policy to review the level of bond every six months and where appropriate, adjustments to the level will be requested.
Interest Rate Risk
The Company is subject to normal fluctuations in interest rates.
Concentrations of Credit Risk
The concentrations of credit risk in respect of Energy Retailers using the network is limited because any Retailer is required to maintain certain prudential requirements, detailed in the Company policy above.
With respect to Cash and Short Term Deposits, a concentration of credit risk exists with $3,000,000 invested with one institution. The remaining $2,055,000 is spread between various financial institutions.
Foreign Exchange Risk
The Company is not exposed to any foreign exchange risk.
Fair Values
All financial instruments shown in the Statement of Financial Position are recorded at fair value.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 101
Gazette.govt.nz —
NZ Gazette 2002, No 101
✨ LLM interpretation of page content
🏭
Otago Power Limited Financial Statements
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Instruments, Reconciliation, Cash Flows, Net Surplus, Taxation