✨ Financial Statements Notes
2.5 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS (continued)
FINANCIAL INSTRUMENTS (continued)
Commercial paper
The carrying amount of these items is equivalent to the fair value.
Medium Term Notes
The fair value of NZ$ notes is based on quoted market prices.
The fair value of A$ notes is based on the face value converted at the exchange rate prevailing at year end.
Derivative instruments
The fair value of interest rate swaps, forward rate agreements, interest rate options and other derivative instruments is estimated based on the quoted market prices for these instruments.
18 SEGMENTAL REPORTING
The predominant activity of UnitedNetworks is the ownership and operation of electricity distribution networks. All operations are conducted in New Zealand.
19 CAPITAL COMMITMENTS
At balance date, estimated capital expenditure contracted for but not provided was approximately $8 million (2001: nil).
20 CONTINGENT LIABILITIES
The company has contingent liabilities totalling $1.3 million (2001: $2.1 million) consisting of:
i) Performance bonds to ensure completion of contract works; and
ii) Letters of credit to satisfy New Zealand Stock Exchange listing requirements; and
iii) Letters of credit to guarantee other payments.
21 TRANSACTIONS BETWEEN RELATED PARTIES
The principal related party of UnitedNetworks is its holding company UtiliCorp NZ Limited. Deutsche Bank AG is a shareholder in the parent company of UtiliCorp NZ Limited and details of transactions with it have been disclosed as if Deutsche Bank AG were a related party.
| 2002 ($000) | 2001 ($000) | |
|---|---|---|
| Purchases from UtiliCorp NZ Limited and subsidiaries | $3,999 | $1,890 |
| Purchase of tax losses from UtiliCorp NZ Limited | $5,258 | $3,600 |
| Balance due to UtiliCorp NZ Limited | $1,588 | $269 |
| Balance due to UtiliCorp NZ Limited arising from transfer of tax losses | $2,875 | $6,286 |
| Advisory, financing and success fees paid to Deutsche Bank Limited | $225 | $41 |
| Interest payments to Deutsche Bank AG | $6,654 | $10,566 |
| Borrowings owing to Deutsche Bank AG | $67,939 | $549,685 |
| Interest and other balances due to Deutsche Bank AG | $390 | $3,121 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 122
Gazette.govt.nz —
NZ Gazette 2002, No 122
✨ LLM interpretation of page content
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Notes to Financial Statements for the year ended 31 March 2002
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Financial Instruments, Segmental Reporting, Capital Commitments, Contingent Liabilities, Related Party Transactions