✨ Financial Statements and Notes
HAWKE'S BAY NETWORK LIMITED - LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For The Year Ended 31 March 2002
11 RETAINED EARNINGS
| 2002 | 2001 | |
|---|---|---|
| $000 | $000 | |
| Balance at beginning of year | 1,180 | (1,755) |
| Dividends Paid | (167) | - |
| Net Surplus/(Deficit) | 1,209 | 2,654 |
| Land and Building Revaluations** | (15) | - |
| Asset Revaluation in Relation to Land Sold | - | 281 |
| Balance at end of year | 2,207 | 1,180 |
** As per the Transitional Provisions of Financial Reporting Standard 3
12 RECONCILIATION OF REPORTED NET OPERATING SURPLUS AFTER TAX WITH NET CASH FLOWS FROM OPERATING ACTIVITIES
| 2002 | 2001 | |
|---|---|---|
| $000 | $000 | |
| NET OPERATING SURPLUS (DEFICIT) AFTER TAXATION | 1,209 | 2,654 |
PLUS: Non Cash/ Non Operating Items
| Building Revaluation | - | 141 |
| (Gain)/Loss On Asset Sales | (58) | - |
| Depreciation | 5,558 | 4,908 |
| | 6,709 | 7,703 |
PLUS/(LESS) Movements in Working Capital:
| Decrease/(Increase) in Receivables and Prepayments | 1,525 | 274 |
| Decrease/(Increase) in Inventories | 34 | 148 |
| Increase/(Decrease) in Accounts Payable, Accruals and Employee Entitlements | 917 | 817 |
| Increase/(Decrease) in Taxation Payable | (920) | 960 |
PLUS/(LESS): Other Movements
| | - | - |
| Net Cash Inflow From Operating Activities | 8,265 | 9,902 |
13 FINANCIAL INSTRUMENTS
a) Credit Risk
Financial Instruments which potentially subject the Company to credit risk principally consist of bank balances and accounts receivable. No collateral is held on these amounts. Maximum exposure to credit risk is the amount stated in the Financial Statements and is net of any recognised provision for losses on these financial instruments.
b) Concentration of Credit Risk
The Company is exposed to a concentration of credit risk in that at certain times during each month Contact Energy may account for up to 65% of the accounts receivable balance outstanding, and any approved institution may hold up to 33% of the Company's bank balances at any given time.
c) Fair Values
The methods and assumptions used are that carrying amounts in the Financial Statements reflect the estimated fair value of the financial instruments including receivables, bank and investments, accounts payable and term debt.
The average effective pre-tax interest rate on investments at balance date was 5.31%.
d) Currency Risk
The Company enters into forward exchange contracts for any transactions conducted in currency other than the New Zealand dollar to eliminate the effects of any currency fluctuations.
14 RELATED PARTY TRANSACTIONS
The Establishment Plan of the Company provided for the formation of the Hawkes Bay Power Consumers Trust (the object of which is to hold the shares of the Company on behalf of the Consumers in their capacity as owners) and the issue of a $1,000,000 debt security from the Company to the Trust. The debt security is repayable on 1 June, 2003 and carries an interest rate of 6% per pa.
A fully imputed dividend of $167,000 was paid to the Hawke's Bay Power Consumers Trust during the year.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 123
Gazette.govt.nz —
NZ Gazette 2002, No 123
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Hawke's Bay Network Limited Financial Statements
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