✨ Financial Statements Notes
Notes to and Forming Part of the Financial Statements
For the Year Ending 31 March 2002
12 RELATED PARTY TRANSACTIONS
As Powerco is an integrated business, this disclosure relates to the business as a whole.
Powerco paid consulting fees amounting to $56,200 (2001: $48,000) to Upson Associates Ltd, a company in which Mr B R Upson, a Director, has an interest for work performed in the area of corporate development.
Powerco paid legal fees amounting to $609,089 (2001: $585,065) to Horley Christie, a firm in which Mr D H Brown, Alternate Director, is a partner.
Powerco paid consulting fees and brokerage amounting to $1,663,016 (2001: $2,284,206) to companies in the Macquarie New Zealand group, companies in which Mr J H Ogden is a Director. Mr J H Ogden was appointed a Director of Powerco on 1 October 2001.
Powerco is also deemed to have a related party relationship with the New Plymouth District Council. The New Plymouth District Council holds a 47.61% material interest in Powerco Limited. Powerco paid $62,304 (2001: $109,000) rent to the New Plymouth District Council at market rates. Rates have been paid to the New Plymouth District Council to the value of $21,060 (2001: $18,103). Other arms-length transactions with the New Plymouth District Council amounted to $131,628 (2001: $18,562).
In the financial year under review, all operating activities and relevant assets were transferred to a subsidiary company, Powerco Management Services Limited. PMS Ltd charges Powerco market rates for all services provided, including electricity network management and maintenance. The following amounts were paid to PMS Ltd for services provided:
- Network Maintenance: $1,085,529
- Asset Management: $447,949
- Operations and Dispatch: $(19,029)
- Group Services: $677,898
- Corporate Services: $1,484,600
These transactions are completed upon normal commercial terms. No amounts have been forgiven or written off in the year.
13 RECONCILIATION OF OPERATING SURPLUS AFTER TAXATION WITH CASH INFLOW FROM OPERATING ACTIVITIES
| Line | 2002 | Line | 2001 | |
|---|---|---|---|---|
| Operating surplus after taxation | 29,153 | 8,055 | ||
| Add (less) non cash items: | ||||
| Depreciation | 16,237 | 9,770 | ||
| Loss on Sale | 308 | 222 | ||
| Provision for Doubtful Debts | - | 264 | ||
| 18,545 | 10,256 | |||
| Movements in working capital: | ||||
| Asset revaluation | 10,874 | |||
| Accounts receivable | 1,591 | 3,499 | ||
| Change in Prepayments | (2,173) | 4,014 | ||
| Movements in deferred taxation | (1,655) | 1,100 | ||
| Tax refund due | 12,508 | |||
| Inventories | 1,405 | (527) | ||
| Accounts payable | (5,240) | 312 | ||
| 17,406 | 18,664 |
Net cashflow from operating activities | $55,104 | | $34,975 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 129
Gazette.govt.nz —
NZ Gazette 2002, No 129
✨ LLM interpretation of page content
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Powerco Limited Notes to the Financial Statements
(continued from previous page)
🏭 Trade, Customs & IndustryElectricity, Gas, Financial Statements, Related Party Transactions, Consulting Fees, Legal Fees, Brokerage, Corporate Development, Market Rates, Rent, Rates, Operating Activities, Asset Transfers, Commercial Terms, Operating Surplus, Cash Inflow, Depreciation, Loss on Sale, Doubtful Debts, Asset Revaluation, Accounts Receivable, Prepayments, Deferred Taxation, Tax Refund, Inventories, Accounts Payable
- B. R. Upson (Director), Received consulting fees for corporate development
- D. H. Brown (Alternate Director), Partner in firm receiving legal fees
- J. H. Ogden (Director), Director in companies receiving consulting fees and brokerage